Tariff, Review & Logic behind Tata Indicom’s pay per call plan

Tata Indicom has launched the new pay per call for it’s prepaid customers across India. According to this plan, the users are billed not for the amount of seconds or minutes they speak, but the calls they make.

This is a revolutionary move from the TATA, one could have never think of even in their wildest dreams.

Tariff, price and pay per call plan details as follows:

1. All local calls are charged at Re.1 per call*.

2. All STD calls are charged at Re.3 per call*.

3. Re.1 is the daily Rental.

4. Existing customer can upgrade to this plan with Rs. 96 one time e-recharge.

5. New customers get this plan for Rs. 99 one time recharge.

* Call = 10 minutes pulse you speak to any mobile/land line of any network.

Yes, make a call and speak for any amount of time and pay Re.1 only per call.

Let me try to evaluate the math behind what made TaTa to come out with this unbelievable plan!

1. There are cheap CDMA handsets left out in thousands that are already manufactured by Haier, Samsung and other companies that indicom partnered with. It first wants to clear this up by making some sales and so some money

2. Tata is not a new player and the infrastructure is the same and needs no more investment.
The investment costs must be back right now, and it all needs now is the maintainence costs. So, even if the call lasts for 1min or 100mins, at the end of the day, indicom lands with some money to maintian.

3. Once, the user gets accustomed using this pay per call service, gradually the no. of calls increases and so, the minutes/call that a user talks gets reduced. Logic 😉

4. Word-of-mouth publicity rocks for this plan!

5. Million users can be reached in no-time through out India.

6. For GSM, people can throw away the sim and can choose another operator at the drop of a hat and even free of cost these days. But with GSM, once the handset is bought, chances he stays with it since the only other competitor is reliance cdma.

7. It is difficult to carry 2 mobiles, and the dual sim phones that have cdma + gsm compatibility are neither in plenty nor cheap.

8. All in all, once a customer chooses this, he stays with it for ALL his calls for a minimum period of time which is essential for tata indicom to gain profits in the cdma market!

9. Tata can withdraw this offer at any point of time if it feels this isn’t profitable or for any other reason. But, you do not throw your mobile as you did for your previous gsm sim. Right? 😉

10. Last and most important. The billing pay per call pulse is for 10 minutes. At any cost, it would be 10ps/minute of a call and even if you speak for less than a minute or two, you still pay the entire re.1 and do note, there’s the drop call factor which can also play a serious role here.

All in all, this is an awesome move from the Indicom and is a curtain raiser for more intense fight between the operators!

Filed under: Smart Phones
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September 3, 2009 by: Prasanth Chandra


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