Why are Indian Telcos resorting to offer insurance cover?

After Telenor, Sistema Shyam Teleservices (SSTL), which runs under the brand MTS, is all set to provide insurance cover to its data subscribers. For the first time, with Telenor, a telecom operator has started offering life insurance to its new and existing customers, with covers from Rs 5,000 to Rs 50,000. SSTL has tied up with Oriental Insurance company to provide Rs 1 lakh accidental insurance cover to its new data subscribers.

Sanchit Vir Gogia, Chief Analyst and Group CEO, Greyhound Research, says, “As revenue generation areas are growing lesser for Indian telcos, there is a pressure to manage scalability. OTT services/apps such as WhatsApp/Skype are furthering shrinking revenue margins for Indian telcos, therefore there it is imperative to work on revenue generation models that are not limited to just voice and data services.”

Source: TelecomTalk

 

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