EMIs on Hardware purchase pose a peculiar problem

As much as this an opportunity to own a laptop and have an Internet connection at mere payment of Rs. 1500 a month, its also one that will provoke intense cost-benefit calculations. Its a smart move on the part of RCom. to get consumers to pick their connections by bundling it with a laptop and offering it at EMI payments that are quite affordable for the middle class. But then, don't discount the calculative mind of the Indian Middle class.

The tradeoff here is, by the time the payments are complete, the total amount paid out would be much more than the original price. Of course that's part of any installment payment scenario, but the added dimension is backdrop of furiously dropping hardware prices. The drop in prices would widen the gulf between what the consumer pays in total with the price prevalent when the payments are complete. Now, that's something that would make the Middle Class think a little longer before they buy into the Rel. Comm. scheme.

Comments

Karthik Murali said…
theres one key point i'd like to raise here.
the concept of high speed internet , esp from reliance is a myth
they are offering 128 kbps (which means one gets a download speed of 16 kbps/sec) , which is jus a slight improvement from a Dial up speed, and therefore no match for any internet speed standards available across anywhere else.
and yet they do manage to cost a fortune

Reliance has jus managed to stay above the law , by vaguely defining as "high speed"
Tiger said…
A Clever move on Reliance's part sir. People who wouldn't buy a lappie otherwise would go for this option as the costs seems cheaper when distributed and if I don't like it I would cancel and pay a fine.

I think this is cheaper and would attract many middle class consumers as the expense is less than 4 hours spent at the internet cafe per day.
Prof.Ray Titus said…
Karthik, Caveat Emptor...Buyer, Beware...

Sure, Vamshi, but note what Karthik states...

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