Mint Explainer: Why telcos seek fair share on top of bundled OTT plans
NEW DELHI : Bundled tariff plans that include access to content-streaming apps are in vogue. They generate additional revenue for the telecom operators as users tend to upgrade to higher-paying plans for more data. And for consumers, they mean sheer convenience—they get only one bill for mobile services, internet and all over-the-top (OTT) app subscriptions.
But the bundled offering has raised a question: Should content providers still give a “fair share" of their revenues to telecom firms that have invested billions into the network needed for users to stream the content? Mint examines: For starters, it's additional revenue for telecom players. As streaming requires more data, users are likely to upgrade to higher-paying plans that provide more or unlimited data usage. The latest tariff hikes have already made the starting unlimited 5G data plans costlier by at least 46%.
Bundled plans also increase consumer stickiness, or in other words, consumer retention. It is also an attractive selling point to gain new customers as they would have to manage fewer subscriptions if they switch. Also Read: Mint Explainer: Why SpiceJet repeatedly struggles to announce earnings on time For consumers, it's a matter of convenience as their service provider gets billed for all subscriptions, and they get one bill.
Bundled plans can sometimes be cheaper than subscribing to mobile data and OTT services separately. This is because telecom companies might negotiate bulk discounts with OTT platforms and may pass on some of the savings to customers. In June, Vodafone Idea introduced its new subscription plan with access to 17 OTT apps, including Disney+ Hotstar, SonyLiv and Zee5, and 350 live channels through its Vi Movies & TV Plus app at
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