Home > India, Telecom > India + Telecom = Fierce Competition

India + Telecom = Fierce Competition

[Sorry folks, have been overwhelmed by other obligations lately so have not posted anything in a while.]

A friend of mine sent me a couple of pictures (click to enlarge) which are truly worth a thousand words.  So I will say little more than to point out what a market with up to 12 operators in any one city can do for telecom.

And yet all this hyper-competition has led to a serious amount of value creation.

Competitive carrier economics

Airtel, Idea and Reliance (and almost every other operator) generate healthy margins

A tariff war between operators  is seeing margins drop quickly and the profit-decline has accelerated since December (when these numbers were reported) as more operators have entered the fray.   Click on the image above or here to see the staggering subscriber growth as nearly half the 1.3B in this country are now connected; and they are smiling ear to ear as they rack up mountains of minutes of usage.

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Categories: India, Telecom
  1. Sunil M.
    June 20, 2010 at 9:43 am

    Is the first picture from Mumbai ? I am wondering what is BSNL doing there. The second picture – Hajiali Juice Center brought memories of Mumbai.

    On another note, keep on posting. As always, they make an interesting read.

  2. Shyam Kamadolli
    June 20, 2010 at 11:58 am

    Thanks Sunil. Zooming into the first picture I noticed this was shot on Beli Road in Patna.

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