PROPOSED PRODUCT STRATEGY

PREPAID MOBILE

Deepak Kumar Gupta 19.02.2015

PREPAID CUSTOMER PAIN POINTS

I want a Simple & Affordable product which offers Local & STD calls

Local & STD SMS

Data (Fast & affordable)

Easily available

I want CONVENIENCE

What I get is a product which I cant remember Which top up/rate cutter?

Which SMS pack ?

Which data pack ?

I spend approx Rs. XXX /mnth on my mobile for voice calls, SMS and Data…but I don’t know my call charges

What I do is. “I go to the retailer & ask him to recharge my phone to get local/std calls@ lowest rate & SMS pack , Data etc”

Recharge with

Top up or FTT

Recharge with

Rate cutter to

lower the tariff

Add a SMS Pack

Add a data pack

Add a roaming

pack

25 to 50 Voice,

Onnet, Offnet,

Local, STD,

SMS

Ratecutters

8 to 15 Plan Vouchers,

12 to 20 Top ups to

4 to 10 Combo Vouchers

Choice of Confusion

10 to 25

Data packs

Approx 4

Roaming

packs

4 ISD packs Add a ISD Pack

What a customer wants? What he gets?

Customer wants to make his life simpler and depends on retailer to resolve

WHAT A RETAILER DOES?

Time nahi hai..jo simple hai who bech deta hoon

I don’t know which is the best voucher.

Sir Airtel /Vodafone/Idea le lo

Sir A4 sheeter / ready reckoner dekh kar bata dou kaun sa recharge chahiye

Vouchers Handsets

SUK

Dongle

Router

Airtel

Idea

Vodafone

Aircel

Uninor Tata

CAF E-recharge

• 6 to 8 operators

• 30 products per operator

• 5 handset distributors

• CAF schemes

• E-recharge schemes

• Paper Recharge schemes

A single brain to remember all

Deepak Kumar Gupta

BREAK THE CLUTTER…DISRUPT THE MARKET & BRING

SIMPLICITY

Objective – Introduce a product which is SIMPLE & EASY to understand , Easy to Buy,

Easy to Sell

Helps Churning High Spending customers from competition

USP “All in One” convenience pack No multiple recharges required for Local/STD, Rate cutters, SMS pack, data

pack

No Differentiation between 2G &3G data

No need to remember Roaming tariff

No ISD pack required for Lowering the ISD rate

Easy to remember…while buying or selling

Feeling of Abundance …”Peace of Mind”

Buy as per your budget or money in the pocket.

Only 3 Denominations covering all kind of customer’s needs Daily / Small

Weekly / Medium

Monthly / Large

Deepak Kumar Gupta

PROPOSED PRODUCT OPTIONS

Deepak Kumar Gupta

Option 1

Option 2

• Includes Voice (Local/STD), SMS (Local/STD), Data (2G/3G)

• Includes Voice (Local/STD/Roaming), SMS (Local/STD), Data (2G/3G)

Customer is allowed to recharge as many times he wants

PROPOSED PRODUCT – OPTION 1

• One Recharge for Voice, Data,

SMS • Voice - Local/STD

• SMS – Local/STD

• Data – 2G/3G

• Product Variants • Daily

• Weekly • Economy

• Large

• Monthly • Economy

• Large

• Business Rules • Usage with in the home

circle

• Free SMS not allowed

during roaming

• Recharge any other top up

to make ISD calls as per

tariff of ISD Rs. 18 pack and

make calls while roaming on

other networks

• 2G/3G data combined usage

• Assumptions

• Pulse @ per second.

• RPM doesn’t include ST, and

other levies

RPM maintained at healthy levels

Deepak Kumar Gupta

PROPOSED PRODUCT – OPTION 2

• One Recharge for • Voice - Local/STD/Roaming

• SMS – Local/STD/Roaming

• Data – 2G/3G

• Free I/C while roaming on

home n/w

• Product Variants

• Daily • One denomination

• Weekly • Economy

• Large

• Monthly • Economy

• Large

• Business Rules

• Calls charges applicable for

Home network as well as

roaming network .

• While roaming debit of Voice

minutes @ double rate i.e

debit of 2 mins from free mins

instead of 1 min.

• Roaming Free SMS allowed

on home network

• Assumptions

• Pulse @ per second.

• 5% roaming usage

• All tariff Voice/SMS/Data

assumed at higher rate incl

roaming usage

RPM maintained at healthy levels

Deepak Kumar Gupta

OPTION COMPARISON

RPM/ ARPU maintained at healthy

levels.

No differentiation in Voice Tariff, SMS

tariff, Data tariff (2G/3G)

Expected ARPU (in Rs.) – to be

compared vs only REC customers

Daily: 10 / 5 days

Weekly – 2.5 weeks

Monthly – Full month

Products targeting to ensure high

REC base.

Recommendation –

Recommended option 1

however if basis actual data

simulation if option 2 can be

improved with more voice

minutes then Launch option 2

Launch only one weekly &

monthly variant along with

Daily variant

Option Summary

Expected ARPU in

Rs.

Deepak Kumar Gupta

OTHER BUSINESS RULES & TECHNICAL CONFIGURATION

Business Rules

Customer is allowed to recharge as many times he wants

Free unutilized SMS & Data will not be carried forward and will be forfeited on the FIFO basis

Migration allowed from any Service Class excluding CUG service classes.

Roaming Rates for all other networks as per standard charges.

For ISD and Roaming calls recharge with any other topup. (cant be eliminated due to higher ISD charges and non uniform home network)

Technical Configuration

Voice + SMS + Data benefits to be given to the customer at the same time. In case of technical incapability, the addition of SMS & data pack to be done in batches every 15 mins through batch file uploads

Product availability Paper for Daily & Weekly products. Monthly Version to be available on E-Recharge

USSD/SMS menu – All variants

Online recharge – All variants

Deepak Kumar Gupta

WAY FORWARD

Proposal Evaluation

Price points to be adjusted circle-wise basis the possible migration

impact and base distribution.

Communication

Mass Media Launch across all circles using Electronic, Print, and BTL

Additional Proposal - For increasing VLR

Make Browsing on Facebook and Whatsapp Free with 3G for all

customers

Approx data usage 200 Mb (for browsing only)

Cost of 200 MB ~ Rs. 40 @ rack rate

This cost to be recovered by lowering the discounts given on retention

Deepak Kumar Gupta

Thank you