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The Telecom Revolution in IndiaTechnology, Regulation, and Policy$
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Varadharajan Sridhar

Print publication date: 2011

Print ISBN-13: 9780198075530

Published to Oxford Scholarship Online: September 2012

DOI: 10.1093/acprof:oso/9780198075530.001.0001

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Cellular Mobile Services

Cellular Mobile Services

The Indian Success Story

Chapter:
(p.66) 3 Cellular Mobile Services
Source:
The Telecom Revolution in India
Author(s):

Varadharajan Sridhar

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198075530.003.0003

This chapter discusses the technologies, market structure, and licensing process of cellular mobile services. It elaborates the interconnection and quality of service regulation, mobile number portability, and emerging virtual network operations. Further entry of operators beyond four or five does not significantly increase the competitiveness of the market. The decrease in Average Revenue per User (ARPU) along with competition makes it financially difficult for the operators. Mobile operators in India pay about 30–5 per cent as taxes. The quality of service (QoS) is a concern and almost all the mobile operators are still struggling to meet the benchmark standards. The Value-added Services (VAS) market in India contributes to about 10–14 per cent of the total revenue of the mobile telecom service providers. Chinese companies have much higher returns on capital employed, 22.87 per cent, compared to Indian mobile operators who have returns of only about 7.83 per cent.

Keywords:   cellular mobile services, service regulation, market structure, licensing, mobile number portability, virtual network, India, Average Revenue per User, Value-added Services

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