Financial Daily from THE HINDU group of publications
Friday, Nov 28, 2003
Financial Daily from THE HINDU group of publications Friday, Nov 28, 2003 |
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Info-Tech
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Telecommunications Telecom regulator must correct bias: Gartner Our Bureau
Mumbai , Nov. 27 INDIA'S new unified licence will not produce the groundbreaking effects markets are hoping for if the regulator does not remove the bias and advantages it has introduced for certain kinds of carriers, according to a news release from Gartner quoting its new research report. The report from the research and advisory firm, titled `India will attempt unified access', says that although the new regime is certainly forward looking, it will not, as it stands, produce the level playing field for competitors in the Indian telecom market. "An already price-sensitive cellular services market will become ferociously competitive as wireless local loop carriers enter their domain," Ms Kobita Desai, Principal Analyst at Gartner's, Mumbai, said. "With predominantly low-margin prepaid users, the wireless industry could see a price war that will eat into its profits and hurt its prospects as a result." The wireless industry needs to focus on business users in order to address falls in average revenue per user (ARPU) that will inevitably result from such a price war. The report has said that it is crucial that the Telecom Regulatory Authority of India (TRAI) broadens the licence to include long-distance and Internet services as quickly as possible. "It also needs to address the vital question of how to build an obligation for all licensees towards universal services beyond metropolitan areas. Failing this, fixed services - particularly broadband access services - could suffer, leaving India as a laggard in broadband deployment. This will be a particularly decisive issue for users outside of urban areas." Consolidation will be a natural consequence of the unified access regime and the TRAI must take special care to ensure unhindered intra-circle and inter-circle consolidation, where it satisfies business norms and law, according to Mr Bhawani Shankar, Principal Analyst for Gartner, UK.
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