Indian Telecom Industry
Truly Unmatched Growth Story
Indian Telecom Sector has come a long way since the days, when one had to wait for upto ten years for getting a new landline connection. The growth story that has unfolded in the past ten years has provided common man with the opportunity to access this highly needed facility. Indian Telecom Companies have written numerous success stories in their journey to make the dream of affordable and effective communication facility for Indian very much possible!
In 1991, India had just five million telephone subscribers. As at the end of October 2008, there were 363.95 million subscribers.Teledensity too which was below one telephone per 100 population has now risen sharply to above 30.
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CDMA:
From the time mobile phones were introduced in the country in 1997, until the end of 2002, the market was dominated by just one technology, namely, GSM. In December 2002, Reliance Communications (then known as Reliance Infocomm) launched CDMA services across 17 circles on a countrywide basis. CDMA has since been growing faster than GSM; although on a lower base.
Most Indian consumers are unaware of the nitty-gritty of the two technologies. So the deciding factor between the two technologies is often based on price and other conditions of offer such as the coverage of the service, ease of obtaining a new connection and whether a handset is available at a reduced price as part of the deal.
Given this sort of a possibility of perfect substitution between the two types of technologies, the existence of the two standards has made both the markets for GSM and CDMA services very competitive. This is especially so when the market for CDMA services is highly concentrated with just two service providers accounting for almost the entire output.
Current Scenario in Telecom Industry
Declining ARPU:
After the Government allowed Companies in private sector to offer telecom services in India, followed by the entry of mobile service providers, competing intensely with each other to grab larger pie of the market, telecom consumers were benefited with periodically decrease in the
The future of the telecommunication industry is an exciting future. No longer can these companies depend on telephone service plans to maintain profit. Each company needs to find other avenues, packages and services that can be sold to existing customers while attracting new customers. The companies
India is one country which is developing rapidly at the moment along with China (Lal and Clement, 2005). The political, economic, social, cultural, technological and legal climate in India is extremely suitable for international entrepreneurs since business prospects in a country are heavily dependent on the above mentioned parameters. Since India is the second most heavily populated country in the world, British telecommunication company, Vodafone has enormous business opportunities in India. Mobile phone usage in India is increasing rapidly in recent times (Press Information Bureau: Government of India, 2010). A substantial portion of Indian
The telecommunication act bought about a drastic change, ILEC- provided wireline subscriptions started to decline whereas cable-telephone, VoIP and wireless subscriptions started to increase. According to the statistics, more than 40 % of the consumers started to consider mobile as their primary means of communication.
The telecommunication industry that AT&T essentially created has undergone radical advancements, particularly within the last decade. According to the IBM Institute for Business Value, approximately 15% of the world’s population had access to a telephone in 1999 but by 2009, 70% of the world’s population had mobile phone subscriptions (Nelson & van den Dam, 2010). Given the extraordinary explosion of mobile computing and wireless communications, continued advancements within the global telecommunication industry are certain. A number of trends drive this evolution including the advancement of devices and network access technology, changes
From the time of its invention to 1880, there were 50000 subscribers of the telephone. However, it took nearly a hundred years for the system to improve dramatically. The operators were eliminated because the users could now make their own connection without calling the operators first. By the 1960’s - U.S. Telephones total 80,969,000; world's total reaches 159,200,000; telephone companies were forming everywhere and by 1964, some 2,535 companies were in existence. The more the telephones improve, the more the people wanted more from it. In the twentieth century, the telephone is the main medium to reach just about anyone. It is also the favored medium of communication in the business world. Nowadays, the telephone system can be configured to suit a business' needs. At my job for example, the telephone has multiple functions. One is the paging system to reach someone; it can be used to make conference calls to multiple companies at the same time. With the invention of cellular phones, one can be reached anywhere in the world and be connected to the internet; as long as you have a signal of course.
The business case presented focuses on insatiable demand amongst a growing population for a service built on dilapidated, poorly maintained infrastructure, against a backdrop of government deregulation in the telecoms sector. As of 1992, there were a mere 78k telephone lines for the 27m people living in 4.7m households (a population set to double over the coming 24 years), with users suffering success rates of just 25%. Demand was forecast to grow to 500k subscribers by 1996. The recent deregulation of the telecoms sector (via the break-up of TPTC into TPC and TTCL) and the formation of a regulator (TCC) had
The British telephone industry changes fast according to the way telephone services are offered. In our days, were cross selling is in growth and it is a commodity the companies to be involved in various activities, in order to secure their profitability, it is expected that even more companies will try to enter the market by offering alternative services, coming especially from the sector of new technology.
A projected investment gap in telecommunications may leave these challenges unresolved. An estimated US$35.4 billion will be invested in the country until 2040; however, actual investment needs are forecasted at US$ 43.6 million during the same period, which determines a gap of US$ 8.2 billion. Deploying newer technology and modern infrastructure to rural/remote areas requires substantial investments that private-sector players are unwilling to undertake given the unfavorable trade-off between risk and return. Declining mobile average revenue per user (ARPU), which denotes the depth of the telecom market, is expected to continue and exacerbate sluggish growth in the increasingly saturated mobile phone segment. Along with the weakening of traditional operator business models due to IP substitution, these trends are likely to limit the impact of both subscription and revenue growth opportunities for ICT players, and widen the country’s digital gap.
3G in developing markets with 95% populace scope in focused on urban regions in India
In India, the company's product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed DSL
Homogenous nature of the Telecom Industry-All the products are same and companies dealing cannot offer anything out of the scope so it becomes all the more powerful feature for them. Further to elaborate there are few oligopolies like leather which although have differentiated or heterogeneous products but the base product which is leather is same for all only the product line could vary.
This is an analysis of the Political, Economic, Social and Technological environment surrounding the Indian Telecommunication Industry.
usage in India in recent years; however, much of this increase has been due less
The Indian telecommunications Network with 250m telephone connections is the fifth largest in the world and is the second largest among the emerging economies of Asia. Today it is the fastest growing market in the world and represents unique opportunities for UK companies in the stagnant global scenario.
At present the Sri Lankan mobile telecommunication industry comprises of 5 companies i.e. Dialog, Etisalat, Mobitel, Airtel and Hutch. The competition between the local mobile operators has intensified over the last two years. The mobile market in Sri Lanka has been functioning with a healthy annual growth rate for some years. However, Sri Lanka’s mobile penetration is low when compared to other developed countries in Asia. But it can be seen that Sri Lanka posses some of the most sophisticated technology which are at par with many developed countries of the world. Many new players have entered the industry and have found their own niches in the telecom sector. The competition between these companies has been growing stiff. The end of the war has also provided plenty of new opportunities for the mobile