Daily Mirror reports:
SLT which also owns a celco, said domestic revenue fell four percent to 19.4 billion rupees with the reduction in rental and local call charges but that it expects a recovery when calling increases.
Its Mobitel mobile arm made a net profit of 254 million for the year against the loss of 64 million in 2006, according to a company statement.
Revenue for the December quarter was up five percent to 11.3 billion rupees although net profit fell to 1.3 billion rupees from the same period the previous year.
Yesterday, I wrote a post about Indian Telecom authority seeing an increase in the number of mobile phone users in the month of January. It is true that lowering the rents and other charges may affect the telecom organization in short term but as the number of phone subscribers go up, it would make more profit in long term.
Related article:
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I agree with you on this matter. In a competitive market, sometimes it is needed to reduce the call charges in order to grab more market share. When the competitors offer lower call charge, you have to cope up with the situation, even if facing initial loss. So, holding on a substantial market share will definitely pay off in the long run.
Posted by: Biplob Kishore Deb | February 24, 2008 7:24 AM | Permalink to Comment