Managerial

Economics
Project Aniket Kadam
Antra Verma
Group 7
2011392
2011441
Nitish Nair 2011412
Dhruvi Patel 2011414
Swarnabha Saha 2011422
The BSNL Story So Far !
 Demand function for BSNL

DB= f( PB, PA, I, TB, TPP, SS, EJ)

Where, DB= Demand of BSNL (subscribers in millions)
Variable Description Coefficient p-value source

Intercept of the Demand equation 79.396 6.74E-05

PB Price of BSNL (ARPU in Rs) -0.031 0.135 TRAI, CMIE

PA Price of Airtel (ARPU in Rs) -0.098 0.008 TRAI, CMIE

I Consumer Income (in Rs thousands) 0.118 0.638

FRED, THE WORLD BANK
DATA

TB Telephone lines of BSNL wireless(in millions) 0.633 1.22E-08 CEIC

TPP Telephone lines of Private players(in millions) -0.215 0.201 CEIC

SS Smartphone Sales (in thousands) -0.231 0.056 Statista

EJ Entry of Jio (Dummy variable) 8.387 0.001926 TRAI

 Own Price, Competitor Price & Customer Income

Regression Results for Own Price and Customer Income

Own Price Customer Income Cross Price
Regression Coefficient -0.031 0.118 -0.098
P-value 0.135 0.638 0.0083

Calculated Elasticity -0.02 to -0.05 0.02 to 0.03 -0.01 to -0.05

Inference Inelastic Normal Good Complementary
 Relation with Telecom Lines Laid

● Positive Correlation with Demand

● Coefficient in Demand Equation = 0.633
● Number of subscribers is directly related to the
quantity of lines laid.
● Laying lines in the remotest locations of India has
increased network penetration
● Overall fibre deployment in India witnessed a CAGR
of 13.6 % - ET
 Relation with Smartphone sales

Inversely correlated with Number of subscribers for BSNL Coffecient in Demand Equation = -0.231

Telecom Service 4G Launch date in

Provider India

Airtel Feb 2014

Vodafone Dec 2015

Reliance Jio Sep 2016

BSNL Mar 2020

 Relation with Smartphone sales

Inversely correlated with Number of subscribers for BSNL Coffecient in Demand Equation = -0.231
The Pre Jio Era
 What happened Post Jio ?

4 Firm Concentration ratio : 70% to 98% (2015-19)

Thank You !