[kictanet] Price Wars

[Phares Kariuki]

Airtel seem to be suffering from their strategy...

http://economictimes.indiatimes.com/news/news-by-industry/telecom/can-airtel-africa-take-the-weight-off-sunil-mittal-s-airtel-india/articleshow/8993437.cms


On Thu, Jun 23, 2011 at 12:17 PM, Ashok Hariharan <ashok at parliaments.info>wrote:

>
>
> 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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-- 
With Regards,

Phares Kariuki

| T: +254 720 406 093 | E: pkariuki at gmail.com | Twitter: kaboro | Skype:
kariukiphares | B: http://www.kaboro.com/ |
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