MKTG. STRATEGIES – PRICING

26 Aug 2003

Sanjeev/Raju.Abhi/Kartavya,

MKTG. STRATEGIES – PRICING

In today’s “Strategies”, Mukesh Ambani is quoted as , I would rather have 10 million subscribers paying me a small amount daily than own 3 power plants.

To “ book” a fixed land line, even today, you need to deposit Rs. 3000/- with BSNL.

It is any surprise that their profit is down by 75% (This used to be Rs. 15000/- once)

Within next 6/8 months (Mar 2004) same BSNL will be “Feed” to route their international calls thru “any service provider” – breaking VSNL’s monopoly of 50 years.

So next, VSNL market shave , (Of ILD), Which has come down from 100% to 60-70% will drop to 10% More trouble.

When mobiles got introduced in  India, about 4 years ago, rate was Rs. 15/- per minute (send or receive). Now it is 40 Rs per minute with incoming FREE.

Same fate awaits TV channels.

What “CAS/Set-top-box will do to Zee/Sony/Star, our “Pay-per-use” web service will do to Monster.

Naukri/Job Ahead!

Will broadcasters announce a market-friendly bouquet and individual pay channel rates? The industry soon expects a price war as rival broadcasters fight to grab a share of the country’s real pay TV viewers.

But the competition from within pay-and from free-to-air channels like Sahara and SABe TV will see prices drop.