{"id":123443,"date":"2021-08-04T20:16:34","date_gmt":"2021-08-04T14:46:34","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=123443"},"modified":"2021-08-11T15:03:37","modified_gmt":"2021-08-11T09:33:37","slug":"two-is-too-few","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/two-is-too-few\/","title":{"rendered":"Two is too few"},"content":{"rendered":"

Source<\/strong>: Livemint<\/a><\/span><\/p>\n

Relevance<\/strong>: Essentiality of Fair competition in the market <\/span><\/p>\n

Synopsis<\/strong>: The telecom sector in India may soon see a duopoly soon. Since the Vodafone Idea is facing various issues to remain afloat creating circumstances for emergence of Duo Poly (Reliance Jio and Bharti Airtel).<\/span><\/p>\n

Issues with Telecom sector<\/strong><\/h5>\n
    \n
  1. Declining Average Revenue per User (ARPU)<\/strong>: ARPU decline is sharp and steady which is combined with falling profits due to predatory pricing.<\/span><\/li>\n
  2. Limited spectrum availability<\/strong>: Available spectrum is less than 40% as compared to European Union and 50% as compared to China.<\/span><\/li>\n
  3. Low Broadband penetration<\/strong> : According to International Telecommunication Union (ITU), broadband penetration in India is only 7%<\/span><\/li>\n
  4. Competition from over The Top Applications<\/strong>: Applications such as Whatsapp providing free chatting platform is affecting the revenues of telecom service providers<\/span><\/li>\n
  5. Duties on telecom equipment<\/strong> \u2013 Nearly 85% of Indian Telecom equipments are imported, thus duties on such products affect expansion and investment.<\/span><\/li>\n<\/ol>\n
    Suggestions<\/strong><\/h5>\n