| Topic : Is Telecom Industry Recession Proof? |
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Activity:
113 views;
last activity : 07 06 2010 20:18:09 +0000
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Quality of service
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Sharing of telecom infrastructure
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Quality of service
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Business model
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Selling iPhone's
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I think the slowdown in economy will be hitting the telecom industry will the quality of service they are going to provide to the subscriber in the long run. |
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Since there are many telecom companies the quality of service plays a vital role. Day by day they are using new technology to reach the people but are not concerned about the quality of service provided. This is the major reason for the slowdown in the telecom sector.
I dont think recession impact will be much for Telecom. As Mobile/phone become one of the basic need for Citizens.
People can't imagine their life without mobile now. Now it is a part of Roti, Makhan and Mobile :)
so, i mean to say the impact will be there but not that much like any other impacted sectors.
NO NO MR.Shyamal Maity, the quality of service will not decrease it will increase so that the subscriber doesn't shift to the other network due to poor quality. Also you might have noticed that 3G service is going to be launched in INDIA in a month or so.
This shall acquire new customers...
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Since building infrastructure for the existing 12 operates would be difficult and cost a lot. Sharing of infrastructure can be seen, virgin mobile has done that and we could see many other will follow share their towers with each other. Erecting one cell site costs about Rs 30 lakh, then imagine how much investment is needed to set up thousands of towers ? |
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Since the installation costs are so high in Telecom sector..Sharing is the best possible solution where by telecom operator can reduce their operating cost and can provide quality service.
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the recession has compelled the the sector to shed the load of engineers /support staff which in turn affects the quality of service. |
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Telecom companies have been doing extremely well inspite of slowdown. Tata Tele , vodafone & aitel added 3 million, & 2 million each subscriber base in the month of August. Economic slowdown have made them to realise the importance of keeping operating costs under control , subsequently increase margin. Many have gone ahead & outsourced their back end function, others have gone in for sharing of infratructure & towers , increase their exposure to other foreign markets ( that will reduce dependency on performance of one market). |
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It all depends what kind of Business model we have...
We must need to modify our existing model in a way which hampers P&L to any extent and adopt a zero defect philosophy..
For telecom eTOM is widely used... which continously needs improvement..
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The telecom service provider will be seen selling iPhones. This is what AT&T did and saved itself from going into recession which other Network provider manged to fall into. The craze for iPhone was so much that the subscribes purchased iPhone with 3G service from the service provider and going into contract for a year or so.. |
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