@ksh@T 20 Report post Posted February 13, 2008 BARCELONA: Forecasting a gloomy future for telecom sector aspirants, top mobile operator Bharti Airtel today said that all the new players will "collapse" within three years. "All new players will collapse within 36 months. These firms will take at least 12 months to build their network and 24 months after that they will struggle to survive in the market. I feel it does not make a viable position," Bharti Group Chairman and CEO Sunil Mittal told PTI at GSM Mobile Congress. Mittal's almost echoed the views of Vodafone, whose CEO Arun Sarin had yesterday said that only one or two new players would remain in the arena and consolidation process will start in the telecom sector. He also desired to buy spectrum from the market in case if it did not get the additional frequency from the government. "Who buys them or not, after 36 months is not clear... our position is that please don't give spectrum to anybody at the cost of our (existing players) growth path," Mittal said. Bharti Airtel has achieved 60 million subscriber base (both mobile and fixed) and one billion minutes of traffic is going through its network per day. Share this post Link to post Share on other sites
Honest 836 Report post Posted February 13, 2008 ^^^ This seems to be very egoistic statement my dear friends. Actually these existing GSM operators are very afraid of Reliance. They already know that they are going to loose very high ratio of their business when Reliance comes into action. It will be better that Bharti Airtel & Vodafone save themselves, instead of commenting on new players. Regards. Share this post Link to post Share on other sites
Sadikk 301 Report post Posted February 13, 2008 New player means like completely new entry such as , unitech, datacom and others. Rcom is gonna new revolution in GSM + CDMA, they will emerge as biggest player in the world in 2010. As china UNICOM is exiting its CDMA business. Lets hope for the best for Rcom and other telecoms as far as this make new price war in segment and make consumer the king of all. Share this post Link to post Share on other sites
kshah 452 Report post Posted February 14, 2008 Probably with too many players, cellular market will be regionalized. Perhaps there will be two catagories of opertors, National, regional. National operators may survive on VAS and Roaming. Regional purely on voice and local data. Airtel and most GSM players are afraid of reliance and tata because of their might and knowledge of Indian psychology. Reliance and tata could be leading player even with non friendly technology like CDMA. Reliance and tata GSM network will be homogenous in technology, hence more efficient, will be able to offer data service uniformly so others are affraid and trying to prove that they only will survive. Business now a days is not like old days where establish people can wipe off new comers. Technology now a days plays a vital role. Unlike past your contacts with politicians were enough to survive. Birlas, Godrej and Kirloskars are example of new era failures. Share this post Link to post Share on other sites
prakashkadam 1 Report post Posted February 14, 2008 (edited) I think Mittal issues this statement every now and then to influence the market sentiments. Now he is bothered about ARPU as new entrants will definately play price war an Gov. & TRAI know that their is still cope for reducing the tariff. Edited February 14, 2008 by prakashkadam Share this post Link to post Share on other sites
kesav 127 Report post Posted February 14, 2008 (edited) Sunil Mittal's statement is predatory statement which has arisen out of fear of losing. It has to be neglected with contempt which it deserves Edited February 15, 2008 by kesav Share this post Link to post Share on other sites
sougatadc 358 Report post Posted February 14, 2008 (edited) Sunil Mittal's prediction is an unwarranted proposition in view of the ensuing open market with lots of goodies for the subscribers, thanks to Reliance's GSM and new entrants' competitive offers. How come Mr. Mittal be so sure about this totally unpredictable arena where the scenario changes with days. The Department of telecom (DoT) is planning to allow new telecom operators, who do not have spectrum, to buy talktime at wholesale rates from existing firms and then sell it under their own brand. In industry parlance, this system is known as the mobile virtual network operator (MVNO) model. Existing operators usually have excess talktime on a daily basis —below-average use of talktime is usually more than above-average use, in aggregate. By leveraging the excess talktime, a mobile virtual network operator can offer services without actually owning spectrum or infrastructure such as telecom tower and transmission equipment. Officials of the DoT said the nine letter-of-intent holders who were yet to be granted telecom licences and start-up spectrum could be considered for an MVNO licence. Those who do not have a mobile licence can enter the business but will have to go through a waiting period, be subject to background checks and have to pay a separate fee. New telecom players who have a licence but no spectrum will not have to pay any separate fee. A number of international companies such as British Telecom and Virgin Mobile are planning to enter through the MVNO route. Even existing Indian players who want to expand are interested in the system as it is cheaper and faster than rolling out a network. Developed countries such as the US and the UK have an MVNO regime. However, this system needs permission from the government. Through an MVNO model, the same amount of spectrum — which is a scarce resource — can be used to increase competition in the market. Edited February 14, 2008 by sougatadc Share this post Link to post Share on other sites
