Uninor today announced the launch of new concept called ‘dynamic pricing’ that is likely to set a new trend in the pricing of mobile services in India.
This is first of its kind service in India dynamic pricing is ‘24X7 Changing Discount Plan (DP)’, will offer customers changing discounts on their calls based on traffic on the network and our sources indicate Aircel will soon announce a similar service.
The discounts will change with location and with time, with each cellphone 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.
Under the ‘24X7 Changing Discount Plan (DP)’, customers will be able to avail a discount on their calls that ranges from 5% to as much as 60%, depending on their location and time at which they call. This discount will be applicable on a standard base call rate of 50 paisa per minute for any local call, Uninor-to-Uninor or Uninor-to-any other operator. This means a 1-minute call could cost as low as 20 paisa and never more than 50 paisa.
How does it work
The discount available at any given time will be visible at all times on the screens of handsets that display cell broadcast. The discount visible on the screen at the time a customer calls will be the applicable discount for the call. When the call ends, a flash will appear on the phone screen indicating the actual discounted cost of the call.
The dynamic discounts available at any given time will depend on network traffic and customers location at that time, providing customers maximum flexibility to choose between convenience and savings.
“The 24X7 Changing Discount Plan (DP) will not only help customers make significant savings on their bills, but also empower them by placing the power of tariffs in their hands. We will pass on our network capacity savings to our customers. With customers using our service more at locations and times that give best discounts, we will also be able to utilize our capacity better. It is a perfect model and I won’t be surprised if it soon becomes an industry practice.” said Ann Hofvander, Executive Vice-President, Karnataka Hub.
Sophisticated technology that puts the customer in control
Discounts are calculated by a sophisticated ‘Discount Engine’ that relies on state-of-the-art IT systems to continuously monitor traffic at every tower in the network. For customers, this could literally mean discounts changing from, say 5% to 60%, just by crossing a street, as customers move into the coverage of another tower. Over a longer period, this would mean considerable savings on phone bills.
Ann Hofvander Executive Vice President Bangalore Hub quoted In a market as dynamic and price competitive as Karnataka, differentiation will be the key to success. We will do this by listening closely to our customers’ wishes and living our values of simplicity, respect, keeping promises and being inspiring. As we continue to deliver the services to our customers in Karnataka, this launch at Tumkur fortifies our commitment and focus to reach out to every town and village of the state. Our intent is long-term – to build Uninor as the preferred service in India”.