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SWOT Analysis Indian Telecom Industry
SWOT Analysis Indian Telecom Industry
Indian Telecom market is one of the fastest growing markets in the world. Indian telecom network has about 562.21 million connections as on 31 December 2009. With 525.15 million wireless connections, Indian telecom has become the second largest wireless network in the world after China. About 15 million connections are being added every month. Wireless telephones are increasing at faster rate. The share of wireless telephones as on December 31, 2009 is above 93% of the total phones. The share of private sector in total telephone is about 82.33%.
Strengths
Huge Customer potential
Teledensity still being 48% and rural tele-density 21%. The broadband subscribers grew from 0.18 million in 2005 to6.2 million as on 30 April 2009 and about 7.98 million, at the end of the December 2009.
Weakness
Poor Telecommunication Infrastructure Result : Large number of call drops. Late adopters of New Technology India will be among the last countries in the world to get access to 3G technology. Some estimates suggest that nearly 132 countries across the world already have 3G technology and mobile services in one form or the other. Most competitive market 10 to 12 companies offer mobile services in most parts of India, globally, the average is 4. A market strongly regulated by Government. Difficult to enter because of requirement of huge financial resources. E.g Auction of 3G license has reached Rs 15814.15 crores.
Opportunities
3G Telecom services and 4G services More Quality Service
Mobile Number Portability will force the Service provider to improve their quality to avoid losing subscribers
4.1
4.2
Horizontal Integration Entry Into other consumer segments leveraging the present channels E.g. DTH service like Reliance BIG TV, Tata SKY, Airtel digital TV by telecom majors like Reliance, Tata and Airtel Respectively. Other examples : Airtel website builder Providing fibre Connectivity to 2,50,000 village panchayat by 2012. More scope in content related services, since, the consumer is influenced by local culture. Local festivals like Baisakhi, Chhath Puja, religious festivals like Diwali, Chrismas etc., National festivals like Independence Day etc.
Threats
Telecommunication Policies
e.g. Trai's 2G direction affecting new players most notably Tata Teleservices, Norways Telenor and Essar-owned Loop Telecom Renewal of 2G license on the basis of market rates of 3G auctions TRAI intentions of rolling out 4G or the fourth-generation technology, known as the ultra-broadband in 2-3 years raising fears rendering 3G services somewhat obsolete.
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