Popularity Of Sms Going Down Due To Lower Call Rates

[KumaarShah 143]

'Popularity of SMS going down due to lower call rates'

7 Oct, 2007, 1833 hrs IST, PTI

ALLAHABAD: The popularity of Short Message Service (SMS) among mobile phone users seems to be on the decline thanks to the drastic reduction in call rates by various telecom service providers, says an official estimate.

"According to the Telecom Regulatory Authority of India, (TRAI), the popularity of SMS as a favoured mode of communication among mobile phone users seems to be on the decline," Bharat Sanchar Nigam Limited General Manager (Telephones), Allahabad, P K Srivastava said here.

The TRAI, in its quarterly report for the period ending June 30, has stated that the number of outgoing SMSes per customer per month has shown a decline of 10 per cent.

"This is prima facie due to lowering of call rates, which now encourages people to make a call without straining their pockets. Though it does not necessarily mean that SMSes would become extinct, the trend certainly signifies the growing affordability of mobile phone call rates," Srivastava said.

Quoting the TRAI report, he also claimed that despite a number of private sector competitors having entered the fray, BSNL continues to be the numero uno telecom service provider in the country.

"Having completed seven years of its establishment on October 1st this year, the BSNL caters to over 60 million subscribers, the largest number for any telecom service provider, through its various services like landline, mobile and broadband," he said.

Link: http://economictimes.indiatimes.com/Popula...how/2437253.cms

Another Story on the same

TRAI: SMSs losing their flavour

8 Oct, 2007, 0311 hrs IST,Joji Thomas Philip, TNN

NEW DELHI: Are text messages slowly losing their flavor with India’s growing cellular base? Even as operators say it’s too early to take a call and make such a ‘sweeping statement’, the figures, however, suggest so. Data compiled by telecom regulator TRAI reveal that SMS use has steadily fallen from September 2006.

Consider this: GSM operators have witnessed close to 9% drop in the outgoing SMSs during the April – June quarter, as per the latest performance indicator report by TRAI. This implies, an average GSM user now sends about 35 SMSs per month as compared to 39 during the previous quarter.

Little wonder that GSM operators’ total revenue from SMS has now fallen below the 5% mark. Ditto on the CDMA front — the number of outgoing SMSs by customers using this technology platform has declined to 20 during the quarter-ended June against 24 SMSs during the January – March, 2007 quarter.

If one were to consider the earlier quarter (January – March, 2007), the fall in SMS usage is more dramatic – GSM operators saw a 19% decline in outgoing text messages during this period. Outgoing SMS per subscriber (for GSM) had declined by 18.75% from 48 in December 2006 to 39 in March 2007.

“This decline in usage could perhaps be linked to revision in SMS tariffs by several GSM service providers. During the quarter, there have been tariff reports indicating reduction in the number of free and discounted SMS under various packs and plans, increase in the rate for SMS, restriction on the usage of free/discounted SMS on festival/customary days. Thus, this could be a case of higher prices pushing down the usage,” TRAI had said. In this same period (Jan-March), the revenue from SMS for CDMA operators declined to 2% from 3% in December 2006.

Disputing TRAI’s figure of higher SMS tariffs, an executive with a leading GSM operator pointed that a possible explanation for the fall in text messages could be due to the steady increase in the minutes of cellular usage. “For GSM players, the average increase in outgoing minutes of usage (MOU) was 2.2% during the last quarter.

The actual figure can be much higher if one were to consider the fact that most of the new users are coming from semi-urban and rural India – a factor that can drag the MOU downwards,” the executive said. The executive also added that the average SMS usage was bound to fall as operators went rural as customers in non-urban areas were comparably less text savvy.

Another service provider pointed out that rationalization of tariff plans, where many players discontinued non-profitable SMS packages could have led to the small decline. The executive also said that despite the fractional dip in SMS usage, the overall revenues of all operators from value added services was increasing every quarter. “There is a substantial increase in revenues from VAS. SMS is no longer the single driving force behind VAS revenues — music, gaming and other applications contribute significantly,” he added.

Link: http://economictimes.indiatimes.com/TRAI_S...how/2437987.cms

[Ramchi 0]

SMS tariffs have been increased in the recent past. So, decline in usage is obvious.

Do not try to change the perception by wrongly attributing the decline to non-existing decrease of Voice tariffs!! As far as I know, Mobile rates have been increasing in the past 6 months or so. So the conclusion of users prefer to talk instead of sending text due to cost reason is total nonsense.

