Premium Essay

The Telecom Industry in India

In: Business and Management

Submitted By pratiktirodkar
Words 461
Pages 2
Telecom Industry in India
Telecom is one of the fastest-growing industries in India. Today India stands as the second-largest telecommunications market in the world. The mobile phone industry in India would contribute US$ 400 billion in terms of gross domestic product (GDP) of the country in 2014. This sector which is growing exponentially is expected to generate about 4.1 million additional jobs by 2020, as per Groupe Speciale Mobile Association (GSMA).

In the period April 2000 to January 2014, the telecom industry has got in foreign direct investments (FDI) of about US$ 59,796 million, which is an increase of 6 per cent to the total FDI inflows in terms of US$, as per report published by Department of Industrial Policy and Promotion (DIPP).

India’s global system for mobile (GSM) operators had 4.14 million rural subscribers as of January 2014, bringing the total to 285.35 million.
Data traffic powered by third generation (3G) services grew at 146 per cent in India during 2013, higher than the global average that saw usage double, according to an MBit Index study by Nokia Siemens Networks (NSN).

India's smartphone market grew by 171 per cent in 2013, to 44 million devices from 16.2 million in 2012, as per research firm IDC India. The increasing popularity of bring-your-own-device (BYOD) in the workplace is further adding momentum to the smartphone market.
Indian telecom industry has grown from a tele-density of 3.58% in March 2001 to 74% in June 2013. This great leap in both number of consumers as well as revenues from telecom services has not only provided sufficient contribution in Indian GDP growth but also provided much needed employment to India youth.

I have chosen the Telecom Industry as it is one of the fastest growing industry proved by the above numbers. Also the scope for growth in the telecom industry is huge as more and more brands are...

Similar Documents

Free Essay

Telecom Industry in India

...STUDY FOR ITC ENTERING INTO TELECOM SECTOR ITC: ITC has a diversified presence in FMCG, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, and Information Technology. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and AgriExports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. TELECOM SECTOR INTRODUCTION: The Indian telecom industry is the fastest growing industry with an addition of 9- 10 million monthly subscribers. The Indian telecommunications network with over 995.9 Million subscribers is second largest network in the world after China. Major players in this sector are BSNL, MTNL, Airtel, Vodafone, BPL, Tata, Idea, etc. Buyer power and threat of rivalry is very high in Indian Telecom Sector. Telecom Industry Sectors From holistic point of view telecom industry can be divided to four sub-sets. The major forces in Indian telecom industry are Service providers. All major telecom equipment suppliers have their R&D centres in India. In last 5 years, global giants in mobile devices have set up their manufacturing facitilities in India EXISTING RIVALRY IN INDIAN TELECOM INDUSTRY There are three types of players in telecom services: • • • State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Infocomm, Tata Teleservices, Shyam ( Southern India) Foreign invested......

Words: 2104 - Pages: 9

Free Essay

Indian Telecommunication Sector INDIAN TELECOMMUNICATION SECTOR I Introduction Indian telecom industry is growing at a great pace & India is expected to become a manufacturing hub for telecom equipment. Indian telecom equipment manufacturing sector is set to become one of the largest sectors globally by 2010. Due to rising demand for a wide range of telecom equipment, particularly in the area of mobile telecommunications, has provided excellent opportunities to domestic and foreign investors in the manufacturing sector. II Opportunitie s The Indian telecom market is expected to grow three fold by 2012 & market size over US $ 8 billion. Moreover the government has set a target of 20 million broadband connections by 2010. The National Telecom Policy 1999 targets tele-density at 15 per cent by 2010. This will entail an investment of US $ 40- 50 billion over the next 6-8 years. There is an immense opportunity for DTH in the Indian market which is almost 10 times compared to the developed countries like the US and Europe. For every channel there is a scope for broadcasting it in at least ten different languages. So every channel multiplied by ten that is the kind of scope for DTH in the country. India’s media players have all the ingredients to develop a successful DTH industry. So currently there is a lot of pent-up demand in the Indian market for DTH. It is expected that by the year 2010 there will be over 500 million subscribers in the Indian telecom market. Cellular subscriber base is projected to......

