Business Standard
Friday, May 25, 2012
drived banner
drived banner
  Advanced Search
RSS
Content Guide
Follow us on  
|Markets & Investing|||||||| 
 Section Home | News Now | Paper | Features | Q&A | PF News | PF Features | IPOs | MFs | Commodities | Trends | Stock Data | Financials | Money & Forex
Home > Markets & Investing Live Markets | Commodities
 

How to talk more & spend less
With telecom companies increasing rates, it's time to cut corners
Tania Kishore Jaleel / Mumbai Feb 09, 2012, 00:14 IST

When Delhi-based Vidha Shukla, a postpaid customer of Vodafone, found a sudden 45 per cent jump in her bill, she was shocked. A quick word with the call centre executive revealed the company had raised rates by 20 per cent in January.

But she is still unable to understand the rest 25 per cent increase. "My monthly mobile bill used to be Rs 1,000. Suddenly, it shot to Rs 1,450, even though I make my official calls from the office landline," says Shukla.

Telecom companies, which were slashing rates to acquire more customers, are now looking at increasing these. Crisil, in a recent report, said, "With the number of operators likely to reduce (due to the Supreme Court's cancellation of 122 licences), incumbent ones will be better poised to raise the rates. More, operators who acquire licences under the new process will likely raise the rates to cover higher licence fees."

In fact, some had begun raising the rates from last year itself. Bharti Airtel, Vodafone and Reliance Communications had all raised rates last year. India added 400 million users in the last two years, but revenues crawled 10 per cent, and average minutes of usage per customer fell from 465 in 2007 to 350.

STRATEGY PAYS
* Switch to a new plan, say an office plan, which is cheaper 
* Switch to prepaid
* If you own a BlackBerry phone, messaging comes at a one-time monthly cost of ~599. Others can use Whatsapp to reduce costs
* Cancel value-added services
* Switch to cheaper operators through number portability

Vodafone's recent rate increase will add to the costs. Postpaid subscribers who had opted for the per-second plan will now have to pay 1.5 paisa a second (90p/min) for local calls to any network's phone in Delhi and STD calls to a landline anywhere in India.

Customers, as a result, should gear up for higher expenses. There are options though: A postpaid customer, if the rate increase leads to a surge in the mobile bill, can consider switching to prepaid services. However, a prepaid card will ensure some restriction on talk time.

Rikesh Parikh, V-P, marketing strategy, Prabhudas Lilladher, says he can choose a scheme for you, based on usage. “If you text a lot, look for a relevant scheme. If you do bulk-calling, look for schemes with attractive calling rates,” he says.

So what if you are a Vodafone customer sending a lot of text messages, but Airtel has better schemes for these? Make use of the number portability service. With competition likely to increase among telecom operators, you will see attractive schemes emerging.

Or, one could do what Shukla is planning on. She has a BlackBerry, which means she has options such as a BlackBerry Messenger (BBM) and Whatsapp. These applications allow you to instant message (IM) contacts on monthly internet charges. "I won’t switch service providers or even move to prepaid. Instead, I will bbm or whatsapp people more,” she says.

Also, get rid of value-added services such as caller tunes to bring down the mobile bill.

New Ipad Application :Business Standard's all new IPad App
Click here to download for free
Arrow Other Stories     
- Oil, banking stocks fuel rally, Nifty ends above 4,900
- Micro Technologies Q4 profit rises over 3-fold to Rs 24 cr
- TVS Motor Q4 net up 31% at Rs 57 cr
- SGJHL Q4 net at Rs 160 cr
- CII demands dual pricing of diesel
  Read Business news in 
- Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol.
- Journey on, We are by Your Side. Click here to know more
- 2 Lac Apartments, 1 Lac House / Plots. Click here
- Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol.
- The Best Seller is Also the No. 1 in Mileage. Click here
- Watch The Film Here. Click here to know more..
- Leader in Passenger Car & Automobile Tyres. Click here
- 1 billion in saving for Unilever without any tangles.
- A Brand New Server at a Price That Fits Your Budget. Click here
- Learn How One City is Running on FOOD SCRAPS.
- One Partnership Endless Possibilities. Click here to know more
- Helping doctors detect diseases earlier, saving costs & extending lives.
- 36 Lakhs can get you a pool of Luxuries. Click here
- Which is the best plan for your daughter
- Check out the TRUE COLOURS of your Stocks, Now for FREE!
- One of the leading business schools in the world.Know More
Sorry, comments to this story are closed
Latest Messages
BS POLL
UPA 2 has completed three years. How do you rate its performance?  Read the story
  Good
  Average
  Bad
Submit
Most Popular
Read
E-Mailed
Commented
   
- Life Insurance: V Philip
- Worst seems to be over for Tata Global Beverages
- Auction of 10 MHz spectrum approved
- Why a promising industry is adrift
- Falling Re to hit firms faced with forex bonds repayments
 
 More  
Tax Shastra
  Now available at Special price
  Rs. 360/- Only

  Buy Now
Table for Two
  Now available at Special price
  Rs.280/- Only

  Buy Now
 
  Member Area Write to the Editor RSS Archives Advanced Search
  Subscribe to BS print product BS e-paper Newsletter Portfolio Tracker
  BS Products BS Hindi BS Motoring BS Books
Home | Markets & Investing | Companies & Industry | Banking & Finance | Economy & Policy | Opinion
Life & Leisure | Management & Marketing | Tech World | General News
About Us | Partner With Us | Code of Conduct | Careers | Advertise with us| Terms & Conditions | Disclaimer | Contact Us