Fourteen Companies: One Market
- In a first of its kind scenario in 2010 , at least 14 national brands will promote the same value proposition- mobile voice
- With the advent of new players and introduction of the tariff wars the listed telecom companies have already shed close to $40 billion in market value
- While the top four operators own about three-fourth of the market of around 500 million users, Idea and Aircel who are relatively younger and the new entrants are clear threats to the established lot
- The biggest challenge for a mega brand is to fight brand fatigue and the new entrants push the larger players to lower tariffs to their entire base, hitting them where it hurts most
- These brand wars are both unprecedented and unaffordable
- A two-year battle can make the ride rough for the mega brands
Thus at current levels it makes sense to avoid investment in the telecom sector, but one can focus on companies that develop tools for providing value added services like On Mobile, Tanala solutions.
Author: Rahul Sonthalia, Analyst, Kredent Group
Popularity: unranked [?]

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Posted in Business & Economy | No Comments
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Posted in Business & Economy, Stock Tips | No Comments
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Posted in Business & Economy | 1 Comment
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