Telecommunication Industry Case Study
STRUCTURE OF TELECOM INDUSTRY Table of Contents 1. INTRODUCTION: 3 2. MARKET SIZE: 3 3. PLAYERS: 3 4. GROWTH RATES 4 5. PORTER’S FIVE FORCE MODEL 4 6. PRODUCT CATEGORY 6 7. CUSTOMER BASE 6 8. SUPPLIER 6 9. PESTLE 6 10. PRICING 6 11. REFERENCES 6 INTRODUCTION The Telecommunication industry is one of the key driving factors for the development of a nation. By facilitating communication and connectivity across India, it serves as a pillar to our economic and industrial development. In spite of mitigated growth in the recent years, mobile telephony has seen a rapid growth overall in the past 10 years. MARKET SIZE The industry has two major subscriber bases – wireless and wireline. As of August 2015, there were 988.69 …show more content…
Since all the telecom providers are selling Voice and Data connections, they are only able to differentiate themselves via price differentiation. Airtel, who has launched 4G for the first time in India, in August 2015, has brought the differentiating factor to the telecom industry. Similarly, Reliance too will be launching 4G in the coming months. However they may have a competitive advantage as they are also introducing low cost 4G enabled handsets. This could incentivize consumers to try 4G services more. As mentioned earlier, MNP allows for consumers to switch to another network easily, which increases the competitive rivalry among the telecom players. Furthermore the barriers to exit are high as companies make huge investments when acquiring towers and 2G, 3G and 4G spectrum. The technology of one company can be copied by another company via licensing and infrastructure investments, hence the first mover advantage, though important, cannot be leveraged by the company …show more content…
The government policies can also play a spoilsport in the telecom industry as they can give licenses to other foreign players which will increase the competition in already competitive market. Moreover new technologies like Voice over Internet Protocol which is the ability to make a voice call over the internet has given already burdened Indian telecom companies more cause for concern as they worry about the dent in their data revenue from OTT (over the top) service providers like WhatsApp, WeChat, Line and Hike. For instance, a voice call on WhatsApp or Skype that bypasses a company is foregone revenue. Also, instant messages have eaten into companies’ revenue from their SMS
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