Micro Analysis on Telecommunication Industry in India

8/19/2019 Micro Analysis on Telecommunication Industry in India

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Micro Analysis on Telecommunication industry

IndiaPresented By

Vyas Bhargav [13044311145]

Modi Maunish [13044311039]Barot Pooja [13044311006]

Chauhan Dhaval [13044311016]

Par!r "jay [1304431104#]

$alla%ari&i 'a(i [13044311040]

Presente

Date : 1


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Introduction toTelecommunication Indu


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History and evolution of telecomindustry

)h! history o* +ndian t!l!,o ,an %! start!d -ith th! introdu,tion o* t!l!

.ostal and t!l!,o s!,tors ar! on! o* th! -orlds old!st/

+n 1#50 th! *irst !(.!ri!ntal !l!,tri, t!l!gra.h lin

%!t-!!n Cal,utta and Diaon 2ar%our/ +n 1#51 it -as o.!n!d *or th! us!

+ndia Co.any/

illia 7haughn!ssy -ho .ion!!r!d th! t!l!gra.h and t!l!.hon! in

d!.art!nt -as o.!n!d in 1#54 -h!n t!l!gra.h *a,iliti!s -!r! o.!n!d to th


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)!l!,o 8!gulatory "uthority o* +ndia )8"+: -as ,r!at!d in 199;/

to a,t as a r!gulator to *a,ilitat! th! gro-th o* th! t!l!,o s!,tor/

During this .!riod that th! $arsiha 8ao


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Milestone achieve by Telecom Industry in India

190= > ?irst -ir!l!ss t!l!gra.h station !sta%lish!d

190; > ?irst C!ntral Batt!ry o* t!l!.hon!s introdu,!d in @an.ur

1913>1914 > ?irst "utoati, (,hang! install!d in 7hila

19=; > 8adio 8adiot!l!.hon! syst! inaugurat!d %!t-!!n th! A@ and +nd

1953 > 1= ,hann!l ,arri!r syst! introdu,!d/


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Major sectors of TelecommunicaIndustry of India

Telephony:

)h! t!l!.hony s!g!nt is doinat!d %y .rivat!


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Internet

)h! history o* th! +nt!rn!t in +ndia start!d -ith laun,h o* s!rvi,!s %y

"ugust 1995/ )h!y -!r! a%l! to add a%out 10000 +nt!rn!t us!rs -ith

Broadcasting

)!l!vision %road,asting %!gan in +ndia in 1959 %y Doordarsha

!diu o* ,ouni,ation and had slo- !(.ansion *or

d!,ad!s/ )h! .oli,y r!*ors o* th! gov!rn!nt in th! 1990s att

initiativ!s in this s!,tor/


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n 16 $ov!%!r =006 th! ov!rn!nt o* +ndia r!l!as!d th! radio .

allo-!d agri,ultural ,!nt!rs !du,ational institutions and ,ivil so,i!ty

to a..ly *or ,ounity %as!d ?M %road,asting li,!ns!


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Major players of Telecom Industry


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Strategic Analysis


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Strategic Group Mapping

Airtel

VODAFO!

5000

10000

=0000

40000

50000

Idea

$ational Geographical Scope

"eliance

TATA B#$

Net sales

(in Crores)

a(is


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Competitive Prole Matrix

%"ITI%A$ #&%%!##

FA%TO"#

'eight VODAFO! Bharti Airtel "el

"ating #core "ating #core "ating

Mar&!t shar! 0/1= 3 0/36 4 0/4# 3

Custo!r s!rvi,! 0/10 4 0/4 3 0/3 =

Custo!r 'oyalty 0/06 = 0/1= 4 0/=4 =

?inan,ial Position 0/0; 4 0/=# 3 0/=1 4

7trong onlin! .r!s!nt 0/05 = 0/1 4 0/= 3

Pro*it Margin 0/11 3 0/33 4 0/44 3

Pri,! ,o.!titiv!n!ss 0/11 3 0/33 3 0/33 =

Valu! add!d s!rvi,! 0/04 4 0/16 3 0/1= =

Pro.!r s.!!d and %and-idth 0/1= 4 0/4# 3 0/36 =

7trong ,onn!,tivity 0/10 4 0/4 4 0/4 1

Billing )rans.ar!n,y 0/0= = 0/04 3 0/06 1

)!,hni,al ,o.!t!n,! 0/0= = 0/04 4 0/0# 1

2andling o* ,o.laints 0/0# 4 0/3= 3 0/=4 =

Total ( )*+, )*,-


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xternal !actor valuation Matrix

