Dynamic Airtime Allocation for Call Retention Post Credit Limit Exhaustion

A Case Study

What it means?Demystifying Dynamic Airtime

Allocation

Allocating airtime to consumers near credit limit exhaustion in order to

ensure uninterrupted call experience.

Indian Prepaid Telecommunications Market (FY2014):

● Revenue loss from incompleted calls due to insufficient balance is estimated to be around $1.2B.● Telecom industry churn-out rate as high as 14% with an average of about 55-60 million

subscribers changing their operators monthly. ● Consumer churn costs the operators about $2B annually.● 210 million passive consumers constituting about 25% of the total prepaid subscriber base.

Sources: 1. Cellular Operators Association of India (COAI)2. P. Rajeshwari , P. Ravilochan (2014) Churn Analytics on Indian Prepaid Mobile Services , Asian Social Science, Vol 10 No. 13

The problem

Call interruption contributes in consumer dissatisfaction which is a major cause of consumer churn.

The solutionDynamic Airtime Allocation based on Consumer Data

Variable airtime for different consumer classes depending upon their needs, usage history and spending behaviour.

Airtime allocation to the consumer segments based on their creditworthiness in order to minimize risk.

Credit retrieval from the consumers through regular recharge and intelligent ad-exchange programs.

The Benefits

Direct Benefits

● Increase of upto $1.2 billion in revenues due to continued calls.● Visible impact in low coverage areas where continued calls ensure sustained bandwidth.● Increased profits on subsequent allotments of airtimes.

Indirect Benefits

● Lower consumer churn with around 10% of the 55-60 million consumers retained, contributing up to $250 million increase in profits.

● Increased number of referrals due to greater consumer satisfaction.● Decrease in the number of passive subscribers.

Risks associated Step 2The only risk associated with airtime allocation is the non-payment of credit

equivalent to airtime allocated. It can be due to:

● Consumer switch from one network to another. ● Consumer belonging to passive category.

Precise measures will be taken to mitigate these risks with an added option of being able to pay through ad-exchange or filling surveys apart from the conventional ways of paying.

Why now?

Consumer churn rate can be cut down by +50% by the use of proactive call retention strategies

6M Consumers RetainedIncreased #ReferralsGreater consumer satisfaction

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