Telenor in India: Underdog's Innovative Pricing Strategy

Telenor in India: Underdog's Innovative Pricing Strategy
Case Code: ECON034
Case Length: 10 Pages
Period: 2009-2010
Pub Date: 2011
Teaching Note: Available
Price: Rs.300
Organization : Telenor
Industry : Telecom
Countries : India
Themes: Microeconomics, Price Strategy, Dynamic Pricing
Telenor in India: Underdog's Innovative Pricing Strategy
Abstract Case Intro 1 Excerpts

Introduction

late 2009, a new entrant into the Indian telecom market - Uninor, a collaboration between India-based Unitech Wireless1 and Norwegian telecom giant Telenor Group2 - announced a dynamic pricing model under the name 24X7 Badalta Discount Plan through which customers could avail of 5% to 60% discounts 24 hours a day. With this dynamic pricing plan, the company intended to create a new trend in the Indian mobile industry, in which price wars were intensifying and the Average Revenue Per User (ARPU) were continuing to fall.

Uninor had high expectations of the strategy and felt that the plan would help it to quickly attract many subscribers. However, considering that the company was new and would have to commit high capital for its operations and that it would be competing with established rivals, industry observers wondered whether it could sustain the innovative plan for long enough to break even.

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