Reliance audacious entry into the mobile market space ( initially through wireless on local loop regulatory backdoor ) along with calling party pays regime combined with lifetime incoming free GSM phones together created the required network externalities for the explosion in mobile phone usage in India. The economic boom initially powered by investment in housing+automobile sectors and later the spending power of IT+BPO crowd has resulted in communication revolution( anyone remember the minister Sukhram from HP ). So much so that the puny spectrum allocated initially to mobile operators has repeatedly run out resulting in in-convenience to huge number of subscribers.
The latest move of GSM operators in India driven not as much by regulators but by enlightened self-interest should help reduce congestion and improve voice quality for mobile phone users. Sharing network infrastructure, usage of flat(and cheaper) billing models, open application APIs for SMS(and other GSM hooks) integration, number portability (not just across operators but also to a different circle) apart from signal tower infrastructure can go a long way in reducing costs and growing the market. The obsession with ARPU increases through mindless VAS requires loads of highly paid marketing executives, constant redevelopment, huge content teams, with thousands of call-center sales executives and some very un-happy customers who don't care to have their normal mobile ringtone replaced. Reducing costs instead and increasing market-size or (providing working Internet to existing customers) seem like easier wins.
