indian telecom sector insights
TRANSCRIPT
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Management
of TelecomServices
Assignment
Amartya Kundu MS-02
Ankit MS-10
FMS Delhi
MBA (Management of Services)
Batch 2009-11
Question 1. Page 02
Question 2. Page 11
Question 3. Page 16
Question 4. Page 19
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I. What has been the year wise growth of telephones (Land Line and Mobileseperately) during the last ten years? What are the main reasons for this
growth? Discuss in detail. Has this filled the digital gap? If not what are the
reasons. Suggest suitable measures to bridge the gap.
Year Wise growth of Landlines and Mobiles: The Indiantelecommunications industry is
the world's fastest growing telecommunications industry, with 688.38 Million telephone
(landlines and mobile) subscribers and 652.42 Million mobilephone connections as of July
2010.
Source: TRAI Annual report 2008-2009
As the fastest growing telecommunications industry in the world, it is projected that India
will have 1.159 billion mobile subscribers by 2013.Furthermore, projections by several
leading global consultancies indicate that the total number of subscribers in India will exceed
the total subscriber count in the China by 2013. The industry is expected to reach a size of
344,921 crore (US$ 74.85 billion) by 2012 at a growth rate of over 26 per cent, and
generate employment opportunities for about 10 million people during the same period.
According to analysts, the sector would create direct employment for 2.8 million people and
for 7 million indirectly. In 2008-09 the overall telecom equipments revenue in India stood at
136,833 crore (US$ 29.69 billion) during the fiscal, as against 115,382 crore (US$ 25.04
billion) a year before.
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from different strata ofthe society. Now even entry-level handsets come with features like
coloured display and FM radio. Thus, the falling handset prices and the add-on features have
triggered growth ofthe Indian telecom industry.
Prepaid Cards Bring in More Subscribers
In the late nineties, telecom service providers introduced prepaid cards, which was yet
another milestone for the wireless sector. Prepaid cards lured more subscribers into the
industry besides lowering the credit risk of service providers due to its upfront payment
concept. Prepaid cards were quite a phenomenon among first-time users who wanted to
control their bills and students who had limited resources but greater need to be connected.
Pre-paid cards greatly helped the cellular market to grow rapidly and caterto the untapped
market. Further, the introduction of innovative schemes like recharge coupons of smaller
denominations and life time incoming free cards has led to an exponential growth in the
subscriber base.
Introduction of Calling Party Pays (CPP)
The CPP regime was introduced in India in 2003 and underthis regime, the calling party who
initiated the call was to bearthe entire cost ofthe call. This regime came to be applicable for
mobile to mobile calls as well as fixed line to mobile calls. So far India had followed the
Receiving Party Pays (RPP) system where the subscriber used to pay forincoming calls from
both mobile as well as fixedline networks. Shifting to the CPP system has greatly fuelled the
subscriber growth in the sector.
Changing Demographic Profile
The changing demographic profile of India has also played an important role in subscriber
growth. The changed profile is characterised by a large young population, a burgeoning
middle class with growing disposable income, urbanisation, increasing literacy levels and
higher adaptability to technology. These new features have multiplied the need to be
connected always and to own a wireless phone and therefore, in present times mobiles are
perceived as a utility ratherthan a luxury.
Increased Competition & Declining Tariffs
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Liberalisation of the telecom industry has fuelled intense competition, especially in the
cellular segment. The ever-increasing competition has led to high growth of subscribers and
has put pressure on tariffs, which have seen a sharp drop over the years. When the cellular
phones were introduced, call rates were at a peak ofRs 16 per minute and there were charges
forincoming calls. Today, however, incoming calls are no longer charged and outgoing calls
are charged atless than a rupee per minute. Thus, the tariff war has come a long way indeed.
Increased competition and the subsequent tariff war has acted as a major catalyst for
attracting more subscri bers. Apart from these major growth drivers, an improved network
coverage, entry ofCDMA players, growth of value-added services (VAS), advancement in
technology, and growing data services have also driven the growth ofthe industry.
Despite the rapid increase in the telecom sector, growth has been disproportionate. The
teledensity in rural areas is lagging behind urban areas. India's slow telecommunications
expansion especially in the rural areas can be attribited to a number of factors, including tight
bureaucratic control, poor policies and inadequate investment by private companies and lack
of funds ofthe government, which until recently held monopoly control.
