Call-Me-Back Increases ARPU by 20%

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It is a USSD code which sends an SMS with text “Please, call me back” to the subscriber with number +7-913-123-4567 from your number if you have no money on your phone.

For our region where we have more than 1 million subscribers, in the first three weeks of July this year we have seen 4 million inquires. Each day we received about 200,000 inquiries. Around noon, we receive above 12,000 inquires per hour or 200 inquires a minute or more than 3 inquiries per second on average.

If all of Call Me Back initiators were called back, we would see 20% more calls per day for 1 million subscribers. If we assume that Call Me Back (CMB) calls are no different from ordinary calls (I would think CMB calls are longer because there ARE some news from the initiating party) we would see a 20% increase of voice traffic.

Of course, for the purity of calculations, apart from the 100% call back rate assumption, we have to assume that we indeed have an extra call which would have never happened otherwise. A strong assumption. To relax it a little let’s assume that 50% of CMB calls would have happened later anyway (they were not just those a moment’s exciting news that have no value if not delivered immediately). It is reasonable. Then we have a 10% increase of revenue everything else being as assumed. Not bad, in numbers that would be 100,000 calls * 10 cents/min * 10 min = $100,000 a day. Wait, a day??? OK, may be not 10 minutes. May be not 10 cents a minute. May be 5 cent/minute and 2 minutes/average. That comes to $10,000 a day / 1 region. And now compare this to the cost of the application.

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