Telecom Industry

BRIEF STUDY OF TELECOM INDUSTRY

Prepared By:

Abhishek PachisiaMBA - IT

Brief Introduction

Second Largest in the world based on number of users.

Lowest Call Tariff

Contribute to US$ 400 billion in terms of gross domestic product (GDP).

Supported by INSAT (Indian National Satellite System)

World’s Most Competitive and one of the Fasters Growing Telecom Market.

Top Companies are Airtel Vodafone Idea

Grew by 10.8% in FY 13-14.

Revenue Comparison - FY12-13 vs FY 13-14

Subscriber Shares – on March 31, 2014

Barrier To

Entry

Supplier Bargaining

Power

Customer Bargaining

Power

Substitutes

Rivalry Competitor

s

Porter’s Five Force Model

Barrier to Entry

• Capital/ Finance

• Telecommunication Licenses

• Established Service Providers

• Operating Skills

• Scarce Management experience.

• Loyalty to old Service Providers.

• ARPU Declining

• Access to Optical Fibre Network

Supplier Bargain Power

Click icon to add picture

• Can be:• Mobile Tower Companies

• SIM cards

• Mobile Phone Handsets

• Less Power

• Tower Companies• Telecos

• ITTC

• Limited Talented managers and engineers

Customer Bargain Power

• More Choices

• Lot of alternatives

• Lack of Interest to switch

• Sensible to Pricing

• No Differentiator as such.

• Competition between buyers

• Size and concentration of buyers

Substitutes

• Cable TV’s

• Broadband Internet Services

• Satellite Links

• Railway and Energy Utility Companies

• Internet Telephony

• Performance of Substitutes

Rivalry Competitors

• Concentration – Market Share

• Value Added Services

• Low Profits

• Ex: Airtel, Vodafone, Reliance, Idea

• Swift Obsolescence

• Global Presence

• Marketing Network

Barrier To

Entry

Supplier Bargaining Power

Customer Bargaining Power

Substitutes

Rivalry Competit

ors

Conclusion of Study

Thank

You