With the user base for telecom and DTH subscribers growing leaps and bounds, a number of third party recharge players are trying to tap into the market. What is the business all about?
Imagine you reach home late at night after a long day at work. Suddenly you realize that you have to make an urgent call and you have run out of cash balance.
What do you do? Cut to another situation. Your monthly DTH recharge has exhausted and you do not want to make the effort of going all the way to a recharge shop to top-up your account. What do you do? Well, there is a simple solution to both these problems: simply log on to a third party recharge website and recharge your mobile or DTH account within minutes. And that too at the convenience of your home! Could this be a potential business opportunity for many? In this article, DARE focuses on the nitty-gritty of entering doing such a business.
How big is the market?
The telecom industry in India is growing at breakneck speed, and the majority of the growth is contributed by the wireless or mobile segment. In July 2009, TRAI estimated India’s tele-density to be 41.08 with the total telephone subscriber base reported to be 479.04 million. Of this, while the wireline base was just 37.41 million, wireless subscription (including GSM, CDMA and FWP) accounted for 441.66 million connections. What is even more interesting is that a majority of the wireless connections, almost 90% of them are prepaid. Given an ARPU of around Rs 200, we can assume that an average recharge is Rs 200 per month, or Rs 2400 per year. Based on these numbers, the recharge industry size works out to be approximately Rs 9600 crore per year.
Talking of DTH, though the number of players in this sector are few, they are also reportedly expanding at 35-40%. India’s TV viewership is believed to be the second highest in the world and is expected to swell up to 35-40 million by 2012. The installed base of DTH is very small compared to this number. So, this space also remains mostly untapped and could offer a big opportunity to third party recharge players.
| The Industry Landscape | |
| Mobile connections in India | 441.66 million |
| Prepaid connections (90%) | 397.49 million |
| Average recharge per month per person | Rs. 200 |
| Average recharge annually per person | Rs. 2400 |
| Total Recharge Industry | Rs. 9600 crore |
Business models
The recharge market in India is vast and is on the lookout for new channels to expand. Currently, the market can be broadly split into two – offline and online. The offline sector is dominated by scratch cards that are distributed by telecom players and sold through retail outlets ranging from cellphone sales and repair shops to the more generic pan shops. On the other hand, the online recharge business is serviced by several channels – the service providers through their own websites and recharge through ATMs have been the traditional methods here. Third party recharge players such as Rechargeitnow.com, Fastrecharge.com and Onestoprecharge.com are the new entrants in the fray.
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| Today, in one family there are several mobile connections, and often a younger member of the family goes out to get the recharges done. We ease this process by providing a single platform having recharge options of all telecom players and at the convenience of their homes
Sharat Jain |
Currently, the market is dominated by recharge cards than by e-recharges. The scratch card segment works through a PIN recharge model, wherein a telecom service provider sells a 16 digit PIN to the user through the scratch cards. For this, a number of background processes take place at the service provider's end including the generation and scrambling of the 16 digit PIN, printing it and then the customer (or more usually the retailer) SMSes the code to the service provider to recharge the customers account.
Typically, each service provider has multiple recharge plans (usually 5 or more) running at any time and each telcom circle has about 5 players. So, a retailer has to stock 25-30 different varieties of scratch cards. In practice, the retailer stocks only the more popular plans and sometimes is even selective about the service provider. So, a given retailer may actually stock under 10 different recharge options.
The margins in the recharge business is wafer thin, with the retailer earning between 3-3.5% margins and the distributor earning 1%. There is no concept of wholesaler in this business. For most retailers, recharge cards are top-up income or at best help draw customers who may also buy something else from him. More money is to be made from activation (selling a new prepaid SIM card to a customer and activating his number) than from selling a recharge coupon. The online recharge model does away with the retailer—if the third party recharge player is large enough to deal directly with the telecom service provider or acts as the retailer, buying inventory from a distributor.
How does a third Party Recharge model work?
Of late, several vendors have entered this space and have started providing recharge options to customers. There are several reasons behind this. From the point of view of consumers, this option offers convenience. According to Sharat Jain, President and Co-Founder of Online Recharge Services, the promoter of Rechargeitnow.com, “Today, in one family itself there are several mobile connections of different telecom service providers. Often the younger member of the family goes out to get the recharges done. We ease this process by providing all the recharge options of all telecom players on a single platform and at the convenience of their homes. Moreover, the expertise of the telecom service provider is to provide service rather than selling recharge coupons. So this feature is even difficult to find on most service providers’ websites”.
