[kictanet] Price Wars

[Ashok Hariharan]

On Mon, Jun 20, 2011 at 7:29 PM, Stephen Mutoro <stephen at cofek.co.ke> 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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