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‘Is Fierce Competition A Reason for Performance Plunge of Mobile Telephony Sector in India?’ International Journal of Research in Business Studies, 5(1). pp. 83-102. (Morya, K. K., Shankar, A., 2020).

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The number of mobile telephony service providers which was fifteen at its peak (in 2009-2012) has come down to just four creating the services a virtual oligopoly. The annual subscriber growth rate has declined considerably. So has the service price and the average revenue per user (ARPU). In fact, despite increasing subscribers the adjusted gross revenue from mobile telephony has been declining. Three out of four wireless telecom companies are running in net losses and their operational margins have declined to unsustainable levels. A few companies like Aircel, Sistema, RComm, Quadrant, TTSL, TTML, Uninor, Videocon etc. have shut down because of non-feasibility. Idea & Vodaphone have merged their business to face stiff competition in the sector but their profitability does not show any remarkable change. Very often, the blame for this situation is pinned on the new entrant in mobile telephony space By comparing various performance metrics pertaining to India to that of the Globe - this paper examines whether this performance plunge of Indian operators is a global phenomenon, purely due to saturation of telephone density or it is due to high intensity of competition and/or anti-competitive practises being adopted by any player in the sector. This examination concludes that not only the present service pricing has become lower than the marginal costs but the ratio of ARPU and GDP in comparable countries has also become lower than the trend in comparable markets because of the intensity of competition in the sector. Keywords: Competition, Mobile telephony, ARPU, Sustainability, Profitability
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