...STUDY FOR ITC ENTERING INTO TELECOM SECTOR ITC: ITC has a diversified presence in FMCG, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, and Information Technology. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and AgriExports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. TELECOM SECTOR INTRODUCTION: The Indian telecom industry is the fastest growing industry with an addition of 9- 10 million monthly subscribers. The Indian telecommunications network with over 995.9 Million subscribers is second largest network in the world after China. Major players in this sector are BSNL, MTNL, Airtel, Vodafone, BPL, Tata, Idea, etc. Buyer power and threat of rivalry is very high in Indian Telecom Sector. Telecom Industry Sectors From holistic point of view telecom industry can be divided to four sub-sets. The major forces in Indian telecom industry are Service providers. All major telecom equipment suppliers have their R&D centres in India. In last 5 years, global giants in mobile devices have set up their manufacturing facitilities in India EXISTING RIVALRY IN INDIAN TELECOM INDUSTRY There are three types of players in telecom services: • • • State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Infocomm, Tata Teleservices, Shyam ( Southern India) Foreign invested companies...
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...Telecom Industry Business Environment Domain Study S. P. Jain Institute of Management & Research Telecom Industry Executive Summary The rapid growth in Indian telecom industry has been contributing to India’s GDP at large. Telecom industry in India started to set up in a phased approach. Privatisation was gradually introduced, first in value-added services, followed by cellular and basic services. Telecom Regulatory Authority of India (TRAI), was established to regulate and deal with competition (the service providers). This gradual and thoughtful reform process in India has favoured industry growth. Upcoming services such as 3G and WiMax will help to further augment the growth rate. The Indian telecommunications industry is one of the fastest growing in the world and India is projected to become the second largest telecom market globally by 2010. This is evident from the facts of Telecom Industry for example, India added 113.26 million new customers in 2008, the largest globally. The country’s cellular base witnessed close to 50 per cent growth in 2008, with an average 9.5 million customers added every month. This would translate into 612 million mobile subscribers, accounting for a tele-density of around 51 per cent by 2012. It is projected that the industry will generate revenues worth US$ 43 billion in 2009-10. In this report we have tried to capture most of the areas of Telecom Industry. Major highlights of the report are History of Telecom Industry...
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...“Quarterly Performance Analysis of Companies (April-June 2008)” has analysed the Indian telecom industry in the awake of recent global recession and its overall impact on the Indian economy. The analysis is done in the background of wake of global recession and rising inflation. Cygnus estimates, the Indian telecom industry is expected to maintain the growth trajectory in the next quarter as well. With almost 5-6m subscribers are being added every month, and the country is witnessing wild momentum in the telecom industry. Maheshwari (July-September 2008), in her report analysed the Indian telecom industry and ascertain that Indian telecommunications has been zooming up the growth curve at an mounting pace, and India is has surpassed US to become the second largest wireless network in the world. This growing subscriber base is basically created by tapping into rural India, which is an emerging market for the industry. The estimate for the next five to ten years is that the rural market will form 40 % of the subscriber base. The study has analysed the human resource management process of the industry, and specially the latest trends of recruitment of this massively growing industry. Anderson (2008), in his single executive interview titled “Developing a route to market strategy for mobile communications in rural India An interview with Gurdeep Singh, Operations Director, Uttar Pradesh, Hutch India” suggests that managers need to go beyond traditional approaches to serving the poor...
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...you INDIAN TELECOMMUNICATION SECTOR I Introduction Indian telecom industry is growing at a great pace & India is expected to become a manufacturing hub for telecom equipment. Indian telecom equipment manufacturing sector is set to become one of the largest sectors globally by 2010. Due to rising demand for a wide range of telecom equipment, particularly in the area of mobile telecommunications, has provided excellent opportunities to domestic and foreign investors in the manufacturing sector. II Opportunitie s The Indian telecom market is expected to grow three fold by 2012 & market size over US $ 8 billion. Moreover the government has set a target of 20 million broadband connections by 2010. The National Telecom Policy 1999 targets tele-density at 15 per cent by 2010. This will entail an investment of US $ 40- 50 billion over the next 6-8 years. There is an immense opportunity for DTH in the Indian market which is almost 10 times compared to the developed countries like the US and Europe. For every channel there is a scope for broadcasting it in at least ten different languages. So every channel multiplied by ten that is the kind of scope for DTH in the country. India’s media players have all the ingredients to develop a successful DTH industry. So currently there is a lot of pent-up demand in the Indian market for DTH. It is expected that by the year 2010 there will be over 500 million subscribers in the Indian telecom market. Cellular subscriber base is projected to grow at...
