BAN BOOSTS BUSINESS

Telecom companies manage Rs 10 cr sale on Saturday

BILAL HUSSAIN

SRINAGAR, Nov 1 [2009]: The telecom companies operational in Jammu and Kashmir, on Saturday managed sale of over Rs 10 crore, experts here believe. The companies managed huge sales due to ban on prepaid connection in the state and subscribers thronged the kiosks of different telecom operators.
Noted economist and member state finance commission J&K government, Prof Nissar Ali told KT that the enormous rush was observed on the telecom booths for recharges and
to extend validity to buy extra time.
There are over 38 lakh prepaid mobile subscribers in the state. “If we consider only 50 per cent of the prepaid users would have extended the validity or for recharges. The number would be huge 19 lakh,” said Prof Nissar.
According to Prof Nissar on average the subscribers would have shelled off Rs 50 on Saturday. “The sales figure would be over 9.5 crore on Surtady,” he adds.
There was huge rush of the customers seen at the telecom kiosks for recharges and top ups for their mobile connections.
Many subscribers told KT that it took them hours to recharge their connections. “It took me an hour to reach to the counter to ask the executive for top ups,” Nissar Ahmad Bhat, a local resident said.
For kiosks it was time to make huge sales. “Since morning I have not taken my lunch,” said Zahoor Ahmad, a booth owner in the evening said.
Earlier, DGM administration, BSNL J&K, M G Mufti, told KT that there is no need to panic. “All one need to do is to go for recharge so as to but time to convert the same number to postpaid connection.”
According to Mufti no prepaid connection and no recharge would be available after No 1, 2009. “Since we have forms with us all we need is simple application to transfer the pre paid to post paid plan,” he added. “Working prepaid with validity would not be barred.”
Many subscribers told KT that the decision on banning the prepaid connections is uncalled for. “They should have given us time to go for postpaid connection,” said a subscriber. Social experts here believe that the move would disempower low paying category in the state.
The BSNL, a public sector telecommunication company, currently has a customer base of over twelve lakh subscribers, Bharti Airtel, has got the highest customer base of over 19 lakh in the state, Dishnet Wireless has eleven lakh subscribers in the state and the new entrant in the state, Vodafone Essar has a customer base of over a lakh. There are over 38 lakh prepaid mobile phone subscribers in the state.
The decision would have an impact on over all market size of the mobile service providers, is what authorized distributors believe. "Most of the customers come to us for pre paid connections but now we would not be unable to provide them one," a local dealer said who wished not to be named.
The decision, would hamper the growth of the mobile subscriber in remote rural areas, Imran, a prepaid subscriber said.
The ministry of home affairs has decided that no prepaid mobile connections would be issued and existing prepaid SIM cards would not be renewed in J&K after Nov 1, 2009, an official said. The ministry has asked the Department of Telecommunications to take appropriate action to implement the decision.
The decision is not going to impact the over all profitability of the telecom operators functional here but the subscriber base is surely going to get affect by the move, an official of a telecom operator said. “In particular the poorer people who can’t pay regular sums as is the case with the postpaid connection would be worst hits by the decision,” Nisar Ahmad Wani, telecom expert said.