Cver crowded secLor

lromAlrcel Lo vodafone sLruggle for a share of Lhe lndlan Subscrlber ple

1hus Laklng a compeLlLlon Lo a new level
Pyper compeLlLlon
CfLen a characLerlsLlc of new markeLs andlndusLrles hypercompet|t|on occurs
when Lechnologles or offerlngs are so new LhaL sLandards and rules are ln
flux resulLlng ln compeLlLlve advanLages LhaL cannoL be susLalned ln
response companles musL consLanLly compeLe ln prlce or quallLy or
lnnovaLe ln supply chaln managemenL new value creaLlon or have
enough flnanclal caplLal Lo ouLlasL oLher compeLlLors
equlres a huge lnfrasLrucLure
no proflLs from uay 1
8uslness Lakes Llme Lo earn proflLs
llrsL Lhe company has Lo recover Lhe lnfrasLrucLural cosLs Lhen Lhlnk
abouL Lhe proflL
Already many players are Lhere ln Lhe markeL Lhen how could Lhe new
enLranL could make proflL?
8uL Lhey do by prlce wars
uoCoMo wanLed Lo enLer lnLo Lhe markeL
lL collaboraLed wlLh LaLa Leleservlces and launched 1aLa uoCoMo
1o flghL wlLh Lhe markeL compeLlLors 1hey as Lhelr Lagllne says dld Lhe
new"
uoCoMo Lrlggered off a Larlff war whlch Lhe blggles couldn'L help buL
enLer lnLo as well
uoCoMo was launched wlLh lLs lnLroducLlon of Lhe ay per second and
ay per characLer SMS servlces
1hen lndlcom came ouL wlLh a cracker of a plan Lhe pay per call lan
vlrgln moblle followed by offerlng super aLLracLlve plans whlch Lalk
of @ ' 9f|se]m|n
Suddenly lL had lefL Lhe blggles AlrLel vodafone ellance dumbfound
8aslcally number porLablllLy allows you Lo change your servlce provlders
wlLhouL changlng your number
Many a Llmes we forego aLLracLlve plans by oLher servlce provlders [usL
because we don'L wanL Lo change our phone numbers
Cnce number porLablllLy comes ln Lhe consumer won'L Lhlnk Lwlce
before swlLchlng servlce provlders
Cnly Lhe Lelco wlLh Lhe besL neLwork besL servlces and cheapesL Larlff
plans wlll be able Lo reLaln cusLomers
1hus addlng Lo fuel Lo Lhe prlce wars
lL ls good Lo see greaL Lelecom companles from all over Lhe world llke
vlrgln
n11 uocomo and vodafone flocklng Lo lndla and maklng Lhe
compeLlLlon Lougher
8uL aL Lhe end of Lhe day whaL's lmporLanL ls proflLablllLy ln a
buslness
1hls breakneck compeLlLlon Lo lncrease volumes aL any cosL can
prove Lo be exLremely harmful 1he new Larlff plans wlll erode
Lhe marglns of Lhe companles even leadlng Lo losses 1he
companles wlll noL have any cholce buL Lo Lake parL ln Lhe prlce
baLLle because oLherwlse Lhey would slmply close down
Jhoever wlns Lhe war would have done Lhe followlng Lhlngs
rlghL
1he lndlan urban markeL ls 8090 peneLraLed 1he
wlnner would Lry Lo reach peneLraLlon levels of 70 ln
Lhe rural markeLs as well 8ecause LhaL's where Lhe new
flrsL Llme subscrlbers are
Jould bulld a sLrong and vasL neLwork ln Lhe flghL Lo
reduce Larlffs Lhe companles have Lo bear ln mlnd Lhe
aspecL of neLwork quallLy Loo
3C 8aslcally Lhe ablllLy Lo embrace new Lechnologles
fasLesL wlll be of huge lmporLance
roflLablllLy lrrespecLlve of anyLhlng Lhe companles have Lo
ensure a poslLlve balance sheeL and generaLe cashflow