Tele-density is low throughout the countries of the South Asia. Pakistan has highest tele-
density in Asia and Bangladesh has lowest. India is by farthe largest South Asian country, in
terms of population, economy and telecommunication network. However, there are huge
disparities extant within the country, and this is evidenced in the uneven distribution of
telecommunication access. Many of the less developed states have state-wise average
penetration rates of below 20 per cent, including Bihar (12.13), Assam (13.67), Andaman &
Nicobar Islands (17.94), Uttar Pradesh (15.58), West Bengal (13.78) Orissa (14.28), Madhya
Pradesh (19.54) Uttaranchal (10.37) and Bihar (12.13). Tele-density in some states like
Jharkhand (3.49), Chhattisgarh (4.18) and North East-II (8.71) are less that 10 percent.
Itis clearthatthere is huge gap of digital divide between rural and urban India. However, this
gap varies from State-to-State. In some States like North East, Uttaranchal, Bihar, Jharkhand,
Orissa and Andaman and Nicobar Island the gap of digital divide is really very significant, in
some other states it is narrow like Punjab, Maharashtra and Kerala. Added to this, the gap
also varies from technology-to technology. Some States are not able to adopt even one
technology but others have adopted very efficiently. In some states overall adoption of
technology is high, but, adoption rate is rural areas is very low. In some cities like Delhi,
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Mumbai, Kolkata, Bangalore, Hyderabad, Noida etc, ICTs adoption rate is very high,
whereas in some other cities like, Patna, Lucknow, Ahmadabad (even these are the capital of
States)etc, adoption rate is very low.
Causes:
The better educated are statistically more likely to have and use connected PCs. In particular
those with college degrees or higher, are ten times more likely to have access. Literacy rate ishigh in the urban India (79.9 percent) whereas it is only 58.7 percent in the rural India.
Overall literacy rate in India is 64.8 percent. There is also huge difference in male (75.3
percent) and female literacy rate (53.7 percent).
Anotherimportant reason of digital divide in India is knowledge divide. Knowledge divide is
directly related with digital divide. More educated people with computer knowledge and
English language are able to access new technologies. Rural India had 368 million literate
people out of whom only 63 million were found to be English speaking as on March 2008.
Given the high levels of literacy in rural India and very low levels of English speaking
population and computer savvy population, IMAI , 2008 made a clear case of content and
applications in local languages in order to ensure higher and faster adoption of internet in
rural. Internet use is primarily associated with a large section of the English-knowing urban
population-though they account for only 31 percent of the total urban population of 250
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million-as many, as 84 per cent ofthem are PCliterate. Internet penetration extended to only
0.6 per cent of the population in rural areas, with the number of active Internet users
estimated at 3.3 million.
Electricity is the most basic condition for using ICTs and many studies established that
relationshi p between the level of electrification and digital divide. Rural India has low
electricity coverage (Table 6). Almost 10 per cent villages of India have no electricity. Some
areas may get agricultural power- two hours in the morning and evening-but even this is the
exceptional. Added to this the cost of electricity is very high. In this situation, one can not
even think about using computers and Internet.
The digital divide is not simply an issue of access, but also of obstacles to use ICTs. Various
studies (Tracy et al, 2003; Winter and Huff; 1996; Spender, 1997; MacKenzie and Wajcman,
1985) revealed that even when women and men have equal access to the internet either
through home, work or school, they may not have the opportunity to access the Internet or
engage in a wide variety of uses. Women have been online less than men (Kennedy et al,
2003). They have been online for fewer months and when they do go online, they spend less
time. The genderissue is highly relevantin the developing countries like India. Women have
less access than men in India due to various social and
personal factors.
Added to these, the growing population, insufficient funds, affordability, and delays in
implementation of government policies and programmes have been some of the challenges
that have lead to unequal developmentin the society, which is responsible for digital divide.
Suitable Measures:
LastMile Connectivity: Ashok Jhunjhunwala a professor atthe prestigious IIT who has been
working attechnological solutions that could make telephone connections cheaper and more
reliable, said much of the problem had to do with "last-mile connectivity". This means that
the existing telephone infrastructure cheaply and efficiently carries telephone signals over
long distances, but becomes costly and falters when it branches outinto homes.
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His solution, increasingly popular in the southern state of Tamil Nadu, uses radio waves to
beam telephone signals from local exchanges into homes within a 10 kilometer radius, using
Wireless in LocalLoop (WiLL) technology. Feeling threatened, private cellular-telephone
companies petitioned the Supreme Court for a stay, but the court has refused to oblige and
said thattechnology could not be held down.
