Over a year ago local mobile operator Telecel took an unconventional route when it zero rated the transfer of money to registered subscriber of its mobile money platform, Telecash.
Telecel’s strategy seemed to centre on getting Telecel subscribers to sign up for Telecash and at the same time, offering extended value to the Telecash users that it was trying to shore up. The good news for Telecel is that some these strategies worked and Telecash has 1 million users.
But, even with 1 million users, things have changed in the economy and in telecoms and the operator is now having to make adjustments.
For instance, it has just introduced Telecash bundles. These are $2.50 and $5 bundles that allow subscribers to send money, cash out and pay bills at no additional charge for a 25 day period.
The $2.50 bundle allows registered Telecash subscribers to send money worth $500 and to cash out transactions valued at $500 or below. It will also allow users to send a maximum of $500 to unregistered numbers. The $5 bundle doubles the allowance. The Telecash bundles also offer free 30 minutes Telecel-to-Telecel promotional airtime.
Telecel is extending a value proposition to Telecash users that use the platform for frequent payments and transfers. With 1 million users already active, there’s a huge potential market to tap into there.
At the same time, Telecel is also encouraging mobile money use for any form of transaction that can be paid for by the digital money alternative and it can help increase the use of products like the Telecash Gold Card. As long as someone has paid for a bundle, they shouldn’t worry about any transactions which, at their premium rates, are a reminder of how expensive telecoms services are.
If this service is a success, it will also help Telecel boost its Average Revenue Per User through mobile money services, which are a displaying massive potential for all three telecoms operators that are adapting to the effects of declining voice revenue.
However, all of this comes after Telecel once offered its Telecash subscribers free transfers. Moving from free to paid is never an easy transition, especially when you spent close to 2 years winning the hearts of 1 million new followers. A year of free services is hard to just give up.
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8 comments
Sure, you said it very well. Maybe many users signed up for the free services , now that they are paid… who knows, they might decide to pack their bags and go back where they came from!
Sour grapes
Haaa ecocash iripama1. Though this reduces need for agents to do telecash as they lose out on commision dnt knw who they will balance consu:ers and partners interests.
No wonder they can’t pay licences, they have the terrible managers, this is unsustainable which ever way you look at it. Also this piece appears to be an advert of some sort and not a news article, are you being paid to write this?
Interesting, this reduces the cost of transacting significantly, especially on cashing out with no charge. I wonder how there are able to offer all of these transaction sets for such a low price. Good for consumers either way.
How do these telecash bundles work bundles for online transactions via the telecash API?
This is great for consumers, but the question is how many agents are going to share the $2.50 if in a month I cash in $100, $60 with another agent, $70 with another,$180 with another, $40 with another and $50 with another. then do my several cash outs with about eight agents. that is 14 agents sharing $2.50 it gives us $0.178 for each agent, now how much is telecel getting here. mmmmmmm I m getting cold.
Each agent getting 17cents per month!!!!!
Telcash has 1 million subscribers and about 16 thousand telecash agents that means each agent has about 63 subscribers to serve. this leaves each agent with $11 per month to pay for rents, salaries, day today business expenses and his/her sustenance. mmmmmmmmm its becoming too cold here.
All the agents are going out of business and we will not have anywhere to cash out. mmmmmmmm, I m almost freezing.
I better do my cash out today and pack my bags. Ndinozopihwa nani mari yangu kana vavhara vese. 2018 is around the corner this is politics. Itai zvenyu mega ini ndakaguta.
@So What, good observations on agent commissions, i was reading the article just now, reading between the lines, i think TeleCash is going to continue paying commissions as is to agents, which implies they are going to operate as a loss leader, maybe this is a tailor made strategy to grow active customers and gain market share. I wonder how business strategists will interpret this as well.