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# When telecom companies, used to reporting several million ne

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Current Student
Joined: 14 Oct 2013
Posts: 56
Location: India
Concentration: General Management, Marketing
GMAT 1: 720 Q50 V38
GMAT 2: 750 Q50 V41
WE: Engineering (Internet and New Media)
When telecom companies, used to reporting several million ne  [#permalink]

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Updated on: 04 Aug 2014, 01:00
2
5
00:00

Difficulty:

55% (hard)

Question Stats:

61% (01:41) correct 39% (01:49) wrong based on 521 sessions

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Which of the following best completes the passage below?

When telecom companies, used to reporting several million new customers in a month, do the opposite and report a
sharp fall in that number, you know that the country’s most dynamic industry has entered a new, more troubled
phase. However, this statistic may not necessarily be as much of a cause for concern as it looks because
________________________.

A) mobile phone companies have huge cash reserves so they will not face the problem of cash flow for a few months
at least
B) inflated claims about new customer acquisition have been very much a part of the telecom industry story so far
C) the sales of mobile phone handsets haven’t fallen down appreciably
D) other competitors have not entered the market in huge numbers
E) mobile phone companies are making huge investments in widening their network coverage.

I don't really agree with OA , will explain in the comments Why.

Question from question Bank By Carcass

Originally posted by parassagi on 03 Aug 2014, 23:56.
Last edited by carcass on 04 Aug 2014, 01:00, edited 1 time in total.
Edited the title of the question
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Joined: 01 Sep 2010
Posts: 3335
Re: When telecom companies, used to reporting several million ne  [#permalink]

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04 Aug 2014, 01:02
why did you not agree with the OE ??
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Joined: 14 Oct 2013
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Re: When telecom companies, used to reporting several million ne  [#permalink]

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04 Aug 2014, 01:27
@carcass.. i Misread "a sharp decline in that number"r as a sharp decline in the number of the customers of the telecom company. Blimey..
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Joined: 22 Aug 2014
Posts: 149
Re: When telecom companies, used to reporting several million ne  [#permalink]

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25 Mar 2015, 11:13
I did not get what 'that number' refers to?
Intern
Joined: 11 Apr 2013
Posts: 12
Re: When telecom companies, used to reporting several million ne  [#permalink]

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20 Apr 2015, 04:26
4
ssriva2 wrote:
I did not get what 'that number' refers to?

hi ssriva2 "the number" refers to the number of customers and to get a better understanding of the question consider this question as a weakening type(although it is not but for ease of understanding you can consider that). now which answer choice will weaken the argument most will give you the answer. i.e if the companies have shown inflated number of customers than a setback will not concern to them to that degree.

hope it helps.
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Joined: 20 Feb 2017
Posts: 164
Location: India
Concentration: Operations, Strategy
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When mobile phone companies, used to reporting several million new  [#permalink]

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24 Aug 2018, 11:14
Which of the following best completes the passage below?
When mobile phone companies, used to reporting several million new customers in a month, do the opposite and report a sharp fall in that number, you know that the
country’s most dynamic industry has entered a new, more troubled phase. However, this statistic may not necessarily be as much of a cause for concern as it looks because
________________________.

(A) mobile phone companies have huge cash reserves so they will not face the problem of cash flow for a few months at least
(B) inflated claims about new customer acquisition have been very much a part of the industry story so far
(C) the sales of mobile phone handsets hasn’t fallen down appreciably
(D) other competitors have not entered the market in huge numbers
(E) mobile phone companies are making huge investments in widening their network coverage
_________________

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Senior Manager
Joined: 07 Oct 2017
Posts: 258
Re: When mobile phone companies, used to reporting several million new  [#permalink]

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24 Aug 2018, 12:41
Raksat wrote:
Which of the following best completes the passage below?
When mobile phone companies, used to reporting several million new customers in a month, do the opposite and report a sharp fall in that number, you know that the
country’s most dynamic industry has entered a new, more troubled phase. However, this statistic may not necessarily be as much of a cause for concern as it looks because
________________________.

(A) mobile phone companies have huge cash reserves so they will not face the problem of cash flow for a few months at least
(B) inflated claims about new customer acquisition have been very much a part of the industry story so far
(C) the sales of mobile phone handsets hasn’t fallen down appreciably
(D) other competitors have not entered the market in huge numbers
(E) mobile phone companies are making huge investments in widening their network coverage
We can look at the question with a view of weakening it

A-> cash flow is out of question
B--> hits the bull's eye.
C--> we need to weaken why this statistics is of no worry. C is irrelevant
D and E are also irrelevant.

B

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Manager
Joined: 22 Sep 2018
Posts: 239
When telecom companies, used to reporting several million ne  [#permalink]

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18 Jan 2019, 16:15
parassagi wrote:
Which of the following best completes the passage below?

When telecom companies, used to reporting several million new customers in a month, do the opposite and report a
sharp fall in that number, you know that the country’s most dynamic industry has entered a new, more troubled
phase. However, this statistic may not necessarily be as much of a cause for concern as it looks because
________________________.

A) mobile phone companies have huge cash reserves so they will not face the problem of cash flow for a few months
at least
B) inflated claims about new customer acquisition have been very much a part of the telecom industry story so far
C) the sales of mobile phone handsets haven’t fallen down appreciably
D) other competitors have not entered the market in huge numbers
E) mobile phone companies are making huge investments in widening their network coverage.

Question from question Bank By Carcass

This is a fill in the blank WEAKEN question. We must show why "the country’s most dynamic industry has [NOT] entered a new, more troubled
phase."

A) This is a neutral answer. It does nothing because what happens after a few months? The country's most dynamic industry is now in a more troubled phase.

B) CORRECT. Inflated claims about customer acquisition has always been apart of this industry. This means that most times telecom companies aren't actually reporting significant gains, hence this small drop in new customers still probably indicates they are doing relatively around the same.

C) This strengthens the claim. If sales have fallen down in the SLIGHTEST and fewer new customers are joining then this would indicate troubled times coming.

D) Irrelevant. Nothing in the passage talks about competitors

E) This is a stretch. It could strengthen or weaken, hence INCORRECT. We just don't know enough about what increasing their network coverage does for these telecom companies. Could it be that this investment is good for them? If they invest they get new customers? Or could it be this investment isn't smart and they are throwing money away. This vagueness made me eliminate this answer.

carcass could you let me know if my reasoning is correct?
When telecom companies, used to reporting several million ne   [#permalink] 18 Jan 2019, 16:15
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