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IETE TECHNICAL REVIEW, Vol 23, No 6, 2006
 

 

  • As of 30th June 2006 about 16 Million subscribers were in tariff schemes withlifetime validity in Mobile services. This accounts for 15% of the total Mobile subscribers, reported for end June, 2006 and constituted about 28% of the total additions in the mobile subscriber base reported for the period January to June 2006.

  • 41% of the lifetime subscribers are in circle A.

  • 51% of lifetime subscribers are new enrollers and the rest are the existing subscribers who have migrated to the scheme.

  • On an all India average 72% of the lifetime subscribers recharge every month.

  • Churn of customers is also observed from lifetime plans. However, churn is seen only in respect of three circles and that too in respect of two operators.

REVENUE ANALYSIS

  • The lifetime schemes are providing an ARPU of Rs 218/- per month on an all India average. ARPU in lifetime schemes ranges between Rs 136/- to Rs 321/- per month.

  • The revenue composition of lifetime tariff schemes shows that a large proportion of revenue is contributed by outgoing calls and other services.
    This implies that from revenue proportion, lifetime schemes are no different from the general tariff plans offered by mobile operators in the market.

Revenue composition

   
Circle Category Incoming Usage Outgoing usage (including VAS) Other sources (one-time charge, recharge fee etc.)
Circle A 20% 53% 27%
Circle B 16% 55% 28%
Circle C 21% 59% 19%
Metro 25% 61% 14%
All India 20% 56% 24%

 

 

TRAFFIC ANALYSIS

MOU per subscriber per month

   
  Total Minutes Proportion pf Outgoing Minutes Proportion of Incoming
Minutes
Circle A 266 20% 80%
Circle B 271 23% 77%
Circle C 317 22% 78%
Metro 269 20% 80%
All India 271 21% 79%
  • Lifetime subscriber on an average makes 57 minutes of outgoing calls and receives incoming calls for 214 minutes per month.

  • Highest usage is in Circle C (outgoing: 70 minutes and Incoming: 247 minutes)

  • The ratio of incoming – outgoing traffic is 79:21, as against the generally observed traffic pattern of 60:40 in fully Mobile services in prepaid platform.

Revenue per minute (RPM)

 

  RPM
Circle A 0.84
Circle B 0.81
Circle C 0.76
Metro 0.76
All India 0.80
  • RPM for lifetime schemes is Rs 0.80 which is higher compared with the RPM of Rs 0.77 for the full mobility service as a whole.

CONCLUSION

Traditionally, Indian Mobile operators have been following a tariff model with a fixed monthly fee and a variable charge depending upon the usage of the
subscriber.