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Strategy

Caught in a zugzwang: Vi, Airtel, and Jio know a tariff hike is inevitable. Who’ll blink first?

Caught in a zugzwang: Vi, Airtel, and Jio know a tariff hike is inevitable. Who’ll blink first?
Caught in a zugzwang: Vi, Airtel, and Jio know a tariff hike is inevitable. Who’ll blink first?
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Synopsis

Telcos are desperate to raise tariffs, but don’t want to see any erosion in subscriber market share. The cost of data in India is the lowest globally, even though telcos end up spending nearly as much as their global peers in maintaining the networks. As the tariff stalemate drags on, all eyes are on the weakest player.

In game theory, the term ‘zero-sum game’ is a way to mathematically represent a situation in which the gain or loss of one participant is equal to or balanced by the losses or gains of all other participants. Wondering how the term is related to tariff hikes and telcos? Well, the short answer is: It’s exactly the situation in which domestic telecom service providers are right now. In this zero-sum game, telcos are the participants while the gain
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