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...Executive Summary Bharti Airtel, a leading telecommunications provider in India has seen an enormous growth since the opening up of the Indian economy after the economic reforms initiated by the then PM of India, Mr. P.V.Narasimharao towards liberalization, globalization and privatization. Airtel is now the fourth largest telecom company in the world in terms of subscriber base and is the leading telecom carrier in India. The phenomenal growth of Airtel has been due its outstanding and unique business model where it retained its core-functions to itself such as marketing and finance and outsourced its IT functions to companies such as IBM. Airtel has expanded significantly since 1992 due to the competitive advantage it had in the domestic market ( pan-India presence) and only since 2005-06 it started going global foraging into Africa. Significant threats to Airtel come from the lowering of FDI influx into Indian economy and increasing government regulations in the spectrum allocation frame work ,political interference and lobbying. Also the unstable economic conditions in the countries such as Central Africa were not favorable for its expansion in the global markets. Bharti Airtel (or simply Airtel) is an Indian telecommunications company with operations in 20 countries across Asia and Africa. It is headquartered in New Delhi India and was originally conceived and set up by Sunil Bharti Mittal in 1995. At present, Airtel is the world’s fourth largest telecommunication...
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...substitutes and from completely new offerings or bundles from industry outsiders. Since product differences are closed at an increasing speed and many companies try to win the battle for customers by price reductions, products and services tend to become commodities. Customer perceptions are influenced by a variety of factors. Besides the actual outcome - i.e. did the product or service deliver the expected function and did it fulfil the customers need - the whole process of consumption and all interactions involved are of crucial importance. Background of the Study Today’s globalised information driven economy this can also comprise issues like • How other customers or influencing groups perceive the product or brand • The degree to which the customer feels the actual marketing campaign addresses the most important issues • Responsiveness and service quality of any affiliates, e.g. distribution partners Customer perceptions are dynamic. First of all, with the developing relationship between customer and company, his perceptions of the company and its products or services will change. INDUSTRY PROFILE INDIAN TELECOM AND CELLULAR INDUSTRY The telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world 2cr China and USA. With a growth rate of 45%, Indian telecom industry has the highest...
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...Consultation Paper No 3/2011 TELECOM REGULATORY AUTHORITY OF INDIA Consultation Paper On Green Telecommunications 3rd February, 2011 Mahanagar Doorsanchar Bhawan Jawahar Lal Nehru Marg New Delhi-110002 Preface Operation of telecommunications networks requires electrical power. The expense on energy accounts for a significant share of the operational cost of these networks. This is particularly so in the rural areas where availability of power is uncertain. The use of diesel generators to ensure continuous power supply has the disadvantage of increasing the greenhouse gas emission and consequent enlargement of the carbon footprint which has a deleterious impact on the environment. While contribution of the telecommunications sector to the global carbon footprint is low compared to other sectors like transportation and construction, it nevertheless contributes a noteworthy share and increasingly so with growing reach of the telecommunications network. Efforts are afoot, all over the world, to find measures to deal with this issue. As the second largest and fastest growing market in the world, there is need for India to be conscious of the concerns in this regard. Besides, as a country heavily dependent on import of petroleum products while being abundant in renewable energy sources there is scope for innovative measures towards making telecommunications green. It is in this regard that TRAI believes that this is an opportune time to discuss the related issues...
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...Enabling the next wave of telecom growth in India Industry inputs for National Telecom Policy 2011 2 Enabling the next wave of telecom growth in India Foreword The Federation of Indian Chambers of Commerce and Industry (FICCI) and Ernst & Young have collaborated on this deep review of the telecoms sector in India. The National Telecom Policy 1999 (NTP 1999) has served the sector in India for well over a decade, in which time we have witnessed significant changes in the socioeconomic environment, technological advancements and business dynamics. The telecom industry in India is ready to take the next leap forward with new developments such as launch of third generation (3G) services by private operators, 3G and broadband wireless access (BWA) auctions, launch of mobile number portability (MNP), and the emergence of mobile commerce (m-commerce). In the future, rural and semi-rural markets are expected to drive growth, especially in the wireless segment. The Ministry of Communications & Information Technology has released the 100-day agenda for the Indian telecom sector, and announced formulation of a new and comprehensive National Telecom Policy 2011 (NTP’11). Therefore, the time is ripe for a comprehensive review to build a forward looking and transparent policy that will be the backbone to achieve the ”India telecom vision 2020.” This report focuses on specific areas where the Government of India (GoI) needs to intervene and move the policy to the next generation...
