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Bharti Now Wants Trai To Look Into Predatory Pricing

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NEW DELHI: India’s leading mobile services provider Bharti Airtel has urged telecom regulator Trai to look into the business models of some rival

telcos that offer rock-bottom tariffs to woo customers, in a rare display of nervousness over the ongoing tariff war in the telecom space, which has sent revenues and profits of all operators crashing.

Bharti’s demand that Trai should look into what it termed as ‘predatory pricing’ by telcos came on a day when the country’s congested mobile market witnessed the entry of yet another player, Norway’s Telenor.

“Trai should look at predatory pricing... The current tariff structure is lower than the cost structure of operators. Clearly, tariffs have to be sustainable in the long run,” Bharti Airtel CEO Manoj Kohli told reporters on Thursday.

Thirteen mobile phone firms are jostling for space in a market that most analysts say can sustain only 4-5 operators. Earlier this week, state-owned MTNL had raised the bar for competitive tariffs by announcing a half paise-per-second plan for mobile calls on its 2G and 3G networks in Delhi and Mumbai circles.

But other operators did not subscribe to Bharti’s views: “We know our business and have worked out the economics before we launched the one-paise-per-second plan. One should compete and not complain,” said an MD of a large telco. “When shareholders and promoters are not complaining about our business model and tariff offerings, how can a competitor have a problem?” said a top executive with another telco.

An executive with a new entrant said: “When Trai wanted all telcos to provide the per-second billing option, large operators opposed the move and sought that tariffs be left to market forces. But, when market forces take over, they want the regulator to step in. Any reduction in tariffs benefits customers and therefore their stance is anti-consumer,” he added.

A Department of Telecom official said that government welcomes all initiatives by operators to lower tariffs.

“Telecom minister A Raja wants tariffs to be as low as 10 paise per minute for local calls and 25 paise per minute for STD calls — we believe this is possible in the near future. The consumer must enjoy the benefits of low tariffs,” he added.

http://economictimes.indiatimes.com/news/news-by-industry/telecom/Bharti-now-wants-TRAI-to-look-into-predatory-pricing/articleshow/5298033.cms

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Why TRAI should be concerned about Predatory Pricing?

:Contento::Contento::Contento:

It's job of Bharti to respond to competition.

I feel people in Airtel are getting nervous about the sustainability of its business model.

As I said earlier, Airtel has lot of flap built in it. Its time it trims itself than looking for answers from Govt.

:NOTriste::NOTriste::NOTriste:

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An executive with a new entrant said: “When Trai wanted all telcos to provide the per-second billing option, large operators opposed the move and sought that tariffs be left to market forces. But, when market forces take over, they want the regulator to step in. Any reduction in tariffs benefits customers and therefore their stance is anti-consumer,” he added.

:rofl_200: :rofl_200: :rofl_200:VERY NICE NOSE-CUT for the AIRTEL rogue...

Airtel is always like that... Now they are shedding crocodile tears...

The only step that TRAI has to take now is, REDUCE THE IUC (Inter-connect Usage Charge) for Local to 10p/min from 20p/min and for STD to 15p/min from 30p/min :Riendo: :Riendo: :Contento: :Contento: Even AIRTEL opposed this very idea saying that reduction in IUC is not needed mow... Even then, we will get 25p/min SIMPLE plan :winko: from Reliance and 1p/2sec for Local/STD/Roaming from Docomo and Reliance without a pack.. After that AIRTEL will :'( :'( ... I am waiting to see this fantastic scene... :Sorprendido: :Sorprendido:

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Baby crying :'( :'( :'(

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The only business model Airtel knows it to overcharge the subscribers and make super normal profits. Imagine they used to charge Rs.3.45/sms while roaming till May 2009.

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^^^^ 3.45p for SMS during roaming till may 09 is shocking !

Really ? Was it on prepaid ?

Anyways our dear Sunil Mittal's face nowadays is worth watching, be it on newspapers or television.tongue.gif

Edited by ACS

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airtel is in danger now.

may sell whole business to foreign operator

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Even now Airtel remains the most expensive network , they are feeling the jitters because of MNP too. Shape up or pack up dear airtel :rofl_200::GirandoOjos:

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DOCOMO in Punjab is offering 1p/2Sec.

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Guess the 25 Rs SMS pack from reliance and 1p calling plans seems to be nailing Airtel. I've already migrated 3 of my accounts to reliance from airtel - and will do so for the others too ... the only thing that keeps me jostled on airtel at the moment is the unlimited internet for 199 that i have on ! ;)

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I am queued up to switch to RGSM as soon as MNP come into force.

However, I must say that Airtel knows how to charge premium - just be providing great customer care. Recent example :yesterday I bought RGSM SIM on RGSM CC, they say, after sending SMS to 55100, I have to wait for 48 hours. If I donot get SMS in 48 hours, then they will take my complaint and forward to GPRS department and it will be resolved in next 48 hours.

You can not expect so from Airtel. Before you finish your call to CC, you will get SMS with complaint number and resolution time. During my about 1 year stay with airtel, I must say all my complaints were resolves in less than few hours. Where as in reliance none complaint is getting attended before 24 hours..

And they deserve premium because of customer care. If reliance knows how to be customer friendly, reliance can be number 1, without doubt with most high value customers.

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Ill switch my Vodafone to Tata CDMA... :)

and hey kalpak... possible airtel is excellent CC in AMD... not the case in mumbai..

even Reliance improving like anything in mumbai.. as called last time.. call was on wait for next 180 seconds and i got option for call back.. and to my surprise i got call with in 5 minutes.. so now race is on for better CC..

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Ill switch my Vodafone to Tata CDMA... :)

and hey kalpak... possible airtel is excellent CC in AMD... not the case in mumbai..

even Reliance improving like anything in mumbai.. as called last time.. call was on wait for next 180 seconds and i got option for call back.. and to my surprise i got call with in 5 minutes.. so now race is on for better CC..

call back??

are u in postpaid??

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I totally agreed Relaince is improving the CC service a lot. in postpaid I have never waited more then 1 min to talk to customer care. and today I asked for activation for SMS @ 1p and CC not only took the request he confirm me the confirmation too that it's activated so no need to wait for SMS confirmation. it's for postpaid

in case of prepaid I do face some problems sometimes I have to wait for 5-7 mins but thats true for Airtel prepaid too. Customer care response improving a lot in RCDMA

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Ill switch my Vodafone to Tata CDMA... :)

why tata cdma?

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