Arun

Reliance Communications & Google In Exclusive Tie-Up For Android Handsets In India

17 posts in this topic

Times of India

April 13, 2012, 10.09 AM IST

Every Google-endorsed Android smartphone that is sold in the country will now come bundled with a Reliance Communications mobile connection as the Anil Ambani company targets high-end users to ramp up subscribers.

RCom and Google have entered into a two-year deal according to which all Google-endorsed android mobile devices from companies like Samsung, HTC, Sony Ericsson and LG will come with the telco's third generation, or 3G, mobile connection with 1 GB of free downloads for the first six months.

But these devices will work on networks of all other mobile operators and consumers will have the option to switch to other operators.

Industry experts estimate that more than 200,000 such phones will be sold in India over the next two years and that RCom will be able to retain two-thirds of these customers on a long-term basis.

"RCom would be able to retain more than a fair share of these customers on its network," said Prashant Singhal, Partner at Ernst & Young Global's Indian affiliate. "The intangible brand benefits from such an exclusive tie-up will exceed the monetary benefits in the two years."

Singhal said the number of subscribers that the company will add because of the tie-up will not make a substantial difference to its overall user base or to its revenues. But it will help RCom in positioning itself as a network for premium users, enhancing its current image.

As part of the agreement, RCom, the country's second-largest telco by subscribers, will launch a 30-crore campaign for Google Android products starting Saturday.

Google has also committed to an equivalently valued campaign on its online platforms. The advertisement, that depicts the android logo Green Bot going blue, will include platforms like augmented reality and will continue till the T20 World Cup.

"We are creating a dedicated help desk to which any android phone bought under this agreement will be mapped automatically," said Sanjay Behl, group head, brand and marketing, Reliance Communications.

The two companies are assigning two dedicated marketing people each for the initiative, he added.

"We confirm the collaboration with Reliance to market Android devices," said a Google spokeswoman.

This will be Google's fourth such deal globally. It has similar agreements with Verizon in the US, Telstra in Australia and one in Japan.

The Android platform was created by Google, but has since been made open, or publicly available. Manufacturers using Google's android version carry a Google logo and the Green Bot on them.

These are Google-endorsed. Others who are using the publicly available version of android like the ZTE and Huawei phones do not have the Google logo. In India, Idea Cellular offer packs with Android-based handsets from ZTE and Huawei.

In the past, Aircel and Bharti Airtel had exclusively launched Apple's iPhone in India as part of similar tie-ups. Airtel retained a sizeable number of the customers that bought the phone, while many who bought it from Aircel switched to other networks.

Average monthly bills of customers using data-oriented phones like Google Android devices is estimated to be around 250-300, while the average monthly bill of a Reliance Communications customer is around 100.

1 person likes this

Share this post


Link to post
Share on other sites

What about the circles in which Reliance doesn't have 3G spectrum?

Share this post


Link to post
Share on other sites

people will leave reliance due to voice quality in gsm!its terrible :doh:

Share this post


Link to post
Share on other sites

Win Win situation for RCom and Google.

While RCom's strength will take Android to the mass Google will help RCom to add more subscribers.

Android will sure be the leader amongst mobile OS

Share this post


Link to post
Share on other sites
Win Win situation for RCom and Google. be the

i doubt it very much

good for google - but a money loser for rcom

rcom will spend rs. 30 cr of its own money for ads / media spends

while google will only put the same amount in online ads which is a notional cost

if google had spent the same amt of its actual money on other sites not owned by it

then it would be comparable investments

google will have book keeping entries only with no real cash changing hands unlike rcom

the projection of 2 lakh handsets is too optimistic - i expect barely 1.5 lakh

also its very unlikely to retain 2/3rd of customers as rcom subs - i guess it'll be below half

that's a total of hardly 75 k vs projection of 133 k

lets assume that rcom gets the max of rs. 300 arpu which is impossible from ALL its retained subs

at an acquisition cost of rs. 30 cr = almost 3 k / subs

that's 10-11 months to 'recover' the ad cost alone

do keep in mind this is not breakeven yet

with margins of hardly 9-10% that's rs. 30 net monthly or 8 years to cash flow breakeven!

nice job rcom!

they would have been better off simply pre-paying debt by 30 cr and reducing interest charges by almost rs. 3 Cr / year from day 1 instead of waiting 8 years to breakeven ...

keep in mind this is assuming ZERO churn which impossible and

no interest of all its outstanding debt which avg is about 10-11% annually

else it will push out the breakeven further out to beyond 16 yrs!

who keeps the same handset beyond 5-6 yrs?

