There is going to be some more posts on the telecom tariffs.
The earlier post I did pointed to the proposed OneIndia tariff by BSNL. It now seems that BSNL will not be launching this tariff any time soon. When I read through a couple of articles on that area, most of them pointed out that it is hard to slash the STD rates to 1 Rs per min. The minimum tariff for STD cannot go below 1.85 Rs per min. But I wonder how Reliance manages to support OneIndia tariff. How does Reliance recover the loss? Through higher call volume and higher rentals?
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It is a strategy by reliance rather loss. For calls from other telecom operators to Reliance users, they have to pay a carraige charge to Reliance. So, even if it offers zero rate tariff, it can recover from carriage/inter-connect charges from other operators. But, it depends on how many calls lands Reliance network from others.... Second, they run a coverged backbone (i.e. a single core for data/voice/mobile.) So, once you recover the basic capex, one can play with the pricing.
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