India Broadband Forum

cool_techie_tvm · 02-11-09, 11:25 AM

Quote:

Call it the death of post-paid mobile user in the world’s fastest-growing mobile market. India has all but completely rejected the post-paid option, with nearly 99% of new mobile user additions in the country accounting for by pre-paid connections.

With mobile operators increasingly doling out cut-price offers for newer, often poorer users, customers are also embracing this platform with gusto.

Consider this: Bharti Airtel, India’s largest mobile company by user base, added a record 8.1 million-plus new customers during the October-December 2008 quarter, of which 99.6% were pre-paid users. Ditto for Reliance Communications, Vodafone Essar and Tata Teleservices. About 99.9% of RCOM’s 5.5 million new additions in the quarter went in for a pre-paid connection, while for Vodafone Essar and Tata Teleservices, the numbers were 97.3% and 96%, respectively.

“Fundamentally, the Indian consumer prefers pre-paid as it empowers him. The customer wants to control how and when to spend and sees real value on a call-by-call basis in pre-paid,” said Bharti Airtel’s chief marketing officer Sanjay Gupta.

The switch towards pre-paid from post-paid connections has been steadily climbing. From accounting for about 60% of the country’s total subscriber base in 2005, pre-paid users now constitute over 92% of India’s mobile customer base.
Bharti’s numbers for October-December 2007 quarter show that a little over 95% of new additions preferred pre-paid connections. For Reliance and Vodafone Essar, the comparable numbers were 96% and 92%, respectively, of net customer additions.

Mr Gupta said that pre-paid growth was aided by three factors. “First, the revolutionary lifetime pre-paid concept has done away with the cost of entry and validity. From Rs 999 earlier, it costs a mere Rs 99 for a lifetime connection, which does not require a recharge to stay connected. Second, unlike most other countries, the consumer does not pay for an incoming call. Third, pre-paid follows a sachet approach as customers can recharge for as low as Rs 5 or Rs 10 when they want to use their mobiles,” he said.

Vodafone Essar’s marketing head Harit Nagpal says it also suits operators too to have their new customers on the pre-paid platform “Post-paid customers need verification, credit rating and collection infrastructure in every geographical service. Today, new additions are mostly from rural and interior India, which lacks this infrastructure. Unlike other countries, a significant majority of India’s population do not hold a bank account which acts as a collection infrastructure,” he said.

Mobile operators also point out that a post-paid connection required a minimum spend — known in telcom industry parlance as average revenue per user (ARPU) — to be viable. “Since, most of the new entrants cannot bring in this ARPU, operators want them on pre-paid,” Mr Nagpal added.

According to a top executive with another GSM player, telcos’ operational expenses increase multiple times when it comes to post-paid users: “From generating multiple billing cycles depending on the tariff plan chosen by the customer to increased IT deployments to higher manpower requirements, the costs shoot up,” the executive said.

But, Bharti's Gupta is of the view that rural customers will always choose pre-paid connections. "Typically, Indians start with pre-paid as they are unsure of the usage. Over a period of time, after they are accustomed to using a mobile phone and the tariffs, a small segment switches to post-paid," he said.

Besides mobile customers in India also do got get the usual benefits associated with post-paid connections such as free handsets, lower tariffs and discounts on value-added services which are available in more developed markets. With call tariffs in India already one of the lowest in the world, post-paid connections offer little value to the typical Indian mobile user.

99% of new mobile connections in India are pre-paid- Telecom-News By Industry-News-The Economic Times

panchabhut · 02-11-09, 01:11 PM

The Indian customeers are quite intelligent. They know that all operators are here to cheat. so better to minimise the possible losses by going prepaid.

mickey · 02-11-09, 01:25 PM

Actually Indians try to be away from postpaid plans because there is no luxor adequate system of billing.the people dont like to pay off every month on a single day. Postpaid connections require total certification of users location while prepaid is given to anyone with photo stats of docs which is quite easy. Other reason is that with pre paid connection you get the flexibility of changing the operator if you don like the one,the sims are already so cheaper.but with postpaid once you have enrolled,you are stuck up to it regardless of the service quality and money which it fetches from you.
There must be good billing system to help people come out and use postpaid.post paid is very helpful in national security.because its given to based people with valid living habitat.

Rameshjeee · 02-11-09, 01:43 PM

I have been using postpaid connection (Vodafone) for the past 1 year...
I really do not find any difficulties nor issues.

@mail2sc, I don't think there's any issue for the postpaid customer to change the service provider.Its same as the prepaid customer.

It all depends on the requirement of the individual whether he wants a postpaid or prepaid connection. Some people find prepaid cheap & others find postpaid as cheap...

Btw: My company is paying my mobile & landline bill....

mickey · 02-11-09, 01:45 PM

Quote:

Originally Posted by .

[B

Btw:[/B] My company is paying my mobile & landline bill....

thats why

02-11-09, 01:47 PM

yeaaaaaaaaaaah these ppl are actually succeeding in fooling us !

