Tuesday, June 14, 2005

Price Wars

It seems that I am in a war mood, with most of my recent posts having something to do with "wars". First it was the Sardar Wars, then Spoof wars and now Price wars. But I am generally a very peace loving person. With my friend Binay giving me a run for my blog, I better pull up my socks and get to serious blogging. Well, time to get back to the topic.

In Maharashtra, there seems to be a mini price war between cellular operators Idea and AirTel. Sort of a small noncoperative Game Theory. So when Idea prices local calls to Idea at 75p and other calls at Rs. 1.75, AirTel goes ahead and introduces an offer where calls to any mobile in India will be cahrged at Re 1! When AirTel makes incoming calls when a subscriber goes to Mumbai free, can Idea, which does not have a network in Mumbai be left far behind? They tie up with BPL to provide the same service to their customers.

And while all these happens, its the customers that benefit.

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