Even if one leaves aside the phenomenal growth story of the telecom sector, there are plenty of other reasons for the global majors to make India as their prime destination. The very fact that the calling rates are on a constant decline has acted as a propellant to the growth of the mobile handset market. Since the year 2000, the mobile tariff rates have fallen by more than two-thirds, all thanks to the increasing competition between telecom service providers like Airtel, Hutch, Reliance, Idea Cellular & Tata Indicom. According to telecom analyst Shushmul Maheshwari of RNCOS, “At present, India has the lowest average phone call prices in the world (merely 0.25 cents per minute).The projection is that due to falling call rates & competitive handset prices triggered by the competition, cell phones are becoming affordable gizmos.”
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Source : IIPM Editorial, 2007
An IIPM and Malaya Chaudhuri – Arindam Chaudhuri Initiative
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