Tuesday, July 28, 2009

REDtone Mobile launch

LAST Friday, REDtone became the country's third mobile virtual network operator (MVNO), after Merchantrade and XOX, to launch its mobile services.

Unlike its rivals, which offer the services to the end-consumers, REDtone's mobile services is only available for companies/ businesses, such as the small and medium-sized enterprises and SoHo.

Below are some of the key takeaways from the launch:
1. Minimum commitment usage of RM38/ month.
2. Calls among REDtone mobile network is 23 sen a minute. (includes calls from REDtone number to Celcom, Merchantrade, XOX numbers) Text message cost 10 sen each.
3. Calls to non-Celcom network cost 30 sen a minute. Text message cost 20 sen each.
4. Tri-lingual speeches is not recommended. Imagine listening to a speech, the same speech, same content, in three languages back to back. It just takes too much time.
5. Did not reveal targets.

Anyway, another highlight that i forgot to mention is the way the company plans to "sell" its mobile services. REDtone is offering its customers airtime/ incentives each time they successfully refer one new customers to take up the mobile services. This means, if a REDtone mobile user managed to get his business partner to sign-up for the services, he/she is entitled up to 20 per cent of airtime/ rebates -- RM100 phone bill MAY be reduced to RM80. (don't have the actual pricing mechanism with me)

So, in other words, instead of depending on distributors or dealers, the mobile users will be its "sales force" as well.

Sounds all rosy. But here are a few questions:
1. Why should i pay RM38 a month, when my calls cost 23 sen a minute, when what other telcos are offering much much lower? The 20 sen SMS for off-net users is just too pricey.

2. So, would a businessman, one who is aware of where each dollar and cents goes, sign up for such packages? Ideally, as a businessman, you want a mobile service that helps you save cost, that helps u save phone bill... this mobile service doesn't blend in well. Yeah, one may argue that REDtone mobile users can get "rebates" in the form of air-time, and maybe cash. As a business, as a company, do you want to spend most of your free time recruiting REDtone mobile users, or you want to spend your time getting new businesses, new sales lead for your own company?


Kugan said...

I share your opinion on this!

REDtone is trying to survive since TM started to be aggressive in the IDD business.

Unless REDtone could look at alternative ways, for example benefiting their mobile users on other form of communications like fixed line or voip, that would make sense for the business model.

They could also integrate other forms of service that benefit business users for example, partnering with a courier company or an airline could benefit REDtone Mobile users.


Anonymous said...

I've heard that it is MLM = Multi Level Marketing method so u can earn side income urself. When u got ur downline and u can grow and earn must faster. This can do as part-time job to get side income. And the commission not only for 1 month but every month. you will not lose anything also if ur daily mobile usage is over rm50 n above. This can help u to save n earn too!


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