Telenor in India: Underdog's Innovative Pricing Strategy
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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 |
Abstract Case Intro 1 Excerpts
Excerpts
Indian Telecom Market: Going Wireless
Telegraph lines connecting several states were established in India in 1851. In 1882, the central telephone exchange was opened, with 93 subscribers. However, the telephone did not gain prominence until much later and post remained the preferred choice. Even after independence, in 1947, the growth of the telecom sector was slow as lack of infrastructure and high tariffs restricted accessibility to it to a minor proportion of the populace...
The Busy Lines
From the mid-2000s, India's telecom sector witnessed one of the highest growth rates in the sector world-wide, due to various constructive decisions of the GoI such as liberalizing foreign investment regulations, spectrum allocation, and allowing multiple players in all circles...
Uninor: The New Entrant
Unitech Wireless, a subsidiary of the Unitech Group (leading real estate company in India), was granted a 2G National Long Distance and International Long Distance license for all 23 telecom circles in India for a mandate sum of Rs. 16,500 million (US$389 million)...
Scintillating Tone: Discount Pricing
The 24X7 Badalta Discount Plan offered a discount - ranging between 5% and 60% on the 50 paisa chargeable per minute of call - based on the traffic handled by a Base Transceiver Station (BTS), commonly called Transmission Tower or Tower...
Uninor Dialing: Corrupt Signals?
Not many industry analysts shared Uninor's confidence as the Indian telecom sector was crowded and fragmented. Analysts observed that more than 50% of the total Indian population and over 90% of the urban population subscribed to mobile services and with new additions of around 10 million subscribers per month, the industry was fast approaching saturation...
Exhibits
Exhibit I: Wireline and Wireless Subscribers (in Million)
Exhibit II: Tele-density by end March
Exhibit III: Market Share of all the Players as on March 2010
Exhibit IV: % Customers Considering Different Brands as of March 2010
Exhibit V: Pricing of Uninor
Exhibit VI: ARPU (in Rs per Subscriber per Month)
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