Thursday, March 12, 2009

the ARPU decline is being set off by the huge monthly subscriber additions, thereby adding to profitability of the telcos

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

If RCOM’s ARPU shrank to Rs.271 from Rs.282 in the previous quarter; Bharti Airtel’s Q2FY09 ARPU sank to Rs.331 versus expectations of Rs.341. For now, the ARPU decline is being set off by the huge monthly subscriber additions, thereby adding to profitability of the telcos. But the party-pooper will come when that growth source will eventually dry up. So do Indian telcos have a Plan B for continued growth? Here’s a quick analysis of the prospects and potential of each of the Plan B options that telcos are either already exploring/ or must acknowledge soon!

The 3G Game: Estimated at Rs.5,780 crore presently, Manoj Dawane, CEO, Mauj Mobile is upbeat on the potential of the Indian VAS industry. “VAS business is expected to grow steadily at 70% over the next few years touching Rs.16,520 crore by June 2010,” he says. But the 4Ps B&M-ICMR survey (see pg 76) reveals that 47% of respondents have never used any data service on their mobile phones (and neither plan to!). Undeterred, the entire industry, including state owned MTNL and BSNL, has begun focusing harder on VAS. For the uninitiated, VAS may be classified on two fronts – application oriented services (ringtones, caller tunes, alerts) and data services, which thrive via larger bandwidth (Internet). Presently, players like Vodafone, Airtel and RCOM are playing up the application based services. For higher revenue data services, telcos are awaiting the 3G spectrum, expected to be rolled out early next year. With advent of 3G, telecom majors are hoping that features like personal radio, mobile blogging and social networking will kick off in a big way. But while operators may be able to add to their revenues by providing broadband on mobile; usage of their data based services (downloading songs, videos et al) would be easier said than done. “If a user is connected to Internet via mobile, he will download songs directly, instead of paying extra to operators,” reasons an analyst, stressing on the need for more imaginative offerings from service providers. Converting 3G spectrum into quick profits will not be child’s play.

For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

ZEE BUSINESS BEST B SCHOOL SURVEY


For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...