Financial Daily from THE HINDU group of publications
Sunday, May 04, 2003
Financial Daily from THE HINDU group of publications Sunday, May 04, 2003 |
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Investment World
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Telecommunications Info-Tech - Telecommunications Industry & Economy - Investments BSNL's new tariff plans: Getting to the pulse of the consumer Nath Balakrishnan
BHARAT Sanchar Nigam Limited (BSNL) has now upped the ante in the business of landlines that still dominate the telecom landscape. This comes on the heels of BSNL's success in the mobile phone business, where it racked up 2.3 million customers and moved into the second slot behind Airtel. To fortify its already dominant position in the landline segment, BSNL recently announced a clutch of innovative pricing plans to coincide with the transition into the IUC regime.
What is IUC?
IUC is not one of those new-fangled abbreviations doing the rounds on the SMS these days. It stands for Interconnect Usage Charges — the effect of which will be felt on the telephone bills from May 1. The IUC prescribes access charges which will be payable when various networks, such as basic, cellular and WLL, connect with one another. BSNL has recast its basic services offerings for users in the urban areas and come out with four plans. Users can choose one depending on the extent of the telephone usage. Significant changes have been made to the pricing of STD calls. Unveiled as BSNL General, BSNL Economy, BSNL Special and BSNL Super, the common of these plans is a fixed amount to be forked out each month (irrespective of usage) with free calls thrown in as part of the package. The number of free calls varies among plans.
Options from BSNL
The BSNL tariff card is as comprehensive as it is complex. One has to trawl through varying pulse rates — depending on the kind of network one is connecting to — the time at which the call is made (peak or non-peak hours), the distance, and whether the call made is inter- or intra-circle. What we will attempt to do is look at the various plans on offer, and determine a prudent style of usage to ensure that the customer is not left with a crater in his wallet after settling the telephone bill.
This is not a customer-friendly proposition from BSNL and may be given the go-by.
Local call charges
Calls made to BSNL land lines/ WLL (Fixed Wire Line) within a city will continue to be billed according to a 180-second pulse (three minutes). But before you reach out to call a cell phone from your landline, a look at the new rates might just quicken your pulse rate. Sample this:
The solution: Either embrace the principle of KISS during the conversation (that is an acronym for Keep It Short and Simple, before you get other ideas!) or go cellular.
Peak and non-peak times
An important point to note is that the timings for peak and non-peak hours have changed. Till recently, peak hours were between 8 a.m. and 8 p.m. and non-peak hours from 8 p.m. to 8 a.m. Now, peak hours will be between 9 a.m. and 10 p.m. and non-peak hours from 10 p.m. to 9 a.m.
Internet access charges
Calls made to numbers of the Internet Service Provider will be billed at a 10-minute pulse. An hour's usage of the phone to access the Net will cost Rs 7.20 an hour. This is a concessional rate and applicable only between 10.30 p.m. and 6.30 a.m. Accessing the Net at any other time will be billed at a three-minute pulse. It would have been better if the concessional rates were applicable between 8 p.m. and 8 a.m., as proposed by the Telecom Regulatory Authority of India in March. For one, surfing during concessional hours is done to catch up with friends and relatives staying abroad on applications such as instant messaging. The current concessional surfing time slot is suitable for getting in touch with people in the West (countries such as the US and the UK). But it is inconvenient for those attempting to touch base with friends/relatives in the East (in, say, Singapore or Hong Kong). The latter problem would have been obviated had the tariffs been applicable between 8 p.m. and 8 a.m. Which plan should you choose? SPARING users can opt for the Economy plan. The Super plan is strictly for heavy users. Ideally, those who surf the Net for an average of two hours a day (home-office segment). Moderate telephone users, who schedule phone usage to access the Web during off-peak hours, can settle for the Special plan. Calling patterns will also assume greater import now than earlier. For one, local calls made to mobile phones/ WLL (M) will be dearer. And rates for inter-circle STD calls have been re-jigged, with a lowering of access charges for Internet during off-peak hours. But as a broad guideline, those who are currently billed 480 calls or lower can choose the Economy plan. Those who make up to 1,400 calls a month will be better off with the Special plan. A usage higher than 1,400 calls makes the Super plan an attractive option. The General option is the least competitive of the lot and can safely be skipped by all users.
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