A Tale Of Two Blockades

In the past few days, two disputes from across the world have been reported from telecom industry. One of them is from the USA and the other, from India. Both reports are about blockade against a service by an operator; in one case it is against another operator. Looking at the reports, I couldn’t help wonder how the principle of carriage and its pricing have evolved in modern times, sometimes quite unfair to the operator too.

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Selling 3G In India

Many of us are aware that Indian Service Providers had bid astronomical amounts to obtain 3G spectrum. However, the revenues from 3G services seem not commensurate to this. In fact, some people have started stating that 3G services in India have failed.

I feel that the operators are not trying enough to monetize their investment, although common sense would state that it is unlikely. Let me explain why…

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As low as the clouds…

For telecom industry in India, the most interesting phenomenon of the day is the 2G Spectrum auction today through an online process. The two large players – Airtel and Vodafone – are bidding for incremental spectrum while smaller players including some of those whose licenses were cancelled as a whiplash action from the 2G spectrum scam earlier are also bidding for larger pieces of the spectrum. Continue reading

Pricing Perils…

I have been following the news about pricing change that was done by Netflix – like Google, Amazon and Apple – a pioneer, albeit in a different business area. Their business-approach to video rental services embraced technology better than their competitors. They were also good at Marketing. They provided both encrypted video streaming service, as well as, mail-delivered DVD service. Continue reading