Consumers can get all these services from the same

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: h commercial IPTV services. Indian operators are at the nascent stage in terms of offering “quad-play” using the existing network infrastructure for data, voice, video and basic communication services. Consumers can get all these services from the same Telecom operator and enterprises can also access virtual private networks (VPN), video-conferencing, enterprise solutions, mobility and fixed telephony from the same integrated Telecom service provider. But what happens after that? In a market where the ARPU is already at USD5 to USD649 and still declining, operators are looking at ways and means to boost revenues. After all, once the subscriber growth begins to slow down, operators will need other ways to sustain revenue growth and profitability. Operators have diversified the strategy to focus on the customers’ composite “share of the wallet” in addition to the traditional voice revenues. Thus, the approach should be to aim at total customer spend as opposed to just the spend on communications. Consumer spend on communications doubled from 1.2% in 1999 to 2000 to 2.7% in 2006 to 2007 replicating the global spending patterns. “It is estimated that in 2025, the consumer spend on communications will be 6%. Communications is expected to be one of the fastest expanding categories with a growth of over 13% a year on an aggregate basis.”50 Telecom operators increasing stake across industries While global operators are clearly focused on Telecom, Indian operators are typically a part of large, diverse business groups that offer variety of goods and services. For example: business groups with Telecom operations in India have ventures that include insurance services, retail outlets and multiplexes, among others. Thus Indian operators are at an initial stage of rolling out schemes and strategies to target the “customers’ wallet.” A key stakeholder in the industry suggested that “over the next few months, subscribers could be offered a series of bundled offers and schemes.” Thus, it will be beneficial for companies as there will be significant scope to cross-sell by way of product offerings and service solutions. For example: on taking up a new insurance plan, a subscriber could be 48 49 Telecom Services Performance Indicators Apri...
View Full Document

This document was uploaded on 03/03/2014.

Ask a homework question - tutors are online