Opening up of international and domestic long distance telephony services are growth drivers in the industry. Cellular operators now get substantial revenue from these services, and compensate them for reduction in tariffs on air time, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand.
The Key players in the Telecom Market in India Cellular Service provider:
6. Tata indicom
Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic long distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing. Cellular services can be further divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA).
The GSM sector is dominated by Airtel, Vodfone-Hutch, and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of international and domestic long distance telephony services are the major growth drivers for cellular industry. Cellular operators get substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand.
Life Time Plans Of the Cellular Companies
Airtel Presents Rs. 295 Lifetime Prepaid with 1 Rupee Outgoing Local Tariff Slashes local outgoing call rate by 50% for Rs. 295/- Lifetime Prepaid users Local outgoing tariff reduced to Re. 1/- for life to all networks (mobile & landline) from Rs. 1.99/- for Rs. 295/- Lifetime Prepaid customers.
· All existing customers of Rs. 295/- Lifetime Prepaid to be migrated to Re. 1/- call rates, without any extra charges.
Bharti Airtel, India‘s leading telecom service provider, today announced the Rs. 495/- Lifetime Prepaid offer for its customers in Delhi & NCR circle and slashed all local outgoing calls (mobile and landline) to Re. 1/- from the existing Rs. 1.99/- per minute call rate.
Bharti Airtel, which was also the first service provider to introduce the Lifetime Prepaid in India, announced this revolutionary tariff cut for customers that was earlier applicable to only the Rs. 999/- Lifetime customers. With effect from february 15, 2008, all Rs. 295/- Lifetime Prepaid customers will be able to make local outgoing calls (Mobile & Landline) at Re. 1/- per minute and all existing customers will be migrated to the revised tariff plan without any extra charges. Customers will have to recharge with a minimum amount of Rs. 200/- at least once in every 180 days to enjoy the lifetime validity and tariff benefits.
Reliance Communications, the code-division multiple access major, which was the first to launch the lifetime plan almost two years ago at a one-time cost of Rs 999, plans to announce a similar scheme at one-fourth the price —- Rs 199.
For making outgoing calls, the standard local tariff will be 99 paise per minute. Various other calling tariff options will also be available to the users, depending on the trend of one‘s usage.
RCom‘s move looks like a replay of 2006, when mobile telephony players were intensely competing with each other over lifetime pre-paid schemes. Spectrum war, however, kept the operators busy all through 2007, and one didn‘t hear about lifetime plans at all.
TRAI has asked the mobile operators offering lifetime connectivity plans to disclose 'risk factors', like change in tariff plans and their remaining license period duration, in their announcement.
The Telecom Regulatory Authority of India (TRAI) on Tuesday incorporated safeguards to protect consumer interest in the lifetime validity tariff schemes being offered by phone companies. These include a restriction on the companies from hiking the tariff on any item specified in the plans and an obligation to inform the subscribers of the month and year of the expiry of current license.
The amendment to the Telecommunication Tariff Order thus addresses a moral issue that had arisen after phone companies began promoting lifetime schemes — their licenses are for a limited span ranging from seven to 15 years while they were offering a tariff that went well beyond the license period. It also answered a question in the minds of the subscribers whether there would be subsequent demands from phone companies after the initial upfront payment. TRAI made it clear that in the case of tariff plans offered or marketed as having lifetime or unlimited validity, the subscribers should get the service as long as the phone company is permitted to provide such telecom service under the current license or renewed license. TRAI has also reiterated the right of the subscribers to choose any tariff plan at any point of time.
55% of the people use only mobile, and 40% of respondents use both the services & only 5% people use the telephone service. It shows the popularity of cellular phone services.
34% of respondents are using the Airtel services, which is the highest percentage of users of cellular phone. Idea takes 2nd place in Bhopal with 28% of users. Then comes reliance and BSNL, and tata indicom having least customers in the Bhopal.
Prepaid service is most popular in the cellular services with 95% of customers. The remained uses postpaid services.
In current situation 73% of respondents are using lifetime plans, where the rest are using general plan of the cellular companies.
64% of respondents are satisfied with the call rates of the lifetime plans, it is because telecom companies have slashed their call rates few months ago. Still in this situation 36% of respondents did not satisfy with the call rates which service they are using.
In the lifetime plan of cellular companies most of the respondents are using this service because of its validity period with 83% of answer. Where 15% of people like this services because of its call rates.
78% of customer satisfied with the lifetime plans of cellular companies, and which are not satisfy with the service they are mostly BSNL and TATA indicom users.
Most of the people are using lifetime services because of money savings with the percentage of 48. Where 29% of people like this service because of the facilities provided by the operators. And 23% of people are using this service because of incoming only.
When it was asked to the respondents that did they know about the license of the cellular company, then most of the people replied NO. it means people are not aware about the license related bound of the cellular companies which is implemented by TRAI, that cellular companies can deliver their services until their license have validity, they have to renew it for providing further service..
In Bhopal it is found that Airtel is the market leader in the lifetime plan segment. People like the lifetime plans provided by the companies. And Idea having 2nd highest customers in Bhopal TATA indicom having least customers in Bhopal, where Reliance and BSNL having almost equal percent of customer But they are not aware about the bound of cellular companies with TRAI, that cellular companies can deliver their services till their license have validity, they have to renew it for providing further service.