Rameshjeee · 02-11-09, 01:48 PM

Quote:

Originally Posted by mail2sc

thats why

I once made a comparison of my prepaid & postpaid expenses...I found my prepaid expense as higher....

So as I said above that it all depends upon the requirement of the individual to go for prepaid or postpaid connection..

02-11-09, 01:51 PM

so the way out for evrybuddy is to go pre-paid!!!

n sometimes d post paid bills r all bogus.... at times you discover that you have not evn made so many calls... man Reliance is really gud at dat..!!!

just4kix · 02-11-09, 02:51 PM

Comment: Pre-paid gives flexibility of payment
True.

Comment: "Postpaid connections require total certification of users location while prepaid is given to anyone with photo stats of docs which is quite easy."
This is no more true. Address verification is carried out for pre-paid customers also. This is now required by law.

Comment: "with pre paid connection you get the flexibility of changing the operator"
Not true at all. I have always been a post-paid subscriber. And I have rotated between iDEA, BPL (now Vodaphone) and Airtel. I could switch without any issue.

The problem of switching exists in equal proportion of pre or post-paid customer. This is because number portability is not yet implemented.

pumbaa_g · 02-11-09, 03:37 PM

This is probably why the terrorists were using post paid cards during 26/11

panchabhut · 02-11-09, 04:13 PM

Quote:

Originally Posted by Rameshjeee

I once made a comparison of my prepaid & postpaid expenses...I found my prepaid expense as higher....

thats the price to pay for total peace of mind.
I have a post paid connection. not because I don't like prepaid but because my co. does not agree to reimbursement of prepaid cards. But the other connections for my family are prepaid because I don't want to run after the service provider every now and then for unknown call charges appearing in my bill.

justcurio.us · 02-11-09, 04:14 PM

I have never had any problem with the billing.People say it's flawed in most cases but it wasn't so in my case.

mickey · 02-11-09, 04:16 PM

Quote:

Originally Posted by just4kix

mail2sc, did you read my replies completely? I said "my private cell phone". What makes you think my employer will pay for my private cell phone? My employer is not at all involved. The provider allows us to register in the CUG plan. I still have to pay all bills.

My employer pays for my official cell phone and I cannot make private calls on that phone - OK, no one bothers about a few calls here and there but we have to vet all bills at the end of the month and segregate private and official calls.

a few calls here and there make up a lot dude.
It decreases much from your personal bills and so you dared. Thats now i caught you.
Ok ok lets not fight over the silly issues. You are a mod indeed.and i must control myself while handling you cause you are not just anyone else.

We are discussing over prepaid postpaid etc. I like both prepaid and postpaid. I have three connections right now. One is postpaid others are prepaids. One from idea other from Bhai Sahab Nahi lagega

panchabhut · 02-11-09, 04:23 PM

Quote:

Originally Posted by just4kix

My employer pays for my official cell phone and I cannot make private calls on that phone - OK, no one bothers about a few calls here and there but we have to vet all bills at the end of the month and segregate private and official calls.

you must be working in a govt. dept./PSU.
Don't think any pvt. co. is that meticulous.

mickey · 02-11-09, 04:30 PM

Quote:

Originally Posted by panchabhut

you must be working in a govt. dept./PSU.
Don't think any pvt. co. is that meticulous.

thats not so.i think even private companies allow some here theres too. Not everyone is so much.

just4kix · 02-11-09, 04:34 PM

Quote:

Originally Posted by panchabhut

you must be working in a govt. dept./PSU.
Don't think any pvt. co. is that meticulous.

LOL. No. I work for a private IT firm. As a person in the senior position, I need to lead by example.

My private calls on company provided cell phone, do not amount to more than Rs. 20/- per month. My wife also carries a cell phone. I got her plan changed to CUG too. So when we call each other there is no charge. Also, I don't give my company cell number to friends/acquaintance and I don't keep their numbers stored - so there is no temptation to call them via office cell phone.

mickey · 02-11-09, 04:36 PM

Quote:

Originally Posted by just4kix

LOL. No. I work for a private IT firm. As a person in the senior position, I need to lead by example.

My private calls on company provided cell phone, do not amount to more than Rs. 20/- per month. My wife also carries a cell phone. I got her plan changed to CUG too. So when we call each other there is no charge. Also, I don't give my company cell number to friends/acquaintance and I don't keep their numbers stored - so there is no temptation to call them via office cell phone.

temptation ?

cool_techie_tvm · 02-11-09, 04:52 PM

I am also using a postpaid connection, infact i always prefer postpaid connection for mobile phones. Various hidden plans are always offered for postpaid subscribers. Also the CC experience is better when u are with postpaid. Atleast i can threaten them with disconnection

just4kix · 02-11-09, 05:12 PM

Not "temptation". Perhaps a wrong choice of word.

