CG Net has entered the Nepali market, shattering Nepali ISPs’ long-term costly slumber. DishHome quickly followed suit, launching a 25 Mbps internet subscription at an unbelievable price. But, have you ever wondered how CG and DishHome have been able to give internet in Nepal at such a low cost?
CG has been trying to break into the Nepali telecom business for a long time but has been unsuccessful due to a lack of a single license. Regardless, CG Communications (one of Chaudhary Group’s subsidiary firms) launched CG Net in Nepal at a disruptively low price. For its existing clients, DishHome, on the other hand, has devised several cost-effective internet alternatives.
Today, we’ll look at how these ISPs are able to provide affordable internet in Nepal. Our prediction, however, may be incomplete in the sense that these corporations are pursuing diverse business strategies to turn Nepal’s online landscape upside-down.
Customer Demand / Market Trend
Before we go any further, let’s talk about why companies are going to the internet.
Consumers in Nepal have long demanded low-cost internet services. New entrants into the country’s ISP sector have definitely heard the clamor and have so entered the market.
Furthermore, the youngsters have become interested in the market trend. While our neighboring country, India, has some of the world’s lowest data rates, things are simply too pricey in our country. This has left an unforgettable impression on our thoughts, and we are excited to witness such revolutionary developments in Nepal when it arrives.
Reasons behind CG and DishHome’s low-cost internet
Companies utilize this strategy to acquire clients in a crowded market by offering their services at a low cost, especially in the early stages of their existence. This enables them to quickly establish themselves in the market and gain extensive client trust.
For example, if vendor X sells an apple for Rs. 800 and vendor Y sells the same apple for Rs. 600, the consumer will almost certainly choose the lower price. While vendor Y may initially lose money, the positive word-of-mouth from current consumers and eventual growth should make it worthwhile in the long run.
Meanwhile, you are not compromising the quality of the product. This strategy has the advantage of allowing the company to obtain clients faster than its competitors.
Market penetration in a flash
People are now happy to use a service that is offered at a lower price than its competitors. This attracts customers away from the competition and towards the newcomers. As a result, this is the point at which the company begins to make a disruptive entry into the market.
The Key to Success
The golden key is now in the hands of the general population. It’s referred to as “referral.” Despite the fact that this word looks to be mundane, it has the potential to dramatically boost the company’s growth. It is at this point that the client takes on the role of promoter himself. That is, the company does not need to advertise itself or have a significant presence on the streets because its advertising is already in the homes of the public.
Realme is one of the brands that has reaped the benefits of this strategy. When the Realme 1 was unveiled in 2018, the company’s CEO said something similar. It piqued my interest as well as the that of others. And we’re well aware of how far Realme has progressed.
It’s great to see that, despite the Nepalese government’s high tariffs, businesses are working to provide low-cost internet access. However, how long it will last remains to be seen.
Aside from groundbreaking launch offer, consistency in service and pricing will have a significant impact on customer perception. As time passes, we’ll be able to see it. In any case, we hope that CG and DishHome continue on their current path.