It seems that Vodafone is creating more ripples than it ought to.
I had reported earlier that Vodafone’s investment seems more like a speculation, rather than any real investment. As the details became clear, Warburg Pincus exited with the sale of it’s stake.
It’s hard to believe that Vodafone paid $1000 per subscriber. Partly because on the flawed assumptions that mobile telephony would always grow. Partly because, the numbers are a BIG suspect. Despite the crowing about the “lowest tariffs”, we are still to see genuine opening up of the telecom industry. Primarily Carrier Access Codes that needs to be implemented. That would give us the right to choose our service provider. Not only on the price factor- hopefully soon on the quality factor too.
Mobile phones are good- but they cannot entirely replace the landlines. This is because the spectrum is a scarce resource. No wonder, the telecom majors are falling over themselves to get 3G licences. Despite the steep prices and utter lack of content.
Read more on the Business Standard Story
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