PRICE WAR IN

TELECOM SECTOR

WILL NOT BENEFIT THE

COMPANIES AND THE
CUSTOMERS
GROUP 5B (Div C)

Ekta Bhalja 304

Amey Bhonslay 305
Megha Harbhajanka 319
Ganesh Jalan 324
Ruchi Rudra 348
Karan Vasani 359
 The News Room

Telecom Conference Overview

Indian Telecom Industry – A Snapshot

 India is the 2nd largest wireless network in the world

 Currently the total number of subscribers are at 600.69

million
 Wireless segment increased to 563.73 million
 Wire line segment it dropped to 36.96 million

 Tele-density – 51.05%

 Addition of 18.76 million – February 2010

 The total broadband subscriber base increased to 8.59

million
Market share of the top players in the
Industry
Drivers of the Telecom Industry
The Corporate
Angle
 News Flash- Corporate Angle

 Drop in ARPU – Average Revenue Per user

 ARPU levels continue to fall at an increasing rate 19.7%

industry average ARPU growth in Q1 2009.

 ARPU for Indian industry in March 2009 was Rs 220.

 Saturated Urban Market

 Untapped Rural population
 Constantly falling tariffs
Distribution of ARPUs Vs Penetration
across all circles in India
Figures in the above table is in Million
 News Flash- Corporate Angle

Threat of new entrants

 New price plans
Number Portability Issues
Spectrum limitation
 Division into cells for frequency re-use.
 News Flash- Corporate Angle

3rd Generation – Higher band-width for better data

transmission
 Future in hands of 3G players
 Government policy to provide license
 Customers to be attracted to these players

Cartelization/Consolidation

Zonal Division
Customers Angle
 News Flash- Customers Angle

Short term :-

 Difficulty in switching to new numbers

 Cost of changing usage plans

 News Flash- Customers Angle

Long term:-

 Consolidation
 Less choice to customers
 Quality of service doubtful
 Increase in prices of VAS
 3G service provided by limited Companies
 Conclusion

Current scenario
 Not Beneficial to Companies
 Beneficial to customers

Future- post 3G and Number portability

 Limited companies Benefit
 Others Suffer
 Not so beneficial to customers
 Conclusion

There is no one winner however, who

stand tall amidst all this turmoil :
The Mobile subscriber
THANK YOU