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.