A recurrence of familiar old problems — regulatory roadblocks and foot-dragging by state-owned competitors — is threatening to cool expansion in India’s red-hot cellphone sector and is frustrating telecommunications investors.
Cellular companies are spending billions of dollars on infrastructure each year to meet booming demand, but call quality in many areas is deteriorating because of bureaucratic bottlenecks beyond their control. Consumers in some cities complain that the quality of their service is deteriorating, with a rising number of dropped calls and lousy reception. Meanwhile, cellphone companies aren’t raking in as much revenue as they could because connectivity problems are jamming up networks and making it tougher to sell value-added services such as those that let users download games.
ContentSutra has a counterpoint.