Words: 1060 - Pages: 5

Free Essay

Top Players in Indian Telecom Sector

...TOP PLAYERS IN THE TELECOM INDUSTRY There’s definite excitement in the telecom industry with a few ruling the industry. Globally China Mobile is regarded as one of the biggest players in the telecom industry with a market value of over $213.8 billion. It is also the only telecom operator to have provided operations at Mount Everest. Not so far behind is America’s very own At&t which has a market value of over $200.1 billion dollars. Besides At&t, other telecom sectors fighting for ranks include Verizon established in 1983, Vodafone, also considered as among the top 3 companies listed in the London Stock Exchange, America Movil (based in Mexico), Telefonica, Telstra, NTT group, Deutshe Telekom and finally Softbank which is a Japanese Network. In India, the telecom sector operates a little differently. None of the Indian operators make it to the list of the top 10 telecom companies even in market share, despite operating in the second most populous country in the world. However, Vodafone that operates in India makes it to the list at number four. The following are the Key players in the telecom sector in India: AIRTEL | VODAFONE | RELIANCE COMMUNICATIONS | IDEA CELLULAR | TATA TELESERVICES | AIRCEL | UNINOR | MTS | MTNL | LOOP MOBILEFormerly BPL | Airtel Bharti Airtel or simply Airtel is India’s largest telecom company, headquartered in New Delhi, India. In the year 1986, Sunil Mittal incorportated Bharthi Telecom Limited and his......

Words: 1089 - Pages: 5

Free Essay

Term Paper

...Porter’s five forces analysis for the industry and also cover industry trends and driving forces Indian telecom industry ranked second in the world, is one of the rapidly growing and expanding industry with 1035.18 million subscribers. The growth in subscribers is dominated by the increase in number of subscribers in wireless mobile segment with a quarter growth rate in the tune of 1.66%(including wireless and wire line). The liberal and reformist policies of the Government of India have been instrumental along with strong consumer demand in the rapid growth in the Indian telecom sector. The government has enabled easy market access to telecom equipment and a fair and proactive regulatory framework that has ensured availability of telecom services to consumer at affordable prices. The deregulation of foreign direct investment (FDI) norms has made the sector one of the fastest growing and a top five employment opportunity generator in the country. Trends observed in Telecom Industry LTE to become mainstream in India; Indian subscripbers will adopt to 4G considering the affordability of prices and need for high speed data. This is even complemented by the growth in smart phone purchases | Public Wifi gaining traction in metropolitan cities as a part of Digital India | Smart Phone becoming integrated part of life, thus increase in the usage of data over voice | Intense competition foreseen in the telecom industry due to delayed M&A activities | Ease in......

Words: 790 - Pages: 4

Premium Essay

Telecommunication Industry Characteristics

...Characteristics of the Industry: Telecommunications started in the nineteenth century with the telegraph, and developed through the telephone and radio to TV to satellites and the Internet etc. The data transmitted has advanced from signals through voice to pictures and data and, with the development of convergence, to combinations of these. Every year, new technologies increase the services available and the speed of delivery. A combination of factors is resulting in the ever-decreasing cost of these services. The Communication Companies in India are on the ever rising trend and there has been a stupendous growth in this sector over the last decade. The telecommunication industry in India is one of the rapidly growing industries in the world and has also developed the second largest communication network. Major players in Indian telecom industry are Tata Communications, Airtel, Reliance, Vodafone, BSNL, Tata tele services etc. The Telecom Regulatory Authority of India (TRAI) is the independent regulator of the telecommunications business in India. TRAI was established on...

