Tuesday, August 05, 2008

Reliance communication's plan to enter the GSM space

No doubt, in every business, the fight has always been to secure the top slot. This has not only forced players to act proactively but also to enter into agreements of co-opetition with each other. For instance, the aggressive streak in Reliance Communication’s (RCOM) plan to enter the GSM space by end-2008 not only forced other telecom service providers like Vodafone-Essar, Bharti Infratel and Idea Cellular to alter their course but also pushed them to merge their wireless-infrastructure businesses to help cut costs and improve efficiencies – all, to benefit all.

While undoubtedly, it’s a win-win situation for all the parties involved, what many have missed is that beneath their sleeves and behind this ‘win-win’ facade, each player has an Ace which will enable them to strike that blow needed to give them the coveted sceptre, something they would have failed to achieve on their own!

That was as far as the companies were concerned. But wouldn’t this hamper industrial growth? “Although the coming together of telcos will prove advantageous at the back-end, in terms of providing economies of scale and cutting down on operational costs, but they would never divide their customers,” reasons Ravi Shekhar, Manager, Springboard Research. This means, no matter whatever they do, competition remains alive, in a healthy form.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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