3 people like this

Share this post


Link to post
Share on other sites

Times of India

April 13, 2012, 10.09 AM IST

with 1 GB of free downloads for the first six months.

Offer Page is now live on RCOMM Website >> http://www.rcom.co.i...idReliance.html

It is 1GB 3G Data FREE for only ONE Month.

Share this post


Link to post
Share on other sites

so much for an offer!

Share this post


Link to post
Share on other sites

The association with Google will improve the image of Reliance Mobile, which is very down now. So when brand value is improved, it is expected to bring more customers.

Lets wait and see in long run, if this strategy works

Share this post


Link to post
Share on other sites

i disagree

brand associations are very fickle

if it were that easy to manage customer perceptions,

any telco could have associated with a luxury brand and improved its image:

imagine airtel offering a free iphone4 with every merc sold or

vodafone offering a free android handset and sim with every bmw

the reality simply does not work that way

there is no easy way out

no quick fix to your reputation

it actually takes years of hard work and improving customer service as opposed to an ad campaign

no matter how long or expensive

i agree we should wait and see but the writing is already on the wall for such tie ups

The association with Google will improve the image of Reliance Mobile, which is very down now. So when brand value is improved, it is expected to bring more customers.

Lets wait and see in long run, if this strategy works

1 person likes this

Share this post


Link to post
Share on other sites

Useless Effort by Reliance, their 70% customers are Prepaid CDMA and they dont have any Damn Good Data plan for them, why this patch work then ?

1 person likes this

Share this post


Link to post
Share on other sites

^^^

Hetal sir...only 20% of the total base of reliance is cdma. Yes you can always say the contactability of cdma is higher ;)

Sent from my PC36100 using Tapatalk

Share this post


Link to post
Share on other sites

^^^

CDMA only 20% of total RCOMM Subscriber base? Looks unbelievable! :confuse:

In any case Reliance is not publishing since long time breakup of CDMA and GSM subscriber base.

What's the source of that %?

1 person likes this

Share this post


Link to post
Share on other sites

i also dont believe in 20 % figure

if i check phone book from my other person's mobile phone

thwn i found 90% reliance cdma customer and just 10% rgsm,

even in state where rcom(previously reliance telecom RTL), then have ratio of 50-50% cdma to gsm base, when search phonebook.

Share this post


Link to post
Share on other sites

^^^

Rajan sir,Source of the figure is the subscriber base reported to TERM

Sent from my PC36100 using Tapatalk

Share this post


Link to post
Share on other sites

Only 20% is the CDMA part of RCom is unbelievable or even impossible, due to the cr@ppy network of RGsm and RTL (in CG afaik)....

Share this post


Link to post
Share on other sites

Sorry for the mistake its not exactly 20 % its somewhere around 26-27%.

Total Subscriber Base of Reliance Comm is 150 Million (Second largest operator by Subscribers), CDMA base is only 42 Million out of that. this comes to around 26% of the total Base.

GSM dominates the industry with 650 Million of from this 800 Million industry in India.

Share this post


Link to post
Share on other sites

Saket Sir

My phonebook does not even contains 1 Reliance GSM number. Infact my friends phonebook contains only 1 Reliance number :doh: that is of me and CDMA.

HP RTL Circle has 18 Lac of GSM Base and 3 Lac of CDMA which goes to around 84:16.

i also dont believe in 20 % figure

if i check phone book from my other person's mobile phone

thwn i found 90% reliance cdma customer and just 10% rgsm,

even in state where rcom(previously reliance telecom RTL), then have ratio of 50-50% cdma to gsm base, when search phonebook.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now