Word: cellularized
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...Bharti may be India's No. 1 cellular company today, but Mittal's challenges are far from over. The company's Bombay-listed shares are down nearly 50% from their February debut, reflecting investment uncertainty as much as general telecom jitters. Bharti is taking on well-entrenched competitors in mobile, fixed-line and long-distance services all at once. The regulatory environment, though improved, is still a minefield. The industry is facing a period of ferocious infighting for market share. Call rates?already the lowest in the world at under 3 a minute?are expected to keep falling, jeopardizing profitability...
...Reliance, which already has a foothold in the market through a separate cellular subsidiary, poses such a threat that the established mobile operators have taken regulators to court to try to block the launch. Reliance, they argue, is slipping into the cellular business through a back door, without a proper license. The Supreme Court is currently hearing the case; a verdict is expected in early December. Analysts expect that Reliance, and other phone companies launching similar services, will be able to move ahead. Spokespeople for Reliance and India's telecom regulatory agency decline to comment on the issue because...
...billion population helped the country to rocket from backwater to the world's biggest mobile phone market, with nearly 200 million subscribers, in just a few years. (The U.S., in second place, has about 150 million.) But now, the law of large numbers is working against the country's cellular duopoly, China Mobile and China Unicom. Earlier this year, China's heady subscriber growth rate started to sag; after surging 60% in 2000 and 88% in 2001, growth this year is projected to fall to 40%. Suddenly China isn't the world's hottest market?that's India, where annual...
...Cong is one of the reasons why China may be maturing before its time. Less than 15% of the population subscribes to cellular service, which suggests plenty of room for expansion. But carriers have already picked off the low-hanging fruit?nearly half of the residents of the country's wealthy coastal cities have mobile phones, analysts say. Now, China Mobile and China Unicom must fight for customers who, like Cong, are a harder sell. "The demographics are shifting to farmers and laid-off public-sector workers," says Shiv Putcha, an analyst for the Yankee Group, a Boston-based research...
...Vast untapped market or no, China is proving vulnerable to the same woes plaguing cellular operators in more developed countries throughout the world, including cell phone-crazy Japan and Hong Kong where once-torrid growth rates have tapered off. Chinese carriers have already joined the parade of telcos worldwide that have slashed investments in their networks. China Mobile, which controls 70% of the market, is cutting capital spending this year by almost 20% to $6.5 billion. The company says it will spend even less, $5.3 billion...