Per-second billing unsustainable: Aircel

[swaps22]

“Per-second billing is unsustainable. It constrains EBIDTA margins. We will see these tariffs for another year-and-a-half after which consolidation will set in,” Aircel COO Gurdeep Singh said after announcing an agreement with GTL Infrastructure to sell its towers. He pointed out that for operators, the cost per-minute is 40 paise and tariffs below 50 paise per minute did not make a business case. “With tariffs hitting all time low, only value-added services could increase revenues,” he said.



Per-second billing unsustainable: Aircel- Telecom-News By Industry-News-The Economic Times

 

[agantuk]

Awesome. They realised it now?

 

[Sushubh]

launch new exciting phones. give affordable broadband access on mobiles. make it useful to browse web on the mobile device. profit!!

 

[amish]

profit is already there, but they want more and more profit.greedyness has no end.

 

[Sushubh]

heheh. technically speaking the new players are not going to be generating profits already... the investments are massive... and competition is fierce. i would hate to be in their position.

 

[manu1991]

This is what happens when dimwits run companies , call rates were already one of the lowest in the world , they shouldve concentrated on other stuff like cheap messaging (which costs them nothing) , Cheap GPRS etc . Growth wouldve been slow but atleast sustainable . Now they are all staring at depleting bottomlines and no company would be willing to hike up tariffs first lest a large number of subscribers goto other companies who would then sustain their profits with numbers rather than revenue / user .

 

[Sushubh]

let number portability arrive... they would start crying.

 

[amish]

investments are huge but they have to sustain 3-4yrs. if they give good and cheap service then most ppl in India wud use the service. show ppl the savings and they will use the service more.once they have good subscriber base, even 1Re spent by each person per day wud earn them crore rupees a day. YES crore rupees a day! that is why every one in world wants to jump in Indian mobile operators market.

 

[Sushubh]

you are missing the point. subscriber base would mean nothing with the arrival of number portability... you would have to provide the cheapest rates or the customer would move on to the next company. someone please remind me the minimum time period a customer has to spend with a particular operator...

 

[amish]

thats what i am saying, provide cheap good service and ppl will not move out. and hence guaranteed profits.