Courtsey : ET News
Call Rates
The New Year is expected to ring in higher call rates but with little improvement in service quality. Call rates in India crashed following intense competition since 2008 in anticipation of new players entering the market. In fact, players ranked sixth or below in any service area today incur a loss on almost every customer they have on the network.
Yet, with little or no investment capital or motivation, analysts expect companies will retain the benefits from higher pricing rather than expanding services aggressively.
An industry official said companies would also focus on revenue-generating customers and discontinue "useless" ones. So effectively the tables are set to turn; customers will chose the operator, but the service provider will also use discretion to offer services.
Katriar of E&Y said fringe players would continue to lie low, awaiting potential acquirers rather than adding subscribers thus leaving more business options in the hands of established
Call Rates
The New Year is expected to ring in higher call rates but with little improvement in service quality. Call rates in India crashed following intense competition since 2008 in anticipation of new players entering the market. In fact, players ranked sixth or below in any service area today incur a loss on almost every customer they have on the network.
Yet, with little or no investment capital or motivation, analysts expect companies will retain the benefits from higher pricing rather than expanding services aggressively.
An industry official said companies would also focus on revenue-generating customers and discontinue "useless" ones. So effectively the tables are set to turn; customers will chose the operator, but the service provider will also use discretion to offer services.
Katriar of E&Y said fringe players would continue to lie low, awaiting potential acquirers rather than adding subscribers thus leaving more business options in the hands of established
