Telecom industry in India has undergone a revolution during the past few years with tremendous growth in the

telecom subscriber base. Additionally, the countrys telecom industry is one of the fastest growing and one of the largest telecommunication networks in the world. With the ongoing investments into infrastructure deployment, the country is projected to witness high penetration of Internet, broadband, and mobile subscribers in near future. According to our new analytical study on the sector Indian Telecom Analysis (2008-2012), mobile telephony continues to fuel growth in the Indian telecom sector with mobile subscriber base projected to grow at a CAGR of around 6.6% during 2011-12 - 2014-15. Other segments of the industry, like Internet are also anticipated to witness strong growth in terms of both subscriber addition and network infrastructure deployment during the forecast period. Moreover, with the launch of 3G services, the country is expected to witness rapid surge in the broadband subscribers base during the coming years. Tele-density in India has significantly improved during the past few years and has covered large portion of the countrys population owing to the improving network infrastructure. Further, launch of advanced telecom services, such as 3G and IPTV will also drive growth in the Indian telecom subscriber base during the forecast period. Moreover, mobile handset market is expected to register robust growth in near future. In this regard, our report provides rational analysis of the factors, which are driving the growth of mobile handset market in India. Additionally, various factors driving the overall telecom market have been thoroughly analyzed in the report. Our report Indian Telecom Analysis (2008-2012) is an outcome of an extensive research and conceptual analysis of the telecom industry in India. The report provides a detail study of the Indian telecom sector and presents an analysis of the competitive environment prevailing in the industry. The report thoroughly studies fixed, mobile, Internet, and broadband markets in terms of both players as well as number of subscribers. It also presents the future outlook of the Indian telecom sector to help clients identify the growth opportunities in the market. Besides, the report covers the information of the key players in the Indian telecom industry along with their strengths and weaknesses.
Telecom industry in India has a big market potentiality and is a fast growing sector. Government of India is eager to reconstitute this telecom industry by enacting effective policies for more investments from foreign companies, which results in a very competitive and deregulated market in the world.

Policies of telecom industry in India

Government of India implemented the unified access licensing regime, which enables basic and cellular mobile service to use any modern technology. In 1997, Telecom Regulatory Authority of India (TRAI) was formed to facilitate the growth of the telecom sector in India.

Major services and market potentiality of Telecom industry in India

Telecommunication sector in India is primarily subdivided into two segments, which are Fixed Service Provider (FSPs) and Cellular Services. Telecom industry in India constitutes some essential telecom services like telephone, radio, television and Internet. Telecom industry in India is specifically emphasizing on latest technologies like GSM( Global System for Mobile Communications), CDMA(Code Division Multiple Access), PMRTS(Public Mobile RadioTrunking Services), Fixed Line and WLL(Wireless Local Loop ). India has a prospering market specifically in GSM mobile service and the number of subscribers is growing very fast.

Economic perspective of telecom industry in India

Telecom industry in India has a major role in Indian economy. The Indian government is also enforcing some effective telecom policies and regulations for the infrastructural growth of this industry. Indiantelecom market provides a tele-density of 8.5 percent as registered in the year 2004. A number of leading multinational telecommunication companies are approaching and showing their interest to invest for the telecom industry in India. Telecommunicationindustry of India ranked sixth among all the telecommunication sectors in the world. In the year 2004, the total number of telephone subscriptions were US$93.2.

Leading telecommunication service providers of telecom industry in India

Bharat Sanchar Nigam Limited, Mahanagar Telephone Nigam Limited (MTNL), Videsh Sanchar Nigam Limited (VSNL), Bharti Airtel, Tata Teleservices, SIFY Ltd. are the major telecommunications service providers in India.

Telecom industry analysis uncovers the fact that this industry has a huge business potentiality and is going to be a booming industry. Telecom industry analysis also reveals that this industry will provide an immense employment opportunity in the coming years. Statistical report Phoenix Center research revealed that in the coming years, there will be a healthy competition among the providers of telecommunication services. At the same time, the price will be lower and quality will be higher. The new telecommunications technologies will replace the traditional telecom services. Statistical data also reveals that the telecommunications industry is going to be a dynamic and booming industry in the near future. The telecom industry comprises of complex network of services like telephones, mobile phones and internet services. Telecom industry trends Throughout the world, telecom industry are being controlled by private companies instead of government monopolies. Traditional telecom technologies are also being replaced by modern wireless technologies, specifically in case of mobile services. One of the major objectives of telecom industry is to enhance the quality and speed of Internet technology. These days, telecom industry is more concerned with texts and images (Internet technologies), rather than voice(telephone service). Most of the research works are going on Internet accessibility, specifically on data applications and broadband services. The other major division of telecom industry is mobile network sector, where lots of innovative research works are going on. Previously the traditional telephone calls used to earn the maximum revenues, but these days mobile service is going to replace traditional telephone services. Telecom industry is a vast and diversified industry and needs a huge capital to invest. That is why the competitors of this industry should be such that they can meet that demand. From the investor's point of view, it can be said that they should be well aware of cash flow in this industry.

