Snapshot of Telecom

Industry

Presented by:-

Aayushi Garg (109102)

Abhimanyu Singh(109103)
 Current Scenario
• Telephony Subscribers (Wireless and Landline):
621.28 million
• Land Lines: 36.96 million
• Cell phones: 617.53 million
• Yearly Cell phone Addition: 178.25 million
• Monthly Cell phone Addition: 20.31 million
• Teledensity: 52.74%
• Projected Teledensity: 1 billion, 84% of population
by 2012.
 Cont…
• VAS accounts for 10-12% of the telecom operator’s revenue.

• According to the Department of Industrial Policy and Promotion (DIPP),

the telecommunication sector attracted foreign direct investment (FDI)
worth US$ 2,554 million during 2009-10.

• In March 2010, Bharti Airtel bought the African operations of Kuwait-

based Zain Telecom for US$ 10.7 billion, driving the Indian player into
the league of top ten telecom players globally.

• In April 2010, RBI issued a notification stating "As a measure of further

liberalisation, it has now been decided... to allow Indian companies to
participate in a consortium with other international operators to
construct and maintain submarine cable systems on co-ownership basis
under the automatic route”.
 Cont….
• Remote treatment and diagnosis of patients through
mobile phones would become a reality in the near
future..

• According to the Economic Survey 2009-10, the

production of telecom equipment in value terms has
increased from US$ 9 billion in 2007-08 to US$ 10.53
billion in 2008-09 and is expected to be US$ 12.4 billion
in 2009-10.

• It is proposed to achieve rural tele-density of 25 per

cent by means of 200 million rural connections by the
end of the Eleventh Five Year Plan.
Trends in Telephone subscribers and
Teledensity in India
 Wireless Segment:-
Service Provider wise Market Share as
on 30-6-2010
 Wireline Segment:-
Service Provider wise Market Share as
on 30-6-2010
Porter’s Five Forces Model
 Porter’s five force model

Rivalry among existing companies

There are three types of players in telecom service:

 State owned companies.
 Private Indian owned companies.
 Foreign invested companies.
 Bargaining power of supplier
 Service based industry which is intangible.
 Mobile handset supliers
 Other suppliers like opticle fiber suppliers,aluminium suppliers and
softwares.
threat of new entry
 New entrance may alter the competitive environment.
 barriers of entry.
 Substitues to product

 Offers wide range of service in india,such as

wireless,CDMA mobile,internet,broadband,VOIP etc.

 substitutes most focused are:

 which tends to improving their performance trade
off with the industrial products.
 product which are produced by high profit earning
industies.