Wednesday, August 27, 2008

Idea No - 10 - Voice over IP

http://www.ciol.com/News/News-Reports/TRAI-allows-Internet-telephony/18808109170/0/ -
When this happens, immediate result of it would be that call rates would drastically decrease. Telecom operates may not be very happy with this new outcome of TRAI's change in the basic mindset. Now, here is an attempt to answer how next generation telecom world is going to look and how operators have to adopt to change to survive the next big change since early telecom boom.

Make no mistake VoIP is no joke, if TRAI gets it through and is regularized it will turn the billing system of operators up side down. No operator would ever again be able to justify call rates and service rates. Call rates that might drop to a level of few paisa per minute will suddenly make the balance sheets of operates plunge to a new low.

Let’s look at the user side of it. Conservative users like me who believe cell phone still only a gadget to communicate on need basis will laugh out loud on our way back home. Most of the services provided in today's market in India need a high end phone handset and if there's no operator and handset provider tie up, possibility is that most of the services will still remain untouched by end customer resulting into no service charges. If operates are dreaming to stay on and make millions out of a 100 million customer base, get real. If operators don't step up they would be heading to become more or less charitable non-profit organizations.


So here is the survival guide for operators -

1. Concentrate on innovating towards more services to end customers then just living with expanding customer base. 5 years back I would have advocated the Idea of increasing customer base, but today's mantra has changed and so should the mindset.

2. Bundle Services: Tomorrow, when VoIP is a reality. Don't change the current billing arrangements especially for prepaid subscribers. Instead at the same cost price, offer them a bundle of services with obvious intended voice services. For example, On a recharge of Rs 100, convert the talk time quantity from money to time. Add a small MMS service charge, pass him Music on demand, News Service, Flash Picture SMS etc.

3. Graduating user to new level wouldn't help till operator makes a conscious effort to educate him for service usage. Operators should start channeling resources towards the education part.

4. Operator- Handset provider Partnership its time this partnership should be materialized and stressed more. Operator on bases of services provided should appropriately line up handset providers and have common selling points. Like elsewhere, this should be more encouraged for postpaid subscribers and operators should press for more ECS mode of payments for billing.

5. Distinction should be made for prepaid and postpaid subscriber. Prepaid subscriber should be more call based low-end customer with limited services. Postpaid customer on bases of plan subscribed should be graded and supplied with premium services.

6. Emergency Services - Sad part but yes, though still not stressed or regularized by TRAI can actually become a selling point in current scenarios.

7. In all the fray to gain an edge over others, don't forget QoS and Security.

Now it’s a wait and watch game!!