In a bid to increase revenues and overcome stagnant market many telephone companies including Vodafone, Airtel and Idea are now reducing dealers’ margin on recharge coupons in many regions. There is also an attempt to revise voice and text tariff. In Mumbai circle these companies have slashed the dealers’ margin by 30% on first recharge over the last few weeks . As per indications coming in the other operators are likely to extends cuts to others circles in coming days.
According to the experts thet move can make the industry richer by Rs. 1000-2000 crore annually in tyerms of savings. The dealers’ share is a little over 3 % on recharges out of industry’s annual revenue of Rs. 107,000 crores. As per industry estimates, dealer and retailer commissions on recharges account for a little over 3% of the sector''s annual revenues of about Rs.107,000 crores. |