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Telecommunication Industry In India Report Transcript
Industry Overview
The Indian Telecommunications network with 203 million connections is the third largest in the world and the second largest among the emerging economies of Asia.
Today, it is the fastest growing market in the world. The telecommunication sector continued to register significant success during the year and has emerged as one of the key sectors responsible for India’s resurgent India’s economic growth.
• Telecom sector accounts for 1 percent of India’s GDP. Likely to double in 2-3 years
• Telecom services contribute 30 percent to India’s total service tax revenue
• The Indian telecom sector gives direct employment to more than 4,00,000 people, compared to about 6,00,000 people in China
• Not just the enabler of software, BPO and ITeS companies, it is also the lifeline of a fast growing E-commerce space
• State-of-the-art telecom infrastructure has led to the rise of cities like Mysore, Mangalore, Jaipur, Ahmadabad and Kochi on the software services map
• This has helped spread the benefits of a booming Indian economy to beyond metros and large cities, and wealth creation is happening in tier-2 cities
GROWTH
The sector, which was growing in the range of 20 to 25 per cent up to the year 2002-03, has moved to a higher growth path of an average rate of 40-45 per cent during the last two years.
This rapid growth has been possible due to various proactive and positive decisions of the Government and contribution of both by the public and the private sector. The rapid strides in the telecom sector have been facilitated by liberal policies of the Government that provide easy market access for telecom equipment and a fair regulatory framework for offering telecom services to the Indian consumers at affordable prices.
MARKET SHARE
Participation of the private entities in the telecom sector is rapidly increasing rate thereby presenting the enormous growth opportunities.
PERFECT COMPETITION
Type of Market Number of Sellers Entry Barriers to Sellers Nature of Product
Perfect Competition Many, small, Independent None Homogeneous
Important Regulations and Laws passed
HERFINIDAHL INDEX
Major Players Market Share
Bharti Airtel 22% 0.22 0.0484
Reliance 17% 0.19 0.0361
Vodaphone 15% 0.16 0.0256
BSNL 18% 0.18 0.0324
TTSL 9% 0.09 0.0081
Idea 9% 0.09 0.0081
Aircel 5% 0.05 0.0025
MTNL 1% 0.01 0.0001
Spice 1% 0.01 0.0001
Others 3% 0.03 0.0009
SUM 0.1623
The Indian Telecommunications network with 203 million connections is the third largest in the world and the second largest among the emerging economies of Asia.
Today, it is the fastest growing market in the world. The telecommunication sector continued to register significant success during the year and has emerged as one of the key sectors responsible for India’s resurgent India’s economic growth.
• Telecom sector accounts for 1 percent of India’s GDP. Likely to double in 2-3 years
• Telecom services contribute 30 percent to India’s total service tax revenue
• The Indian telecom sector gives direct employment to more than 4,00,000 people, compared to about 6,00,000 people in China
• Not just the enabler of software, BPO and ITeS companies, it is also the lifeline of a fast growing E-commerce space
• State-of-the-art telecom infrastructure has led to the rise of cities like Mysore, Mangalore, Jaipur, Ahmadabad and Kochi on the software services map
• This has helped spread the benefits of a booming Indian economy to beyond metros and large cities, and wealth creation is happening in tier-2 cities
GROWTH
The sector, which was growing in the range of 20 to 25 per cent up to the year 2002-03, has moved to a higher growth path of an average rate of 40-45 per cent during the last two years.
This rapid growth has been possible due to various proactive and positive decisions of the Government and contribution of both by the public and the private sector. The rapid strides in the telecom sector have been facilitated by liberal policies of the Government that provide easy market access for telecom equipment and a fair regulatory framework for offering telecom services to the Indian consumers at affordable prices.
MARKET SHARE
Participation of the private entities in the telecom sector is rapidly increasing rate thereby presenting the enormous growth opportunities.
PERFECT COMPETITION
Type of Market Number of Sellers Entry Barriers to Sellers Nature of Product
Perfect Competition Many, small, Independent None Homogeneous
Important Regulations and Laws passed
HERFINIDAHL INDEX
Major Players Market Share
Bharti Airtel 22% 0.22 0.0484
Reliance 17% 0.19 0.0361
Vodaphone 15% 0.16 0.0256
BSNL 18% 0.18 0.0324
TTSL 9% 0.09 0.0081
Idea 9% 0.09 0.0081
Aircel 5% 0.05 0.0025
MTNL 1% 0.01 0.0001
Spice 1% 0.01 0.0001
Others 3% 0.03 0.0009
SUM 0.1623
It is a way of measuring the concentration of market share held by particular supplier in a market. The H index is the sum of squares of the percentage of the market share held by the firm in a market.
Herfindahl Index 0.1623
INDIAN OPERATOR SUBSCRIBER
• Bharti Airtel
• Vodafone
• BSNL
• Idea Cellular
• Aircel
• MTNL
• Spice Telecom
• Reliance Communications
• Tata Teleservices
DOMINANT PLAYER
• Airtel
• Reliance Infocomm
• Vodafone
• Idea cellular
• BSNL
• MTNL
Herfindahl Index 0.1623
INDIAN OPERATOR SUBSCRIBER
• Bharti Airtel
• Vodafone
• BSNL
• Idea Cellular
• Aircel
• MTNL
• Spice Telecom
• Reliance Communications
• Tata Teleservices
DOMINANT PLAYER
• Airtel
• Reliance Infocomm
• Vodafone
• Idea cellular
• BSNL
• MTNL
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