
ECO-515
PRESENTED BY:
 MEGHNA NAUTIYAL
 MANHAR PARMJOT SINGH
 ABHISHEK AZAD
TELENOR IN INDIA :UNDERDOG’S
INNOVATIVE PRICING STRATEGY

In late 2009, uninor, a collabration between india
based unitech wireless and norweign telecom
giant telenor group ,entered into indian telecom
market.
This case study is about price strategy and price
discrimination used by uninor.
Due to privatization in 1991 ,there was rapid
growth in telecom industry and new players
emerged into market .
INTRODUCTION

Uninor announced a dynamic pricing model “24x7
badalta discount plan “ by which customer can avail
5% to 60% discount 24hr a day .
Uninor services are commercially available in 6
circles, covering a population footprint of 600 million
people. Uninor serves more than 3 crore customers in
the states of Uttar Pradesh, Uttarkhand, Bihar,
Jharkhand, Maharashtra, Goa, Gujarat and Andhra
Pradesh. Uninor targets youth and other communities
within the Indian mass market

Uninor introduced a radically new concept of
‘dynamic pricing’ that is likely to set a new trend in
the pricing of mobile services in India. Branded as
24X7 Badalta Discount Plan (DP), it offers
customers changing discounts on their calls based on
traffic on the network.
The discounts will change with location and with
time, with each cell phone tower broadcasting a
different discount. At the same location, the discount
will change on an hourly basis. By putting customers
in control of costs, with 24X7 changing discount
rates, this could very well change the tariff structure
in Indian telecom.

 To analyze the nature of the Indian telecom market and discuss the
strategic implications of the economics thereof.
 To discuss the economic and strategic logic behind Uninor's dynamic
pricing strategy - 24x7 Badalta Discount Plan - and debate on the short
term and long term impact on the company's performance levels in
light of Uninor being the latest entrant into the Indian telecom market.
 To examine whether Uninor's dynamic pricing corresponds to any of
the three forms of price discriminations and discuss the implications of
such price discrimination.
 To discuss all the possible effects of Uninor's dynamic pricing strategy
on the rest of the players in the industry .
Problem analysis

 The telecommunication industry is the fastest growing industry in every country. Over
the last decade and particularly over the last five years, India has registered an
impressive growth in the telecommunications sector; India now has a total of 846.32
Million Telecom subscribers, comprising of 811.59 Mobile subscribers & 34.73 wire
line subscribers.
 The Indian Tele-density now stands at 70.89%. India today has the world’s second
largest network which is growing at a rate which is unmatched by any other country in
the world. With the connections now growing at a faster pace in rural areas as compared
to urban, it is expected that as India crosses the 1 billion mark, the rural tele-density will
grow from the current value of 32.95% to 40%. The sector is growing at 45% per year
which has been made possible through continuous effort of the government during the
recent years.
 The telecom sector of India has thus contributed to a great extent towards the socio
economic development of India.-how????
Conclusion

 A.It focused on youth which also valued their dynamic pricing
strategies.
 B.Integrated marketing communications approach -Uninor
even received international recognition for its environmental
and climate initiatives when it won the prestigious Green
Globe Award at the Delhi Sustainable Development Summit
2011 organised by TERI. Also, Uninor has tied up with NGOs,
which help in creating women entrepreneurs across India and
also facilitates micro financing.
 C.Dynamic Pricing puts customers in control of their own
tariffs with the possibility of a better discount .
Uninor’s outsourcing business model brings more
flexibility into the cost base. How????
Leads to less capitalization of cost than a traditional
operator model. The company attributes the performance
to its ‘Blue Wave’ strategy under which over 20,000
people went out to the launch circles to personally inform
users about the company and its services.

Uninor should use celebrities to endorse its brand.
It should make its advertising powerful.
It should develop more talk time plans like full
recharge, chota recharge, easy recharge.
Suggestions

Telenor

  • 1.
     ECO-515 PRESENTED BY:  MEGHNANAUTIYAL  MANHAR PARMJOT SINGH  ABHISHEK AZAD TELENOR IN INDIA :UNDERDOG’S INNOVATIVE PRICING STRATEGY
  • 2.
     In late 2009,uninor, a collabration between india based unitech wireless and norweign telecom giant telenor group ,entered into indian telecom market. This case study is about price strategy and price discrimination used by uninor. Due to privatization in 1991 ,there was rapid growth in telecom industry and new players emerged into market . INTRODUCTION
  • 3.
     Uninor announced adynamic pricing model “24x7 badalta discount plan “ by which customer can avail 5% to 60% discount 24hr a day . Uninor services are commercially available in 6 circles, covering a population footprint of 600 million people. Uninor serves more than 3 crore customers in the states of Uttar Pradesh, Uttarkhand, Bihar, Jharkhand, Maharashtra, Goa, Gujarat and Andhra Pradesh. Uninor targets youth and other communities within the Indian mass market
  • 4.
     Uninor introduced aradically new concept of ‘dynamic pricing’ that is likely to set a new trend in the pricing of mobile services in India. Branded as 24X7 Badalta Discount Plan (DP), it offers customers changing discounts on their calls based on traffic on the network. The discounts will change with location and with time, with each cell phone tower broadcasting a different discount. At the same location, the discount will change on an hourly basis. By putting customers in control of costs, with 24X7 changing discount rates, this could very well change the tariff structure in Indian telecom.
  • 5.
      To analyzethe nature of the Indian telecom market and discuss the strategic implications of the economics thereof.  To discuss the economic and strategic logic behind Uninor's dynamic pricing strategy - 24x7 Badalta Discount Plan - and debate on the short term and long term impact on the company's performance levels in light of Uninor being the latest entrant into the Indian telecom market.  To examine whether Uninor's dynamic pricing corresponds to any of the three forms of price discriminations and discuss the implications of such price discrimination.  To discuss all the possible effects of Uninor's dynamic pricing strategy on the rest of the players in the industry . Problem analysis
  • 6.
      The telecommunicationindustry is the fastest growing industry in every country. Over the last decade and particularly over the last five years, India has registered an impressive growth in the telecommunications sector; India now has a total of 846.32 Million Telecom subscribers, comprising of 811.59 Mobile subscribers & 34.73 wire line subscribers.  The Indian Tele-density now stands at 70.89%. India today has the world’s second largest network which is growing at a rate which is unmatched by any other country in the world. With the connections now growing at a faster pace in rural areas as compared to urban, it is expected that as India crosses the 1 billion mark, the rural tele-density will grow from the current value of 32.95% to 40%. The sector is growing at 45% per year which has been made possible through continuous effort of the government during the recent years.  The telecom sector of India has thus contributed to a great extent towards the socio economic development of India.-how???? Conclusion
  • 7.
      A.It focusedon youth which also valued their dynamic pricing strategies.  B.Integrated marketing communications approach -Uninor even received international recognition for its environmental and climate initiatives when it won the prestigious Green Globe Award at the Delhi Sustainable Development Summit 2011 organised by TERI. Also, Uninor has tied up with NGOs, which help in creating women entrepreneurs across India and also facilitates micro financing.  C.Dynamic Pricing puts customers in control of their own tariffs with the possibility of a better discount .
  • 8.
    Uninor’s outsourcing businessmodel brings more flexibility into the cost base. How???? Leads to less capitalization of cost than a traditional operator model. The company attributes the performance to its ‘Blue Wave’ strategy under which over 20,000 people went out to the launch circles to personally inform users about the company and its services.
  • 9.
     Uninor should usecelebrities to endorse its brand. It should make its advertising powerful. It should develop more talk time plans like full recharge, chota recharge, easy recharge. Suggestions