The telecommunications industry has witnessed significant changes in recent years, and one of the notable shifts has been the decline in revenue from voice calls and SMS (Short Message Service). With the rise of internet-based communication platforms and mobile messaging apps, traditional voice calls and SMS have experienced a substantial decrease in popularity and usage. As a result, telcos (telecommunications companies) have seen a drastic dip in revenue from these services.
Telecom operators’ revenue share from voice calls has declined by about 80 percent d by 94 percent from SMS in the last 10 years as the usage of internet-based calling and messaging apps grew, according to a Telecom Regulatory Authority of India (Trai) paper. However, revenue share per user from data usage grew over 10 times between June 2013 quarter to December 2022 quarter.
According to the paper, while the share of the revenue from data has grown over 10-fold to 85.1 percent in December 2022 quarter from 8.1 in June 2013 quarter per subscriber, the average revenue per user (ARPU) grew only about 41 percent to Rs 146.96 from Rs 123.77 during the same period.
Telcos have recognized this shift in consumer behavior and have adapted their business models accordingly. They have begun to focus more on data services, offering competitive mobile data plans and high-speed internet connectivity. Furthermore, telcos are investing in emerging technologies like 5G and the Internet of Things (IoT) to explore new revenue streams. These technologies present opportunities for telcos to provide enhanced connectivity, and innovative services, and cater to the growing demand for connected devices and smart solutions.