Why Dual SIM cards mobile phones?

Most operators run promotional campaigns to attract new subscribers by offering free calls when calls are made within the same network.  They run this type of campaign because the cost of a cellular call to a phone number that belongs to another operator requires the operator that originates the call to pay interconnection fee.  Other reason is to get the most of out of their existing subscribers by providing incentives for their family and friends to subscribe to the same service.

With prepaid service, there is no additional cost to use multiple different providers at the same time.  The real hassle is in keeping track of multiple different phone numbers from different providers.  Since your friends and relatives are subscribers of various different service providers and you want to take advantage of the free calls, low cost handsets that come with dual SIM cards become popular.


This is a real example of triple radio handsets (2 GSM and 1 CDMA).  You can insert up to 3 SIM cards from 3 different operators into the phone.  There are 3 blue buttons on the phone that represents different provider (the blue button on the right side is fading away).  Before you make a call or send text, you have to press one of the blue buttons to instruct the phone which SIM card you want to use.  All 3 SIM cards are active at the same time to receive calls or SMS.  And this phone can also receive analog broadcast TV.

The other solution is to carry multiple phones.  Each phone uses SIM card from different providers with different mobile numbers.  When you want to call friend A use phone #1, call relative B with phone #2 and match the operator to avoid paying for the calls.  This is an example of entrepreneurs seeing a shift in the market and coming up with a handbag that can carry multiple phones.


Since there is no monthly cost associated with owning multiple prepaid subscriptions, switching cost is extremely low and generated high churn rate in the 10% range for Indonesian operators.

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