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Reliance Info shifts focus to pre-paid users
Hemangi Balse in Mumbai |
April 23, 2003 13:31 IST
With its commercial launch slated for May 1, Reliance Infocomm is targeting the pre-paid segment. This is part of the company's efforts at repositioning itself in the "consumer space", a senior Reliance executive said.
Reliance Infocomm has also decided to offer immediate connections to consumers paying cash, with a choice of Samsung or LG handsets.
The company has set its eyes on the pre-paid segment, which comprises more than 70 per cent of the cellular market. "Reliance Infocomm will soon focus on pre-paid cards. We are a few weeks away from their launch," the Reliance executive said.
However, the company spokesperson declined to comment on the issue. Reliance Infocomm has decided to fall back on the marketing strategies recommended by consultant McKinsey and focus on the time-tested strategy of human interface with customers.
This would lead to easy access of customers to the firm's activated handsets, Reliance executives pointed out. "We are modelling our sales to suit the customer.
"We have decided to accept cash at our points of sale and web stores, and immediately provide connections. This is part of our over-the-counter scheme," the executive said.
Earlier, the company accepted payments in the form of demand drafts and cheques. This resulted in delayed connections.
Moreover, it offered handsets from only one vendor, which could be either Samsung or LG, to ensure "locational parity among customers".
Reliance Infocomm is also offering a new scheme, with a one-time payment of Rs 6,350 and a monthly charge of Rs 500 for 400 minutes of free airtime. "We expect a substantial jump in our subscriber base after simplifying payment procedures," the executive added.
The company is opening 1,000 web stores to collect cash payments, as well as help desks and service centres.
Reliance Infocomm has dissolved contracts with around 40 per cent of the Dhirubhai Ambani Entrepreneurs. "We have already despatched cheques, returned their deposits and paid them the commission of Rs 100 per connection," the executive claimed. In Mumbai alone, around 2,500 entrepreneurs of the 6,700 had opted out of the scheme, he added.
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