THREAT OF NEW ENTRANTS (MODERATE): It comes as no surprise that in the capital-intensive telecom industry the bigge st barrier to entry

is access to finance. To cover high fixed costs, serious contenders typically requi re a lot of cash. In addition, it is important to remember that solid operating skills and management experience is fairly scarce, making entry even more difficult. But still Threat of new entrant s is always there for any company. POWER OF SUPPLIERS (LOW): At first glance, it might look like telecom equipment suppliers have considerabl e bargaining power over telecom operators. Indeed, without high-tech broadband switching equ ipment, fiberoptic cables, and mobile handsets and billing software, telecom operators would not be able to do the job of transmitting voice and data from place to place. But there are actual ly a number of large equipment makers around. There are enough vendors, arguably, to dilute bar gaining power. A company will have a variety of suppliers to choose from, because most of the s uppliers would be eying to get the contract to be the supplier of the company. POWER OF BUYERS (HIGH): Lack of differentiation amongst the service providers has led to sort of commodi tization of the product. A company provides the same service as others provide, this lack of di fferentiation gives customer an edge to bargain with service providers, they can switch to any other provider any time they want. Fierce competition among the competitors also offers a great dea l to bargain. As the switching cost is also very low, all these situations are creating problems in the growth of many companies AVAILABILITY OF SUBSTITUTES (HIGH): Products and services from non-traditional telecom industries pose serious subst itution threats. Cable TV and satellite operators now compete for buyers. The cable guys, with th eir own direct lines into homes, offer broadband internet services, and satellite links can sub stitute for highspeed business networking needs. The threat of the substitutes for any company i s very high in Indian market as the already existent players have a huge market share and bette r brand perception among the consumers, making it tough for a comapny to win the trust of its customer and increase its market share.