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Industry Analysis Company service portfolio 1. Wireless services 2G 3G Rural Market 2. Enterprise Services Carriers Corporates 3.

es 3. Passive Infrastructure services Infratel Indus 4. DTH Pay per view / HD Interactive Services including gaming Industry Competition The market in the telecom sector is hypercompetitive with 13 players in the market and ensuing price ware. The resulting decline in the ARPU has reduced the attractiveness of the industry. Herfindahl- Hrishman Index as on July 2011 Company Airtel Reliance Vodafone BSNL-MTNL Idea Tata Others Total Customer Market Share(%) 19.9 16.9 16.7 11.7 11.2 10.3 13.4 CMS^2
0.039601 0.028561 0.027889 0.013689 0.012544 0.010609 0.017956 0.150849

So the competition is considerably high. SWOT Analysis of the Telecom Industry

SWOT Analysis of Telecom Industry

STRENGTHS 1. Huge customer potential urban teledensity 48% and teledensity 21% 2. High Growth Rate Mobile subscribers growing at 60% 3. High return on Investement due to economies of scale WEAKNESSES



OPPORTUNITIES Porters 5 Force Analysis Threat of New Entrants

Bargaining Power of Buyers

Industry Rivalry

Bargaining Power of Suppliers

Threat of Substtutes

Threat of entrants Entry Barriers for new entrants Force is low


Super-natural profits in the Industry which may Not present attract new entrants Hyper competition Huge licensing and infrastructure cost reduces the Force reduces the Force

Bargaining Power of Suppliers Backward Integration into Network maintenance Force is low (Bharti Infratel,) Partnerships with Network hardware providers Force is low (Ericsson; Nokia; Huaw ei; Alcatel Lucent) Department of Telecommunications which sells Force is high bandwidth


Threat of Substitutes VOIP(Voice over internet protocol)

HIGH Force is medium

Internet Voice Chat services (e,g. Skype, GTALK Force is high etc.) Mobile phone providers with their own services Force is medium such as Blackberry, IPhone etc. Social networking websites Force is high

Bargaining Power of Buyers Small and medium businesses Retail consumers Broadband and Data services

HIGH Force is high Force is high Force is high

3G services Industry Rivalry 14 Competitors

Force is high HIGH Force is high

Competition for bandwidth and ARPU in each Force is high telecom circles

Complementers Demographic dividend Force is high


Culturally Indians stay in touch with their kith Force is high and kin

S-Curve Industry Life Cycle Approach

Largest mobile Operators by the number of subscribers Total subscribers in Company China Mobile Vodafone Group Telefonica America Movil Group Bharti Airtel-Zain Africa China Unicom Deutsche Telekom Group Telenor Group Sistema Group Reliance Communications millions(approx) 525 309 202 186 179 147 102 101 97 94