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Telecom

Content monetisation remains a distant dream for telcos in India’s hypercompetitive market

Telcos need to look beyond customer retention and monetise content to grow revenues and profits. But competition and the fear of churn is holding them back in what is still a price-sensitive market. ET Prime examines the various dimensions of the problem to find out the best content-pricing strategy for the telcos.
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10 Jun 2019 10 Mins Read 0 comment
The market is moving towards saturation, and disruptive moves by Jio have forced other telcos to shift their focus from 'acquisition’ to ‘retention’. Content is meant to be a key pillar of this shift; courtesy of Google Playstore
The market is moving towards saturation, and disruptive moves by Jio have forced other telcos to shift their focus from 'acquisition’ to ‘retention’. Content is meant to be a key pillar of this shift; courtesy of Google Playstore
There have been media reports that Bharti Airtel plans to drop all post-paid plans below INR499 to improve ARPUs, but the telco is still offering some cheaper plans in select circles, which may be phased out gradually. It demonstrates the existential challenge before telcos — a highly price-sensitive market that sees customer pushback against any efforts to revise
operandi, particularly their business models around content partnerships and offerings. Long gone are the days of a ‘loyal customer”. Today, it is all about a ‘loyal operator’ who would continue to offer innovative and competitive services to the consumer. The tables have turned, and so have the industry dynamics for the telcos. ( Graphic by Sadhana Saxena)
There have been media reports that Bharti Airtel plans to drop all post-paid plans below INR499 to improve ARPUs, but the telco is still offering some cheaper plans in select circles, which may be phased out gradually. It demonstrates the existential challenge before telcos — a highly price-sensitive market that sees customer pushback against any efforts to revise operandi, particularly their business models around content partnerships and offerings. Long gone are the days of a ‘loyal customer”. Today, it is all about a ‘loyal operator’ who would continue to offer innovative and competitive services to the consumer. The tables have turned, and so have the industry dynamics for the telcos. ( Graphic by Sadhana Saxena)

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