0ey !xternal Factors 'eight "ating

Opportunities

Po.ulation 0/30 4

Changing Po.ulation .sy,hogra.h 0/19 =

+n,r!as!d P!n!tration l!v!l 0/1= 1

?D+ 0/1= 3

Threats

ov!rn!nt Poli,i!s 0/15 3

$!- )!,hnology 0/1= 4

Total (


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Porter"s !ive !orce Model


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PST Analysis

2olitical

8!gulations

Politi,al ..osition to .arti,i.ation %y

th! .rivat! .lay!rs/ ovt su..ort to .root! ?D+ in )!l!,o

s!,tor/

!conomic

Cost o* ,alls B!ing D

orld-id! 8!,!ssio

Ban!/ Middl! ,lass ,onsu

du! to a,,!l!rat!d !,


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#ocio3%ultural

2igh nd Phon!s %!,oing status

sy%ol/

Du! to +ntiat! *aily %onding in+ndian Cultur! th!r! is n!!d to

r!ain ,onn!,t!d/

)!,h 7avvy !n!ration/

Technology

7trong ?i%!r .ti,

Atiliation o* < C

**i,i!nt Custo!r


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#T Analysis

PP8)A$+)


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Porter"s $iamond Model

Firm #trategy4 #tructure

and "ivalry

Demand %on

"elated and #upporting

Industries

Factor %onditions

Chance

Gover


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Firm #trategy4 #tructure4 and "ivalry

+nt!nsiv! ,o.!tition in th! ,ountry has

ad! it .ossi%l! *or s!rvi,! .rovid!rs to

o**!r th! s!rvi,! -ith lo-!st *ar! in th!

-orld .ro*ita%ly/

Many n!- hands!ts hav! %!!n laun,h!d/

Factors %onditio

Pr!s!n,! o* s&ill!d

8a.idly d!v!lo.ing

dis.osa%l! in,o!s

+n,r!asing d!and

li*!styl!s and gro-i

o%il!s -ith n!- *!


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"elated supporting Industries

2ands!t .lay!rs ar! s!tting u. anu*a,turing %as!s in +ndia *or %!tt!

anag!!nt/

Many t!l!,o !Gui.!nt F 7o*t-ar! ,o.ani!s ar! %as!d in +ndia/

Various valu! add!d s!rvi,! .rovid!rs and ,ont!nt d!v!lo.!rs ar! .r!s


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Demand %onditions

+ndia has a larg! iddl! ,lass/

ro-ing a**orda%ility and li*!ti! *r!!

s,h!!s hav! ,r!at!d a ar&!t at th! %otto o*

th! .yraid/

'o- t!l! d!nsity o**!rs hug! *utur!

.ot!ntial/

5overnments

)h! gov!rn!n

su..ort to indu

r!*or .ro,!ss

Poli,i!s ar! in .

th! int!r!sts o* s

as -!ll as thos!


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!inancial Analysis


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%atio Analysis

Debt !6uity "atio

ame o7 %ompany 8ear

=011 =01=

Voda*on! 7outh 0/61 0/;1

)")" Couni,ation0/63 0/6;

2!(a,ouni,ation 0/50 0/;1

Bharti "irt!l 0/43 1/1;

Total .*(9 )*.-

Industry total +*, +*/.


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2011 2012 2013

0

0.1

0.2

0.3

0.4

0.5

0.6

0.

0.!

0."


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%urrent "atio

ame o7 %ompany 8ear

=011 =01=

Voda*on! 7outh 0/39 0/36 0

)")" Couni,ation 1/=3 0/5# 0

2!(a,ouni,ation 0/51 0/5# 0

Bharti "irt!l 0/49 0/54 0

Total .*-. .*+- .

Industry total +*--; +*.; +


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2011 2012 201

0

0.1

0.2

0.3

0.4

0.5

0.6

0.

0.!

0."


