Tuesday, October 13, 2009

Telecom pricing

With the price wars in telecom intensifying each day in what is already the cheapest telecom market in the world, I think the logical next step in pricing innovation will be something like this: Pay Rs. X per month, and use your phone as much as you want.

I think this will happen in the next 12 months. This  way the telecom companies will be able to protect or guarantee their Average Revenue Per User even if its at a low level. Of course, price wars will start on the monthly amount as well, and telecom companies will need to innovate further. Also, within the next five years, VOIP may also become a viable alternative to traditional telephony. Interesting times ahead.

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