RCom’s launch of GSM services will attract and sustain only low-usage subscribers, with other service providers already cornering affluent customers. Moreover, the launch is likely to have “limited impact” on competition, according to analysts.
“At present, there are around seven major service providers per circle and competition among players for sustaining margins and market share is high. With the existing operators garnering the high-average revenue per user (ARPU) subscriber, new service providers like RCom has to look at new customers,” Gartner Principal Research Analyst Naresh Singh said.
Centrum Broking says, “Concerns over RCom’s launch of GSM services are overdone. The offering would attract and sustain only low usage subscribers.”