Customer is King - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Customer is King

Jan 3, 2003

2003 may well be one of the most exciting years for the Indian consumer. For one, we are likely to see the disappearance of national boundaries as far as telecom services are concerned. Thanks to competition, cellular operators are now giving consumers even more choices, at a cheaper cost.

Yesterday, cellular operators cut their long distance rates to Rs 3 in response to Reliance's aggressive pricing. What this illustrates is that once an industry is opened to competition, demand and supply factors take over and the ultimate beneficiary is the consumer. It was not long ago that cellular service providers used to charge nearly Rs 16 a minute for local calls. Competition has ensured that this has been brought down to a fraction of this amount.

For once, to the government for enacting policy decisions in the telecom services arena. Though there are still fundamental issues that have to be resolved before these policies provide a level playing to both basic and cellular services providers, the important fact is that these benefits are here to stay. The spoils of increased competition may not be limited to the mobile services arena but may spread to the basic services too.

Similarly passing of the law on conditional access has also gone a long way in giving the consumer freedom regarding the kind of channels he wants to watch. Again the stimulus was the government policy focusing on the consumer.

Tip of the Iceberg...
India FY00 FY01 FY02
Telecom sector      
Teledensity 2.7% 3.6% 4.0%
Teledensity in USA 66%*
Irrigation sector      
India-Food grain yield (Kg/ hectare) 1,704 1,636 1,723
World-Rice yield (Kg/hectare) 3,845**
Power sector      
Capacity in Dec. 2001 (MW) 103,134    
Additional capacity required by 2012 (MW) 100,000    
* 2002 figure, ** 1999 figure

Now one is looking at more such decisions in the area of electricity generation, water supply and irrigation. It is a known fact that availability of cheap and abundant power is a prerequisite for industrial growth. Successive governments have tried their best to open up the power sector, but reforms have trudged along at a slow pace. We can just hope that the transformation of the telecom sector can infectiously affect those in power for power reforms.

Equitymaster requests your view! Post a comment on "Customer is King". Click here!


More Views on News

BSE Sensex Surges 510 Points; ONGC Among Top Gainers (Market Updates)

Sep 28, 2020 | Updated on Sep 28, 2020

The BSE Sensex Surged 510 Points; ONGC Among Top Gainers. Find the latest update, special reports and news on all time high gainers of BSE Sensex at

Data is the New Oil but It's Also the New Sugar. Here's How to Fight it (Profit Hunter)

Jun 1, 2020

Is too much data hurting your quest for market beating returns?

Quantum Mutual Fund: Hum woh nahi hain (The Honest Truth)

Apr 29, 2020

Ajit Dayal on how the mutual fund industry robs you of your wealth.

This One Trigger Could Turnaround Yes Bank's Stock Price (The 5 Minute Wrapup)

Oct 16, 2019

If Yes Bank manages to do this, it could be the start of a much-needed turnaround for the bank.

Gold could Hit 40,000 Sooner Than Expected (Profit Hunter)

Aug 16, 2019

Domestic gold prices are firing on both engines now. Gold prices could touch 40,000 faster than you could imagine.

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms