The
past month has seen some hectic activity in the Indian Telecom Sector. It’s
amazing how a little competition always keeps everyone on their feet. Each
business enterprise looking at the market as if through the eyes of a hawk for
the next big business opportunity .Each company trying to seduce the prospective
customer with its products. India, the future to be world’s largest mobile
telephony market is now going through a massive upheaval. Market leaders no longer
have it easy and with the introduction of the per second billing model,
the competition has only gotten more cut throat.
The war for the very huge Indian
telecom sector has just heated up. In fact it’s now moving into the next phase.
The battle to enter the market and build a loyal customer base thus generating
revenue through sales is no longer the sole business model.The two big giants in the
Indian telecom industry namely Airtel and
Vodafone have established themselves
for a pretty long while. It is now time to consolidate their position and
increase their sales figures. No longer is the battle simply restricted to
providing a telecom service on a cheap and affordable handset. It’s
now about making money through network services.
As the telecom pie grows bigger
in the country more want a slice of it. It goes without saying that there is a
lot of money to be made in what many consider to be the world’s largest and
most rapidly expanding telephone and mobile services market. The established
big boys in the country like Airtel,
Reliance and Idea Cellular are wary
of developments that have been taking place in the telecom sphere. Just this
week, news broke that Telenor has
agreed to increase its stake in Unitech Wireless
perhaps based on the notion that over the long term it would serve them well.
This period has also heralded the entry of a new player in the national telecom
market, the company Aircel.
Idea cellular bought 40.8% stake of Spice Telecom for Rs.2,716 Crores which was fourth largest in Indian Merger & Acquisitions.
This deal gave Idea Cellular another 44-lakh subscribers of Spice Communications in Punjab and Karnataka circles in addition to owned 2.6-crore subscribers in 11 circles.
Idea Cellular would get hold of crucial spectrum of licences recently got by Spice for operations in four more circles including Delhi, Tamil Nadu and Andhra Pradesh.
The ‘Spice’ brand will be phased out over six months in the two circles.
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