Right-sizing by bundling services will help telecom industry

Rajesh Kurup Updated - September 10, 2014 at 09:50 PM.

The bundling would include streaming video, handsets, data and voice plans, apart from a range of applications.

Rather than lowering telecom tariffs, Indian telecom operators will look at “right-sizing” call rates, a move that would please both the bleeding sector and ever-demanding subscribers.

The right-sizing would depend on the appetite of the customers, with service providers looking to provide more value to users through bundling of services.

The bundling would include streaming video, handsets, data and voice plans, apart from a range of applications, according to TM Forum officials.

Push for value

“We actually need to move away from the notion of how much is the tariff. We need to look at what is the value that the customer gets. Indian operators’ average revenue per user (ARPU) are among the lowest in the world, but standardising operating costs would minimise expenses at operators’ end,” said Alpna J Doshi, vice-chairman of the forum, told

BusinessLine . TM Forum is a global not-for-profit trade body, and is consultant to most telecom companies across the world. The organisation, which has more than 900 member-companies across the world, also counts Wipro, Infosys, Tech Mahindra, Reliance Communications, Sistema Shyam TeleServices Ltd, Uninor and Vodafone India as members.

“When infrastructure and operating costs are minimised, then it helps us not to charge higher tariffs from the customer. This will also allow us to survive,” Doshi, who is also the Chief Information Officer at RCom, said.

According to TM Forum Chief Strategy Officer Nick Willetts: “Globally, there is a pressure to lower the operating expenses and capital expenditure, and across Europe a number of providers are now bundling music streaming services into tariffs”.

One billion users

Digitisation, machine-to-machine communication, Internet of things, m-commerce and emerging technologies among others would help the country gain one billion users, even though it is still a little far away.

“A minimum of one-two years is needed to reach that figure. We need much more aggression and much more collaboration,” Doshi added.

Digitisation is one of the keys to improve the subscriber base, according to Apostolos Kallis, senior vice-president (member engagement and development) at TM Forum.

Several countries and big cities such as New York and Paris have already appointed Chief Digitisation Officers (CDOs). Countries such as India also need a CDO to set things right, Kallis added.

Published on September 10, 2014 16:20