At first I wasn’t very serious about DoT’s internal memo on wireless tariffs heading south. In a discussion with one of the Dalal Street analysts, it became evident that Reliance is all set to change the dynamics of GSM mobile services. Assuming that average revenue per minute will now fall to Rs 0.50; South Block interference combined with regulatory changes will erode the profitability of existing players. The first axe will fall on Idea Cellular followed by Reliance Communications and then Bharti Airtel. However, TDSAT and Delhi High Court will play an important role as the events unfold [spectrum availability + IT Ministry decisions] I am talking to few folks in NSN, erstwhile Vodafone-Hutch employees on understanding the battle for spectrum. Will post about it later as we had to wind up the discussion due to some meeting.
Referring to this development in the afternoon, it would be really cool if Wireless operators holding Unified License be obligated to roll out broadband in India, if they want more spectrum 🙂 We all know how badly the government has failed to fulfill its broadband promise – a pathetic 1.06% [2.67 mn] broadband subscribers Vs India’s Tele-density [250 Mn]. The government might want to open BSNL’s network to private players on a lucrative revenue sharing agreement until the later deploy their own Cable, Copper, Fiber, Giga / TeraBit network 😉