Ad Here  
Vodafone to buy out minority shareholders Automobile sector in slump... How important is Modiís German visit... Fox Star Studios to tie-up with Bolly-wood and Kollywood Infosys not to cut prices GMR to raise US $ 250 mn thru QIP Trends point to a hung assembly Vodafone slapped with tax notice of Rs 3700 crore Smartphone prices may change Aircraft lessors to get protection from defaulting airlines SpiceJet in the news again Urja Sangam in Delhi Singapore Airlines prefers Airbus Plans to double trade with Latin America German envoy Steiner caps a language row Hunt for new finance secretary on... Jet-Etihad Rs 2000 plus crore deal to be cleared Airlines hit by service tax on lease Capital Notes Excise duty may halt the war in SUV market TCS, Indiaís biggest block buster While MoTown is on a tailspin, the telecom sector is staging a rally Canada screams over IT outsourcing to India LANCO opens negotiations with buyers for Karnataka power plant ONGC to draw down on reserves to meet CAPEX needs Kolkata kisses goodbye to Ambi? TVS bullish on the two wheeler market? Renault revving up small car launch Flipkart India in the red by Rs 280 crore Hyundai Grand i10 awaiting launch Lanco to sell Australian acquisition Carlyle invests in Trehanís Medanta Medical Centre Latin America beckons India for investments Wal-Mart studying FDI norms post split with Bharti
While MoTown is on a tailspin, the telecom sector is staging a rally

A higher call tariff and lesser competition have virtually enabled two of the country’s largest telecom companies show better quarterly revenues. This demonstrates that there is recovery for the world’s second biggest mobile phone market, India.

Reliance Communications has surpassed expectations in the latest quarter by doubling its profits. Vodafone claims it will increase its investment in mobile data networks following an impressive 14 per cent increase in its revenue in the latest quarter of this fiscal.

While India is home to the world’s largest number of mobile phone subscribers after China,  the sector’s profitability was checkmated by a price war.  Bharti’s AirTel, the nation’s largest telecom operator, Vodafone India, Idea Cellular, and Reliance Communications (R-Com), were allowed early this year to raise tariffs for voice calls after a gap of two years. This was because the courts revoked the permits of smaller operators literally pushing them quit the market.

Voice calls account for almost 85 per cent of revenues for these telcos. The next platform where mobile companies are likely to reap rich dividends are the mobile data services. It is interesting to note that R-Com launched Apple’s latest iPhones on a two year contract, while other telcos effect a sharp cut in data packages to boost demand.

Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236