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March 01, 2012


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simplification in pricing will be a dangerous game. the one who can provide the cheaper service to the consumers (not enterprises) while establishing the balance between unlimited consumer pricing (across various speeds) and the enterprise pricing while keeping their backbone related constraints in mind will most likely win.

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arpu should be looked at in relation to operator's investments in the network and the operator's ROI while also taking into account the PPP . also, class based statistics need to be used instead of going wholesale . also, the per capital income in this country is so much lower compared to both china and even more so u.s.a.. its grossly wrong to compare it the way it has been done here . also it'll be nice to know the total revenue per dollar invested for the telecom companies from the compared countries.

one of the main reasons behind the lower arpu for voice in india is likely the high level of recent penetration into the extremely-low-income (including students and villages) markets. perhaps even the fact that indians neither collaborate nor socialize as much as the americans do. the savings and waste-reduction culture is probably also partly responsible for it. besides, u.s. people are wild in their spending habits anyway - i'd like to see a comparison with spain, russia, chile, brazil and france - and even south korea while we are at it.

to get an idea of where to set the "PAR-bar" for comparison, anything in india thats being spent upon more than 1/3rd (@PPP) of its u.s. cost (for high tech services) should be considered overpriced. entirely domestically produced items (1/10th of u.s.), investable resources and assets are completely different stories.


Good post and fabulous post on medianama.

However, I would'nt bet on 4G services (seems like a bet on 3G). The truth of the matter is the simple services where the loop can be closed dont require serious bandwidth. You nailed the infrastructure issue on your post on medianama.

Agreed, the future does look bright. The real question is how does one survive this winter before the upcoming spring and summer. Raising Capital around mobile ventures is rather painful at this point. Good to see ex-entrepreneurs going to the other side. The Indian ecosystem definitely needs more of ex-entrepreneurs, otherwise we will have to keep explaining the comparison of angry birds to the mba dudes.

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Broadband coverage and prices are high. However, I also think data pricing needs to be simplified.

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Good info. Personally I've seen my mobile bill drop over time:

2005 - Rs. 2000 a month (BlackBerry service)
2007 - Rs. 1000 a month (moved to the iPhone)
2012 - Rs. 500 a month (moved to a 3G plan)

I would say the biggest factor is Reliance Infotel with their 4G rollout. They could effectily crush the competition with their pricing. I read somewhere they wanted to charge Rs. 10 per GB. Currently, I pay Rs. 1 per MB on Vodafone 3G.

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