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.