Telecom companies have already seen heavy pressure on ARPU,as result they are consolidating their core infrastructure. To survive in this market ,telecom need to CREATE VALUE for customer by extending service offering..so that they have a very high valuation..
By
Rahul Jain, MBA/PGDM student, Welingkar Institute of Management
| 12 02 2010 11:33:33 +0000
I agree with Pradeep here. This is definitely a sigh of future consolidation.Though everyone starts participating in the race,only few will remain in the game after some time.Mergers are more likely in the coming days
By
Abdul Raheem.Syed, Systems Engineer, Leading CEM vendor
| 01 24 2010 18:39:16 +0000
Yes there will be future consolidation , and the price wars are an indicator of the same.But consolidation is a function of market dynamics.However I disagree with the Lady that TRAI should intervene or regulate , in the end markets will decide if an operator will thrive or be left by the wayside.I see tower sharing agreements between operators a positive step - where each business is able to optimize its costs , and improve efficiencies.In the end it is a case of survival of the fittest.It is often seen that companies who are leaders in their space - always talk of market economics - however when their position is significantly challenged they seek refuge with regulators. ;)
By
Pradeep Thomas Abraham, Managing Director, Paytronic Network pvt Ltd
| 01 13 2010 09:52:37 +0000
I think the ongoing price war will ensure that the companies with deep pockets survive in future. Currently all comapnies are taking a hit in their margin by lowering the tarrifs, this will ensure that those who can keep their operations profitable for long will remain, the rest will be taken over. Hence, M&As are definitely on the cards. Apart from this another type of consolidation which I can forsee is in the Infrastructure sharing domain, which will become necessary for survival post MNP. we have already seen this trend and companies are doing it now also, but later this will be the key for survival. All said and done, TRAI need s to play a more active role in regulating the markets, because market forces alone can't bring stability here.
By
mayank nagar, Senior Consultant, Capgemini
| 01 13 2010 08:38:13 +0000
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I agree with Mr. Vijay, the three points what he has mentioned are very true and valuable. This is what I too guess will happen in the future for the telecom industry. Thanks for sharing your opinion..... it was really useful.
By
Isha Verma, Sales/BD Manager, Larsen & Toubro
| 01 22 2010 12:57:40 +0000
The telecom service providers were ripping their customers off,by charging them very heavily Now due to all the competition,finally the customers are getting very good offers at affordable prices,it has led to a revolution in the lives of people and how they connect wit the rest of the world,so i feel regardless of what are the consequences,this war between service providers should continue
By
sanjay , B.Tech/B.E. student, Bangalore Institute Of Technology, Bangalore
| 01 13 2010 01:10:56 +0000
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