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...TOP PLAYERS IN THE TELECOM INDUSTRY There’s definite excitement in the telecom industry with a few ruling the industry. Globally China Mobile is regarded as one of the biggest players in the telecom industry with a market value of over $213.8 billion. It is also the only telecom operator to have provided operations at Mount Everest. Not so far behind is America’s very own At&t which has a market value of over $200.1 billion dollars. Besides At&t, other telecom sectors fighting for ranks include Verizon established in 1983, Vodafone, also considered as among the top 3 companies listed in the London Stock Exchange, America Movil (based in Mexico), Telefonica, Telstra, NTT group, Deutshe Telekom and finally Softbank which is a Japanese Network. In India, the telecom sector operates a little differently. None of the Indian operators make it to the list of the top 10 telecom companies even in market share, despite operating in the second most populous country in the world. However, Vodafone that operates in India makes it to the list at number four. The following are the Key players in the telecom sector in India: AIRTEL | VODAFONE | RELIANCE COMMUNICATIONS | IDEA CELLULAR | TATA TELESERVICES | AIRCEL | UNINOR | MTS | MTNL | LOOP MOBILEFormerly BPL | Airtel Bharti Airtel or simply Airtel is India’s largest telecom company, headquartered in New Delhi, India. In the year 1986, Sunil Mittal incorportated Bharthi Telecom Limited and his company...
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...TERM PAPER ON TELECOM SECTOR IN INDIA AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA AMITY UNIVERSITY, UTTAR-PRADESH SUBMITTED BY: ABHINAV AGARWAL (A1808710032 – MBA 3C 2010-12 SECTION-A) AMIT BEHAL (A1802010246 – MBA IB 2010-12 SECTION-B) TABLEOF CONTENTS DESCRIPTION PAGE NO. Executive Summary 3 Objectives of Study 4 Introduction 5 Growth Avenues 9 Top 10 Telecom Companies In India 11 SWOT Analysis 12 Brief About 2G Scam 15 Mergers and Acquisitions in Telecom Sector 16 FDI in Telecom Sector 17 Drivers of Growth in Telecom Sector 18 India’s Competitive Advantage : Porter’s Model 19 Strategic Management 22 HR Policies of Airtel and Vodafone 27 Marketing Strategies 30 Positioning strategy comparison of Vodafone and Airtel 34 Use of social media marketing by telecom companies 35 Advertisement...
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...Contents Advantage India NOVEMBER 2011 Market overview and trends Growth drivers Success stories: Airtel, Vodafone Opportunities Useful information For updated information, please visit www.ibef.org 2 Telecommunications Advantage India Strong demand • NOVEMBER 2011 Attractive opportunities • 2014E Number of subscribers: 1 billion Telecom’s revenues rose at a CAGR of 18.1 per cent during 2006–10 India is the second-largest telecom market in the world with 752 million subscribers as of December 2010 • By 2012, the total telecom outreach in the nation’s rural markets is expected to be close to 40 per cent India is expected to feature among the top 10 broadband markets by 2013 • Advantage India Better telecom ratings • Policy support • The country has strong telecom infrastructure Compared to peers in western and Asian countries, India has a comparative advantage in telecom ratings • The Government of India aims to develop the nation as a global telecommunication hub and provides regulatory support to the industry to achieve the goal Government has released Draft National Telecom Policy – 2011; proposes ‘infrastructure’ status to telecom 2005 Number of subscribers: 189.9 million • Source: BMI (Business Monitor international) Report, Aranca Research ADVANTAGE INDIA For updated information, please visit www.ibef.org 3 Telecommunications Contents Advantage India NOVEMBER 2011 ...