Words: 1431 - Pages: 6

Premium Essay


...Tata Teleservices Integrates all its services under Tata Docomo :  Tata Teleservices Integrates all its services under Tata Docomo Presented By: Sanyog Chaturvedi 1 Contents:  Contents Umbrella Branding Tata Teleservices Tata Docomo Indian Telecom Industry SWOT Analysis Effect Of the Merger 2 Umbrella Branding:  Umbrella Branding An umbrella brand is an overarching brand used across multiple related products. Umbrella branding is also known as family branding. It contrasts with individual product branding, in which each product in a portfolio is given a unique brand name and identity. There are often economies of scope associated with umbrella branding since multiple products can be efficiently promoted with a single advertisement or campaign. 3 Cont……….:  Cont………. Umbrella branding facilitates new product introductions by providing a familiar brand name, which can lead to trial purchase, product acceptance, or other advantages. Umbrella branding imposes on the brand owner a greater burden to maintain consistent quality. A good example is AMUL - Amul Butter, Amul Cheese, Amul Milk, Amul Icecream , Amul Chocolates etc 4 Benefits:  Benefits Brand image of parent brand acts as a differentiating factor for product in extremely competitive market. Extra cost of Brand creation is not required. Umbrella branding help to create dependent perception about product as parent Brand. Umbrella branding helps to give positioning to product. Advertising and promotional......

Words: 1496 - Pages: 6

Premium Essay


...MERGER & ACQUSITION IN TELECOM SECTOR OF INDIA Ashish Agnihotri Bhaven Chheda Dipesh Jain Harsh Chauhan Tejashree Bole Zececa Mehta Sector Overview Indian Telecom Industry ‡ Total telecom subscribers 325.79 million (June 2009) ‡ Tele density 28.33 per cent (June 2008) ‡ Quarterly addition of mobile subscribers (April June 2008) 25.80 million ‡ Telecom subscribers annual growth rate (2007 08) 44.79% ‡ One of the biggest telecom markets in the world ‡ Average Revenue Per User (ARPU) for GSM (June2008) US$ 5.6 Indian Telecom Industry ‡ More GSM subscribers than fixed line subscribers ‡ Telecom equipment market (2007 08) US$ 23,699 million ‡ Handset market (2007 08) US$ 5,962 million ‡ Expected mobile subscriber base (2010) About 500 million (i.e., more than one phone for every household) ‡ It witnessed a CAGR of approximately 29% from 2002 03 to 2007 08. ‡ The CAGR is expected to stabilise at 16% between 2007 08 and 2009 10. India An Ideal Investment Destination ‡ The large untapped potential in India s rural markets revealed by 9.21 per cent tele density in rural markets as compared to the national level of 28%. ‡ The government promoting telecom manufacturing by providing tax sops and establishing telecom-specific Special Economic Zones. Major Players Vodafone-Hutch Deal ‡ In Feburary 2007, Vodafone has bagged the 67% Hutch Telecom International (HTIL) stake in Hutch-Essar at an enterprise value of $19.3 billion Income Tax (I-T) department......

Words: 887 - Pages: 4

Free Essay

Leverage Case

...if they did not would- shareholders would withdraw. In both the cases, it would affect the company’s survival. INDIAN COMMUNICATIONS LTD. Indian Communications Ltd was a telecommunication company headquartered in Mumbai, India. It was a leading player in next generation, integrated (wireless and wire line), and digital network, covering over 20,000 cities and towns and over 2, 00,000 villages . It had business operations in more than 20 countries. With US $ 10bn revenues in FY 14 it had been a great last year. It was India's truly integrated telecommunication service provider. The company had a Customer base of around 100 million including over 2 million individual overseas retail customers and corporate clientage over 30,000 Indian and multinational corporations. . Two friends started it in 1997 with just US$ 1000. From the beginning, the company had followed a conservative financing policy. For them loan was a synonym of headache. That’s why; despite advised by their financial controller never borrowed long-term loan for business operations though they had to lose out various business opportunities at times. The global telecom market landscape had changed remarkably in the last few years. “The Indian telecommunication industry captured a sizeable chunk of the global...

