Telecom Pp TX

7/21/2019 Telecom Pp TX

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Telecom Industry


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Facts

Indian Telecom market is one of the fastest growing markets in the world.

The total number of telephonesin the country stands at 957.61 million, whilethe oerall teledensityhas increased to 76.75! as of "# $eptember %#1& andthe total numbers of mobile phone subscribers hae reached 9"#.%# million asof $eptember %#1&.

year'on'year ()'*')+ rowth of &.&1!. -riate operators hold 9#.#5 per cent of the wireless subscriber market share

whereas $/0 and T/0, the two -$2 operators hold only 9.95 per cent markeshare
http://en.wikipedia.org/wiki/Telephoneshttp://en.wikipedia.org/wiki/Teledensityhttp://en.wikipedia.org/wiki/Teledensityhttp://en.wikipedia.org/wiki/Telephones


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$trenths

3ue 4ustomer potential

' 2rban teledensity 1&6.%&, rural Teledensity' &&.5

3ue rowth ate

8ireless &.76! )o), -2 increase of 6.7%! yoy

3ih return on Inestment

:asier to create economies of scale thereby increasin return oninestment

-riate operators hold 9#.#5 per cent of the wireless subscribermarket share

1##! F;I


4/21

8eakness

-oor Telecommunication Infrastructure

esult < 0are number of call drops.

0ate adopters of /ew Technoloy

India will be amon the last countries in the world to et access to " technoloy$ome estimates suest that nearly 1"% countries across the world already hae" technoloy and mobile serices in one form or the other. :en in few countries

they started usin & , in India it is in nascent staes ost competitie market

1# to 1% companies o=er mobile serices in most parts of India, lobally, theaerae is less (appro>. 5 to 6+

market stronly reulated by oernment.

;i?cult to enter because of re@uirement of hue Anancial resources.


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*pportunities

rinin rural teledensity to 1##

ore Buality $erice

esearch oin on 5 serices

$till more Calue added serices

3ue chance of rowth in wireless subscription and internetsubscription

3oriDontal Interation

:ntry Into other consumer sements leerain the presentchannels


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Threats

Coip apps like whatsapp

(ccordin to data from a research Arm *um, telecom operators lostaround s 5,7## crore in $$ reenues in %#1"+

, 8hatspp and Facebook are rumoured to roll out free oice callsoer data networks in the near future.

oernment -olicies will be bi threat


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-:$T nalysis

-olitical nalysis

$pectrum auction larely depends on country politics

199# Telecom policy

199&' enhanced rowth for priate sector

/T- '1999 bouht lot many chanes, %###' $/0 established

1##! F;I' remarkable rowth


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:conomic nalysis

;- 1.77trillion 2$;, rowth rate 5!, "! ;- from telecom industr

;riers

Increase in disposable incomes.

reater network coerae.

reater a=ordability.

Fallin mobile phone prices.

Fallin call chares.


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:conomic nalysis

n attractie trade and inestment policy and lucratie incenties forforein collaborations hae made India one of the worldGs mostattractie markets for the telecom e@uipment suppliers and sericeproiders.

/o industrial license re@uired for settin up manufacturin units for

telecom e@uipment.


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$ocial

4hane in lifestyle

Fast'chanin lifestyles are forcin telecom companies to enlare the breadth and depth of theirserices.

e distribution< The telecom industry in India like Codafone, irtel, Idea etc are sellin their productsaccordin to arious ae distribution basis. They make the schemes aailable to younsters with lowcall rates and messaes scheme.

$ocial welfare< any companies are doin social welfare and takin initiaties for that we can e>amine

the latest e.. of idea cellular co. for %6 /o %##9 that it collected money for the ictims of %6H11 attacby the subscribers of idea when any call was made.

4onsumer buyin patterns The buyin behaiour of the customers in India is chanin , thecustomers are shiftin to buy the new products and serice accordin the o=ers and schemes aailablto them.


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$ocial' :mployment *ppotunities

$eeral areer paths lead to the Indian Telecom Industry. The telecomsector o=ers a ariety of career options where there is room foreeryone a deree holder or a diploma holder, a candidate with a part'time certiAcation course or one with a full'time deree.

The rural Indian consumer manaed to remain an attractie

proposition, especially in the demand for consumer oods and telecomserices


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Technoloy

eplacement Technoloy' s economy is rowin, technoloy too, so company with

new technoloies hih chance of success.

esearch fundin' ot is proidin arious ta> beneAts and subsidies to the players

which are in research and deelopment Aelds of telecom sector.

esearch on 5

Innoations potential in India for technoloy is ery hih as the internet, broadband,"(& serice is still nascent+ so comin in India is ery proAtable


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-*T:$ 5 Forces

4ompetitor nalysis

onthly -2 s.119

ore than 1% players in market

:>istin telecom companies are comin up with continuous rowthstratey due to hih competition.


