Reliance started a virtual war when it entered. With the largest user base in the country in mobile segment, it is on a breakneck speed in expanding its offerings across the country. The recent news in the media was abuzz with the announcement that it is planning to spread its network to over 5000+ cities and towns across India including four lakh villages.
Reliance has played its card absolutely right. Even though the @n@1ysts have figured out that rural market remains only cyclical, falling tariffs are only going to spur the demand from those “low income areas”. Reliance knows the first mover advantage, on the same lines that BSNL set up its mobile services in the rural areas. I believe that much of the need is derived from the voice calls rather than fancy value added services that have not much utility otherwise. Who would want to download games anyway? The other side of the argument is to allow the market to mature and then create a demand for the same.
It was with this idea that Reliance set up its portal R-World which is a step in the right direction. Airtel, in all its wisdom realized the value much later when it introduced its Airtel Live! portal after introduction of EDGE services. Mobile services are going to see demand based on Value added services, but only after the markets mature.
More: Reliance Infocomm
Reliance has played its card absolutely right. Even though the @n@1ysts have figured out that rural market remains only cyclical, falling tariffs are only going to spur the demand from those “low income areas”. Reliance knows the first mover advantage, on the same lines that BSNL set up its mobile services in the rural areas. I believe that much of the need is derived from the voice calls rather than fancy value added services that have not much utility otherwise. Who would want to download games anyway? The other side of the argument is to allow the market to mature and then create a demand for the same.
It was with this idea that Reliance set up its portal R-World which is a step in the right direction. Airtel, in all its wisdom realized the value much later when it introduced its Airtel Live! portal after introduction of EDGE services. Mobile services are going to see demand based on Value added services, but only after the markets mature.
More: Reliance Infocomm
