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Loyalty Programs In Indian Telecom Industry. Need for Indian Telecom Service
Providers to adopt loyalty programs 1. India is the ...
... and uncles with continuous protection with unquestionable loyalty. ... different cultural,
lots of Indian are working in ... of education or training programs in the ...
... are given a basic idea about Indian culture, cuisine ... Infosys has put in place some
training programs. ... competencies, and commitment supersede loyalty, hard work ...
... Employee loyalty is an issue when employees start ... employs Russian aircraft engineers
and Indian software engineers ... than it has on previous airplane programs. ...
... also had a five to one ratio of Indian engineers to ... while using redeployed staff
enhances their loyalty to Global ... to make sure that the various programs are on ...
Submitted by nghanshani on March 16, 2008
Category: Business
Words: 2170 | Pages: 9
Views: 442
Popularity Rank: 21,701
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Need for Indian Telecom Service Providers to adopt loyalty programs
1. India is the fastest growing mobile telephony market in the world. The telecommunication industry is growing at a neck break speed with leading players lapping up mobile subscribers by millions. The country's telecommunication market is the 4th largest in the world in terms of wireless subscribers and 5th largest in terms of total telecom subscribers. After growing its wireless (GSM and CDMA) subscriber base at a CAGR of over 122% during the period January 2004 to January 2007, the country is expected to take the number to 500 m telecom subscribers by the end of March 2010.
2. The problem is that despite the average use of mobile phones being the highest at 287 minutes a month, India has average revenue per user (ARPU) of around $8 (approximately Rs 350). Australia has the highest ARPU of $33 followed by Singapore with $32 and China at $12. The global average ARPU is a little over $ 21. Information technology research firm Gartner predicts that the ARPU in India is set to fall even further to $3-5.
3. Low ARPU is caused by the intense competition and the inherent price sensitive nature of the Indian market. In a bid to target low-end users and increase penetration in the Hinterland, players in the industry slashed prices, thereby causing low ARPU.
4. Despite the low ARPU, the Indian telecom players are compelled to provide highly proficient customer support because customers tend to compare customer support of one service provider with another and also of the telecom service category with another (e.g. Credit card customer support, DTH customer support etc.) thus raising the bar.
5. Thus, with low ARPU and high Avg. costs per customer, the challenge is to play the volumes game by increasing the total subscriber base. This however, is easier said than done.
6. Due to undifferentiated products, call rates and services, customer acquisition becomes a...
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