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

These Stocks Have Rallied Over 300% In the Last 12 Months. Is the Rally Justified? (Views On News)

Nov 12, 2021

As many as 150 stocks from the BSE 500 index deliver multibagger returns in the past one year.

Ultimate Guide to Hedging Your Portfolio (Fast Profits Daily)

Sep 21, 2021

How can you protect your portfolio in a market crash? Find out in this video.

Ride the Indian Real Estate Revival with this 'Different' Smallcap Stock (Profit Hunter)

Mar 23, 2021

Affordability in the housing segment has never been so good in last one and a half decade. Here's how you could make the most of it...

My Latest Stock Recommendation (Fast Profits Daily)

Oct 9, 2020

How I picked an exciting stock using trends from both the commodity and equity markets.

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?

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms