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Telecom in India is the most exciting sector today for brands and consumers alike. Prices are at an all time low and choice is between seven or eight key players. Cell phone penetration has increased so much that call rates which started out at prices as high as Rs 20 per minute, are now as low as 1 paisa per second. Tata Docomo, a new entrant in the telco market, pioneered this pricing strategy that changed the market. All service providers followed suit. The newest kid on the block is service provider MTS. MTS has reduced its rates even lower to offer 1p for two seconds! Service and experience are taking a back seat to price wars. Adding to the mayhem, plans to allow consumers to switch operators and retain their original number are in the pipeline.

In a price-sensitive market like India, these brands will no longer be able to differentiate on price. Consumers will lap up the opportunity and switch operators for the best deal to suit their usage. Unless these brands start paying consumers to use their service (which is not unlikely) the competition will be heating up!

With the price factor irrelevant, the future of these brands will depend on how well they manage their customer experience across the critical touch points of the brand. The brand could build differentiation by focusing its attention on a part of the customer journey most relevant to its customers and create a unique and ownable experience for them in that space. This would give the brands an opportunity to find their own space. The brand that does it best will emerge victorious.