The3G technology has the potential to be used for various applications in form of
voiceand data, one of which is video telephony. However, the cost of acquiring this
technologyis very high, since it requires a 3G mobile phone connection in a 3G-capable
handset,which is not affordable for the low-income segment. Service providers in India
for solutions in terms of business models that could bring this
technology withinthe reach of the masses.
inconsultation with MART, came up with Aamne Saamne-an
could lower the costs for the base of pyramid segment. Its studies
showed that there was a significant
from rural areas to urban loca-
earn a living, to gain skills, or for education. These migrants stayed in slums or in
unauthorizedcolonies in the cities/towns, and remained connected with their families in
thevillagethrough telephone/mobile. This migrant segment presented Ericsson with an
opportunity bringin the 3G video telephony model. Havingidentifiedthe declining
pca industry as the appropriate channel for this technology, Ericsson converted virtuallydyingPCOsinto public video telephony booths. This way the consumer paid only
forthe minutes used, while the actual investment was made by pca owners. A marketingcommunication campaign was designed and implemented to make people more
awareand act, which caused a behaviour change in terms of people communicating
with eachother. They
switched from mobile communication to video communication.
model,initiatedin the Delhi-Biharcircles, is planned to be replicated in other parts
ofthe country and in other emerging economies of the world.