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Stream gets short of Dengi unexpectedly

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  • Stream gets short of Dengi unexpectedly

    CNews, Russia

    Stream gets short of Dengi unexpectedly

    Telecom Internet

    September 21, 2007, Fri 10:08 AM Moscow

    The revolutionary for the Moscow market broadband internet tariff
    Dengi with the subscriber fee 30 rubles a month has not survived even
    for two weeks. The tariff author Comstar-Direct says the given tariff
    was initially planned as testing. However, the market participants are
    sure the company has pulled a boner and decided to stop link-ups.

    In early September the company Comstar-Direct providing broadband
    internet in Moscow through telephone lines under the brand Stream has
    updated its tariffs. The most attractive is the tariff Dengi offering
    500 Mb of information at 1 Mb/sec for 30 rubles (at the exchange rate
    25.12 rubles per dollar, 21.09.07) a month. Such a subscriber fee is
    much cheaper than the existing offers in the Moscow market. For
    comparison, Stream tariff average fee is 300 rubles a month. The
    tariff Dengi is not surprising to arise interest with the users, in
    particular, at internet-forums the users of the competing local
    networks advised each other to use the given tariff as a reserve.

    However, Comstar-Direct has decided upon making the tariff Dengi
    temporary this week, which means no link-ups are carried out any
    longer. `We were assessing the possible niche for limited tariffs, -
    Mina Khachatrya, Comstar-Direct marketing director explains. - It
    turned out to be rather large, that is why we have decided upon
    resuming link-up to the given tariff when holding special actions at
    holidays or organized together with our partners. Then the data volume
    included into the subscriber fee is to be increased'.

    Link-up to the tariff Dengi so popular with the users has been stopped
    - Photo

    Temporary tariffs are frequently used in Stream. For example, link-ups
    to the tariff Pervoclassny with the unlimited data transfer volume at
    128 Kb/sec speed for 100 rubles per month are carried out up to the
    end of the year. But the company is constantly repeating link-ups to
    such tariffs are possible only when certain actions are held. As for
    the tariff Dengi, no warning has been made.

    In this connection market participants believe having introduced such
    a cheap tariff Comstar-Direct pulled a boner and having understood it
    decided to stop link-ups. `At present the internet-traffic prime cost
    is very low and theoretically the given tariff might be of benefit to
    the company, - Corbina-Telecom representative says. - Besides the
    traffic expenses the provider incurs other expenses, i.e. call-center
    servicing, power lines, etc. Many forget about it, thus how such
    marketing mistakes as the tariff Dengi occur. If the link-ups to the
    given tariff continued, then Stream users might be left without the
    technical support'.

    Comstar-Direct denies the given scenario. `We have initially
    implemented the tariff Dengi as temporary, but did not announce it, as
    the tariff was testing and we did not want to raise artificial
    interest to it., - Mrs. Khachatryan says. -That is a standard
    marketing step widely spread in the West but not in Russia. We were to
    incur no losses, as the average revenue of one subscriber linked up to
    the limited tariff at 1 Mb/sec is higher than of one unlimited tariff
    subscriber with 1.5 Mb/sec'.
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