Happy Customers, No Profits; Indian Mobile Telecoms  

Oleh:

[s.n]

Jenis: Article from Bulletin/Magazine
Dalam koleksi: The Economist (http://search.proquest.com/) vol. 399 no. 8738 (Jun. 2011), page 67-68.
Topik: Profitability; Mobile Communications Networks; Wireless Carriers
Fulltext: Indian mobile telecoms.pdf (43.19KB)

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India has almost 600m active mobile-phone subscribers--about one for every two people, including babies. It also has among the lowest prices anywhere, and a home-grown, world-class operator, Bharti Airtel. India's mobile-phone industry inspires great hopes. Many see it as vital to the nation's development: a way of bypassing obstructive bureaucrats and bringing services to the masses, from mobile banking to accurate crop prices. Already a third of subscribers are in rural areas. Mobiles bring the whole world to villages in Uttar Pradesh. Yet frustration grips many mobile executives. After new 2G licence awards by the government in 2008 (now the subject of a huge corruption probe), India has more than ten operators in most of its 22 geographical licence areas. Most countries have only three to six. Indian firms must typically make do with slugs of spectrum half the size of those issued to peers in less crowded countries. As a result, claim executives and investors, returns on capital stink like the drains in Kolkata.

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