66% of India’s mobile population is on pre-paid

Posted on | December 11, 2005 |

ET story talking about various entry level talk plans of Reliance, Airtel and Hutch.

Operators are aiming to convert a section of their pre-paid customers into regular users. This is because the revenue per month is higher in this category though the numbers are small.

At the same time, telecom companies are also targeting the low-end of the pyramid by offering recharge cards at rock bottom denominations (Rs 10) as well as offering free incoming facilities for two years despite expiry of the card.

As mobile user base increases and the growth rate decelerates, operators will have to shift their focus from customer acquistion to retention and on increasing the average revenue per user (ARPU). This can only be done through value added services and enterprise customers.

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