Reliance’s ultra cheap (Rs. 480) mobile phone – packed with Internet

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.

What do you think?
Technorati tags: reliance communication, gsm