Com 28 december 2002 the bird of gold the rise of

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Unformatted text preview: l- June 2008, TRAI, 7 October 2008, Page 21 50 28 As quoted by, Mukesh Ambani, erstwhile Reliance Group Chairman at the launch of Reliance Infocomm in 2002 in “Ambani to make Reliance Info ‘the Maruti of the Telecom world”,, 28 December 2002 The Bird of Gold: The Rise of India’s Consumer Market, McKinsey Global Institute, May 2007, Page 16 India 2012: Telecom growth continues offered free talk time. Further, there could be schemes to offer subscribers free talk time based on incurring a minimum spend at select retail outlets. The idea behind such bundled offers is to ensure that the operators’ network is fully utilized. A high usage customer could be provided free passes for movies or a car company could provide the first years’ insurance at a discounted price. This could be a key differentiator to acquire or retain customers with high usage. However, there might be implementation issues in order to provide these bundled services. Telecom operators need to integrate their network with various other related operations. Since bundling ensures that business groups manage to generate additional revenues from a household unit, this trend of providing bundled services further intensifies competition for new entrants and potential international operators in the future. A primary stakeholder in a leading Telecom company said, “We are building a common IT back-end distribution and shared services system. Once that is done, the other businesses will be integrated with the Telecom operations.”51 51 Ernst & Young interviewed the CEO of a leading Telecom company in India as part of primary data collection for this report India 2012: Telecom growth continues 29 Telecom sector — resilient or impacted by economic slowdown? The current global financial crisis could have a low-to-medium impact on the telecom sector in terms of rising cost of capital and reduction in discretionary spending on part of the customers. However, we expect no adverse impact on basic mobile and internet service revenues. Even though the g...
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This document was uploaded on 03/03/2014.

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