Decision Model for Determining Pricing in the Telecom Industry

Abstract

The aim of this Research Paper is to discuss both the old and new pricing strategies, methods and factors affecting the Indian Telecom Industry and various brands and consumers they entail. The case made here is to understand the Pricing strategies better and not prove or disprove any hypothesis or theory but to Pricing in an integral aspect for brands and consumers. Pricing strategy is what differentiates one brand from another and influences or tempts a consumer to purchase a product of that specific brand specifically in the Indian Telecom sector. Also, what implications does price of a product have on a consumer's behaviour. Pricing Methods essentially is derived from three main factors: Demand, Cost and Competitive Pricing. There are two basic factors that determine these pricing strategies: Invoice based and Subscription based. Where the Subscription based factor deals with either Pre-Paid or Post-Paid subscriptions and Invoice based factor with the incoming or outgoing based separately. Also, various pricing strategies are relevant in the Indian Telecom Industry which are Bundle Pricing, Skimming Pricing, Penetration Pricing, Value Based Pricing, Cost Plus Pricing and Discount Pricing. However, in recent past the pricing strategies have changed drastically and keep changing with newer technologies despite just three major players in the Indian Telecom Industry. Role spectrum auctioning, market saturation, competition and number of telecom providers in the market plays in shaping the Indian Telecom Industry ecosystem.