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Three years back I suggested that Access Deficit Charges (ADC) should be charged on revenue sharing basis rather than per minute basis. Finally with effect from March 1, 2006 ADC would be charged on revenue share basis and not on per minute basis. So is the revolution set to happen as I suggested?
For my prediction of Rs. 500 per month for unlimited calls still we have long way to go. We need to shift to “bill and keep” which will still take sometime. But yes movement towards it can surely start any moment now!!
With Reliance Communications Ventures listing due early next month we can expect some real action in the next fifteen days. I believe Reliance Infocomm or Reliance India Mobile (RIM) should soon come out with a scheme offering unlimited call to all Reliance phone any where in a country for a monthly rental of around Rs. 700. In fact till sometime back Reliance was offering this scheme on its WLL phone which they had to withdraw, as ADC was made applicable on WLL phones too.
Offering this scheme on mobile would have a chain reaction destabilizing the current dynamic equilibrium in the telecom sector and ultimately equilibrium would be restored only once fixed monthly rental for unlimited domestic call to any phone happens. Once RIM offers this scheme, Tata Indicom will follow soon and then all operators will be force to follow as happened after the launch of “Lifetime” schemes. Once all operators start offering this scheme “bill and keep” would logical next step. However this would face stiff opposition from GSM players who would be at a disadvantage considering the technological limitation of GSM. They might try to form a cartel and it would be test of Anil Ambani’s competence how fast he is able to break that cartel. Of course launch of IPTV, broadband, video on demand and other such services would add color to this battle. At the end there might be new leaders in the sector. Currently CDMA technology seem to have a upper hand in this upcoming battle and considering Tata Indicom past history this is the big chance for RIM.
But we should not downplay powerful GSM players like Bharti & Hutch. If they are able to accelerate the transition to WCDMA they might just beat the RIM threat forever. GSM players can also take heart in the fact that now Anil and not Mukesh controls Infocomm. Anil is new at the helm and has his attention spread on too many things. Will he be able to come up victorious in this upcoming telecom battle? This is his chance to become the biggest player in the Indian Telecom market.
We will soon get answer to two questions we have been debating for long:
Which is better CDMA or GSM as a technology?
Is Anil Ambani competent enough to handle Infocomm?
For my prediction of Rs. 500 per month for unlimited calls still we have long way to go. We need to shift to “bill and keep” which will still take sometime. But yes movement towards it can surely start any moment now!!
With Reliance Communications Ventures listing due early next month we can expect some real action in the next fifteen days. I believe Reliance Infocomm or Reliance India Mobile (RIM) should soon come out with a scheme offering unlimited call to all Reliance phone any where in a country for a monthly rental of around Rs. 700. In fact till sometime back Reliance was offering this scheme on its WLL phone which they had to withdraw, as ADC was made applicable on WLL phones too.
Offering this scheme on mobile would have a chain reaction destabilizing the current dynamic equilibrium in the telecom sector and ultimately equilibrium would be restored only once fixed monthly rental for unlimited domestic call to any phone happens. Once RIM offers this scheme, Tata Indicom will follow soon and then all operators will be force to follow as happened after the launch of “Lifetime” schemes. Once all operators start offering this scheme “bill and keep” would logical next step. However this would face stiff opposition from GSM players who would be at a disadvantage considering the technological limitation of GSM. They might try to form a cartel and it would be test of Anil Ambani’s competence how fast he is able to break that cartel. Of course launch of IPTV, broadband, video on demand and other such services would add color to this battle. At the end there might be new leaders in the sector. Currently CDMA technology seem to have a upper hand in this upcoming battle and considering Tata Indicom past history this is the big chance for RIM.
But we should not downplay powerful GSM players like Bharti & Hutch. If they are able to accelerate the transition to WCDMA they might just beat the RIM threat forever. GSM players can also take heart in the fact that now Anil and not Mukesh controls Infocomm. Anil is new at the helm and has his attention spread on too many things. Will he be able to come up victorious in this upcoming telecom battle? This is his chance to become the biggest player in the Indian Telecom market.
We will soon get answer to two questions we have been debating for long:
Which is better CDMA or GSM as a technology?
Is Anil Ambani competent enough to handle Infocomm?
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