Indian Institute of Management Kozhikode

Microeconomics

Assignment 1 - Demand Curve

Student Number:
PGP-19/F/347

Student:
Sisir Vishnubhotla

July 5, 2015

Assignment 1 - Demand Curve

Sisir Vishnubhotla

Given below are the examples of Inter Demand and Intra Demand.

0.1

Inter Demand

Aakash tablet maker Datawind on March 18, 2015 launched its entry level 2G
and 3G mobile handsets, priced in range of Rs 1,999 - Rs 5,499, offering free
data plan under a tie-up with RCom. The Pocket Surfer 2G4 is a 3.5-inch,
dual SIM, EDGE network compatible smartphone running Android 4.0 Jelly
Bean priced at Rs. 1,999, while Pocket Surfer 3G4 is a 4-inch, dual-SIM, dual
camera, 3G network compatible smartphone running Android 4.4.2 KitKat,
priced at Rs. 2,999.
The 5-inch Pocket Surfer 3G5 smartphone, priced at Rs. 5,499, has been
upgraded to include a year of free Web browsing, and runs on Android 4.4.2
KitKat.The new range of smartphones are powered with free unlimited Internet browsing for a year on Reliance Communications (RCom) network.
The year of free, unlimited Internet browsing via the UbiSurfer browser does
not include audio/ video streaming or local-downloads. The firm says users
will have to purchase separate top-up plans for this.
Speaking on the launch, Suneet Singh Tuli, President & CEO, Datawind
said,We are passionate about technology and access that enables and empowers the common man to achieve more in every conceivable way. With this
new range of ultra-low cost smartphones, powered with free Internet access
by Indias leading network, we hope to ignite a spark that will revolutionise
Indias movement towards achieving its grand vision of a Digital India. We
see this as a beginning of a new phase in Internet revolution led by mobile Internet and we are delighted and privileged to have Reliance Communications
by our side in this new transformational journey towards a Digital India.
Commenting on the partnership, Gurdeep Singh, CEO, Consumer Business,
Reliance Communications said, We are delighted to partner with Datawind
and offer unlimited data for 12 months on our high-speed GSM data network,
which will lead to a unique user experience on the PocketSurfer Smartphones,
which sport many technological breakthroughs. A product like this one will
be best experienced on a seamless IP-enabled network such as RCOMs, and
will make for an unmatched data experience.

0.1.1

Analysis

An attractive offer such as this will definitely strike a chord with the middle
class and help them get voice and data usage at affordable rate. Demand
of such product increases by heaps and bounds. Also, it will capture that
1

Sisir Vishnubhotla

Assignment 1 - Demand Curve

section of the consumer market that avails of the internet and voice at pay
per usage basis. Such a move will also reduce the sales and share of the
competitors to a large extent. Consumers options will be skewed and most
of them will opt for such deal. Hence, the deal influences the consumer to
take a rational decision.

0.2

Intra Demand

State-owned tech developer C-DOT is gearing up to launch 4 broadband

products on July 6, as part of the Digital India initiative, which include solar
powered WiFi system and 100 GBPS optical fibre cable.
In addition, the long distance WiFi system includes C-DOTs next generation network (NGN) for state-owned telecom MTNL network and the products will be launched on Monday by Union Communications Minister Ravi
Shankar Prasad.
The launch is part of the Digital India Week unveiled by the Prime Minister on 1st July towards making the governance easy and reducing the file
work pressure on the officers, besides also avoiding unnecessary delays or
harassment to the common citizen.
The long distance WiFi system is capable of extending WiFi and IP connectivity to rural India in a cost-saving and power-efficient way making it faster
at a speed of 100 Mbps broadband, according to C-DOT. Powered by solar
energy, it operates in license-exempt bands of 2.4 and 5.8GHz, for open and
hill areas where there is no guaranteed power supply.
The new WiFi system has been designed by C-DOT to withstand variable
input voltages and it can be used for backhaul link for WiFi hot spots, cellular base stations and base station controllers, ATMs, and database servers,
C-DOT said.
Besides, the 100 Gbps OFC link will address the enhanced demand for superior bandwidth with power efficiency, while the C-DOTs next generation
network (NGN) will facilitate the transition from legacy time division multiplexing (TDM) technology to advanced VoIP Telecom technology.
The pilot project on the developed live network has been done for 1,000
landline connections of legacy public switched telephone network (PSTN)
technologies to C-DOTs IMS-compliant next generation network technology
recently.
The successful trial recently enables MTNL to launch multi-services (voice,
video and data) through various access based network on IP address, as
per its migration plans from the existing 3.5 million landline subscribers of
MTNL to IP-based network.
2

Assignment 1 - Demand Curve

0.2.1

Sisir Vishnubhotla

Analysis

In a country such as India where the number of villages is about 6 Lakh,

the amount of infrastructure and equipment required to make the project
realizable is very large and the demand for such equipment increases drastically. Hence, the demand for telephone equipment, wireless routers, wiring
equipment increases.