Reliance Comm expects intense tariff war to continue (India)

On 03.16.10, In Mobile, By Editor

www.WirelessFederation.com/news: Pressure on telephone call charges has been expected by Reliance Communications Ltd as new operators continue to rush to the world’s fastest growing mobile phone market by number of users.

The Indian telecom market is undergoing an intense price war and with the entry of new and competent telecom operators,  the already instigated ambience has become all the more aggressive and to counter the situation, aggressive offers are expected to be launched to attract subscribers and existing players lowering tariffs to retain users. The local call tariffs have gone as low as INR0.10 a minute for certain plans because of the tariff war.

According to Mahesh Prasad, president of wireless services at Reliance Communication, by and large, the tariff pressure that the country has seen in the second and third quarters has come down a lot but, there will be continued pressure on tariffs, as some of the greenfield operators have not yet made the entry.

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Indian telecom sector consolidation in 24 months: Bharti Airtel

On 01.29.10, In Mobile, By Editor

www.WirelessFederation.com/news: The profitability of the Indian telecom industry has been severely hurt due to price war raged between the telecom operators and a number of players trying to make money from this fastest growing industry in the world by number of users. But within 24 months, the telecom industry may undergo a process of consolidation.

The prediction has been made by Bharti Airtel Ltd. Chairman Sunil Bharti Mittal according to whom the country can sustain six to eight operators and not 14. He also expressed the need for more radio bandwidth for mobile companies in the country besides making it clear that  merger and acquisition policy is imminent and that will decide where this industry (goes)

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Price war & the Indian regulator cause mobile stocks to tumble

On 10.07.09, In Mobile, By Editor

The Indian mobile sector, a darling of the Indian stock markets has just fallen from grace. Fears that a renewed tariff war may bring its dream run of profit growth to an end and could force smaller players to sell out or shut shop has caused the leader, Bharti Airtel to lose 17% in two trading sessions. Reliance Communications has fallen 11% and Idea Cellular fell 8%.

Mobile tariffs in India are already the lowest in the world. On Monday, Reliance (RCOM) announced the slashing of tariffs across the board for local, roaming and long-distance calls to 50 paise, i.e under a cent per minute.

In addition to this, the Indian Telecom regulator suggested on Monday that telecom operators shift to per-second pricing as opposed to per-minute. After the Indian stock market got jittery with this announcement and telecom stocks started tumbling, the regulator (TRAI) was seen as diluting their position on this statement, stating that proposal on per-second billing was at an initial stage and too much was being read into the issue.

TRAI chairman J.S. Sarma also said that mobile operators were free to oppose the scheme and the regulator would consider their opinion during the consultation process.

Sunil Mittal, the chief of Bharti Airtel said tariffs were best left to market forces.

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iPhone’s rival smartphones to cost more in the UK

On 10.02.09, In Mobile, By admin
The cost of contract smartphones may rise in the UK if a price war erupts between operators over the iPhone. Orange announced on September 28 and Vodafone on September 29 that they have successfully forged an alliance with Apple to launch the iPhone on their respective networks in the UK. T-mobile and 3 may be announcing something shortly too.
In an attempt to lure customers to the data-happy iPhone, mobiel operators will have to increase subsidies on the iPhone. Meanwhile, the cost of other handsets will have to rise as a result. Operators could shift subsidies from other vendors, such as RIM, HTC and Samsung, thus increasing their handset prices.
Orange will be selling the iPhone before Christmas, while Vodafone will only be able to launch it early 2010.
O2 has been bit hard by Apple’s decision to remove its exclusive rights on the iPhone after two years. It is thought the network may now look at alternative devices, such as the Palm Pre or Motorola’s android based range of phones to boost revenues.

The cost of contract smartphones may rise in the UK if a price war erupts between operators over the iPhone.

Orange announced on September 28 and Vodafone on September 29 that they have successfully forged an alliance with Apple to launch the iPhone on their respective networks in the UK. T-mobile and 3 may be announcing something shortly too.

In an attempt to lure customers to the data-happy iPhone, mobile operators will have to increase subsidies on the iPhone. Meanwhile, the cost of other handsets will have to rise as a result. Operators could shift subsidies from other vendors, such as RIM, HTC and Samsung, thus increasing their handset prices.

Orange will be selling the iPhone before Christmas, while Vodafone will only be able to launch it early 2010.

O2 has been bit hard by Apple’s decision to remove its exclusivity after two years. It is thought the network may now look at alternative devices,  such as the Palm Pre or Motorola’s android based range of phones to boost revenues.

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Verizon sells Motorola Krave ZN4 for $150 (USA)

On 10.15.08, In Mobile, By Editor

In order to compete with Apple’s iPhone, the world’s third-biggest phone maker, Motorola has divulged a touch-sensitive phone which is to be sold by Verizon Wireless. As Motorola has been losing ground in the cell phone market as it has failed to come up with a hit phone to replace its once-praised Razr. Motorola Krave ZN4 will be priced at $149.99 after rebates to customers who sign a two-year contract with Verizon Wireless. Motorola’s Ming (Touch Screen Phone) has been very popular in China , but it has focused on phones with physical keypads in the United States, where it is the market leader.

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