Swot Analysis Of Telecommunication

INTRODUCTION Today’s dictionary does not get complete without the mentioning of words liberalization, globalization and privatization. These initiatives gave way to all-round reforms, especially in developing economies, like India. These countries realized that development of effective and efficient means of communications and information technology is important to push them onto the path of development. The growth of the telecom sector in India during post-liberalization has been phenomenal. This report aims to throw light on the factors that contributed to growth in the segment and also presents an insight in the present status of the industry. As part of our Telecom market analysis we have taken the telephony sector and specifically

Further, due to shortage of funds with the government, the government could never meet the demand for telephones lines in the country. In fact, a person applying for a telephone connection had to wait for years before he could get a telephone service. The service offered by the government monopoly was also very poor. In India, as in many developing nation, low tele-density led to greater priority being placed on expanding services and outreach rather than on improving quality of service. Telephone faults per 100 main lines in Mumbai and Delhi were 11.72 and 26.6 in 1997-98. Wrong billing, telephones lines being out of order for many days continuously due to incompetent staff responsible for handling of complaints, cross connections due to faulty / ill maintained telephone lines, out of date instruments and machinery in the telephone department was the order of the day in the pre reforms period. The number of telephone connections which was only 2.15 million (fixed lines) in 1981 increased to only 5.07 million (fixed lines) in 1991. The mobile services were commercially launched in August 1995 in India. In the initial 5-6 years the average monthly subscribers additions were around 0.05 to 0.1 million

Vodafone on the other hand has never endorsed celebrities to the brand and has instead created animated characters called Zoozoos for its strong advertising campaign. Zoozoos even created a ‘buzz’ in the market. Both companies try to leverage consumers by indulging in non-price competition.

Price Setter – In case of Oligopoly price is set by the few dominant players in the market. . Telecom sector is the price setter rather than proce taker. The only condition for being a price setter is that the prices should be reasonable or else entire industry might lose revenue.

Market Players

Indian Telecom Industry is Oligopoly in nature because of very service providers in the segment . There are few players who provide the telecom services to the consumer. After the privatization of the telecom sector only few parties came to provide services in the sector . Due to higher investment cost, increased regulation and higher value for the license etc there is high entry and exit barrier to this industry. Top 5 players contribute to 79% of the market share considering the April 2013 data on active subscription for telecommunication. The competitor market share split is given