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WILL NOT BENEFIT THE COMPANIES AND THE
CUSTOMERS
PRICE WAR IN TELECOM SECTOR
GROUP 5B (Div C)
Ekta Bhalja 304Amey Bhonslay 305Megha Harbhajanka 319Ganesh Jalan 324Ruchi Rudra 348Karan Vasani 359
The News Room
Telecom Conference Overview
Indian Telecom Industry – A Snapshot
India is the 2nd largest wireless network in the world
Currently the total number of subscribers are at 600.69 million Wireless segment increased to 563.73 million Wire line segment it dropped to 36.96 million
Tele-density – 51.05%
Addition of 18.76 million – February 2010
The total broadband subscriber base increased to 8.59 million
Market share of the top players in the Industry
Drivers of the Telecom Industry
The Corporate Angle
News Flash- Corporate Angle
Drop in ARPU – Average Revenue Per user
ARPU levels continue to fall at an increasing rate 19.7% industry average ARPU growth in Q1 2009.
ARPU for Indian industry in March 2009 was Rs 220.
Saturated Urban Market Untapped Rural population Constantly falling tariffs
Distribution of ARPUs Vs Penetration across all circles in India
Figures in the above table is in Million
News Flash- Corporate Angle
Threat of new entrants New price plans
Number Portability IssuesSpectrum limitation
Division into cells for frequency re-use.
News Flash- Corporate Angle
3rd Generation – Higher band-width for better data transmission Future in hands of 3G players Government policy to provide license Customers to be attracted to these players
Cartelization/Consolidation
Zonal Division
Customers Angle
News Flash- Customers Angle
Short term :-
Difficulty in switching to new numbers
Cost of changing usage plans
News Flash- Customers Angle
Long term:-
Consolidation Less choice to customers Quality of service doubtful Increase in prices of VAS 3G service provided by limited Companies
Conclusion
Current scenario Not Beneficial to Companies Beneficial to customers
Future- post 3G and Number portability Limited companies Benefit Others Suffer Not so beneficial to customers
Conclusion
There is no one winner however, who stand tall amidst all this
turmoil : The Mobile subscriber
THANK YOU