4G featurephone is the industry’s answer along with affordable basic-level smartphones. But we have seen how the consumers have shown their lukewarm response to this. However, the reality is that with each generation of cellular networks, the handset costs have gone up. Not just because of the radio and chipset cost, but other specifications also need to go up to offer the experiences promised by every successive generation of mobile technology. With 4G coming in, we saw the sub Rs 6,500 almost vanishing for smartphones. Similarly, with 5G, it looks sub Rs 10,000 will be severely hurt.
This means making it more difficult for feature phone users to jump-start their digital journey by owning a smartphone. We have to realise, how can a person spending less than Rs 1,500 on a device all of a sudden afford to spend 5 to 6 times more on just owning the device? Then there is the data cost impacting the total cost of ownership.
Smartphone makers and the immediate enabling ecosystem is doing all possible to bring in affordability without compromising on the experience or quality of the device that every user irrespective of the money being spent on the device deserves. But the industry alone cannot do it.
Some makers like Samsung<\/a> have recently partnered with a bank to offer cobranded cards offering all time discounts adding to the affordability. This is the way forward for the industry. There have to be collaborations beyond the ecosystem to bring in more affordability and the telecom operators can play a significant role.
Telecom operators are undermining their importance in the lives of consumers today. A consumer may afford to impact its financial creditworthiness but can never default its digital reputation. The telecom ecosystem along with the digital ecosystem need to jointly build a mechanism to develop a CIBIL-like score indicating the digital reputation of a subscriber. The moment anyone faulters, the person gets blacklisted from the digital world which means does not get any SIM or any other telecom or digital services. This is nothing less than a nightmare anyone can think of in today’s time.
The last time telecom operators came together in doing something similar was when number portability was introduced. Since then, the operators have been working in silos and never thought of working collaboratively in solving larger problems like how they can work together in accelerating the featurephone to smartphone transition. A CIBIL-like score defining the digital reputation of a consumer could be a great idea to work collaboratively on and simply block the person from the digital landscape in case of any fraud, scam, or creditworthiness issues.
If the operators start offering bundled 5G smartphones<\/a> and other devices<\/a> basis this score, the chances of default would decrease substantially. I am not claiming that the system will be foolproof, but good enough to make the beginning and as AI does, the solution will self-learn and find answers to more complex issues faced during the journey of implementation and execution.
Telecom operators can no longer afford to stay out of this ecosystem without playing their role as a key collaborator. It is largely in their interests. We all know how difficult, cumbersome and resource-hungry it is to manage multiple networks and technologies. Operators are already finding it difficult to manage 2G and 4G networks. Now, they, except Jio would have to manage 2G, 4G and 5G for at least next 5-6 years which is a pain in itself. Even Jio, which was happily with single technology is now managing 4G and 5G.
There is enough of data which can help establish the digital creditworthiness and reputation of a subscriber basis which the operators can decide about whom to offer bundled devices and to what extent. This is very much required for 5G to become a mass technology in a very short period of time in India. The telecom operators have to take calculated risks. We have so many frauds and scams happening with credit cards in the banking sector, but banks haven’t stopped this lucrative business. Rather, they have developed solutions including CIBIL that have considerably brought it down. This is what the telecom operators need to learn from the BFSI sector and jump into the risky propositions that will also have worthy rewards.
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