Broadband Blog

Ring Side view of Indian Telecom Circus

Tatas: Selling their soul

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Poor ! They had to sell to DoCoMo, a leader in the services. With the policy as announced, the duds had it in them. They had to sell out to the highest bidder. Very soon, the whole landscape of the Indian telecom would change. We would not have homegrown company like but instead this would be a battle ground for the big global majors to fight it out for customers.

The size of the deal is pegged at $1.5 billion (about Rs 6,700 crore), translating into a $6-billion (Rs 26,000 crore) valuation for the company that runs networks across the country and is planning to expand into services in the near future. Teleservices is a loss-making company. Between 2005 and 2007, its cumulative losses stood at Rs 5,604 crore

This story has been done to death many a times. There is no real addition of the 8-9 million customers per month. It is simply not possible. Most of the metros have choked and jammed. It is saturated. In order to expand into tier B and tier C cities, telcos need funds and assured returns. For all practical purposes, I dont forsee the market “hot and happening”; although the 3G services would assure monetised returns and would ride on the .

It is no secret that claim their superiority of services based on some abstract benchmarks. There are people who would swear to God not to ever think of as their service provider. Frankly, has been unable to implement its own customer friendly norms; trying to get anything out of the useless idiots manning the customer service is a herculean task in itself.

Tata is a weathered story. They have lost it and the writing on the wall is as clear as the sunlight illuminating the dark dungeons of their minds. Telecom is a failed venture and they ought to accept defeat and ship out of business.

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A long hiatus!

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I must admit that this blog is suffering from the neglect over the past few weeks. A lot is happening in the telecom sector; things are rapidly changing and shifting. The policy for and has been announced. Multiple companies are making a beeline for the proposed auction. Apple’s has been a hit with the people who can afford the fancy price tag.

Meanwhile, a lot has changed over the personal front too. I am engaged and looking forward to get married soon. This blog has been a constant companion over the past few years and given me a platform to vent out my ideas. I hope to nurture it; a challange to remain and stay focussed on shifts instead of reporting teeny weeny incident. Ultimately, it’s about you and me as the customer which matters the most. And we are on the recieving end. For all practical purposes.

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