Now that we understand that Operator revenues are decreasing in the growth proportion it is clear that Indian Telcos cannot look to operate at 35% plus EBIDTA levels. But what they must do is definitely cut down on their Operation Expenses.
While there is little that the operators can do to change their Licence & Spectrum Fees or influence their interconnect charges without regulatory intervention, what they can definitely do is take a relook at their Network/IT Costs, Employee Costs & Distribution Costs.
Again though the idea will be to cut down …

For the last three years the telecom growth in India broke through the exponential curve measured on subscriber addition parameters. We were adding equivalent populations of small countries to our subscriber figures every month to the extent that last month when we added 15 Million subscribers a friend of mine from Stockholm remarked that it is more than Sweden & Denmark put together!
But still the telecom stocks are stumbling, there is panic in the investor community and everyone is saying that the great Indian Telecom Story is in its final …

DoCoMo started a bloodbath in the telecom market with their per-second billing plan. The results are here for everyone to see. They recorded huge subscriber acquisitions over the last 3 months literally forcing all operators to emulate their pricing plan reactively. Finally TRAI announced its recommendation that all operators should provide per-second-biling.