Contrast the cost of acquisition for comparable number of mobile phone subscribers acquired by Vodafone and Reliance.
When Reliance first launched their CDMA phones into the indian market they offered them for near free(Rs. 500 about USD 12) and gained a substantial market share in no time. They probably lost say about Rs. 4000(about USD 100) to acquire a customer. Reasonable cost of direct customer acquisition compared to Vodafone's almost 1000 USD per subscriber for Hutch to gain a foothold into the market created as a direct result of Reliance audacious entry into the telephony in India.
Rather Vodafone could have acquired the smallest player in each circle(or bought a unified license directly from government) and offered USD 300(Rs. 4000) free talktime/free Internet with every free phone(or something similar) and gotten into the market a substantially lower price.
But what do I know ;-)
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