Apart from reliable voice communication, this revolutionary technology also provides
reliable fast and affordable Internet at 70 kbps (kilobits per second), says Jhunjhunwala, who
thinks it could become a model for other developing countries.
Already it has been licensed to a few companies in Singapore, Tunisia, Brazil, Kenya, Fiji,
Argentina and Nigeria. Supported by solar-powered relay stations, the system can workin an
extended radius of up to 25 kilometers, making it usefulin rural areas that have no electricity
supply and where expensive cabling is not practical. In Tamil Nadu's Nellikuppam district,
sugarcane farmers are already using a WiLL system to checktheir accounts with a local sugar
mill and also market prices of
fertilizer and pesticides.
Role of community information centres
The central and state governments of India, especially the Ministry of InformationTechnology, have taken several initiatives for rural development through community
information centres. These may be considered as rural electronic libraries. The project has
been started in Sikkim and North Eastern states of India to provide IT facility in each and
every block. Each CIC will have one server computer system and five client configuration
computer systems linked in a local area network and connected to a VSAT for Internet
access. The facility will hel p government functionaries to use email and the Internet for
communicating with district and state officers. Efforts are being made to use the IT
Infrastructure atthe CICs to capture localinformation ofthe block and make them available
worldwide through the Internet.
Besides the efforts made by institutes and private sectors in the country in the context of
information dissemination, the community information services listed as follows is quite
impressive:
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Agri watch (www.agriwatch.org)
Greenstar (www.greenstar.org)
ikissan.com (www.ikissan.com)
Soyachaupal (www.soyachaupal.com)
Web site for aqua farmers (www.cddc.vt.edu/aquachaupal.com)
EChaupals Project
The Projectlaunched in the year 2000 has been quite popular in rural areas of India. The e
chaupals enables rural people to access information in their local languages on crops and
market prices. Around 2,700 echaupals provides services to more than half a million farmers
in five states of the country, viz. Maharashtra, MP, Karnataka, Uttar Pradesh, and Andhra
Pradesh.
Digital Mobile Library
In orderto bridge the digital divide in a larger way the government of India, in collaboration
with the Centre for Advanced Computing (CDAC) based in Pune, aims to bring about one
million digital books to the doorsteps of common citizens. The Internetenabled digital
li brary will promote literacy. It will make use of a mobile van with satellite Internet
connections. The van will be fitted with printers, scanners, cutters and binding machines for
providing books in bound form to end users.
These projects are encouraging steps taken by the governmentto bridge the gap between the
information haves and havenots in the country. The poorest and underprivileged students
will no longer be deprived of the latest reading material by virtue of their remoteness or
affordability.
Li brary networks are playing an important role in bridging the information needs of the
people. Realising this need, the planning commission in 1984 recommended that the
government modernise li brary services and information in the seventh fiveyear plan by
means of li brary networks. Consequently the biggest li brary network, the INFLIBNET
(Information and Li brary Network), was initiated in 1991 by the university grants
commission with headquarters located in Ahmedabad. The programme is directed towards
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modernisation of libraries and information centres and the establishment of a mechanism for
information transfer and access to academicians and researchers in India.
Several city networks, such as CALIBNET, the Kolkatta Li brary Network; DELNET, the
developing li brary network, Delhi; BombayL
i brary Network (BONET); MadrasL
ibraryNetworkMALIBNET; Pune Library Network (PUNET); and, Ahemedabad Library Network
(all sponsored by NISSAT Department of Scientific and IndustrialResearch) are promoting
resource sharing and disseminating information by creating centralised union catalogues of
their holdings. Public libraries in India need to be geared up with the latesttechnologies and
IT infrastructure. At presentthe public libraries are technologically behind in both resources
and technology. Very few libraries provide access to the Internet. The Bill and Melinda Gates
Foundation has generously supported the process of modernisation of public libraries in
United States and beyond. It has provided technology grants so that people can access the
Internet. In India there is no major initiative for any local philanthropic hel p for
modernisation of public libraries. However, some scanty efforts are being made by Indian
Institutes of Technologies by launching the small project of Infothela (Information Box)
equipped with Internet facility forthe people.
Several community information centres have been opened with efforts of the Ministry of
Information Technology to help people use email and Internet for access to information. A
few states like West Bengal have encouraged the establishment of community li brary andinformation centres (CLICs) in rural areas. Around 1,500 CLICs will be set up in places
where there are no public libraries. These centres would provide information relating to
career, vocational opportunities and developmental activities carried out by village
Panchayats in the state.
