Competition might term it as predatory pricing, but Reliance is all set to launch the cheapest mobile+Interenet phone( priced @ Rs. 480).
Reliance will target the 600 million rural population and targets to sell around 1 million pieces a year in the rural and semi-urban areas. [source]
Reliance changed the telecom landscape in 2003 with it’s cdma launch and is also planning to repeat the history with it’s GSM launch (i.e. service + handset).
What’s really important about the handset launch is
- Increasing usage of mobile internet : As per TRAI’s numbers, mobile internet users are 14 times more than the broadband users.
- Opportunity in rural VAS : this is an untapped area and companies like Reuters have already started rolling out services like up-to-date, local and customized commodity pricing information, news and weather updates etc.
So, essentially there is a strong market out there and Reliance has the reach and deep pockets to penetrate into this “bottom of pyramid” market, where lies the real cash cows.