April 08, 2008

 

Predicitions about future are difficult

Two months ago, Mr Sunil Mittal of Bharti Airtel had this to say about the new telco players.
"All new players will collapse within 36 months. These firms will take at least 12 months to build their network and 24 months after that they will struggle to survive in the market. I feel it does not make a viable position."
Now, he has this to say about Mobile Virtual Network Operator (MVNO), in which Virgin is the first player,
"With the kind of low tariffs we have in India, I don't think MVNOs can succeed"
This is what a telecom analyst had to say about Bharti in 2001.
"The mobile telecom players will die soon. It will take billions of dollars of infrastructure to support mobile users. At the sky high rates of Rs 16 per minute, the user base can hardly cross 10 million mark."
Ok. I made up the last quote. But, it is a completely plausible quote. Mr Mittal proved all the analysts wrong by a wide margin. So, why does Mr Mittal believe that nobody can out-Mittal telecom business once again?

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