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II. The auction of 3G spectrum had been in news during last few months. Whatwas the method/uniqueness of its auction? Name the operators who got the
spectrum and the total revenue earned by the Government. Do you agree with
this method of auctioning?
Each of the auctions for 3G spectrum in Indias 22 telecom zones was a separate but
simultaneous process conducted overthe Internet.
Bidders had authentication tokens and passwords to access the electronic auction from their
own computers. The names of bidders for each service area were not disclosed during theauction, only the total number of applicants would be known.
The auctions consisted ofmultiple rounds and atthe end of each round, provisional winnerswere declared. The auctioneer, Rothschild and DotEcon, announced higher price for everyround and would look for demand at that price . It was be a multiple-round auction with
time limits.
The bid value in each round is to be determined by the auctioneer based on demand. If for acircle where there are three slots available and at least six bidders, then the price
increment was 10%. If there are five bidders for three slots, the bid increment is 5%and for four bidders, the bid increment is 1%.Measures are to eliminate irrational bidsand cartelization.
The bidders earnest money deposit will determine eligibility to bid in the first round. Eachround will earn eligibility points, which in turn will determine eligibility to participate insuccessive rounds. Only valid bids based on eligibility was accepted. At the end of eachround, bidders were shown the number of bidders forthe round. Each round was for a fixed
time period. Maximum extra time permitted is four hours, broken up into 10-minute chunksfor extensions. Atthe end ofthe auction, bidders were notified ofthe provisional outcome ona confidential basis. The government has to approve the results before itis made public. Theauctions end when demand is equalto the number of slots available in each service area. Theauctions were held from 9am to 7:30pm on all days except Sundays and national holidaysin India, beginning 9 April.
The essence of Auction is to get the maximum benefit due to the perceived or true rarity ofthe desired object. Thus the auctioning of 3g spectrum was a logical step. The hugeexpenditure caused by the buying of spectrum will lead to high tariff pricing of 3g
plans. The early adopters of 3g were well heeled customers who may be able to bear thecosts. Unlike 2g which needed to be priced low to increase the telecom penetration. Themoney raised will help in decreasing the fiscal deficit.
The Indian government hasmanaged to raise Rs. 67,718.95 crores from the auction, withRs. 50,968.37 crores from private telecom operators, and Rs. 16,750.58 crores from the stateowned telecom operators BSNL and MTNL. The two circles of Delhi and Mumbaitogether account for 39.19% of the total money raised, while the top five circles Delhi,Mumbai, Karnataka, Tamil Nadu and Andhra Pradesh account for 65.56% ofthe bids.
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Spectrum in 5 circles Andhra Pradesh, Tamil Nadu, Uttar Pradesh (West), West Bengaland Himachal Pradesh is in the 1959-1964 Mhz band.
Spectrum in 5 other circles Delhi, Rajasthan, Assam, North East & Jammu & Kashmirwas in the 1969-1974 Mhz band
Spectrum won in Mumbai and Karnataka was in the 1974-1979 Mhz Band, and in Biharwas in the 1964-1969 Mhz band
In a statement, Airtel has said that they wanted to achieve a pan-India 3G footprint, butcould not, due to the auction format and severe spectrum shortage along with ensuing policyuncertainty, which drove the prices beyond reasonable levels.
3. Reliance CommunicationsWill pay Rs. 8585.04 Crores for spectrum in 13 circles
Has won spectrum in Delhi, Mumbai, Kolkata, Punjab, Rajasthan, Madhya Pradesh, WestBengal, Himachal Pradesh, Bihar, Orissa, Assam, North East, Jammu & Kashmir
Is one ofthe three operators to get both Delhi and Mumbai, both its most expensiveacquisitions.
Has won 3G in all circles where it has 900 MHz spectrum
Is the only operator to win spectrum in 6 circles in the 1969-1974 Mhz band: in Delhi,Kolkata, Himachal, Orissa, North East and Jammu & Kashmir
Has won allCategory C circles forless than Rs 500 crores
Claims to be the only operatorthat has pan India 3G capability in CDMA and among thetop 3 with highest coverage in WCDMA
Says it will have minimum 3G networkCAPEX investment, and is 3G ReadyRCOM plans to strongly leverage its media, gaming, cinema and broadcasting businesses
for 3G
4. Aircel Has won spectrum in 13 circles forRs. 6499.46 crores, the least cost per circle
Does not have spectrum in the expensive but high ARPU Delhi and Mumbai circles
Its most expensive circles are: Karnataka (Rs. 1579.91 crores) and Rs. 1464.94 crores,followed by Andhra Pradesh atRs. 1373.14 crores
It has spectrum in Andhra Pradesh, Karnataka, Tamil Nadu, Kolkata, Kerala, Punjab, UttarPradesh (East), West Bengal, Bihar, Orissa, Assam, North East and Jammu & Kashmir
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Has spectrum in 7 circles in the 1974-1979 Mhz band: Andhra Pradesh, Tamil Nadu,Kerala, Punjab, West Bengal, Bihar, and Assam. This is the most circles any telecomoperator has in a single band.