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et2ro7itAnalysis

ame o7 %ompany 8ear

=011 =01=

Voda*on! 7outh ;/51 1=/06 1

)")" Couni,ation 6/4; 14/#; 1

2!(a,ouni,ation ==/5= ==/65 =

Bharti "irt!l 16/;= 14/=3 1

Total )*.. -)*/( 9

Industry total ()*)+; (*1; (


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2011 2012 20

0

2

4

6

!

10

12

14

16

1!

20


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Average collection period

ame o7 %ompany 8ear

=011 =01=

Voda*on! 7outh 1/=1 0/90 0

)")" Couni,ation 0/43 0/4= 0

2!(a,ouni,ation 3/0; 4/;1 3

Bharti "irt!l 0/1; 0/16 0

Total ,*// -*(1 ,

Industry total (*..; (*,9; (


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2011 2012 2013

0

0.2

0.4

0.6

0.!

1

1.2

1.4

1.6

1.!


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Trend Analysis


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2011 2012

0

2000

4000

6000

!000

10000

12000

14000

16000

1!000


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ame o7 %ompany 8ear

=011 =01=

Voda*on! 7outh 6=;;/33 1151=/4 1

)")" Couni,ation3611/;; 4091/;; 4

2!(a,ouni,ation =943/45 33;9/1 3

Bharti "irt!l 3#01;/; 41603/# 4

Total +/+*. -+/9*+9 -

Industry total (.9(.*- ((,-*9- (

!xpenditure Trend


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2011 2012

0

2000

4000

6000

!000

10000

12000

14000

16000

1!000


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&usiness Plan


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Tele>ings %ommunications o.!rating und!r th! %rand na! &ninor: is an +ndia

o.!rator %as!d in urgaon 2aryana +ndia/

)h! ,o.any is a su%sidiary o* )!l!nor rou. a t!l!,ouni,ations ,o.any h!

slo $or-ay and )!l!nor no- o-ns 100H o* th! sta&! in )!l!-ings Couni,a

Aninor s!rv!s or! than 3 ,ror! ,usto!rs in th! stat!s o* Attar Prad!sh

Ihar&hand Maharashtra oa ujarat and "ndhra Prad!sh/ )h! o%il! s!rvi,! .r

and oth!r ,ouniti!s -ithin th! +ndian ass ar&!t

!ranc'ise of uninor set up in Me'sana


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Vision .o-!r so,i!ti!s -! .rovid! th! .o-!r o* digital ,ouni,ation !na

i.rov! th!ir liv!s %uild so,i!ti!s and s!,ur! a %!tt!r *utur! *or all/

Mission

!r! h!r! to h!l. our ,usto!rs ! !(ist to h!l. our ,usto!rs g!t th!

%!ing ,onn!,t!d/ ur su,,!ss is !asur!d %y ho- .assionat!ly th!y a,,!

us a .art o* th!ir li*!/


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Ob?ectives o7 company

Ca.tur! th! ar&!t through .rovid! innovativ! .rodu,t in t!l!,o s!g

)o a,hi!v! high!r l!v!l o* satis*a,tion through Guality t!l!,o/

)o a,hi!v! high ar&!t shar! in t!l!,o s!g!nt/


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Process for ta(ing !ranc'ise of )nino

#tep ( :

C!ntr! s!nds '+ signs MA/C!ntr! su%its *ollo-ing l!gal .a.!rs F ,!rti*i,ationsJ Ban& 7tat!!nts *or last 6 onths K +) 8!t

Co.any Pro*il! -ith Pi,tur!s o* (isting +n*rastru,tur!/ Pan ,ard 7na.shot 8!Guir!d/

#tep . :

C!ntr! is ,all!d to sign 7'" -ith Aninor/

#tep ) :)h! guarant!! a..roval and audit %y Aninor/

#tep , :

C!ntr! has to !nsur! that all that is !ntion!d in th! ,o.any .ro*il! and oth!r l!gal .a.!rs F ,!rti

,orr!,t/

#tep : C!ntr! has to s!nd '+ F sign MA

$i t 7 D t i d 7


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$ist o7 Documents re6uired 7or

Franchise

Partn!rshi. d!!d Mo" L "o" :

'i,!ns! *ro ovt/ sho. r!gist!r!d und!r

uni,i.ality:

7al!s )a( nu%!r )+$ nu%!r:

P"$ nu%!r *or %usin!ss

uasta


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P!rsonal sal!s

+nt!rn!t L +nt!ra,tiv! 7!lling

Consu!r ori!nt!d sal!s Prootion

D!onstration

?r!! sa.l!

