8/14/2019 Ma Final Assign

1/17

MOBILE PULSE RATINGBILLING AND ITS EFFECTS

ON PROFIT

---------in partial fulfillment ofmanagerial

accounting internal assessment ..

8/14/2019 Ma Final Assign

2/17

Team:

VinayakA.nayak(Demagouge)Siva Bharath.G

Soma sekhar.GSarath chowdary.PPramodh kumar.M

Swathi.A

8/14/2019 Ma Final Assign

3/17

MARKET PLAYERS

Bharti Airtel Vodafone Idea Cellular Reliance

Tata Indicom BSNL Aircel Spice Virgin

MTNL MTSTata Docomo others

8/14/2019 Ma Final Assign

4/17

The tariffs in india is the lowest whencompared to other countries in the world and

the highest average minutes usage persubscriber i.e, 461 minutes.

Before the advent of Tata

docomo(GSM),minutes pulse rate billing wasin existence.

Under mpb , customer had to pay for 1

minute eventhough he speaks for only fewseconds.

8/14/2019 Ma Final Assign

5/17

SUBSCRIBER GROWTH

8/14/2019 Ma Final Assign

6/17

FISCAL REVENUES OF TELECOMINDUSTRY

8/14/2019 Ma Final Assign

7/17

8/14/2019 Ma Final Assign

8/17

PAY PER SECOND

Tata docomo,introduced seconds pulse ratebilling,which has substantial impact on theexisting players to have a relook at their

existing tariff plans. In the first month of launch in Maharastra,it

brought in over one million customers.

Inorder to rescue their customer share all the

existing player took a plunge into tariff war.

8/14/2019 Ma Final Assign

9/17

Vodafone has announced a special package onregion specific basis. For instance those in south

can make calls at 50 paise with in the region.

Bharthi airtel subscribers can make calls on airtelnetwork for 50 paise.

Rcom users can make calls for 50 paise for anynetwork across the country.

Tata indicom(CDMA),has announced pay per callplan where local call at Re 1,STD at Re 3per10min.(conditions apply)

8/14/2019 Ma Final Assign

10/17

GOV REVENUES FROM TELCOS

At present companies are paying 25-30% of theirrevenues as taxes to the government.

These include license fee ,spectrum usagecharges, and service taxes.

Another 5% from telcos revenues goes to USOfund.

Despite the addition of 80 million subscribers inthe last six months , government revenues from

telcos dipped down. Any fall in the revenues of telcos will have an

indirect impact on the government .

8/14/2019 Ma Final Assign

11/17

8/14/2019 Ma Final Assign

12/17

now.

8/14/2019 Ma Final Assign

13/17

CURRENT SCENARIO

All the existing players switched to secondspulse rate billing apart from docomo which ispioneer in seconds billing,provided conditionsapply.

HSBC analysts predicted that the telcos hasto sacrifice 15% of their revenue if theyadapt spb..

8/14/2019 Ma Final Assign

14/17

CONSEQUENCES OF PRICE WAR

Large mobile operators will take a hit on theirsales

Existing operators who are yet to see profitswill take an additional time to achieve theirtargets or breakeven.

New entrants who is playing tariff game willnever see operating cash flow.

8/14/2019 Ma Final Assign

15/17

Vodafone lost 43 million euros in india pricewar turf.Its revenue falls 7%.

Bharti airtel capital declined by 29.8%(Rs111533crores).

Rcoms capital down by 45% (Rs.34892crores).

8/14/2019 Ma Final Assign

16/17

8/14/2019 Ma Final Assign

17/17