2. Equilibrium Rumblings Identity crisis Refocus Dynamic
competition 2001 1999 1998 1995- 1996 1997 1994 2000 2002 2003 Upto
1994 National TelecomPolicy, 1994 New TelecomPolicy, 1999 2004
Unified LicensingRegime
- Strategy heavily influenced by Government and Regulators
- Fully adjusted marketplace
- No distinction between incumbents & challengers
- Wide range of customer choice
- Normal market forces apply
- Technological advances lead to substitutes
- Niche players evolve / Call-back operators provide service
- Traditional assumptions challenged
- Marketing and sales focus
- Competitors find niche or die out
- Greater emphasis on shareholder value
- Focus on customer satisfaction
Life Cycle Stage of Indian Telecom 3.
- Revenue to increase 3 times in the next 5 years
- Current teledensity of 8.8 % set to increase to 20% in the next
5 years beating
- Government targets by 3 years
- Growth rate about 2.5 million subscribers per month
- Mobile subscriber base has surpassed the fixed lines
Indian Telecom on the cusp of paradigm shift 4. Telecom
Market
- 7th largest telecom network in the world
- Telecom network growth rate 30%
- Fixed lines 44.76 million
- Wireless connections48 million
- 2010 (projected) US$ 23 billion
5. Telecom Services Market
- Share in total revenue of
- Wireline services to fall from half to 30%
- Wireless servicesto rise to half
- Data revenueto rise from 2% to 8%
Over next5-8 years 6. Rising Teledensity & Telephone
Subscribers
- India is targeting 250 million users by 2007
- India needs$30 billion to meet a target of one phone for every
fivepeople by 2010
- Total telecom revenues expected to almost triple fromUS$ 9
billion in 2002 to US$ 23-25 billion by 2007.
7. Telecom Equipment Market
- Telecom equipment market size US$ 19.4 billion
- Telecom handset marketUS$ 8.4 billion
2004 - 08 (estimated) 8.
- Subscriber base :Almost 1.5 million wirelesssubscribers added
every month
The Mobile Market
- Number of networks(GSM) 70
- Number of cities covered(GSM)2000
9. Market Share of Major Players 10. Market Share of Major GSM
Players 11. Market Share of Major CDMA Players 12. National Telecom
Policy (NTP) - 1999 Impact of NTP-99 on mobile subscriber
uptake
- Migration from fixed to revenue share license fee regime
- Liberalised long distance sector
13.
- FDI limit increased from 49% to 74%.
- Virtually complete deregulation
- Unified Access Service License
- Interconnection Usage Charge (IUC)
- Broadband Policy announced. Targets 20 million broadband
subscribers by 2010.
- Exemption from customs duty for import of MSCs (Mobile
Switching Centre)
Policy Advantage 14. India outshining China In the 9th year of
wireless operation China6.8 million India28 million Subscriber In
millions Years India Vs China in comparable years of service
15.
- Market share in telecom: 21.7%
- Market share in GSM Segment: 29.0%
- Customer base growth rate: 5.69%
-
- Blackberry Wireless Handheld
Airtel: Major player in Indian Telecom Sector 16.
- Presence in all thetelecom circles
- Developed Infrastructure in place
- Strong and loyal consumer base
- Weak communication in comparison of competition
- High attrition rates in the industry
Airtel: SWOT Analysis 17. Airtel: SWOT Analysis
- Leverage form existing Infrastructure
- Rapidly turning into an entertainment media
- Entrance of global players
- Risk of Technology obsoletion and continuous need of up
gradation
- No distinction between new entrants and incumbents
18.
References 19. Thank You