Has spectrum in the 1964-1969 Mhz band in Jammu & Kashmir
5. Idea Cellular Has won spectrum in 11 circles forRs. 5768.59 crores, though it did not win in Delhi andMumbai
Won spectrum in 11 circles: in Maharashtra, Gujarat, Andhra Pradesh, Kerala, Punjab,Haryana, Uttar Pradesh (E), Uttar Pradesh (W), Madhya Pradesh, Himachal Pradesh, andJammu & Kashmir
Has won 5 circles in the 1969-1964Mhz band: Kerala, Punjab, Haryana, Madhya Pradeshand Jammu & Kashmir
Has won 5 circles in the 1969-1974 Mhz band: Maharashtra, Andhra Pradesh, Uttar
Pradesh (East), Uttar Pradesh (West) and Himachal Pradesh.
Gujaratis the lone circle where Idea Cellular has spectrum in the 1974-1979 MHz band
6. Vodafone Has spectrum in 9 circles for Rs. 11617.86 million, and has spent the second highestamountin these auctions
Opted out of most Category C circles, and got Delhi and Mumbai Has spectrum in Delhi, Mumbai, Maharashtra, Gujarat, Tamil Nadu, Kolkata, Haryana,
West Bengal and Uttar Pradesh (East)
Doesnt have either Karnataka or Andhra Pradesh, so Vodafone Bangalore and Hyderabadcustomers will have to lookto othertelecom operators.
7. Tata TeleservicesWill pay 5864.29 crores for spectrum in 9 circles
Doesnt have spectrum in Delhi or Mumbai, so Tata Docomo customers will lose out
Has spectrum in Maharashtra, Gujarat, Karnataka, Kerala, Punjab, Haryana, Uttar Pradesh(West), Rajasthan and Madhya Pradesh
Spectrum is equitably distributed within bands three circles each for 1959-1964 Mhz,1969-1974 Mhz and 1974-1979 Mhz band
8. S-Tel S-Tel won spectrum in 3 Circles forRs. 337.67 crores
It has spectrum in Himachal Pradesh, Bihar and Orissa
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Surprisingly, S Tel did not try to get 3G spectrum in circles where it doesnt have licensefor 2G services. It has license to offer 2G services in Assam, Bihar, Himachal Pradesh,Jammu & Kashmir, North East, Orissa.
9. MTNLThough it did not participate in the 3G Auction, MTNL will have to pay Rs. 6564 crores forspectrum in the two cities of Delhi and Mumbai. It is currently grappling with losses (Rs.1573.76 crores in Q4-2010), and a fairly low subscriber base of 3G customers only 348,000as of 31stMarch 2010, despite having launched services a year ago.
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III. Who are the lead telecom operators in the country? What is their market share?What are their strengths to meet the competition? How do you see the
competition/consolidation of the industry? Are there any barriers in e it?
India is one of the biggest telecom markets in the world with 581.81 million users, whichaccording to the Industry is e pected to reach 1000 million by end of 2012. The total tele-density was recorded at 49.5 per cent. Thetelecom sector is one of the highest F I attractingsectors in India, and has recorded FDI inflows worth over US$ 8.8 bn between 2000 and2010. Major factors for the growth in the industry are low tariffs, low cost of handsets, liberalgovernment regulations, and increase in disposable income and change in consumer
behaviour.
In the future, penetration of telecom service will be done in rural area which in the currentsituation is a highly untapped market. In the future i.e. by 2012, rural telecom service
penetration is e pected to increase to 40 per cent compared to 16.61 per cent as of now.
Current revenue of Indian Telecom Industry is $ 30 bn and is projected to reach US$ 45bn by the end of 2012.
In the present situation the key players in the Indian Telecom market are:
y Bharat Sanchar Nigam Limited (BSNL)y Bharti Airtel Limitedy Reliance Communicationsy Vodafone Essary Idea Cellulary Aircel, andy Tata Teleservices.
