Per-second billing unsustainable: Aircel

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but how can you generate profit when you are offering your services at a loss? if a call costs you a minimum of 40-50 paisa and you are allowing the customer to pay per second... it becomes very hard to make profit... you say sms... sms transmission is free for the operator. but to send it to a rival network... it costs money. airtel would be at an advantage over a longer period of time because they have the number. they have the volume. and they have alternative sources of generating revenues. if i were only in the field of providing mobile services... i would be very worried right now.
 
on average most SMALL calls that i make is atleast 50-60 seconds.so i think the case shud be same for most ppl. because its hardly possible to convey things within a minute unless other person already knows abt it.plus the termination cost is reducing too. and i am sure TRAI wud definitely step in and get interconnect agreement on per second basis which right now is per minute basis.
 
unless that happens... pay per second is going to be loss making for all... and then we have bsnl and mtnl which ask for compensation from the government for ANY freaking step TRAI takes. i think they asked for thousand crore rupees for mobile number portability implementation?
 
sms transmission is free for the operator. but to send it to a rival network... it costs money.


AFAIK, SMS doesn't come under interconnect charges.
 
you say sms...
sms transmission is free for the operator. but to send it to a rival network... it costs money.

AFAIK , its a fee stipulated by TRAI , it still doesnt cost anything .
 
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