Indian Telecom Bubble: Quite Savory
If you are not investing in Indian Telecom corporations you are missing out on the gold rush!
The consumers are paying pennies to connect across the vast country. The competition is rampant for a billion consumers. The rate of growth is staggering 2 million lines a month (almost representing many a countries cellphone volume!). Today it is 75 million and by end of 2007 it will be 250 million!
Yet the ARPU is lowest ($7). The carriers are making money and the vendors are being squeezed. The vendors are stoic! So what if the product is given free (yes 0$!!), the point is to get your foot in the door so that one day you get a contract for 20 million lines (sigh)
Interestingly, the market is vastly different from the ROW in the sense that concepts that failed elsewhere like fixed wireless has been a quite success in India. IPTV, a seemingly virtual concept elsewhere is gaining real momentum in India.
The consumers are paying pennies to connect across the vast country. The competition is rampant for a billion consumers. The rate of growth is staggering 2 million lines a month (almost representing many a countries cellphone volume!). Today it is 75 million and by end of 2007 it will be 250 million!
Yet the ARPU is lowest ($7). The carriers are making money and the vendors are being squeezed. The vendors are stoic! So what if the product is given free (yes 0$!!), the point is to get your foot in the door so that one day you get a contract for 20 million lines (sigh)
Interestingly, the market is vastly different from the ROW in the sense that concepts that failed elsewhere like fixed wireless has been a quite success in India. IPTV, a seemingly virtual concept elsewhere is gaining real momentum in India.
posted by Taj at 6:42 PM
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