Share of wireless service providers as on January 31, 2010 (in per cent)
The strengths of leading operators to meet the competition and consolidation of the
industry:
Below are the strengths of leading operators to meet the competition
11.29
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MARKET SHARE
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Airtely VERY FOCUSED O N TELECOM Bharti Airtel is largely focused on the
telecom, around 93 per cent ofthe total revenue comes from telecom
y LEADERSHIP IN FAST GROWING CELLULAR SEGMENT: Airtel isholding leadershi p position in cellular market. Airtel is present in all fivesegments oftelecom industry.
y PAN INDIA FOOTPRINT: Airtel offerthe most expansive roaming network.Letting you roam anywhere in India with its Pan-India presence, and trotacross the globe with InternationalRoaming spread in over 240 networks.
y HIGH CSR (Corporate Social Responsibility): Airtel is one of the highestspenders in CSR. Airtel regularly does something or the other for benefit ofcommon people. For Ex :Marathon, Airtelicreate and many more.
y THE ONLY OPERATOR IN INDIA OTHER THAN VSNL HAVINGINTERNATIONAL SUBMARINE CABLES: Airtel, the monopoly breakershattered the telecom monopoly in internationalLong Distance Space with thelaunch of International Submarine cable Network i2ijointly with SingaporeTelecommunications Ltd. In the year 2002. This has brought a Hugh value to
the IPLC customers, giving them an option besides an incumbent carrier, toconnectto the outside world.
y HIGH WORD TO MOUTH MARKETING: Today, Airtel has the biggest base of subscri bers and Airtel provides a quality service with highconnectivity and low cost. So, when a new person wants to take theconnection the first choice comes in his/her mind is Airtel because of thevisible users.
RELIANCE COMMUNICATIONy As Reliance entered the market when things were not so stringent so the
cost of entry was low as compared to other players.
y Fast Activation Processy Excellent networky High presence in rural area.y Excellent connectivityy First operatorto provide CDMA technology to Indian consumers.y As Reliance is present in other sectors and is doing well, so it becomes
easy forit create the brand value.
BSNLy As it is government owned operator, it gets first priority in allocation of
any new technology and doesnt have to go through rigid processes ofthegovernment.
y High penetration in rural areas.y Competitive pricing policyy Provides continuous training, career advancement opportunities and a self-motivated work environmentto its employees.y Has a corporate culture of mutual respect and is an excellent service
provider.
y Because of its long term presence has a highest share in Wireline marketand is able to leverage on it for wireless service.
VODAFONEy As Vodafone is MNC, so has the better work culture as compared to
Indian companies because itis able to pull besttalent present.
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y Spends huge amount on advertising.y Low on costy Provides best value added servicesy Diversified geographical portfolio with strong mobile telecommunications
operations in Europe, the Middle East, Africa, Asia Pacific and to someextentthe US.
y Strong presence in cities.y Excellent network Infrastructure.y Worlds biggest mobile phone operator by revenue.
IDEA CELLULARy Presence in telecom infrastructure so the cost of spreading the network is
low compared to other players.
y Attractive existing footprinty Originallicence in seven ofthe Established circles, providing incumbency
advantages.
y Market leader in two of the circles i.e. Maharashtra and Uttar Pradeshestablished positions in remainder ofthe Established circles.
y Strong distribution channely A national brandy High quality network structure.
Competition/Consolidation of the Telecom Industry
y The government extends full supportto industry through reform processes.y Policies are in place to safeguard the interest of service providers as well as those of
consumers.
y Intensive competition in the country has made it possible for service providers to offerservices with lowest fare in the world, profitably.
y Many new handsets have been launched.y Presence of skilled labour pool.y Rapidly developing robusttelecom infrastructure.y Increasing disposable income of consumers.y Increasing demand due to changing lifestyles and growing attraction for mobiles with
new features.
y Various value added service providers and content developers are presentin India.y Low tele-density offers huge future potential.y Growing affordability and lifetime schemes have created a market atthe bottom ofthe
pyramid.
y Spectrum Sharing by service providers as nobody has a pan Indian presence.y Acquisitions are low probability as spectrum allocated to company acquired, willrevert backto governmentLooking at the above mentioned points it is clearly visible that India is best to investmarket and in the future it is possible that some more mobile phone operators will enterthe market and the competition will go to its extreme level, but still the market will be
profitable.
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8/8/2019 Indian Telecom Sector Insights
19/19