ADAG company, Reliance Communications is gearing up to enhance uptake of its Value Added Services (VAS) by resorting to use the pricing strategy to achieve the goal.
While overhauling its plain pricing model, the company plans to introduce sachet pricing to drive usage of VAS. Traditionally operators in India follow the monthly subscription model to generate revenues from VAS.
While the company started off using the sachet model for its gaming related VAS offerings, it claims that the success of the initiative makes it to extend the strategy to entire VAS bouquet.
The sachet pricing model would enable the subscriber to use the VAS application into a day plan or a view plan as applicable to the VAS application. An instance is that say if monthly subscription of caller tune is Rs 30, the sachet pricing will offer subscribers a Re.1/day price providing more flexibility of usage to the user.
The company expects the prepaid segment to immensely benefit due to the strategy. The company says that the sachet pricing has been designed keeping in mind that prepaid subscriber would need prepaid balance for talk time and SMS to stay connected. The sachet pricing aims to reduce the one time drain of Rs 30 in a monthly subscription model with a flexible Re.1 daily price.
RCom says that it estimates to score on uptake as well as revenues with the new model. It further says that even the rural subscribers stand to benefit from such a pricing model. It says that the addressable market increases manifold with the new strategy since even a subscriber with Rs.2 balance can be a potential customer. RCom expects to be benefited from the youth segment for the SMS services as well as M-Commerce based sevices.
RCom now aims for a 15%-20% of revenue contribution from VAS and data services post implementation of the new pricing model.