Mobile Telephony in India - Hungama Unlimited*

Details

Case Code : CLCB031
Publication date : 2005
Subject : Consumer Behavior
Industry : -
Length : 04 Pages
Price : Rs. 100

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Key words:

Mobile Telephony, Dhirubhai Ambani, Mukesh Ambani, Reliance Group, Reliance Industries Limited (RIL), Subscriber base, Cellular Services, Cellular operators, Status symbol and Monsoon Hungama

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

Owning a mobile phone was considered a luxury in India till the late 1990s. However, with the reduction in service charges and the cost of the instrument, the number of mobile phone users in India soon increased. The caselet explains the role played by cellular service providers like Reliance Infocomm in increasing the mobile subscriber base in India.

Issues: » How a product considered to be a status symbol gains wide acceptance due to changes in the business environment » The marketing strategies adopted by players to increase consumer demand in mobile services » The impact the volume-driven pricing strategy adopted by a single player had on the business environment Introduction ‘Make a phone call cheaper than a postcard and you will usher in a revolutionary transformation in the lives of millions of Indians’ was the vision of late Dhirubhai Ambani, founder of Reliance Group, India’s largest business house.

The Reliance Group took the first step toward realizing this dream in mid-2002 when it launched Reliance Infocomm Ltd., to provide information and communication services...

Questions for Discussion:
1. Reliance Infocomm's 'Monsoon Hungama' scheme unleashed the latent demand for mobile telephony among the lower-income population. What were the unique attributes of the Monsoon Hungama offer that made it so popular?

2. Trace the changes in the perception of mobile phone as a status symbol in India. Has the increase in subscriber base affected the status symbol connotation associated with possession of a mobile phone?