Since the user interface of these players is a website, the target audience is mostly urban population. Defining the target audience base further, only those with easy internet access as well as those who feel comfortable purchasing online are currently customers to this service. According to a study conducted by the Internet and Mobile Association of India (IAMAI) and IMRB International, India had an estimated 45.3 million ‘active’ Internet users as on September 2008, of whom 42 million were from the urban areas. This could as well be the potential customer base for an online third party recharge player. There are some moves by the online players to dramatically increase their target base. More about that later.
Recharges can be done in two ways, either by getting a sixteen digit PIN of the service provider or through flexi-recharge. These websites also tie up with several payment gateways, net banking services for money transactions.

written by ISHTDEV SHARMA, June 23, 2011
written by Parimal.Bhatter, June 22, 2011
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written by Mohammed Aveezuddin, June 21, 2011
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CEO @ BANS Techno Solutions Pvt Ltd.,
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written by manish kumar jain, June 16, 2011
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written by Bhushan joshi, March 21, 2011
shravani A smart Business provide all mobail And dth recharge API And online portal .If u intrested to start A online mobile recharge company pl write me info@shravani.co.in
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written by Rajan, March 19, 2011
Regards
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written by sandeep sharma, March 01, 2011
this is sandeep sharma from chennai mobile no is 9384882231
i want to start online mobile recharge website.
pls help me.
written by Surendra Singh, February 25, 2011
online recharge U need two way sms services, Bulk sms and API integration.
For this services u can contact me.
My contact No. +91-9321998928
written by Arvind Kumar Rastogi, February 13, 2011
we provide single sim to all mobile,dth recharge and postpaid bill pay
for any sales query call us arvind-9792777748 or write -arvindstuti@gmail.com
written by vikas, February 07, 2011
written by S S Gandhi, January 07, 2011
PRECHARGE supports automatic recharging of all prepaid Mobile cards and DTH Operators. You can run all operators together using 8 Port / 16 Port GSM Modem Pool which we supply along with software. Moreover PRECHARGE comes in two versions 1) Destkop version and 2) A Web based version in which we also offer a ready made website along with recharging software and GSM Modem Pool.
e also offer full customisation of Automated Mobile recharging Software to work with your existing website or you can run mutiple SIM Card of Single Mobile operator incaese you expect heavy recharge traffic for any specific mobile operator. Precharge supports two level managment i.e. Distributors and Retailers. Moreover administrator can set different commission level for their downline as well as an exhaustive set of reports are available with the software. Entire System works on SMS as well as Web request depending upon the version you buy.
Do visit our website www.mobilerechargesoftware.com to collect more information or Send SMS “PRECHARGE” on 09228783153 for more details.
written by kingsley s, January 07, 2011
recharge system can also be customized and integrated with website.
We also offer popular recharge API integration as a backup tool incase of SIM Stock balance run out of fund.
Our automatic mobile recharge systems is capable of doing recharges for mobile operators which includes AIRTEL, VODAFONE, BSNL, IDEA, RELIANCE CDMA / GSM , VIRGIN, DOCOMO , UNINOR , VIDEOCON, AIRCEL and other popular mobile operators and DTH Operators.
We offer full system with GSM Modems and demo is available on request
For more details please contact erecharge.net
written by kingsley s, January 07, 2011
recharge system can also be customized and integrated with website.
We also offer popular recharge API integration as a backup tool incase of SIM Stock balance run out of fund.
Our automatic mobile recharge systems is capable of doing recharges for mobile operators which includes AIRTEL, VODAFONE, BSNL, IDEA, RELIANCE CDMA / GSM , VIRGIN, DOCOMO , UNINOR , VIDEOCON, AIRCEL and other popular mobile operators and DTH Operators.
We offer full system with GSM Modems and demo is available on request
For more details please contact erecharge.net
written by deep, January 06, 2011
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which type i can reacharge it.
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written by arshad ali, November 14, 2010
we run balistiya marketing pvt ltd 35 noor basti saharanpur u.p. india contact person arshad ali contact no.9358789394 we run company mlm based any service provider who want tie up with us toe-recharge facility to all in one like the www.emind.in we want also type like this compay
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written by ASLAM SAYYED, October 19, 2010
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written by RAMESH KUMAR, October 12, 2010
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written by S Kumar, October 04, 2010
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written by jasjeet, September 12, 2010
Hi Guys, I m really fed up becoz I am not able to find one simple answer to online mobile recharge. Is there a single good website, so that i can recharge my mobile through sms as I am always travelling in India and am always confused about getting mobile recharge. I am really
looking for some great solution before I give Up. Can anyone please recommend me a website vich also recharges my Internet packs.
