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I want to ask autofone signed a 30 year supply contract with each provider so how does this lowers the bargaining power of suppliers?
What are they going to negotiate about? They are stuck for 30 years supplying Autofone according to the contract. So, no bargaining power.
Also in particular i cannot understand that how govt regulations have created barriers to entry …network providers have got license from government untill 2020 and it is restricted to four network.providers …i cannot understand why the commercial terms of any deal are likely to be less favourable than the terms offered to autofone ? How are these creating barriers please explain
If there are only four licences available and they last to some time in the future, how are new entrants going to enter the market? There seem to be no immediate opportunities.
Thankyou sir it means the government is not going to issue any further licenses to any network providers till 2020
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