Words: 1709 - Pages: 7

Premium Essay


...India's teledensity has improved from under 4% in March 2001 to around 53% by the end of March 2010. Cellular telephony has emerged as the fastest growing segment in the Indian telecom industry. The mobile subscriber base (GSM and CDMA combined) has grown from under 2 m at the end of FY00 to touch 584 m at the end of March 2010 (average annual growth of nearly 76% during this ten year period). Tariff reduction and decline in handset costs has helped the segment to gain in scale. The cellular segment is playing an important role in the industry by making itself available in the rural and semi urban areas where teledensity is the lowest. The fixed line segment has actually seen a decline in the subscriber base. It has declined to 36.96 m subscribers in March 2010 from 37.96 m in March 2009. The decline was mainly due to substitution of landlines with mobile phones. As far as broadband connections (>=256 kbps) are concerned, India currently has a subscriber base of 8.8 m. It has grown at an average annual growth rate of 40% since 2008. The auction for broadband wireless license and spectrum has concluded recently. The government is expected to allocate spectrum before the end of this year. This will further boost the broadband penetration in the country. Key Points Supply Intense competition has resulted in prompt service to the subscribers. Demand Given the low tariff environment and relatively low rural and semi urban penetration levels, demand will continue...

Words: 979 - Pages: 4

Premium Essay

Brand Switching in Telecommunication Sector

...span of coverage is called a cell. Generally, cellular telephone service is available in urban areas and along major highways. As the cellular telephone user moves from one cell or area of coverage to another, the telephone is effectively passed on to the local cell transmitter. A cellular telephone is not to be confused with a cordless telephone (which is simply a phone with a very short wireless connection to a local phone outlet). A newer service similar to cellular is personal communications services (PCS). The Global Cellular Mobile Industry: The global mobile phone industry is based on many different manufacturers and operators. The industry is based on advanced technology and many of the manufacturers are operating in different industries, where they use their technological skills, distribution network, market knowledge and brand name. Four large manufacturers of mobile phones are today dominating the global mobile phone industry; Nokia, Sony Ericson, Samsung and Motorola. In addition...

Words: 880 - Pages: 4

Free Essay


...has a background in executive and business management for technology companies. Lastly, Nestor Nocetti is the VP of Corporate Services, with experience in the IT industry. The four engineers saw an opportunity to start their company with the rapid growth of the IT outsourcing industry in India and China. They recognized that Latin America’s advantages in labor quality, labor supply and time zone would give them a leg up on their competition, even though both India and China have lower labor cost. By exploiting these advantages, they were able to grow at a rapid pace. By 2009, Globant had over 1500 employees and was generating three million dollars per month in revenue. Despite their success, Globant found themselves at a crossroads. For four years the founders pursued clients that needed IT expertise in anything under the broad spectrum of IT services. However, the management team recognized that Globant needed to target specific industries to remain competitive in the market. The team therefore, narrowed their scope to four very distinct market segments for further analysis: high-tech, telecom, travel and financial services industries. Globant recognized that their diversified client portfolio was spreading resources too thin, and top clients began choosing IT service partners that focused on a specific industry where they could demonstrate a deep and wide understanding of a particular sector of the market. In order to avoid becoming a marginalized player in the...

Words: 1502 - Pages: 7

Free Essay

Tcl Case to the country, it has good and modern infrastructure. (Since TCL’s infrastructure had been built in the 21st century, it could offer customers latest technologies (no legacy systems) * GDP growth 4% vs 5.5 % Telecom industry * Gravity model 2011 US billion (GDP) | Distance (kms) | India : 1887 | India/Russia : 4986 ; India/Bra:14775; India/Indone : 4485 | Russia: 1857 | T(IR)= 702.7996 | Brazil : 2474 | T (IB) = 315.9687 | Indonesia : 846 | T (II)=355.9424 | | | No because * Biggest territorial extension. Negative fact because of Telecom reachability. TLC lacks deep-in country infrastructure, making the company less competitive for networks requiring many sites in each country. Because of Russia’s extension and current infrastructure, TLC needs to consider additional investment CAPEX to target untapped international connectivity market through fiber network. * Russia next to last GDP growth. 4% VS 7.8% highest (India). Maybe India’s business model will not necessary apply to Russia. India has far more population than Rusia. * Important to ID the key drivers in profits and costs in the telecom industry. In the TCL success we can deduce that big enterprise concentration in urban cities is important, India had this and TCL business model worked well....

