why we need more jio-styled cos, and psu need to cut costs

the world is becoming ultra-competitive, all thanks to greater than ever dissemination of information through electronic means. today, no company (except those with cutting-edge tech like google and microsoft) operating in a specific industry can expect to be the sole beneficiary of demand for a particular product/ service. margins are getting thinner and this is all a good sign, we will tell you why. for a country like ours, all problems lie in income disparity that has only exacerbated despite of political promises to curb it. with those who earn handsome money and are willing and actually spending large sums on imported goods like electronics and garments, our trade balance has suffered. this ‘handsome money’ that they make can be attributed to the irrationality of their employers. companies, both private and public, have not prudently considered changing market conditions and are thus unable to rein in rising operating expenses, especially those incurred on salaries. take airtel for example. post jio’s

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jio’s free data, calls plan is not predatory, let’s see why

what does jio or other telecom companies provide to the hefty customer base? a service that is enabled by purchasing spectrum from the government, hence no manufacturing, no use of inputs per unit, barring some technology and few essentials like towers and cables. so the radiowave that allows you to make calls or download data is all but any cost-incurring product. it may be 100 minutes of talktime or 1000 minutes, 1 gb data or 10 gb, hardly does that matter to your telecom company. while submitting its arguments in the court, the attorney general, representing the government, clearly mentioned about the cartel of 4-5 telecom companies having billion subscribers and making inr 250 crore a day just from outgoing calls. he also stated that none of the companies is ready to invest in technology and cited the inaction on their behalf to contain call drops. special mention was made of their counterparts in china who are more inclined toward

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