The Impact of our strategy

Mastering Value-Based Pricing Case Study: Reliance Telecom Ltd Story
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Transcript

So so far we saw that we estimated the GPRS billing system to cost RTL 72 lakhs However, they were ready already to pay 14 lakhs. So we gave them a basic system in the initial stage, which could get them started with their business. After the implementation within the next four months, we got three change requests. The first to change requests were for additional extra parameters for rating so that they could make more packages which they could sell to their customers. The third change request was that instead of charging session by session, as well as their present system, they wanted to charge for a period. For example, they wanted to charge for 10 gigabytes for seven days period or in a month, a consumer a customer or subscriber could consume hundred and 50 gigabytes.

So these accumulated usage had to be given to them as a system. So this had a huge impact and we recovered a good amount of money from giving this change requests. Next, after the GPRS system was introduced RTL were in a position to now supply multimedia messaging system to their customers. MMS. Now MMS system is very similar to GPRS system very similar, except for a few parameters, there is nothing which is different from a GPRS system. However, we sold this as a completely new system to RTL this recovered more amount of our body.

Lastly, what RTL to do now with GPRS which was which was given to his local customers, they had to give it to the Romans also the people who are coming from other networks or other countries also had to use GPRS on the RTL network. So, we they wanted a roaming system for data services. We already had the roaming system which we had supplied to Sri Lanka and Bhutan. We made the same system and gave it to RTL and we chose then the full amount for the roaming system as we have charged our other customers. So, we essentially recovered most of the money from supplying this roaming solution. So this way, we more than made up for the initial loss for the RTL and incurred on us by our strategy which we adopted.

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