Words: 928 - Pages: 4

Premium Essay

Reliance Communication

...ABSTRACT Reliance Infocomm offers a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications that will enhance productivity of enterprises and individuals. Reliance IndiaMobile, the first of Infocomm's initiatives was launched on December 28, 2002, the 70th birthday of the Reliance group founder, Shri. Dhirubhai H. Ambani. This marks the beginning of Reliance's dream of ushering in a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India. It aims to achieve this by putting the power of information and communication in the hands of the people of India at affordable costs. RIC is currently offering its wireless services in 1,100 towns and cities across India. In January 2004, Reliance Infocomm (RIC) acquired 100 per cent of the undersea cable company, FLAG Telecom for US$ 211 million through Reliance Gateway Net Limited, a wholly owned subsidiary of RIC. Reliance WebWorld : Reliance's strategy of vertical integration Reliance WebWorld is the retail interface initiative of the Infocomm juggernaut and a part of Reliance's strategy of vertical integration. 4 INDEX RELIANCE GROUP VISION MISSION FACTS RELIANCE INFOCOMM PLANS AND IMPLEMENTATION STRATEGY TO PROMOTE INFOCOMM VALUE CHAIN TECHNOLOGY ENTRY STRATEGIES MARKETING......

Words: 1305 - Pages: 6

Premium Essay

Consumer Behaviour Report on Buying Behaviour of Consumers for Telecom Service Provider

...INDEX Executive summary Introduction: Indian Telecom sector-At a glance Evolution of the Indian telecom industry Cellular Circles Major Players in Indian Telecom Market National Telecom Policy-2012 Scope of the Project RESEARCH DESIGN Objectives Sample Profile Sources of Data EXECUTIVE SUMMARY The concept of “buying behavior” is of prime importance in marketing and has evolved over the years. It is important to understand consumer buying behavior as it plays a vital role in creating an impact on purchase of products. The human wants are unlimited and always expect more and more. Mobile connections are no exception to this behavior. The title of our study is “Purchase Drivers for Cellular Connections”, and it is the buying behavior of the consumers that determines a factor’s possibility to be a purchase driver. In this research study our findings gave us a thorough insight of the factors that affect the consumer buying decision towards cellular connections. Factors such as better connectivity, attractive tariff and low entry cost play an important role in influencing a customer for choosing a network INTRODUCTION INDIAN TELECOM SCENARIO - AT A GLANCE The telecommunication services have been recognized as an important tool for socio economic development of a nation. It is one of the prime support services needed for rapid growt and modernization of various sectors of the economy. India with a user base of 919.2 million as of......

Words: 1255 - Pages: 6

Free Essay

Telecmom Company Aiswarya

...INTRODUCTION Incorporation and Initial Progress The Company was incorporated as Aishwarya Telecom Private Limited on June 2, 1995 with the Registrar of Companies, Andhra Pradesh, Hyderabad and took over the business of the partnership firm named ‘Advanced Electronics & Communications System’. Aishwarya Telecom Limited (ATL) was promoted by Mr G Rama Manohar Reddy. Mr G Rama Manohar Reddy and Mrs G Amulya Reddy were the partners of the then partnership firm named ‘Advanced Electronics & Communications System’. ATL was formed by taking over the business of the said partnership firm and was incorporated as Aishwarya Telecom Private Limited on June 2, 1995 with the Registrar of Companies, Andhra Pradesh, Hyderabad. Subsequently, it was converted into a Public Limited Company on July 12, 2005 and the name of the Company was changed to Aishwarya Telecom Limited and a fresh Certificate of Incorporation obtained from the Registrar of Companies, Andhra Pradesh, Hyderabad. The Registered Office of the company is located at 3-C Samrat Commercial Complex, Saifabad, Hyderabad, Andhra Pradesh. ATL is based at Hyderabad with production at Yanam in Pondicherry state and Dehradun in Uttrakhand State, with branches in New Delhi and Mumbai. STAGES OF THE OLC The five stages of OLC illustrate changes in organizational structure and managerial processes as the business proceeds through developmental stages. Each stage is discussed, with specific emphasis on the product......

Words: 1515 - Pages: 7