When asked on their earnings conference call about the implications of Telecom tariff wars in India for mobile Value Added Services in the country, OnMobile CEO Arvind Rao suggested that the situation offers opportunities for VAS: "For most telecom operators VAS is the golden goose today, and I don't think any of them are going slash pricing." He said that over the years, the decline in price of voice calls has been much more significant than that in Voice Portal call rates; Prices will change, but not in a manner that it affects Price into Quantity result (PxQ). "So far we've not seen any operators trying to squeeze us on revenue share. Revenue share prices are much lower than what we are getting in the international market. Operators also understand that if we have to invest in R&D we need a certain pricing." Responding to MediaNama's question about whether, as the market leader, OnMobile is priced at a premium to its competitors, and hence likely to face pricing pressure, Rao said that they're not making a premium, adding that "In many cases, people are being paid at a higher price than us because we have larger volumes, and are further down the volume-scale curve." On whether, then, there is room for OnMobile to increase price, Rao said that the company would rather increase marketshare. During the call, he pointed out two key trends: "Firstly in near term, in telcos, we've noticed some some distraction in terms of senior management, which…
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OnMobile Call: India Tariff War & VAS, Telefonica vs Voda Deals, SMS Search, Churn Management
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