Telecom Sector Analysis India Company Analysis Bharti Analysis

2019 words - 9 pages

Indian telecom industry has seen tremendous growth in last few years driven primarily by parallel economic growth, rising income levels and favorable demographics. With close to 300million customers presently and with a target of 500million customers by 2010(Annual report 2007-2008 of Bharti Airtel) it makes India one of the largest telecom markets in the world. Indian telecom industry is expected to face serious competition with new entrants and global telecom operators, many of which wish to re enter India to be a part of success regime of Indian Telecom industry.The success of Indian telecom industry is attributed not only to the entrepreneurial spirit of telecom industry but also to ...view middle of the document...

Companies also have to decide their prices according to the customers they are serving: rural or urban.Social factorsSocial factors include demographical and cultural aspect of the external macroeconomic environment. As 54% of Indian population is under 25 years of age the size of potential market is large.Technical aspect:India has opted for use of both GSM (global system of mobile communication) and CDMA(code-division multiple access) technologies in mobile sector.Major PlayersThere are three types of players In Indian Telecom Industry-State owned companies like BSNL and MTNL-Private Indian owned companies like, reliance, Tata Indicom-foreign invested companies like Vodafone, Bharti Airtel ltd,Idea cellular, Spice communications etc.Competitor analysisBharti AirtelReliance communicationsBSNL/MTNLPricingNot that low.Very cheap in own network relatively high on other networks.Relatively low as are government owned.qualityGSM major, also provides broadband services and proposed DTH and IPTV services.Majorly CDMA and GSM in some AreasAlso provides broadband services and Proposed DTH and IPTV services.Landline, GSM mobile services also provides CDMA services.DistributionYet to trap rural areas.Dominates just in GSM mobile services with a 33% mobile market share..Yet to trap rural areas.Dominates CDMA mobile services with a second largest mobile customer base.Distributed well both in rural and urban areas.Dominates landline sector of India.PartnershipWith Singtel in SrilankaWith Nokia and Apple for providing handsets.In talks to acquire MTN south African telecom giant.With Blackberry and LG to provide handsets.SWOT analysisStrengthStrong Economy and growing market.Better regulatory facilities for existing as well as new players.Appetite for increased consumption of services. WeaknessSlow pace of reforms.Huge initial cost required to enter un trapped rural areas.OpportunitiesA huge unexplored market in semi rural and rural areas.One billion population and raised per capita income.54% population under 25 years of age. ThreatIncreased competition.New entrants.Finally, Telecommunication activities have gained momentum in India and are penetrating the socio-culturally diverse society, transforming India into a nation of technology aware people.BHARTI AIRTELBharti Airtel is a part of Bharti enterprises and is India's leading provider for telecommunication services. It is India's largest integrated and the first private telecom service provider with a footprint in all 23 telecom circles with more than 69.4 million subscriber(as on July 2008 according to official website of company) offering both fixed line services, mobile services and broadband services..Bharti Airtel since its inception has been at the forefront of technology and has steered the course of telecom sector in the country with its world class services and products.Telecom giant Bharti Airtel is a public listed company founded in 1985 with its headquarters located at New Delhi. It offers its...

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