Now, let us take a look at the last part of this case study. Now, RTL audit for a system which it was going to take what was the value of the system to RTL at that point of time. Now, in 2006, RTL had a subscriber base of around about 5 million subscribers. Most of the subscribers are prepaid subscribers. Nevertheless, they had a 5 million subscribers. Now, out of these 5 million subscribers and a very conservative estimate if 10% of these subscribers converted to use data services also, it meant that RTL would have 500,000 subscribers who would be using GPRS services in 2006, data services in India was pretty expensive.

Now, even at that if you take a very conservative estimate that across all the 500,000 subscribers, in fact, on average per day each subscriber would call Assume 10 rupees of data services, it meant a revenue or five millions of rupees for RTL on a daily basis. extrapolating this, it would be nearly 1500 million rupees per annum of revenue for RTL okay. RTL had some expenses towards the network elements like gateways GPRS gateways etc. However, it system for this would have contributed a fair amount to this revenue what RTL would have generated? I'm I concede that they would be expenses towards offices, staff etc but still 1500 million rupees that a very conservative estimate is not a very small amount of revenue to generate from a service. So, RTL was ready to pay only six lakhs, which is seems a little bit very out of the normal.

Nevertheless, this was a case study. I hope you enjoyed it. We will look back at this case study from different perspectives as we discuss value based pricing next. Thank you