According to industry experts, there is a need to increase tariffs for low-level customers in the telecommunications industry. Current prices for data transmission services are considered too low, which affects the overall profitability of the sector. Companies offer large amounts of data, unlimited calls, and unlimited text messages at unsustainable prices.
While there has been a debate about raising main tariffs, some believe that the focus should be on increasing tariffs for low-level customers. The majority of customers use these cheaper plans, and raising prices for these plans will have a significant impact on the entire industry.
But what about 5G plans? Some believe that 5G should not have separate plans or be considered a premium service. From the customer’s perspective, data is data, and segmentation should only take place when additional value is offered. Therefore, the focus should be on raising overall tariffs rather than creating separate plans for 5G.
It is also worth noting that telecommunications companies are exploring other ways to increase revenue. One of the options being considered is issuing rights issues, although companies believe that their cash flows are sufficient to meet capital requirements and deleveraging goals.
Additionally, wireless internet access (FWA) service is expected to be commercially available soon. Planned prices for FWA will likely be similar to broadband services as they are considered part of the same offering. When fiber optic connectivity becomes available, customers will be transitioned from FWA to fiber optic.
As for the introduction of Airtel Payments Bank in the market, there are no immediate plans. While the bank is profitable on its own, the margin model is challenging due to thin margins in the business. However, Airtel is open to bringing in investors or taking the bank public in the future.
Overall, telecommunications companies believe they have good frequency resources. Over the past few years, they have already invested significant funds in acquiring frequencies.
Finally, when it comes to satellite services, telecommunications companies are open to cooperating with any company, including OneWeb. Retail distribution of satellite services is seen as a business opportunity, and partnerships with satellite companies can offer additional services to customers.
In summary, there is consensus among industry experts that tariffs for low-level customers need to be increased. Raising these prices, along with exploring other sources of revenue generation, will be crucial for the sustainable development and profitability of the telecommunications sector.
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The source of the article is from the blog publicsectortravel.org.uk