Mobile Bandh

Posted on | June 15, 2006 |

Retailers in South Mumbai are threatening to go on strike against a cut in margins by mobile operators. The telcos had slashed the margin on recharge cards to 2.5% from 3.25% this month.

Dealers complain that operators have been reducing margins over the past year, from 5% to 4% and then to 3.25%. Telcos argue that retailers also earn from selling new SIM cards and fresh connections.

Initially, retailers had planned to stop selling recharge cards, but are now threatening to stop new activations. If they stick to their stand, telcos stand to lose out on the 3,000 new connections per day in Mumbai alone.

The protest is limited only to retailers and the distributors have not issued any such threat.

Source: ET

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