Chapter

Cellular Mobile Services

Varadharajan Sridhar

in The Telecom Revolution in India

Published in print December 2011 | ISBN: 9780198075530
Published online September 2012 | e-ISBN: 9780199081042 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780198075530.003.0003
Cellular Mobile Services

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This chapter discusses the technologies, market structure, and licensing process of cellular mobile services. It elaborates the interconnection and quality of service regulation, mobile number portability, and emerging virtual network operations. Further entry of operators beyond four or five does not significantly increase the competitiveness of the market. The decrease in Average Revenue per User (ARPU) along with competition makes it financially difficult for the operators. Mobile operators in India pay about 30–5 per cent as taxes. The quality of service (QoS) is a concern and almost all the mobile operators are still struggling to meet the benchmark standards. The Value-added Services (VAS) market in India contributes to about 10–14 per cent of the total revenue of the mobile telecom service providers. Chinese companies have much higher returns on capital employed, 22.87 per cent, compared to Indian mobile operators who have returns of only about 7.83 per cent.

Keywords: cellular mobile services; service regulation; market structure; licensing; mobile number portability; virtual network; India; Average Revenue per User; Value-added Services

Chapter.  15787 words.  Illustrated.

Subjects: Economic Development and Growth

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