litereading 12/5/2012 | 2:58:22 PM
re: BSNL Lines Up GSM Options of the price wars in India. Nobody makes money there on a fully loaded basis. Western economies have subsidized the business but that's coming to an end. With the Euro increasing in value, the same number of dollars means fewer Euros. Wait until Ericcson's next earnings diaster.

Economics has a way of creating balance out of imbalance. It is only a matter of time that operators in India pay fair value - which is higher than they are paying today. It will happen in China eventually, too, once their currency is allowed to float to a fair exchange rate.
Stefan Sip 12/5/2012 | 2:58:21 PM
re: BSNL Lines Up GSM Options Continuing the economic them, the reason there is no "fair value" is due to over-supply (too many vendors). All the vendors mentioned in the article, Ericsson, NSN, ALU, Moto, and NT have had less than a stellar year, yet they still go to war on these money-losing deals, because they still think they can make it up on volume. Now with ZTE and Huawei in the mix, there are 7+ vendors fighting for the same pie.

The the USD going south faster than Mexican water going through my bowels, European vendors doing significant business in the US or countries whose currency is pegged to the USD have an additional pricing pressure in the tune of 15% a year (that's the compounded loss of USD over the past 5+ years).

Anyway you cut it, it is ugly out there.
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