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...Page no. | Acknowledgement | 04 | Executive summary | 05 | Introduction about Telecom Industry | 06 | History | 07 | Global Scenario | 08 | National Scenario | 09 | Demographic characteristic | 10 | Market size, Trends & Players | 11 | Telecom turn over/ Subscribers | 12 | Opportunities /Competitive landscape | 13 | Porters generic strategy | 14 | Progress /Acquiring Subscribers | 15 | Rural India | 15 | Government Initiatives / MVAS | 16 | VAS | 18 | Mobile VAS in Rural Market | 19 | Access Device /3G Handset | 20 | Key trends in Telecom Industry | 21 | Inhibitors | 22 | MNP Implementation Globally | 24 | Wimax Vs. 3G | 26 | Mobile virtual network operator | 27 | Regulation for MVN O / IPTV | 28 | Companies overview | 29 | 4P’s Analysis | 43 | Advertisement | 44 | Industry updates | 46 | Major challenges for Mergers | 49 | FDI Investment in Telecom sector | 50 | Outsourcing by Telecom company | 51 | Future Trends | 53 | 4G Technology | 56 | Conclusion/ References | 56 | This project work would never have been an achievable task, had we not been under the great shelter of guidance of respected Professor Mukta Rae. Her simplified teaching technique based on examples has helped us gain more understanding of the subject. The very essence of the project work is the linguistic precision which has an impact of conveying more details in least possible words. An ample use of various reference readings has been...
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...Telecommunications Industry in India Industry Background The telecom sector in India is a booming market now. India is the world’s second largest mobile phone user with a total subscriber base of 894 million as of December 2011, and the third largest internet user with a subscriber base of 121 million as of December 2011. The total market values according to experts are $75.88 billion with a y-o-y growth rate of 26% and generate employment for about 10 million people. The services sector generates revenue of about $62.31 billion (FY 2010-2011) and the equipment sector generates about $25.75 billion. Factsheet as of Dec, 2011: Particulars | Wireless | Wired | Total | Total Subscribers (million) | 893.84 | 32.69 | 926.53 | Total net addition (million) | 9.47 | -0.28 | 9.19 | % of monthly growth (%) | 1.07 | -0.84 | 1 | Urban Subscribers (million) | 586.26 | 24.94 | 611.19 | Net addition (million) | 4.93 | -0.2 | 4.73 | % of monthly growth (%) | 0.85 | -0.8 | 0.78 | Rural Subscribers (million) | 307.59 | 7.75 | 315.33 | Net addition (million) | 4.54 | -0.07 | 4.47 | % of monthly growth (%) | 1.5 | -0.94 | 1.44 | Overall Tele-density | 74.15 | 2.71 | 76.86 | Urban Tele-density | 161.01 | 6.85 | 167.85 | Rural Tele-density | 36.56 | 0.92 | 37.84 | Share of Urban subscribers | 65.59% | 76.30% | 65.97% | Share of Rural subscribers | 34.41% | 23.70% | 34.03% | Industry in the pre-independence era: The industry was born in 1850 under the British East India Company...
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...Indian telecom sector is more than 165 years old. Telecommunications was first introduced in India in 1851 when the first operational land lines were laid by the government near Kolkata (then Calcutta), although telephone services were formally introduced in India much later in 1881. Further, in 1883, telephone services were merged with the postal system. In 1947, after India attained independence, all foreign telecommunication companies were nationalised to form the Posts, Telephone and Telegraph (PTT), a body that was governed by the Ministry of Communication. The Indian telecom sector was entirely...
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...Porter’s five forces analysis for the industry and also cover industry trends and driving forces Indian telecom industry ranked second in the world, is one of the rapidly growing and expanding industry with 1035.18 million subscribers. The growth in subscribers is dominated by the increase in number of subscribers in wireless mobile segment with a quarter growth rate in the tune of 1.66%(including wireless and wire line). The liberal and reformist policies of the Government of India have been instrumental along with strong consumer demand in the rapid growth in the Indian telecom sector. The government has enabled easy market access to telecom equipment and a fair and proactive regulatory framework that has ensured availability of telecom services to consumer at affordable prices. The deregulation of foreign direct investment (FDI) norms has made the sector one of the fastest growing and a top five employment opportunity generator in the country. Trends observed in Telecom Industry LTE to become mainstream in India; Indian subscripbers will adopt to 4G considering the affordability of prices and need for high speed data. This is even complemented by the growth in smart phone purchases | Public Wifi gaining traction in metropolitan cities as a part of Digital India | Smart Phone becoming integrated part of life, thus increase in the usage of data over voice | Intense competition foreseen in the telecom industry due to delayed M&A activities | Ease in regulatory...
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