Will Reliance win Vodafone hands down in price war?
Reliance Communications, India's second-largest mobile operator, said the launch of its new handsets costing 777-rupee ($19) will help it in gaining share in the world's fastest-growing wireless market as Vodafone Group slashes prices for phones.
“I really do not see a challenge there,” S.P. Shukla, president of the personal-business unit for Mumbai-based Reliance Communications, said. “We are confident that we'll not only maintain market share, but we'll grow it.”
Vodafone, the world's largest wireless operator by sales, has said its phones would be on sale at prices ranging from $25 to $45 each in emerging markets, days after completing the purchase of a controlling stake in Hutchison Essar, India's fourth-largest mobile operator.
Reliance's nationwide network of towers and sales and service centers will also give the company an edge over competitors, Shukla said. Vodafone's Indian unit has operations in only 16 of India's 23 designated telecommunications zones. “We are very comfortably placed on every parameter,” Shukla said.
India ended April with 171.2 million mobile-phone users after seeing an addition of 5.15 million new subscribers in the month. The South Asian nation's government aims to have 500 million phone connections in the country in three years, up from 212 million last month.
Nokia, the world's largest mobile-phone maker, in May introduced seven handsets to be sold in emerging markets. The Nokia phones have estimated retail prices ranging from 35 euros($47) to 90 euros, excluding taxes and subsidies, Espoo, Finland- based Nokia said on May 3.
Reliance seems to be at the winning end of this price war so far. It began selling its handsets for as low as 777 rupees on May 2, and sold one million phones in a week. With cost being one of the most important “key barriers” in emerging markets such as India, will Reliance’s low price sustain its high sales through the year? Is Vodafone likely to counter attack with new strategies? Who will get a bigger pie of the ever-increasing number of mobile-phone users?
“I really do not see a challenge there,” S.P. Shukla, president of the personal-business unit for Mumbai-based Reliance Communications, said. “We are confident that we'll not only maintain market share, but we'll grow it.”
Vodafone, the world's largest wireless operator by sales, has said its phones would be on sale at prices ranging from $25 to $45 each in emerging markets, days after completing the purchase of a controlling stake in Hutchison Essar, India's fourth-largest mobile operator.
Reliance's nationwide network of towers and sales and service centers will also give the company an edge over competitors, Shukla said. Vodafone's Indian unit has operations in only 16 of India's 23 designated telecommunications zones. “We are very comfortably placed on every parameter,” Shukla said.
India ended April with 171.2 million mobile-phone users after seeing an addition of 5.15 million new subscribers in the month. The South Asian nation's government aims to have 500 million phone connections in the country in three years, up from 212 million last month.
Nokia, the world's largest mobile-phone maker, in May introduced seven handsets to be sold in emerging markets. The Nokia phones have estimated retail prices ranging from 35 euros($47) to 90 euros, excluding taxes and subsidies, Espoo, Finland- based Nokia said on May 3.
Reliance seems to be at the winning end of this price war so far. It began selling its handsets for as low as 777 rupees on May 2, and sold one million phones in a week. With cost being one of the most important “key barriers” in emerging markets such as India, will Reliance’s low price sustain its high sales through the year? Is Vodafone likely to counter attack with new strategies? Who will get a bigger pie of the ever-increasing number of mobile-phone users?
posted by Charltonmedia.com @ 2:48 AM
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