They say the elephants are the ones that pave the path leading to food and water even in the thickest of forests. This can be quite a metaphor to refer to the telecom industry in India today.
Margins of most telcos are already squeezed to the maximum and retaining the rock-bottom tariff was not sustainable anymore. But, hiking price meant sacrificing market share in the one of the most competitive arena of business enterprise in the nation. Bharti Airtel, the industry giant, took the first step, hiking call rates across four circles, while Tata DoCoMo had already hiked SMS rates. The buzz now is that Idea and Vodafone too are following suit.
While most experts opine that the tariff war has now ended and the sector is getting ready for consolidation, Ramakrishna Maruvada of Daiwa Capital has a different point to make. In an exclusive, he tells CNBC-TV18 that the move could actually be a flash in the pan! Though the intent is to hike prices across the board, the competition will structurally drive prices down, he says. Below is the verbatim transcript. Also watch the accompanying video Q: What is your expectation
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
