Telecom Industry

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Group5 OLS

M.Swapnika Neelkanth.R Sonal Piparsani Sonisha Chandr Sravanthi Bandi Veera Swamy
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Presentation Outline

Introduction overview share analysis five force model and acquisitions

Industry Market PEST

analysis

Porters Mergers Issues

and strategies in telecom

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sector

Introduction
Industry

analysis

Need

for industry analysis

Current global and Indian scenario To study the service providers Marketing strategies Future of the industry
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Industry overview
Global scenario

4 trillion $ industry Expected to grow at 11% per year Major players- AT&T , vodafone, verizon, sbc communications etc 3% contribution to world GDP 4/17/12 Telecom Industry

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Major Global Players

Market value in billion $ on Dec 09) 4/17/12 4/17/12 (As Telecom Industry

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Indian Scenario
203 million connections Third largest in the world in subscribers Second largest among the emerging

economies of Asia

Contributes 2.1% of GDP In 2009-10,

Total revenue : Investment :

86,720 crores 2,00,660 crores

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Source: TRAI released a report on 4/17/12 4/17/12 Telecom Indicator Rep 8 Indian Telecom Services Performance Industry
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Source: TRAI released a report on 4/17/12 4/17/12 Telecom Indicator Rep 9 Indian Telecom Services Performance Industry
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Major Indian Players

Three types of players in telecom services:

State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Infocomm, Tata Teleservices,) Foreign invested companies (HutchisonEssar, Bharti 4/17/12 Tele-Ventures, Escotel, 4/17/12 Telecom Industry Idea Cellular, BPL Mobile, Spice
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Major Telecom Service Providers in India (on the basis of market share)

Bharti Airtel Reliance Communications Vodafone Essar Tata Teleservices BSNL

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Market share analysis ( As on 31/10/2010)

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Herfindahl index
Where N= no. of firms S= Market share of each firm

H = (.207)2 + (.1689)2 + (.167)2 + (.1144)2 +

(.1143)2 + (.1076)2 + (.0672)2 + (.0195)2 + (.0101)2 + (.0079)2 + (.0076)2 + (.0043)2 + (.0026)2 + (.0016)2 + (.0001)2
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H = 0.1421

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PEST Analysis

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Porters Five Force Model

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Mergers and Acquisitions

DOCOMO Completes Acquisition of Stake in Tata Teleservices Limited India's Bharti Airtel Completes Acquisition of Zain Africa Reliance Flag Telecom acquisition Vodafone Completes Hutchison Essar 4/17/12 4/17/12 Telecom Industry 16 Deal
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Issues in the Telecom Industry

Rapidly Falling ARPU Lack of Telecom Infrastructure Rural areas continue to remain under penetrated Excessive Competition Spectrum allocation Other growth inhabiting factors

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Strategies

8 Ps of telecom sector Creating potential in the market place Establishing reach in the market place Offers, products and service strategies

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Future Outlook
According to Gartners Research Analysis

Revenues would touch $30 billion by 2013 Compound annual growth rate (CAGR) of 12.5 percent between 2009-2013

Subscriber base would cross 770 million by 2013

Mobile market penetration projected to 4/17/12 4/17/12 Telecom Industry

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