Mobile User Base Might Witness Decline This Year: Report

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In order to improve their revenue, telecom operators have recently raised tariffs of their prepaid plans. The increased tariffs are 40 percent costlier than the previous plan. But now it has been reported that it will affect the mobile user base in India, as people will give up on their second or third mobile connections, reports Economic Times.

Mobile User Base Might Witness Decline This Year: Report

 

According to the report, there are chances that several active users on mobile services might contract last year, as per the TRAI data. The data issued by TRAI says the users' base is decreasing year on year, and there were only 981 million users in October 2019 as against 1.02 billion in 2018. And this thing is expected to continue this year.

"Calendar 2020 will definitely see a reduction in India's mobile user base after several years due to the likelihood of multi-SIM (scenarios) consolidating down to single, primary SIMs," Rohan Dhamija, head of India and the Middle East at Analysys Mason was quoted by the newspaper.

On the other hand, the COAI director general believes that there will be a marginal decrease in the user base. He said, "A marginal decrease in India's active mobile user base in 2020, following recent price hikes that could induce some price-sensitive subscribers to move from dual to single SIMs".

The report states that this will affect the overall growth of the dual SIM concept. It said that this will force the user to use only one connection. However, if you see then TRAI data reveals that the base of mobile users fell in 2012, but there is no change in the active user base for 10 years.

Earlier, operators blamed minimum recharge plans for losing customers in 2019. The minimum recharge plans were first introduced in 2018 by Airtel and Vodafone. And now, to improve their current situation, Reliance Jio, Airtel, and Vodafone-Idea have revised all prepaid plans in December 2019.

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