A Term Paper Defense

on

PRICING STRATEGY OF CG NET

COMMUNICATION PVT LTD
Presented by:
Aman Rana [78341071]
Bibek Khatiwada [7834107]
Md Hasan Ansari [78341024]
Praveen Deshar [7834102] [Team Leader]
Supervised by:
Sunil Bhattarai [78341007]
Dr. Rashmi Rajkarnikar
Tilak Bahadur GC [78341006]
Introduction
• Internet, simply called “ Net”
• The large system of connected computers around the world that allows
people to share information and communicate with each other.
• An Internet service provider (ISP) is a company that provides customers with
Internet access.
• In Nepal, currently there are more than 40 Internet Service Providers(ISPs).
• World link has highest market share 29.85 followed by NTC 16.38%.
• Big challenges for new entrant to sustain without clear strategy.
• CG Net enters in the market in June 1, 2021.
• Till now it has less than 1% market share (0.46%, no of customers = 8634).
Research Gap
• No research has been carried out on the CG Net Communication Pvt.
Ltd.
• Past researches didn’t examine the relationship between internet price
with internet bandwidth, internet packages, users age group and
overall services provided by the company.
Objectives of the study
• To understand the pricing strategy of CG Net communication Pvt. Ltd.
• To examine the relationship between internet price with internet
bandwidth, internet  packages, users age group and overall services
provided by the company.
Conceptual framework

Price of internet

Internet Users
Methodology
Data Source & Method of Analysis
• Both Primary and secondary data source has been used.
• For primary data, structured online questionnaire through the help of
Google Forms has been used (99 respondents)
• For Secondary data, data were collected from NTA and ISPs websites.
• Only quantitative analysis has been used from the data collected from
primary and secondary source
• Only descriptive method of analysis has been used
Result and Discussion
1. Based on different age group
• 50.5 % of internet users are found
to be of age group 20-30yrs
• 41.4% of internet users are found
to be of the age group 30-40yrs
• Majority i.e. 91.9% of internet users
are found to be in the age range of
20-40yrs
Result and Discussion continued….
2. Based on Occupation
• Majority i.e. 57.6% were involved in
service sector
• 21.3% of users were found to be self
business
• 12.1% are students and 9.1% are
involved in others
• So internet seems mandatory to all
users irrespective of occupation
Result and Discussion continued….
3. Based on Income
• 37.4% of users earn in the range of
30k-50K per month
• 29.7% of users earn in the range of
50k-100k per month
• 11% of users earn below
20K per month
• So internet seems mandatory to all
users irrespective of income
Result and Discussion continued….
4. Based on number of users in a family
• 33.3% of the families have 4 no of users
• 24.2% of the families have 5 no of users
• 21.2% of the families have 3 no of users
• Majority i.e. 78.7% of the families have
more than 3 users
 Result and Discussion continued….
5. Based on Internet Company
• Maximum respondents (i.e. 53.5%) were
found to be using the internet of Worldlink
communications
• Followed by Telecom.
• Users of CG Net were found to be only
1% of total respondents.
• This shows most of the people enjoy the
services provided by Worldlink
Communications as compared with others.
Result and Discussion continued….
6. Based on Internet package
• Maximum respondents (i.e. 45.5%) use the
package including internet service and 1
TV service.
• However, people using only the internet
without any packages were found to be
33.3%.
• Most families were found to have ~4
members so, either internet service alone
or internet service with a TV package was
found to be enough for most families.
Result and Discussion continued….
7. Based on price of internet package per months

• Maximum respondents (i.e. 47.5%) use

the internet package within  the price
range of Rs. 1000- Rs. 1500.
• We could assume that 19.2% of
respondents were using only the internet,
47.5% of the respondents were using the
internet with 1 TV and 32.3% of the
respondents were using the internet with 2
Tvs.
Result and Discussion continued….
8. Based on Bandwidth of internet
• Mixed result of the  internet users
concerning the bandwidth of the internet
• 60.6% of correspondents were found to
be using the internet with bandwidth
below 50mbps.
• 32.3% using the internet with bandwidth
in the range of 50-150 Mbps.
• Internet service of below 50 Mbps would
be enough.
Result and Discussion continued….
9. Based on price of internet package (satisfactory and
unsatisfactory analysis)
• 65.7% fully satisfied with the prices of the
internet packages
• Whereas 34.3% were found unsatisfied.
• Satisfaction may be due to optimal service
at desired prices And dissatisfaction may
be due to the higher prices of  internet
packages and less options to choose in the
market.
Result and Discussion continued….
10. Based on overall services
• Price, internet speed, high/low service
outages services and response from the
service provider.
• 68.7% internet users are fully satisfied.
• 31.3% are unsatisfied.
Result and Discussion continued….
ISPs users percentage according to Secondary Data

• 6 different ISPs.
• Worldlink – 29.85%
• Nepal Telecom- 16.39%
• Vianet – 8.4%
• Subisu – 13.13%
• Broadlink – 2.83%
• ClassicTech – 10.35%
• CG Net - 0.46%
• Others- 18.59% Source: NTA, MIS Report Mangsir 2078
Result and Discussion continued….
Comparison of ISPs (Table, Source : NTA, MIS Report Mangsir 2078)
Result and Discussion continued….
Comparison of ISPs

• Vianet charges Rs 15,000.00 per year for 175 mbps broadband, which includes free
internet and TV installation. There are 2 television services available. The overall cost
of a new installation with one set top box is Rs 19,080.00 including tax.

• Worldlink charges Rs 14,400.00 per year for 150 Mbps broadband, which includes free
internet and TV installation. 1 Net TV service has been supplied by Worldlink. The
overall cost of a new installation with one set top box is Rs 19,530.00 including tax.

• Subisu charges Rs 26,549.00 per year for 150 Mbps internet, which includes free
internet and one TV installation. One NetTV service has been supplied by Subisu. The
overall cost of a new installation with one set top box is Rs 31,999.00 including tax.
Result and Discussion continued….
Comparison of ISPs

• Dish-home charges Rs 18,499 per year for 100 Mbps internet, which
includes free internet and TV installation. 1 Dish IPTV service has
been supplied by Dish-home. The entire cost of a new installation with
one set top box is Rs 20,904.00 plus VAT.

• For CG Net, a 120 mbps internet connection costs Rs 11,988.00 per

year, with no installation fees. CG Net currently does not offer any
television services. The overall cost of a new installation with one set
top box is Rs 14,047.00 including tax.
Conclusions:
After analysis of pricing strategy of CG Net communication Pvt. Ltd., the following
conclusions were obtained:
1) Firstly, people to be targeted as the internet users were found to be of 20-40 years
age and they may be of any sector.
2) Apart from a small population, people have good enough income to pay for the
internet services.
3) Internet service should be designed for families with more than 3 members who
must all be presumed to be the users.
4) World link among the other service providers had a standout market presence. So in
order to flourish in the market its services were to be challenged so as to lure the users.
Conclusions continued..
5) Most families were found to have around 4 people and the internet
service alone or with a TV package was found to be enough so packages
similar to that must be taken into consideration
6) The most important factor that attracts customers in internet service is
price and bandwidth supplied at that price. So, as per the survey, a price
between Rs. 1000-2000 per month for 30-50 Mbps internet service was
found to be satisfactory for the users
Recommendations
• CG net should expand internet services outside Kathmandu valley .
• CG net should lunch the internet packages like TV along with
internet services
• CG net provides internet of two bandwidth 50mbps and 120mbps. It
would be better if CG net provide the internet service below 50mbps
too since more than 60% of users are using internet service of
bandwidth of 50mbps
The END
ANY QUERIES???