@igh rich in rural Mareting #ale promotion


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D!al!r in,!ntiv!

.loy!! "llo-an,! Ban& 7tat!!

P!rsonal 7avi

?ri!nds and 8

#ources o7 Fin2ro7it Oriented #ales 2romotion

T%AI recommendations to terms and cond


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T%AI recommendations to terms and condfor unied license*

Delining #pectrum 7rom $icense

)8"+ has highlight!d th! ,hang! in th! ov!rn!nts

.oli,y -ith r!s.!,t to th! .r!vious r!gi! -h!r! s.!,tru

-as lin&!d to th! Ani*i!d ",,!ss 7!rvi,! 'i,!n,! A"7':/

#ubstantial !6uityC%ross3@olding "e6uirement

)h! dra*t o* th! A' "7: a&!s r!*!r!n,! to th! ,ross<

holding r!stri,tion that .rohi%it!d any shar!hold!r *ro

holdin no or! than 10H o* th! ! uit /

2romote

Value Ad

Tripartit

2er7orm

2enalties

Cost #f Project


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Cost #f Project

#r*no* 2articulars

( 7it! on 8!nt

. Co.ut!r =3500O3:

) ?urnitur!

, Ma,hin!ry F Gui.!nts !ro( a,hin!:

8a- at!rial !(.!ns!s %lan& .a.!r:

- Mar&!ting and 7al!s Prootion (.!ns!s

9 7ta** 7alary

h!ad o**i,! !(.!ri!n,!d : 1 O 15000

Co.ut!r o.!rator 3 O ;500

'a%or 1 O =500

/ th!r (.!ns!s

)otal

Cash on 2and

Cost o* .roj!,t

stimated Prot and +oss


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stimated Prot and +oss

2articular 8ea

#ales

%ommission

#im "echarge com*

Total income 3

!xpenditure

#alary

!lectricity bill

"ent

Miscellnious exp*

Total !xp*

et 2ro7it


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!indings, +imitation - Conclu


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$!- !ntrants ,an ta&! advantag! o* ga.s in th! o**!rings

o* th!s! aging .ion!!rs or *ind innovation -ays to ar&!t

.rodu,t or s!rvi,!/

8!

Bringing do-n o.!rators ,a.!(/

8ational .oli,y *or s.!,tru allo,ation/

Data r!v!nu!s to .rovid! Bu**!rQ/

nhan,ing s&ill s!ts

+.a,t o* glo%al !,onoi,

!indings

+i it ti


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+imitation

! hav! ,oll!,t!d th! s!,ondary data -h!r! -! ,annot a%l! to g!t !(a,t i

"%out th! t!l!,ouni,ation industry .rivil!g! in th! ar&!t as %as!d in

and h!n,! ,annot %! r!lia%l! guid! to *utur! .!r*oran,! as *utur! is d!.!n

oth!r *a,tors/

C l i


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Conclusion

)h! t!,hnology i.rov!!nt has h!l.!d th! s!,tor to .!r*or %!tt!r a

!(.and!d th! !aning o* th! t!r Rt!l!,ouni,ationR *ro just audio

trans*oration to virtual .r!s!n,! o* .!rson/ th! s!,tor ,l!arly sho-s a s,

*utur!/

+n our o.inion inst!ad o* ta&ing a short


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)h!r! ar! ,hall!ng!s li&! .orting ti! allo,ation o* ,a.ital and o.!

,osts aong .ositiv! and -ill %! s!t on,! th! ,oitt!! su%its

on h! sa!/

)h! argins and .ro*its o* alost th! t!l!,o ,o.ani!s hav! %!

+n *a,t th!r! ar! ,as!s -h!r! signi*i,ant .ortions o* .ro*it o* int!r

,o.ani!s hav! %!!n *ro th!ir o.!rations in +ndia/

+ndia has th! advantag! o* using th! lat!st t!,hnology and so it is

%!tt!r

.osition -h!n ,o.ar!d to any oth!r ,ountri!s as *ar as introdu,tion o


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