10/06/2011

10-06-2011: Rate war in telecom is over, cell tariffs set to rise...........news

BANGALORE: A single naya paisa is still buying-power in India, if you are shopping for talk-time . Indeed, air-time is the cheapest commodity in the country now. But the days of falling mobile tariffs may be at its end. declared a senior

Bharti Airtel's net profit declined by 31% in the last quarter, Reliance Communications suffered a net loss of Rs 758
"Over the next two years, operators will have to focus on customer delight and service innovation. This will result in higher input costs which may result in tariffs moving northwards," says Prashant Singhal, telecom industry leader in consulting firm Ernst & Young. Hemant Joshi, partner (telecom practice), in consultancy firm Deloitte Haskins & Sells, says operators might introduce offerings with assured uptime and quality at differential pricing. "In developed markets such pricing already exists for data products," he says.

The year 2009-10 was bad for the entire industry, with an average revenue growth of about 5%. In 2010-11 , with greater stability in tariffs and growth in VAS (value added services) and data services, the revenue growth is estimated to be 10% to 12%.