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written by Vijayasarathi, July 28, 2010
i want to do easy recharge business for all the network either in online or offline by getting commission, what's the way
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Please Contact for more information:
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written by ASLAM SAYYED, April 28, 2010
We are a 50cr m-commerce company in India. We are a 3rd party integrator of all mobile networks in India where retailers can recharge all mobile networks from a single sim(any network). All DTH recharge bill payment and PCO recharge also. We also have Rail+Air tkt booking,hotel booking and insurance payments. We presently have 9999 retailers(retail counters) accross the country.
Mobile & dth recharge business from your one phone from your one mobile you can do mobile & dth recharges. for mobile topups, boosters & day to day offers can be done, of the following - airtel, MOBILE, RECHARGE, TOPUP, BUSINESS, MOBILE RECHARGE, MOBILE TOPUP, MOBILE BUSINESS, PHONE, CELL, AIRCEL, AIRTEL, VODAFONE, BSNL, CARDS, A THE, Good opportunity to start your own IRCTC e-ticket booking travel agency and also provide total travel solution- flight ticket booking, bus ticket booking, car rental, hotel booking, cruise ticket booking, jet charter services and earn three figures daily.
India's leading provider of IRCTC authorised Rail/AIR/BUS E- ticket franchise.you can sell rail,air,bus,all india prepaid recharge,utility bills, post paid ph. bills, hotel booking & many more services. This is an life time oppurtunity to become agent & earn great profits . To know more just call -09920803722 or just sms ur name, address & email id.
written by nisha, April 12, 2010
written by pradeep mittal, April 06, 2010
written by Kshama, April 03, 2010
Contact:Kshama 9945530904
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written by krishna murthy, March 16, 2010
Online Tata Docomo and Uninor Mobile Recharge
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written by krishna murthy, March 16, 2010
i found a website which provides Online Tata Docomo and Uninor Mobile Recharge instantly.
so u can also use the service, as they charge very less fee.
the name of the site is
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written by rohan, March 09, 2010
You may try www.rechargeguru.com they have very good reputation for mobile recharge & dth recharge. They support both paypal.com & Indian bank payment plus ITZ cash card. Try them good.
Best thing that I like they have custom recharge option by using that U can create your own recharge of your Circle/State
Give them a click.
Rohan
written by ashok mali, February 26, 2010
written by pritesh, January 31, 2010
Oppurtunity is very high in this business, but the customer support, in the case of wrong recharge, servers problems, scheme knowledge, scheme updates and many more problem; is also very essential.
To lose Rs. 50/- in a recharge is very easy for a retailer or seller, but to earn Rs. 50/- in recharge business is a all day process. Each and every customer have a wrong impression that the retailer is keeping the money and the retailer is the one who operates and modifies the schemes. But the customers dont know that the retailer is just a mediator, who invests in recharge vouchers and etop up balance in advance and gets hardly 2% margin.
Customers are not ready to help in the cases with problems. In more than 95% or the recharge cases, the retailler does not do the mistakes. It is the mobile operators who sends sms of different schemes to different customers, which results in Aa confusion to the customer. I have seen most of the customers who come for a recharge are confused, and blaims the retailler if they get a wrong scheme or recharge.
Very Sad. But truth.
written by pritesh, January 31, 2010
I have seen many people who faces such problems due to several schemes, some effectively applicable and some not to their number. Do this online recharge websites have the solution for those people?
written by Jas, January 31, 2010
written by DTH, January 09, 2010
written by hashemi noudehi, December 05, 2009
written by ezRecharge Support, November 14, 2009
We support all top service providers like Tata Docomo, Airtel, Vodafone, Aircel, Reliance and we are adding up more.
It is simple website designed for the customer convenience, which is more of online retail store to recharge your prepaid mobiles.
No Signup is required and No Amount Restriction
We honour your privacy. So we dont expose you to any advertisement agencies(both online / offline)
We expect our customers to use our services as and when required. So we dont ask any deposits to our customers.
Uniqueness of this portal is, unlike our competitors, we dont choose the tariff for our customers. We help the customer to choose their own tariff. So, no amount restriction as long as it is valid recharge amount.Minimum Amount to recharge is as low as Rs.25/- So, you can recharge your booster packs/ratecutters/jaadu packs.
So, as of now, ezRecharge.in is the only portal helps their customers to migrate to ’’One Second Billing or Pay Per Second Billing’’
Visit us @ http://www.ezrecharge.in/
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