Few people simply have stopped sending text messages. That’s it. It is not as though calling a person is cheaper that’s why they stopped sending SMS messages!!

I know, Hutch (Vodafone now) in Chennai circle offered 100 SMS free everyday which could have saved many - lots of money but as soon as they get more customers they dropped this plan even for existing users.

Suddenly, they expect everyone to pay Rs 1 for each SMS message. Even if there is a decline in sending SMS messages, revenue coming out of SMSs would be much higher than previous quarters. They make sending SMSs as habit by giving it for free only to pull the plug later making you to pay for it every time you send. Even if there is a decline of 10% usage they will 90% more revenue than when they offered it for free.

Foolish customers end up paying more for sending SMSs as well as for voice!

[KumaarShah 143]

^^^

First of all, I always reproduce the report from ET in toto.

Now Vodafone, Chennai had indeed stopped 100 free local SMS per day but modified the offer to unltd local SMS at Re 0.05 per SMS at Re 1 daily rental. Some time later, they brought out another variant for SMS freaks at Rs 3 daily rental and 500 free local SMSs. So the cost of SMS'ing has actually gone down and not up. It did not at any time go up to Rs 1 per local SMS.

I also agree with you that the statement "people have stopped/reduced SMS'ing and instead use Voice as the call rates have gone down" is absurd and totally wrong.

Can any one imagine reading out a joke/shairi/philosophy/sentimental etc or maybe tens of these to say 40 or 50 people daily? Just because call rates have gone down? Absurdity is what I would say. Typically this is the amount of SMS I used to do everyday some 3-5 months ago. I have stopped SMS'ing only because of the poor battery life of any RCL/CDMA handset. Invariably, the battery used to go down by 2PM everyday and then I decided to stop SMS'ing. Now my battery lasts till atleast 7 to 8 PM.

[kshah 452]

It is that SMS has gone expensive. Formarly all operators were used to provide good SMS packs. Now they charge exorbitantly for SMS. They earn maximum on SMS, they can charge just 10 ps / KB for net data, where as imagine howmuch one pays for 160 character SMS (atleast 50 paise per SMS) (SMS size may be in bytes) Hetal can say better.

[Himanshu Singh 19]

Its true that sms rates have been moving northwards for last few months in Delhi circle..But Reliance had done well to make sms tariff less expensive..All of us are aware of the fact that all the GSM telcos revised their local sms tariff to Re 1.20/sms from Re. 1.00/sms in their basic tariff plans whereas Reliance reduced local sms tariif to Re. 0.90/sms from the earlier Re. 1/sms in its basic tariff..

In Delhi all gsm operators offer SMS packs for prepaid.

Idea for instance has local sms pack recharge for prepaid wherein for a recharge of Rs. 34 one can send 3000sms@0.20/sms. If we assume that a customer sends 1000 local sms/month he would shell out 1000*0.20=Rs. 200+Rs.34=Rs.234 for 1000 sms..It comes to about 23 paise per sms.

Hutch and Airtel have exactly similar offerings.

Now compare Reliance prepaid sms pack in Delhi which offers 1000 local sms for Rs. 25.(Some argue its only 500 sms even then for Rs 50 you could get 1000 sms per month.)..it comes to about 2.5 paise per sms..

Conclusion Reliance prepaid sms pack is 10 times less expensive than any other GSM operator in Delhi.

[cracker 0]

i get 200 sms free from airtel but i hardly send more than 5

Edited October 8, 2007 by cracker

[Honest 836]

^^^

Yes my dear friend I too get 100 sms free from Vodafone last month, but I didn't sent a single sms.

Regards.

[anuragz 4]

I prefer Tata sms pack which gives 3000 national/local sms for Rs 50.

But i dont know why tata is not offering this pack in Maharastsa & goa

[Himanshu Singh 19]

Tata postaid( rental Rs 50 for 3000 local and std sms to all) and Garuda MTNL postpaid(rental Rs.60 for unlimited local and std sms to all) offer the best tariff in postpaid segment... No other postpaid scheme comes even distant close to it..

In prepaid Idea's My gang tariff is the best deal@Re.0.10/sms for local and std for 19 happy hours( 10 pm to 5 pm) and Re.0.25/sms for the remaining 5 hours. This comes at a daily deduction of Re.1.00.

[Honest 836]

^^^

I think Garuda postpaid with rentals of Rs.60/- for the unlimited sms to local and national to all aperators is the best offer at this time.

Regards.