Reliance is launching sachet pricing for mobile VAS – for example, instead of paying Rs. 30/ for your ringtone, pay Rs. 1 every day.
The strategy is targeted towards prepaid customers (85% of Indian mobile users are on prepaid plans) as well as rural India/BoP segment – and if well executed (i.e. if Reliance is still able to maintain margin), this can change the face of Mobile VAS pricing in India.
Mobile VAS in India – Key Drivers
From our earlier article on Mobile VAS in India and Key Drivers:
Over 60% of women indicated they would subscribe to VAS SMS bundle offers compared to around 47% men, similarly 56% of women would subscribe to “unlimited songs download” as against men (46%).
Mobile VAS – What do Indians need?
What works for Indian mobile users? Have a look :
Sachet pricing will bring more needs/wants from the end users and is surely an interesting play to watch.
What’s your take on Reliance’s sachet strategy?
Recommended Read (on Mobile VAS in India):
- Mobile VAS in India: Numbers that you should know
- Your Mobile has a Multiplex – UTV Launches Audio Cinema
- Airtel to launch Virtual Phone Numbers – You can have 10 numbers on a single SIM!
Aside, Reliance started it’s GSM service few weeks back (has 70 million total subscriber base) and is currently in talks with China Mobile, for a strategic alliance and possible equity participation of 5 to 6 % (to raise funds for 3G auction).