TRC to increase Calling Charges WTF ??

dinukaperera

Well-known member
  • Dec 21, 2006
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    because mobile telecommunication sector can easily go in to a price war due to the fact that number of player in the industry are higher than market requirements. experts feared this to happen once air tel entered the market as they influenced other companies to cut there prices.

    as you can see every one in the mobile telecommunication industry is providing a very identical service.. so they don't have a way to differentiate there business from each others.. result is they try to increase there profitability by getting more subscribers from competitors and the easiest way to do so is by cutting prices..

    one can gain more subscribers by reducing prices if other players remain unchanged.. but it doesn't happen.. once other companies start to do the same thing its called a price war..

    price war after a certain level can ruin the entire industry as it forces its players to operate below there cost margins.. in other words they will have to operate under losses in order to survive in short run.. but in the long run companies that dont have the financial backing will exist the industry leaving only one or two big players..

    Final out come is customers getting a high priced low quality service due to the monopoly created by the price war..it has so many other losses if you look from different perspectives (government, shareholder etc..)

    Yeah might end up in a monopoly situation or a duopoly. Same as Laughs & shell gas situation. 2 companies controlling the whole indusrty & there will be no competition. What ever happens Mobitel will be there because it has the Government backing.
     

    tharakato

    Well-known member
  • Jul 26, 2007
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    Sri Lanka
    because mobile telecommunication sector can easily go in to a price war due to the fact that number of player in the industry are higher than market requirements. experts feared this to happen once air tel entered the market as they influenced other companies to cut there prices.

    as you can see every one in the mobile telecommunication industry is providing a very identical service.. so they don't have a way to differentiate there business from each others.. result is they try to increase there profitability by getting more subscribers from competitors and the easiest way to do so is by cutting prices..

    one can gain more subscribers by reducing prices if other players remain unchanged.. but it doesn't happen.. once other companies start to do the same thing its called a price war..

    price war after a certain level can ruin the entire industry as it forces its players to operate below there cost margins.. in other words they will have to operate under losses in order to survive in short run.. but in the long run companies that dont have the financial backing will exist the industry leaving only one or two big players..

    Final out come is customers getting a high priced low quality service due to the monopoly created by the price war..it has so many other losses if you look from different perspectives (government, shareholder etc..)

    Yes I agree with you , But Why the hell government let Airtel to Operate in sri lanka ?
    ( before Airtel , Its about 2 - 2.50 Rs per min )
     

    prasadana2

    Well-known member
  • Sep 19, 2006
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    CyberSpace
    Yes I agree with you , But Why the hell government let Airtel to Operate in sri lanka ?
    ( before Airtel , Its about 2 - 2.50 Rs per min )

    no difference of airtel..
    dialog is not srilankan..
    hutch is not srilankan
    tigo(etisalat ) is not srilankan
    Suntel is not srilankan..
    SLT , Mobitel 40% is not srilankan
    Only lankabell is 100% srilankan

    Upcoming Reliance mobile is also not srilankan..
     

    Hapuwa

    Well-known member
  • Jan 24, 2009
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    no difference of airtel..
    dialog is not srilankan..
    hutch is not srilankan
    tigo(etisalat ) is not srilankan
    Suntel is not srilankan..
    SLT , Mobitel 40% is not srilankan
    Only lankabell is 100% srilankan

    Upcoming Reliance mobile is also not srilankan..

    what's your point bro?
     

    tharakato

    Well-known member
  • Jul 26, 2007
    11,431
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    Sri Lanka
    no difference of airtel..
    dialog is not srilankan..
    hutch is not srilankan
    tigo(etisalat ) is not srilankan
    Suntel is not srilankan..
    SLT , Mobitel 40% is not srilankan
    Only lankabell is 100% srilankan

    Upcoming Reliance mobile is also not srilankan..

    :yes::yes::yes:

    I dont think lankabell will launch a mobile service in near future
     

    Hapuwa

    Well-known member
  • Jan 24, 2009
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    profits does not come to the country they go to other country's..
    we only get tax.. witch is a good thing but.. they make more than that..

    i knw what u r thinking.. but thats not why gov wants to keep them profitable... it simply because if they start making losses so they will exit country.. and the result is no more tax earning for government.. and only one big company to deal with for customers.... see whats happening with prima, shell, or CEB... high prices, low quality service.. because no one is there to threaten there market share..