Tuesday, June 17, 2008

Sudden Technology Threat

Telecom companies were doing well adding about 7-8 million users to its kitty every month in India and globally too. The juggernaut has hit a roadblock before it could blow into a full fledged business boom. The reason Indian Government has found that Cells are not safe for Children and Pregnant Women. Prominent politicians are also demanding a ban on phone use in school and are setting guidelines for advertising related to these market segments.

Suddenly the most lucrative market segment of Kids and Pregnant women become a taboo for telecom companies which is sure going to hit the sales of these companies eventually as kids are a fashion conscious high net worth clients of mobile services what with upward mobility of families with respect to income.

Suddenly the telecom companies are subject to new SWOT studies to find new ways of coping with the situation. One strategy which the companies could adopt would be to come together and form a corpus of funds to R&D and find safe radiation free phone technology so that these segments again open up for them. But this will take time. Another strategy could be to promote the use of Hands Free and Blue tooth. Also selling more to existing customers could offset some of the loss to the top line and bottom line which would arise from this scenario.

Also governments could take a cue from this situation and not allow companies to launch products without proper safety testing and Health implications being taken into consideration.

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