Sensex Today

Can Games Secure VI's Fortune

One thing is common in every Indian. Which are “Games”. Either it might be a mobile game or it might be physical games like Cricket. We all love to play games. After 2017 when Reliance JIO introduce their free 4G services. All the big players in the telecom industry struggling to hold their customer base. VI is one of them. They sinking into debt and losing their customer base. Also, the company promoters announced in January that the company is selling some stack to the Government of India. VI doing all the things to survive in the industry. But the question is what is common in Games and VI!?

VI Enters in Gaming Industry

On Monday, Vodafone Idea announced that they are going to enter in Gaming Industry. The company plans to execute this in partnership with the Gaming Giant Nazara Technologies. If you are a Vodafone Idea customer then you will soon be able to play over 250 games for free. Everything which looks free is not every time free, isn’t it? VI wants to charge customers to play games. The company has a subscriber base of over 247 million. They are going to charge as low as 26 rupees per month for a better experience of gaming. As an individual consumer 26 is not a big deal but for Vodafone Idea gets a decent chunk. It might help them to survive in the industry.

VI is not a first mover who takes this bold decision to integrate the telecom industry with gaming. Last year the biggest telecom operator and Vodafone Idea’s biggest competitor Reliance JIO shake hands with Japanese gaming company Sega. They are going to launch the iconic SONIC game to its users.

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Future is much more predictable through History, right? In 2013 Indonesia’s telecom giant Telkomsel launched their gaming web portal called Dunia Games. At that time the internet charges are very high. So, generally, gaming users do not subscribe to any internet packs. Dunia Games are allowed them to download their willing games from the web portal. For this service, Telkomsel added the extra charges directly to their phone bill. After that when PUBG becomes a sensation in Indonesia. Telkomsel cracked a deal with PUBG and provide its users with some in-game special offers. After all the things they launched their own first-person shooting game. Now in Indonesia Telkomsel captures 22% of the gaming industry’s market share.

Long back when the Internet was not cheaper like at this time. The telecom company has more sources of revenue. Such as SMS charges, Outgoing Charges, VAS charges (Value Added Services). But nowadays they only have one revenue stream. That is Internet Packs. At that time Vodafone Idea earns more money through VAS. They provide special caller tunes, astrology services, Cricket Scores etc… Here etc comes up with games also. At the earlier VAS stage, NAZARA technology collaborates with VI’s rival Airtel. Airtel gives some games loaded bundle services to their customers for free. Now, Vodafone’s Idea wanted to go with the same strategy and try to survive in the market.

Conclusion

If you think in Telkomsel’s prospective. Vodafone Idea’s strategy might not get succeed; Because in Indonesia Telkomsel was the biggest telecom player at that time. At now in Southeast Asia Telkomsel is the biggest telecom player. And in India Reliance JIO is the biggest telecom player. If VI wants to survive in the industry by using games. The company has to compete with their rivals; Such as the Reliance JIO and Airtel. For now, sit back and watch Can Games secure Vodafone Idea’s fortune?

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