Telecom sector pricing by Group 9

TELECOM SECTOR PRICING

GROUP 9

SHIPRA GOWDA(CRM)

TATA DOCOMO

Docomo entered Indian market on Jun 24 2009

Pricing Objective-

The objective of all pricing schemes of Docomo are based on “How much you really save??” This pertains to the money which Docomo's customers are saving on unused seconds.

Competitor Price Mix analysis-

Docomo was the first to introduce 'Pay per Second' over the then prevailing 'Pay per Minute' schemes of its competitors.

Reliance telecom was the first to introduce 'Re1 per min'. This was followed by the disruptive innovation of pay per second by Docomo. This trend was followed by Airtel and Vodafone. This is an example of 'Mimic pricing'.

Pricing Method--

Innovative pricing startegies-

'Pay per use' paradigm

Voice based service per second basis

'Pay per character' SMS pricing—on 8^th Sept 2009, the started the “Diet SMS” scheme, under this, the customers are charged for the number of characters they type. 1 character per paisa.

Unlimited GPRS- they introduced two plans under this- Unlimited usage and Pay per KB

Final price-
Docomo has been the leader in innovative pricing schemes which aim at giving 'value-for-money' to their customers. Although it is a late entrant, it has grabbed a huge market share because of its pricing strategies and catchy jingle.

UNINOR

Select the price objective???

Their aim is to earn a market share of 8% by 2018 and the firm expects to earn 40,000 base transceiver station (BTS).

Select pricing method?

Uninor has a dynamic pricing scheme, a subscriber gets varying discounts on calls made. Besides, the caller also gets to see the discount on a call at a given point in time. Uninor’s discount on calls ranges between 5% and 60% based on the traffic handled by a base transceiver station (BTS), which routes the call.
On a 60% discount call, the caller pays 20 paise for a one-minute call.

Dynamic pricing has helped us stand out in the market. This is going to be adopted like some of the earlier plans such as one-paisa-per-second and others. The one-paisa-per-second approach may not be the right scheme for a customer always.

Apart from this, Uninor has stayed away from bidding for 3G spectrum as it feels 3G does not make sense as the firm can offer similar services in the 2.5G GSM network since it has deployed enhanced EDGE network.

As you know 90% of the traffic is for voice and this is going to continue for years. And we can offer all that is being said for 3G in our network as it is an advanced one.

Analyze competitor pricing mix

The environment is tough with quite a few of its competitors dropping tariffs to rock bottom in order to grab customers. Tata Docomo triggered it with its one-paisa-per-second tariff plan, which was followed by MTS, Aircel and even Bharti Airtel.Where other competitors are offering 1 paise per second i.e. 60 paise for 1minute,whereas,uninor is offering price of 20 paise per minute.

Select final price.

The normal call rates are same as its competitors i.e 1paisa/sec but apart from this it also provides the discounts ranges from 5% to 60% depending upon the traffic usage. So with this scheme customer may end up in paying approximately 20paisa/min.