India: Telecom operators’ prospects hurt by predatory pricing

23 May 2003 – According to a Dow Jones report, a Reserve Bank of India representative said that predatory pricing in India's telecommunications market could hinder the sector's viability.

RBI Deputy Governor Rakesh Mohan alluded to recent bankruptcies in the international telecom industry, and said India’s regulator should ensure tariffs are at levels that allow for the long-term viability of service providers.

Competition in India's telecom sector increased this year when Reliance Telecom, a unit of India's Reliance Industries Ltd., launched a limited mobility service with low rates. It led to rivals like Bharti Televentures Ltd. also cutting prices sharply.

Intelecon Research & Consultancy Ltd. 23/05/2003

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