A STUDY ON THE TELECOMMUNICATION INDUSTRY
RESEARCH METHOD
A STUDY ON THE TELECOMMUNICATION INDUSTRY
OF INDIA
GROUP 6ANUBHAV BANSAL
ANKIT JAIN
SAMREEN SABA
SHWETA CHANRA
VINAY BAHETI
CONTENTS
Executive summary
Introduction
Factors Facilitating Growth of the Sector
Features of Telecom Industry
Current Market Scenario
Industry structure
PEST analysis
Conduct and practices
Porters five force model
Conclusion & Future of the Telecom Industry in India
EXECUTIVE SUMMARY
Indian telecom industry is a 165 years old industry which has acquired its present form by going through a series of development and evolution. It is the second largest telecom industry in the world with 300 million subscribers. The quarterly growth rate in this sector is 7.68%. FDI allowed in the network service provider segment is 74% and in the telecom equipment manufacturing segment is 100%. The major players in this sector are Bharti Airtel with market share of 25.4%, Reliance communications with a share of 14.99%,Vodafone Essar with a share of 19.31% and BSNL with a share of 22.99%. Various political, social, economic and technological conditions prevailing in Indian telecom industry presents a good picture for growth.
Market is highly concentrated, distribution occurs through levels and pricing is customer oriented. Airtel leads in imports of tower equipments and other equipments whereas Idea leads in export of services. BSNL and Airtel have managed to keep good leverage an working capital ratio. This industry does not suffer from threat of new entrant but is plagued by the huge bargaining power of buyers. Its clear most of the expansion in subscribers is set to occur in rural India & India’s rural telephone density has been languishing at around 8-10%. So, if 70% of total population is rural, the scope for growth in this Industry is unprecedented
Introduction - Evolution
Indian telecom sector is more than 165 years old. Telecommunications was first introduced in
A STUDY ON THE TELECOMMUNICATION INDUSTRY
OF INDIA
GROUP 6ANUBHAV BANSAL
ANKIT JAIN
SAMREEN SABA
SHWETA CHANRA
VINAY BAHETI
CONTENTS
Executive summary
Introduction
Factors Facilitating Growth of the Sector
Features of Telecom Industry
Current Market Scenario
Industry structure
PEST analysis
Conduct and practices
Porters five force model
Conclusion & Future of the Telecom Industry in India
EXECUTIVE SUMMARY
Indian telecom industry is a 165 years old industry which has acquired its present form by going through a series of development and evolution. It is the second largest telecom industry in the world with 300 million subscribers. The quarterly growth rate in this sector is 7.68%. FDI allowed in the network service provider segment is 74% and in the telecom equipment manufacturing segment is 100%. The major players in this sector are Bharti Airtel with market share of 25.4%, Reliance communications with a share of 14.99%,Vodafone Essar with a share of 19.31% and BSNL with a share of 22.99%. Various political, social, economic and technological conditions prevailing in Indian telecom industry presents a good picture for growth.
Market is highly concentrated, distribution occurs through levels and pricing is customer oriented. Airtel leads in imports of tower equipments and other equipments whereas Idea leads in export of services. BSNL and Airtel have managed to keep good leverage an working capital ratio. This industry does not suffer from threat of new entrant but is plagued by the huge bargaining power of buyers. Its clear most of the expansion in subscribers is set to occur in rural India & India’s rural telephone density has been languishing at around 8-10%. So, if 70% of total population is rural, the scope for growth in this Industry is unprecedented
Introduction - Evolution
Indian telecom sector is more than 165 years old. Telecommunications was first introduced in