COMPETITIVE RIVALRY BETWEEN ESTABLISHED FIRMS IN THE TELECOM INDUSTRY

INTRODUCTION
For most industries, the major determinant of the overall state of competition and the general level of protability is competition among the rms within the industry. In some industries, rms compete aggressively sometimes to the extent that prices are pushed below the level of costs and industry wide losses are incurred. In others, price competition is muted and rivalry focuses on advertising, innovation, and other non price dimensions.

FACTORS RESPONSIBLE FOR COMPETITIVE RIVALRY AMONG FIRMS

Four major factors which play an important role in determining the nature and intensity of competition between established rms. These are :

Concentration,
The diversity of competitors

Product differentiation
Excess capacity

TELECOM INDUSTRYS MAJOR PLAYERS

There are three types of players in telecom services State owned companies

BSNL and MTNL

Private Indian owned companies Reliance Infocomm TataTeleservices.

 Foreign invested companies Vodafone Bharti Airtel Idea Cellular