Airtel seem to be suffering from their strategy... http://economictimes.indiatimes.com/news/news-by-industry/telecom/can-airtel... On Thu, Jun 23, 2011 at 12:17 PM, Ashok Hariharan <[email protected]>wrote:
On Mon, Jun 20, 2011 at 7:29 PM, Stephen Mutoro <[email protected]>wrote:
course with usual western world biases of the author who recklessly uses strong words like "stupid" . Indeed, there is some threshold you can go in terms of "price wars". That is why Cofek and I are not opposed to a freeze on lower MTR.
it isnt so much about the "price wars" or lower mtrs bleeding the companies -- in an ideal world -- they would have these price wars and still make money.
It is really a case of the indian government being stupid -- i.e. they have done everything in their power to bring the sector down to its current state of dismal affairs : scams, idiotic spectrum pricing, hyper competition, ridiculous merger & acquisition rules -- you name it -- they've done it -- the telecom policy is a joke.
also with the higher cost of capital -- its a rising interest rate scenario in india for the last couple of years -- the cost of accquiring new customers is much higher and perhaps higher than the return ...
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