The day Tata Docomo entered the markets, they launched a special package called Per Second Billing which was useful to all the subscribers because normally they talk only for 40-45 seconds and the balance time is wasted though they are charged for 1 minutes call. Now if you are being charge per minute or else per second iam sure most consumers would love to opt for the second based billing because that would enable them to pay only for the amount of time they talked on the phone. Now talking about the twist in this case, other telecom companies are also opting for this Per Second Billing system now, enabling their customers not to change the provider only because the other offers this service.
These telecom players are not only helping their customers but are also making better revenues with special plans. Other major players like Bharti Airtel, Idea, Aircel, Reliance, Vodafone have all introduced plans which allow the customers to talk on a second billing system. Here is how this stuff works out.
If a Call is charged at 50 Paise Per Minute then for 60 seconds the customer is charged 0.50Rs. At this rate the Phone Operators were getting around 0.75 Paise per second and as per TRAI data normally the average call period is around 42-45 seconds and not a full minute with the realisations at 50 paise per minute, which means that the company was getting 50 paise even if the customer didnt talk for the whole minute, but in the new system the realisations are at 60 paise per minute.
This is because if the customer talks for the whole minute they are under the minute bracket costing them 60 paise and not the previous offered prices of 50 paise. Hence the Phone companies are not going to lose much because of this new system but are going to gain many things like making sure that their customers dont move to the other networks and also offer a customer loving package.
Currently every telecom network except MTNL has opted for the Per Second Billing. Whats your take on this new billing system? Do you think you as a customer are getting better value through this package or you dont find any change in your monthly because of this billing system change.
you haven’t factored the loss due to sms. number of sms reduce. just look at stock charts baby to chk whether it is gain or loss.
Prakaash Jumaani says
The most pertinent item of moolah that you forgot to mention was that the other (non-DOCOMO) companies are charging a token fee of Rs. 50 to Rs. 75 per subscriber for migration to the 1 paisa regime. Whether this is permitted by TRAI is to be found out, since this will get them another lumpsum bonanza. DOCOMO’s 1 ps. regime is life-time without any token activation fee.
Amit Bhawani says
yes thanks for pointing out the charges which other telecom companies are taking for opting into the new 1 sec billing system. This way they are for sure going to make hell lot of money.
the justification lies in the sheer call volume, this tariff will eat into the land line business in addition to managing expense inertia amongst low usage subscribers, all in all its not a loss making tariff, not in the least, Reliance by the way is testing a fixed monthly subscription unlimited calling local as well as national, under which u pay a fixed monthly subscription & call who ever where ever for as long as you wish to, but it is still some time away, likely to be launched sometimes early next year. Reliance has targeted to displace Airtel from the no.1 spot & foolishly Airtel is banking on its past laurels instead of behaving like a no.1, these guys are suffering from revenue myopia it seems.
Today i read in paper. These companies earning and compensating loss of per second by sms. Every sms cost 3-4 paise, but they are giving in 80-1.2rs.
Prakaash Jumaani says
Further, this migration charge for 1 ps is recurring.. what you pay today is valid only for 1 year and you are expected ko keep paying them the migration charges every year
Hi I don’t think it’s unfair on anyone side making money. Pay per second option is doing both things at the same time (saving money at the consumer end and giving good returns to the operators,as mentioned by you). And my friend I would like to point out that pay per sec is applicable to both std as well as local and I think there was hardly any operator offering even std at such a price (obviously they had tariffs) but at this moment there is no tariff and at the end, consumer is at gain. Moreover you have forgotten the flip side of the call i.e. what if a person hang its phone in say 1 min 5 sec
Prakaash Jumaani says
Yes, indeed, in this case all said and done, the consumer is indeed the king.
While on the subject, something should needs to be done for the SMS tariff also, which costs the operator under 1 ps per SMS, but even after subscribing to the various paid for plans, the consumer ends up paying many times over with other riders like plan not eligible on holidays like New Year, Christmas, Diwali etc., when you are again made to pay at least 1 rupee per SMS with added bonus of networks jamming and the messages not getting through, even after paying for the SMS.
Something also needs to be done for the broadband tariff and speed for accessing the internet,both from the static and mobile connections, where again this is a whole lot of grey area, with the consumer only made to pay through his nose without any check on the various dubious operators. Please open a separate blog on this.
coimbatore ramachandra says
hey amit hw can we differenciate with 1 paise calling and regular package which differs with regular billing i mean does it differs from the service providers