Voice calls will be free in future; 4G data to drive the revenue for Telecos: Report
Telecom sector is witnessing structural changes since the entry of Reliance Jio and this will continue further till 2019. The charges of voice calls will be dead and telcos will move to a different strategy where the voice calls will be offered in bundled packs along with the data like the Reliance Jio packs which can be considered as free from the consumer mindset point of view, said Sanjay Kapoor, former chairman of Micromax.
Currently, 55% of world's data traffic is coming up from videos which are going to increase to 75% in next 3-4 years. So, telcos in future will be more focused on more data for a lesser price.
For telecos, most of the revenue comes from the 300 million data users who are the high ARPU customers (Average Revenue Per User). So, telecos to retain those priced customers will do whatever it takes to provide more and more offers.
Sanjay Kapoor also said that India in the current situation cannot sustain more than 3-4 telecom operators. Consolidations will happen in the industry and Bharti Airtel, Reliance Jio and Vodafone are the three operators to able to survive,
Although 3G has gone pan India, telcos have not seen it as a technology. A quick shift has happened from 2G to 4G by most telecom operators. Telecom operators are seeing 4G as the technology and data as the top most priority for the revenue. 3G will be soon phased out. So, for telecos the revenue model will be the data and more precisely the Video content.
High ARPU customers will witness huge free data and voice calls than the low ARPU customers in the future.