Kindle Russia – MTS wants Kindle Exclusive

Kindle Russia is not as appealing as it could be (47% price premium) and MTS, Russia’s largest mobile phone operator is trying to change that and get a Kindle Russia exclusive deal.

Forbes and Reuters have the scoop (article by Anastasia Teterevleva, Maria Kiselyova and John Bowker) -

‘MTS wants to agree on exclusive sales of Kindle in Russia… If they agree, sales will start not earlier than 2010, but they have not yet agreed on anything,’ one source said.

Another source has said that Amazon and MTS talks have just started.

Why would a Kindle Russia exclusive from MTS be good for the Kindle?

Most importantly, it would help make the Kindle’s price reasonable.

  1. Currently, the Kindle in Russia costs the $279 price plus $21 shipping plus 19% VAT and 20% or more duty. That’s ridiculously high – no one in Russia wants to pay a 47% premium for the Kindle.
  2. Amazon wouldn’t have to ship Kindles from China or Taiwan to the US and then to Russia.

It would help Amazon deliver a better overall experience and get more customers -

  1. Kindle Book Prices are not outrageous in Russia – they’re $12. So the Kindle’s high price is the main barrier.
  2. Kindle WhisperNet in Russia might get more features – perhaps even Free Internet.
  3. MTS’ network in Russia is probably more wide-spread than any other.

Additionally, MTS would probably do a lot of marketing and promotions and perhaps even introduce data plans and other options that subsidize Kindle prices.

It’s a win-win for both companies, and also for Russian consumers.

When would a Kindle Russia from MTS materialize? Would Kindle DX be included?

The sources have indicated that talks are beginning and we know how long that can take (in the UK it took over a year – and we still don’t know who said yes).

  • Spring 2010 to Summer 2010 would be a reasonable estimate.
  • Kindle DX will probably be included as Amazon have already indicated that an international kindle dx release is slotted for 2010.

MTS probably would like some time to plan out a strategy and prepare stores etc. for the launch of Kindle Russia which makes this Holiday Season even more unlikely.

Amazon will probably be pushing hard (hence the Spring 2010 estimate) – They aren’t going to sell many Kindles in Russia at the current 47% premium. 

Closing Thought – Kindle Russia from MTS is a great idea

It’s really good news – both for readers in Russia and for Kindle Russia’s prospects.

Think about it -

  1. The book price is already a reasonable $12. MTS might be able to push it to $11 or less.
  2. There are already 290K books available in Russia, with 100K of them under $6.
  3. The main stumbling block of the super high Kindle price in Russia would get removed.

Kindle Russia is set to evolve into a much better value proposition in 2010.

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