The Dual Sim Chronicle
The two timing mobile generation of Sri Lanka
Part I
Prelude
A small grocery shop situated right next to a paddy field. Sarath, a 19 year old school leaver enters the shop and orders a “plain tea” and sits on a stool to play a game of checkers with his friend, Saman.
Whilst playing, Sarath gets a call on his mobile phone. As soon as he finishes,
Saman : “WOW! , a new Nokia E71 phone!! , let me see!”
Sarath: “Here you go”
Saman: “This even has a TV antenna! And it’s Dual Sim!! Never knew this phone had all these cool functions!”
Sarath: (smiling) “You don’t , it is not a Nokia Phone. It is made in China with the exact features of the original Nokia phone, plus more”
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Welcome to the latest phenomena in the mobile industry of Sri Lanka. The invasion of the low cost Chinese mobile phones.
Introduction
To a youngster ,a mobile phone is an aspirational product. It makes them feel as if they are “in-style” or in other words , makes them “cool” individuals. Hence there is a strong correlation between becoming an owner of the latest phone and being regarded as a “cool” person within their respective circle of friends.However , gone are the days where a teenager had to go through the hardship of convincing their parents to buy them a phone or skip meals to save their pocket money in order to buy their “dream phone”. An exact replica could be bought for almost 1/4th the cost of buying an original phone.After all, “who cares whether it is original or not, this has the same features and much more… and it is Dual Sim!”
The Dual Sim Phone
A Dual Sim phone can be described as a phone where two Phone Sim cards could be used simultaneously. In other words , the user could now use two different phone numbers on a single mobile phone. The writer foresees four game changing areas as a result of the Dual Sim phenomena.
1. Boosting consumer choice
2. Low bargaining power of service providers
3. Opportunities for small players
4. The need for innovative marketing tactics to stay on top
1. Boosting consumer choice
As discussed earlier , the Dual Sim phone will enable the user to select the service provider as and when he/she pleases.
This selection will depend on 4 factors. I.e. Where? When? Who? What?
The “Quadruple W Theorem”
a. Where? (The location of the consumer)
It is a well known fact that every service provider has their own weak link in terms of coverage.
E.g. Take “Network A” and “Network B”
“Network A” has a strong coverage in the Southern and Western Provinces of Sri Lanka. However, its coverage in the Northern and Eastern provinces is weak.
“Network B” has a strong coverage in Northern and Eastern provinces but is weak in the southern and western province.
This would result in the fact that , when the Dual Sim user is in the Southern and Western provinces , he/she will use “Network A” and when in Northern and Eastern provinces, “Network B” will come into play.
The Dual Sim phone has now enabled the user to select the network with the best coverage depending on their location.
b. When? ( The time of day and the respective call charges)
Another contributing factor would be the time at which the Dual Sim owner is going to use the phone. This is due to the fact that each service provider has their own pricing mechanism where certain service providers have lower “night time call rates” and certain providers have “a standard charge” throughout the day.
E.g. Take “Network A” and “Network B”.
“Network A” offers a phone call for only Rs:2/= for an unlimited duration during 12midnight and 6a.m. However , their daytime chargers are high.
“Network B” offers a standard Rs:2/= per minute throughout the day.
This would prompt the Dual Sim owner to use “Network B” during the day and “Network A” during the night. In essence , the Dual Sim owner would choose the lowest cost service provider at any given time.
c. Who? ( The intended caller and their network)
Another factor would be the network which the intended caller is using. This is directly related to the call chargers as it is a fact that outgoing calls to a number within the same network will always be cheaper than to a number from a different network.
E.g. Take “Network A” and “Network B”.
Saman is a Dual Sim phone user. He uses both Network A and B on his phone. When he wants to make a call to Sarath , who is using a “Network B” Sim , Saman would use the same network as the call charges are low.
In essence, there is a direct correlation between the choice of network and the network to which the intended caller belongs to.
d. What? ( The most sought after Value Added Service – VAS)
A mobile phone today is not used solely for the purpose of conversation. It is used to fulfil various other wants of the consumer.
i.e. To surf the internet , to make an appointment with a doctor , to make dinner reservations , to book movie tickets , to subscribe and receive news alerts , to reach a destination using real time GPS maps , to keep track of your loved ones using network enabled tracking devices etc.
The amount of value added services are limitless. The network which best identifies which VAS the consumer is looking for and fulfils it would benefit a great deal.
In essence , there lies a strong correlation between the Dual Sim users’ choice of Value Added Service and his/her network selection.
The “Quadruple W Theorem” brings forth 4 aspects which a Dual Sim owner would consider when deciding which service provider to choose. As discussed above, these 4 factors are:
a. Where? (The location of the consumer)
b. When? ( The time of day and the respective call charges)
c. Who? ( The intended caller and their network)
d. What? ( The most sought after Value Added Service – VAS)
Having identified the Dual Sim Owners’ basis for the selection of the service provider, it is certainly interesting to explore the implications it holds for all the service providers of the country. How would they tackle this?
Would they still focus on improving share of market or try to capture share of phone?
In our next blog post , the writer will be exploring these implications under 3 broad categories. Whilst inviting our readers to post their comments on this edition , we invite all of you to stay tuned for the part II of
The Dual Sim Chronicle
The two timing mobile generation of Sri Lanka
These Chinese phones are a real nuisance…the sound at which people put music on the speakers is unbearable to the extent that it gets super annoying!
Though you get these Chinese phones with extra functionality for a low cost, it goes without saying that a Nokia phone is still a prized possession in terms of most customers…give them a chance to own a nice Nokia E71 and they’d grab it with both hands!
Dual Sim phone is OLD SCHOOL now.. the latest craze to hit colombo is the “Mega SIM”. You can copy info of about 6 different service providers’ SIM info on to “Mega SIM” and use it on your phone. From what I gather TIGO can not be copied on to the Mega SIM ‘coz they are not on 3G. The mega SIM can be brought for around Rs. 1500/-.
At the end of the day price does matter !
Leave alone the corporates , these Chinese phones will capture rest of the segments very soon
What this dual SIM option and the usage of the option means most is that a consumer’s ‘brand loyalty’ is not very strong anymore. Now he or she can choose within networks to maximise tarriff options…. etc. One other thing that this option gives users is the ‘ability to communicate even when your outgoing has been barred’ because you haven’t paid your bill on the regular line.
Beyond all these conventional reasons, there are many others… the ‘other’ number is used for specific purposes, and given only to a few people. Like when you are ‘two timing’… the options are endless. Ie: You Sarath on 1 number and Samantha on the other (get what I mean!).
From a state-of-mind perspective, the dual SIM factor translates to ‘FREEDOM’.
I agree with Madzi on the Chinese phone option. While the Nokia’s and the others fight for the 10% of the marketplace, the Chinese can invade the 90%.
Chinese phones may be a nuisance to a non-user, but isnt affordability a key factor for today’s consumer…
D’ablo – In the case of “Mega Sim” consumer has more choice. “Network A” to “Network F”…
At the end of the day we being marketers we are just making consumer’s life more difficult and not trying to simplify it…
Chinese phones or Belgium phones, today’s consumer looks for simple solutions and not complicated stuff at a price he / she can afford.
Price may matter initially, hence the invasion of the cheap chinese phones, but the brand value of a Nokia or a Sony Ericsson would ultimately make the owners of their cheap alternatives want to own the original.
As much as we say that price matters it doesn’t stop us from wanting the better brand, and that’s why marketeers still have a job.
Also doesn’t the dual sim phenomenon complicate our lives.