Professional Documents
Culture Documents
Facts
Weakness
• Poor Telecommunication Infrastructure
▫ Result : Large number of call drops.
• Late adopters of New Technology
▫ India will be among the last countries in the world to get access to
3G technology. Some estimates suggest that nearly 132 countries
across the world already have 3G technology and mobile services
in one form or the other.
• Most competitive market
▫ 10 to 12 companies offer mobile services in most parts of India,
globally, the average is 4.
• A market strongly regulated by Government.
• Difficult to enter because of requirement of huge financial
resources.
• E.g Auction of 3G license has reached Rs 15814.15 crores.
4.1
Opportunities
• 3G Telecom services and 4G services
• More Quality Service
▫ Mobile Number Portability will force the Service provider to improve their quality to avoid losing
subscribers
• Value added Services (VAS)
▫ The mobile value added services include, text or SMS, menu based services, downloading of
music or ringtones, mobile TV, videos, streaming, sophisticated m-commerce applications
etc.
▫ Mobile banking, Mobile Ticketing etc
• Boost to Telecom Manufacturing Companies
▫ Production of telecom equipments in value terms has increased from Rs. 412700 million (2007-
08) to Rs.488000 million during 2008-09 and expected to increase to Rs. 575840 million during
2009-10.
• Telecom Equipment Exports
▫ The Indian telecom industry is expected to reach a size of Rs 344,921 crore by 2012 at a growth
rate of over 26 per cent, and generate employment opportunities for about 10 million people
during the same period.The sector would create direct employment for 2.8 million people and for
7 million indirectly, according to a Frost and Sullivan report.
4.2
• Horizontal Integration
▫ Entry Into other consumer segments leveraging the present channels
▫ E.g. DTH service like Reliance BIG TV, Tata SKY, Airtel digital TV by
telecom majors like Reliance, Tata and Airtel Respectively.
▫ Other examples : Airtel website builder
• Providing fibre Connectivity to 2,50,000 village panchayat by 2012.
• More scope in content related services, since, the consumer is
influenced by local culture.
▫ Local festivals like Baisakhi, Chhath Puja, religious festivals like
Diwali, Chrismas etc., National festivals like Independence Day etc.
5
Threats
• Telecommunication Policies
▫ e.g. Trai's 2G direction affecting new players most notably Tata
Teleservices, Norway’s Telenor and Essar-owned Loop Telecom
▫ Renewal of 2G license on the basis of market rates of 3G auctions
▫ TRAI intentions of rolling out 4G or the fourth-generation technology,
known as the ultra-broadband in 2-3 years raising fears rendering 3G
services somewhat obsolete.
• Declining ARPU (average Revenue per user)
▫ E.g. price wars like per-second billing which is deflating revenues and
making sure the ‘survival of the fittest’
• Partiality on the part of the Govt.
▫ E.g.Allowing 3G service in a PSU (MTNL,BSNL) before auctioning to
Private Sector .
• Content Piracy
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