Secondly we will talk about the strategic options available to the new players: The new players can enter the market either by providing services at lower than the current prices or by providing some differentiated products. Aircel launched itself by lowering the price whereas DoCoMo did it by per second billing. Airtel once revolutionized the way people used to recharge their phones by introducing the Rs. 10 recharge voucher. And now, the new players are redefining the way people talk! Hence, we can see that whenever their is a new entrant there is a drop in price of the product. It is the war of share! A new player forces an established player to lower its price or it will loose the hard earned market share.

In the end who is benefiting? CONSUMERS

Now let us talk about what will end this price war? Air Deccan created a similar furor in the aviation industry some years ago. which forced all the major players to reduce the prices which in turn almost collapsed a few. Consolidation of the sector is said to have ended the aviation war. Many M&A experts say that yes, the Indian telecom sector will see the consolidation phase very soon. If it happens the consumers will have to pay by paying more for the services.

A survey from 2007 to 2009 in 135 countries by Gallups revealed that 16% of the worlds adult population would like to leave their home country for a country of their choice. This 16% converts to 700 million people and that is more than adult population of entire North & South America!

The most desired country was found to be US, Canada, UK, Germany, Saudi Arabia and Australia. Out of these 700 million majority would like to migrate to North america. Among the countries from where people would like to migrate, Africa tops the list along with other developing countries.

Why is this disparity between countries? Why does the grass on the other side seem to be greener always?

In this context we could say that the people from emerging nations aspire to live one day in a country as developed as US or UK. The IT/ITES revolution of this century have increased the awareness about what a developed country is all about. The standard of living, the ease of transportation and the predictability play major roles in setting a benchmark for choice of a country. People believe that sometime in future their country will emerge as a country of their dream. However, the waiting time for such transformation is huge in most of the cases. This urge of shortening the waiting time can be one of the reason for these 700 million to dream of switching the country.

Rogues