Tuesday, July 22, 2008

Predatory

An aggressive game plan and cut throat pricing has ensured RCOM its haloed place under the telecom sun

At a time when all telecom players were focussing on GSM, RCL started its CDMA services in India. With cheaper handsets, RCL effectively catered to the masses. Although the ARPU was declining, but with the addition of more people into the network, RCL was able to obviate its impact on its bottomline. RCL’s consistent focus on maintaining lower churn from its network and providing its services at affordable rates led to increase in its profitability in the long run. The company has maintained its focus on companywide RoI well, rather than targeting per customer parameters. This has led to consistent rise in revenues and profitability over the years.

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Source :
IIPM Editorial, 2008