The Indian telecom scenario seems to have aggressively stuck to cleaning the stagnancy caused due to the non-active mobile subscriber. In fact the disconnections clocked a new record with almost 26 Million (25.97) in the month of December as per TRAI’s records.
“Total wireless subscriber base decreased from 890.60 million in November 2012 to 864.72 million at the end of December 2012. This decline is majorly due to large scale disconnections of inactive SIM by some of the service providers” confirmed the apex regulatory body of telecom companies in India.
Majority of the telecom companies have willingly shed their customers, but the most prolific among them has been Reliance Communications, who alone lost more than 15.5 Million. Vodafone (3.28 Million), Tata Teleservices (2.95 Million), Aircel (1.97 Million) & finally Bharti Airtel (1.7 Million) made up the rest of the group. However, despite the scenario, some service providers like Unitech, HFCL and BSNL did manage to add close to 1 Lakh customers in total.
Why the significant rise in disconnections?
Mobile companies have for some time now realized that merely boasting of a huge subscriber base is in fact counter-productive. Thanks to the ‘Dual SIM’ phenomenon, multiple users carry more than a single SIM in a phone. Additionally, the ‘life-time’ validity forced the telcos to keep the customers actively on their network even if they did not have any value-addition.
Hence, aggressively enforcing the clause wherein they could disconnect the subscriber if he or she did not use the SIM even once during a two-month period, mobile companies have been disconnecting the services of such dormant subscribers. For quite a few months now, these companies have continued to let go inactive customers in an apparent attempt to streamline operations & bring some stringent business ROI.
Telecom companies want to enhance Average Revenue Per User (ARPU) & evidently, they are willing to try such risky maneuvers by trimming the excess/non-contributing part of their user-base. Do you think this is a wise move in the long-run?
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