To dial someone, I usually use the address book. So if I don't have the number stored, I will need to check the number from my private cell phone. So I may as well use the private cell phone.

cool_techie_tvm · 02-11-09, 05:35 PM

Quote:

Originally Posted by Rameshjeee

I once made a comparison of my prepaid & postpaid expenses...I found my prepaid expense as higher....

So as I said above that it all depends upon the requirement of the individual to go for prepaid or postpaid connection..

I have to agree with this. Postpaid often works out to be cheaper than their prepaid counterparts. Hence i always stick with postpaid connections. Yes, i pay my bills, my company doesnt.

02-11-09, 01:51 PM	#8
Anushka123456 Guest Posts: n/a	so the way out for evrybuddy is to go pre-paid!!! n sometimes d post paid bills r all bogus.... at times you discover that you have not evn made so many calls... man Reliance is really gud at dat..!!! Last edited by Anushka123456; 02-11-09 at 01:51 PM. Reason: Automerged Doublepost

02-11-09, 02:51 PM	#9
just4kix Platinum Member Join Date: Dec 2007 Location: Pune Posts: 8,899 Blog Entries: 6 Rep Power: 19	Comment: Pre-paid gives flexibility of payment True. Comment: "Postpaid connections require total certification of users location while prepaid is given to anyone with photo stats of docs which is quite easy." This is no more true. Address verification is carried out for pre-paid customers also. This is now required by law. Comment: "with pre paid connection you get the flexibility of changing the operator" Not true at all. I have always been a post-paid subscriber. And I have rotated between iDEA, BPL (now Vodaphone) and Airtel. I could switch without any issue. The problem of switching exists in equal proportion of pre or post-paid customer. This is because number portability is not yet implemented. __________________ * Never argue with an idiot * To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. \| To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. \| To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. -------------------------------------------------------------------------------------------

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02-11-09, 01:11 PM	#2
panchabhut Platinum Member Join Date: Jan 2009 Location: New Delhi Posts: 2,215 Rep Power: 9	The Indian customeers are quite intelligent. They know that all operators are here to cheat. so better to minimise the possible losses by going prepaid.

02-11-09, 01:25 PM	#3
mickey Senior Member & Mod Join Date: Jan 2009 Location: Delhi Posts: 3,303 Blog Entries: 3 Rep Power: 8	Actually Indians try to be away from postpaid plans because there is no luxor adequate system of billing.the people dont like to pay off every month on a single day. Postpaid connections require total certification of users location while prepaid is given to anyone with photo stats of docs which is quite easy. Other reason is that with pre paid connection you get the flexibility of changing the operator if you don like the one,the sims are already so cheaper.but with postpaid once you have enrolled,you are stuck up to it regardless of the service quality and money which it fetches from you. There must be good billing system to help people come out and use postpaid.post paid is very helpful in national security.because its given to based people with valid living habitat.

02-11-09, 01:43 PM	#4
Rameshjeee Aadhavan is Coming Join Date: Aug 2008 Location: Leaving Chennai Age: 26 Posts: 3,075 Rep Power: 10	I have been using postpaid connection (Vodafone) for the past 1 year... I really do not find any difficulties nor issues. @mail2sc, I don't think there's any issue for the postpaid customer to change the service provider.Its same as the prepaid customer. It all depends on the requirement of the individual whether he wants a postpaid or prepaid connection. Some people find prepaid cheap & others find postpaid as cheap... Btw: My company is paying my mobile & landline bill....

02-11-09, 01:47 PM	#6
Anushka123456 Guest Posts: n/a	yeaaaaaaaaaaah these ppl are actually succeeding in fooling us !

02-11-09, 03:37 PM	#10
pumbaa_g Bronze Member Join Date: Dec 2008 Location: Bangalore Age: 27 Posts: 156 Rep Power: 1	This is probably why the terrorists were using post paid cards during 26/11

02-11-09, 04:14 PM	#12
justcurio.us Bronze Member Join Date: Jan 2009 Location: New Delhi Posts: 95 Rep Power: 1	I have never had any problem with the billing.People say it's flawed in most cases but it wasn't so in my case.

02-11-09, 04:52 PM	#18
cool_techie_tvm Amor vincit omnia Join Date: Dec 2007 Posts: 2,682 Blog Entries: 4 Rep Power: 4	I am also using a postpaid connection, infact i always prefer postpaid connection for mobile phones. Various hidden plans are always offered for postpaid subscribers. Also the CC experience is better when u are with postpaid. Atleast i can threaten them with disconnection

02-11-09, 05:12 PM	#19
just4kix Platinum Member Join Date: Dec 2007 Location: Pune Posts: 8,899 Blog Entries: 6 Rep Power: 19	Not "temptation". Perhaps a wrong choice of word. To dial someone, I usually use the address book. So if I don't have the number stored, I will need to check the number from my private cell phone. So I may as well use the private cell phone.

India Broadband Forum

99% of new mobile connections in India are pre-paid

99% of new mobile connections in India are pre-paid

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