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*er all

competition that has brouht down tari=s and simpliAcation of policyenironment that has promoted healthy competition amonst arious players

The oernment has eased the rules reardin inter circle and intra circlemerers. This has led to a slew of merers and ac@uisitions in the recent past

s the sector is moin closer to maturity, further consolidation is a realityand this will lead to the surial of more proAtable players in this sement

Infrastructure e@uipment cost is down to a fraction of what preailed ust afew years ao operators can plan better e>pansion plan now

Increased iability for the operators to e>pand to semi'urban and ruralmarkets. 3ence, competition in this market would increase.


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uyers power' 3ih

uyers in Telecom industry enerally land in two cateories< Indiidual and:nterprise 4ustomers like IT companies, anks etc. There are ample number oftelecom proiders in the market with bi product ariance and cheaper priceswhich ies buyer many options to select operators and thus hae a larebarainin leerae.

uyers are more sensible towards prices.

/o much product di=erentiation' buyers hae option to switch oer.

4ompetition between buyers' The indiidual buyers donGt hae any competitionamon themseles but enterprise customers like IT or banks do hae.:nterprise customers enerate maor part of the reenues for any telecomcompanies like elience, irtel or Idea which means hiher buyer power.


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uyers power

moderate buyer power in terms of siDe and concentration.

Buyers switching cost

0ow switchin cost and hih buyer power

uyers information

$ocial media, adertisin' hih power

bility to backward interate

0ow buyer power


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$upplier -ower' 0ow

There is a price war happenin between the di=erent mobile operatorsso een the suppliers are chosen carefully so that they do not dradown the proAtability of the company .$o the suppliers hae lessbarainin power in this industry.

There is a price war happenin between the di=erent mobile operators

so een the suppliers are chosen carefully so that they do not dradown the proAtability of the company .$o the suppliers hae lessbarainin power in this industry.

The mobile operators doesnGt always procure the sim card from a sinlesupplier to aoid any delays. $o een sim anufacturers baraininpower is less


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$uppliers -ower nalysis

Mobile Tower companies in India (2012 stats! Manysuppliers so low power

There are two types of tower companies in India

1.Telecos owned tower companies

%. Independently telecom tower companies (ITT4+

Telecos *wnedJ 7%!

ITT4J %!

Telecos *wned

ITT4

Indus Towers 0imited (IT0+

harat $anchar /iam 0imited ($/0+

eliance Infratel 0imited (IT0+

Ciom /etworks 0imited (Ciom+

harti Infratel 0imited (I0+

T0 Infrastructure 0imited (T0+

merican Tower 4ompany 0imited (T4+

Tower Cision India 0imited (TCI0+

India Telecom Infra 0imited (ITI0+

ster Infrastructure 0imited (ster+

*thers

"%.%

15.%#!

15.%#!

11.%#!

9.7#!

9.5#!

%."#!

#.9#!

#."#!

#."#!

".%#! "har


19/21

Threat of substitutes ' oderate

Buyer #ropensity to "ubstitute

;oT to open up net telephony

$elati%e #rices

Internet Telephony eatin into the reenue of $H4; telephony.

FlatH A>ed rate reenues from internet serices ' cannibaliDation of reenues

from $H4; serices.

#erformance of "ubstitute

Coice @uality is an issue with internet telephony.

Internet oice serices also currently limited due to reulatory road blocks.


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Threat of :ntry' 0ow

Cery 3ih capital re@uirement

The cost of actie e@uipment is estimated to be percent of the telecom operatorKstotal cape>, while the balance is accounted for by passie infrastructure.

&ccess To 'ptical ibre )etwork

The larest optical Abre has been built by the incumbent operator $/0

who is also the lon distance operator. The priate sector players such as harti and eliance hae also

constructed optical Abre cable network connectin mainly cities and townsbut their presence is ery limited in the rural areas and di?cult terrains.

It is fairly di?cult and cost' ine=ectie for new entrants to lay down opticaAbre connectin remote places as well.


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Incumbent players power

The e>istin Telecom players miht bein to bundle broadband, oice,wireless, ideo and other emerin technoloies toether, as well as aariety of alue added content, in an e=ort to remain competitie

*o%ernment &nd +egal Barriers

1##! Forein ;irect Inestment (F;I+ is allowed throuh automatic route formanufacturin of telecom e@uipments

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Telecom Pp TX