Welcoming the Pay Per Second Era

Yes, the revolution is here – “Pay per second”. This joint move, by Japanese telecom major DOCOMO along with TATA INDICOM has struck the Indian Telecom Market like a thunderbolt. For the first time, all the major players including Airtel, Reliance, Bsnl, Idea etc. were made not only to take notice but to run for cover as DOCOMO within two weeks made astonishing number of subscribers cutting in to the market share of some major players. With that started the price war. Every company brought down its tariffs and started “pay per second” plans. And watching this war up high from a comfortable chair sits laughing – “The Indian Customer”. He now does not need to keep a check on his clock to stop himself from jumping to the next minute and at the same time keep trying to make full use of the 60 seconds he was paying for, as now he has to pay just for seconds and not the minutes. And as they say “money saved is money earned”, so he will surely be earning few bucks more, so why shouldn’t he be happy?

Clearly, it’s a win-win situation for the customer, but what about the companies? Will they be able to keep making the same profits and boast proudly about their big revenues? Well what seems as of now is, the revenues are surely going to go down as the “pay per minute” model is going to take a serious beating from the “pay per second” plan. The average earning per minute will fall and thus there will be a decline in the revenues. And to add to the misery, because of this serious cutthroat competition the STD and Roaming rates have also fallen into the trap of “pay per second”- another blow to the revenues. In a highly saturated Telecom Market this situation doesn’t seem so good.

Also with the sword of the “Number Portability” hanging over there head, no company can take a breather. The high end customers (who make calls frequently, are more social and thus communicate more, are willing to spend money and also use the value added services of the operator, earning them more revenues), who earlier felt bounded by the obstacle of changing there their numbers and used to stick to the same operator might now start slipping away because of this price war, and as is the case with any company, these high end customers contribute heavily to the revenues. No company can afford to lose this ongoing price war.

The another  change we might see in next few months is that Telecom companies would start providing more value added services and spend more on their customer care segments, as the Customer of Telecom services seems important than ever in the current scenario.

So, in short term, it seems that companies will lose their revenues and this new model of billing will get better of them. But as they say there is a bright side to everything, with a period of time the sheer volume of subscribers will increase. They will feel more free and inclined to make calls than before and the revenues will soar again. As Shakespeare once said – “The Show Must Go On”, well, so it will.

Rachayeta Singla

[Image courtesy: http://www.flickr.com/photos/bhautikjoshi/4199719648/]