Some time back Tata Indicom offered the Lifetime Incoming Free concept for Rs. 999 and considered the same to be their USP. Some days later all the possible competitors launch the same scheme, leaving Tata behind and making it just another operator offering the scheme. The same story is repeated with the same offering for Rs. 495. What happens further is quite predictable.
In the Indian Telecom industry innovations would last for a week, thanks to replication of the same by the other operators. This has led to a price war in the industry and thus operators have strived hard to match the rates being offered by the other players. The consequences of such price wars are now affecting the profitability of the players. With India adding new subscribers every second, backed by the problem of spectrum allocation, Indian telecom operators are finding it tough to engage into further price wars as most of them are losing share in majority of their circles.
Apart from Bharti Airtel, state owned BSNL and Tata Indicom; all other telecom service providers are losing their market share in most of the circles they operate in. They have even lost their share in circles, where other players have a dominant position. We really don’t know what lies ahead but a fierce competition can enhance their service. Atleast we can hope.