PORTERS FIVE FORCE ANALYSIS THREAT TO NEW ENTRANTS Profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry. The most attractive segment is one in which entry barriers are high and exit barriers are low. Few new firms can enter and nonperforming firms can exit easily. However there are certain barriers that can restrain a new firm from the industry are as follows: 1. Economies of product differences 2. Brand equity 3. Switching costs or sunk costs 4. Capital requirements 5. Access to distribution 6. Customer loyalty to established brands 7. Absolute cost 8. Industry profitability; the more profitable the industry the more attractive it will be to new competitors. THE THREAT OF SUBSTITUTE PRODUCTS OR SERVICES The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives: Buyer propensity to substitute Relative price performance of substitute Buyer switching costs Perceived level of product differentiation Number of substitute products available in the market Ease of substitution. Information-based products are more prone to substitution, as online product can easily replace material product. Substandard product THE BARGANING POWER OF CUSTOMERS (BUYERS) The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes. Buyer concentration to firm concentration ratio Degree of dependency upon existing channels of distribution Bargaining leverage, particularly in industries with high fixed costs Buyer volume Buyer switching costs relative to firm switching costs Buyer information availability Ability to backward integrate Availability of existing substitute products Buyer price sensitivity Differential advantage (uniqueness) of industry products RFM Analysis

THE BARGANING POWER OF SUPPLIERS The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm, or, e.g., charge excessively high prices for unique resources. Supplier switching costs relative to firm switching costs Degree of differentiation of inputs Impact of inputs on cost or differentiation Presence of substitute inputs Strength of distribution channel Supplier concentration to firm concentration ratio Employee solidarity (e.g. labor unions) Supplier competition - ability to forward vertically integrate and cut out the BUYER Ex. If you are making biscuits and there is only one person who sells flour, you have no alternative but to buy it from him. [edit]The intensity of competitive rivalry For most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry. Sustainable competitive advantage through innovation Competition between online and offline companies Level of advertising expense Powerful competitive strategy The visibility of proprietary items on the Web[2] used by a company which can intensify competitive pressures on their rivals. How will competition react to a certain behavior by another firm? Competitive rivalry is likely to be based on dimensions such as price, quality, and innovation. Technological advances protect companies from competition. This applies to products and services. Companies that are successful with introducing new technology, are able to charge higher prices and achieve higher profits, until competitors imitate them. Examples of recent technology advantage in have been mp3 players and mobile telephones. Vertical integration is a strategy to reduce a business' own cost and thereby intensify pressure on its rival... [edit]

With rural teledensity at about 25% as compared to urban teledensity of 100%, the next wave of growth will come from rural areas.

PORTER FIVE ANALYSIS : Threat from New Entrants Supply Side Economies Of Scale declining ARPU Infrastructure tenancy costs Other FC like BPO Demand Side Benefits Brand pull exists to some extent for brands like airtel /idea/ Vodafone Customer Switching Costs Cost of new connection low Proposed number portability Capital Requirement Extremely high

infrastructure setup costs Spectrum License cost Incumbent Advantages Established brand image Reliability of network Uneven access to Distribution Channels Not a factor Restrictive Govt Policy Spectrum and license allocation 3G and Number portability policy still unclear. 74% FDI cap. Minimum requirement of number of towers.

Power of the buyer Lack of differentiation among the service provider Cut throat competition Customer is price sensitive Low switching costs Number portability to have negative impact

Supplier Bargaining Power Large number of suppliers. Shared tower infrastructure. Limited pool of skilled managers and engineers especially those well versed in the latest technologies. Medium cost of switching since changing their hardware would lead to additional cost in modifying the architecture. Overall influence on the industry medium Rivalry among Existing Competitors High Exit Barriers High Fixed Cost 6-7 players in each region 3 out of 4...

Mobile handset market is expected to register robust growth in near future which is driving the growth of mobile handset market in India. Additionally, various factors driving the overall telecom market have been thoroughly analyzed in the report.