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Monday, August 27, 2007

Hello- Trin-Trin

Hello!!!!

Indian telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world.

There are some facts of Indian telecom industry are given below:

Call rates from Rs. 16 to Re.1 : In FY 1999, STD call rates were Rs. 16 & incoming call rates were approx. Rs. 8, in year 2001, when BSNL launch its mobile services the incoming calls were free even though outgoing calls were Rs 3.60.
Today, all service providers went for “ CALL ONE INDIA” means outgoing calls at Re.1 .

In year 2004, First CDMA phone enters in Indian telecom market, then TATA also enter into telecom sector directly with Indicom . Now, Reliance communication is second in market share of around 19% after Bharti Airtel Ltd of 23%.

GSM Service Providers

CDMA Service Providers

Airtel (1,23%), BSNL (3,17.78%),Hutch-vodafone (4,16%), Idea (6,8.31%)

Reliance (2,19%),TTSL (tata,5,10%)

Source: TRAI 2007 report

Indian Mobile market from old MOTOROLA C-350 to latest moto razr & N-series (Nokia)
Price also slashed drastically from Rs. 15000 to Rs. 1500.

Dual Sim mobile phone: Any combination-CDMA(TATA)+CDMA(Reliance)

CDMA (TATA/Reliance)+GSM(Airtel/idea/Vodafone)

GSM (Airtel/idea/Vodafone)+ GSM (Airtel/idea/Vodafone)

One mobile number for any service provider- This development is under process & hopefully in few months it will be in market. All CDMA operators (TATA/Reliance) are interested in launching the scheme today but GSM operators are worrying about their market share so they are taking time to opt the technique esp. (Airtel, Vodafone).

VAS( value added services): from boring trin-trin to “kaho naa pyar hai” tune.
Railway reservation, cricket info etc.
3G spectrum

M.P.Singh
ICFAI Business School
Hyderabad

5 comments:

Spiritualmanager said...

Guess you have always been curious about telecom sector. Have you ever tried to do a research on the cartel these companies form. It is because of this nexus that it is taking so long to switch operator without changing number, though the technology has been there since long.And i doubt it even now.Look at all the tariff plans and similar scheme, is it merely competition or there is more to it.Reliance is the only company who is out of this cartel and so because it has better ways to cajole the customer.Telecom sector is one of the biggest cartel operating in corporate India. By the was the most famous/infamous International cartel is OPEC, and I am talking about cartels and not organizations.

M.P.Singh said...

frnd thanks for your valuable suggestion but let me tell you, its a competitive market not cartel if you are talking about cartel yes, if you seen few days back newspaper in which Airtel-vodafone both have increased their call rates by 25 paisa, it may be cartel reason is simple: in airtel nearly 10-14% stake is of vodafone and interestingly BHARTI is diversifying into retail sector with massive investment with world's retail gaint "WALMART". So may be these two company will go for cartel otherwise there is no scope.
there were following incidences i.e
lifetime card by airtel-then all other operators opted it to not loose their market share same thing s are there in telecom.
In india cartel is mainly in cement industry....

icecool said...

i agree wit u MP. i don't think there r any cartels prevailing in the telecom sector.

Spiritualmanager said...

If Telecom companies allow switching operators...I would be forced to change my stand...otherwise...
Anyways as long as its a win win situation and both the sector and costumer are growing...I should not crib..right.

M.P.Singh said...

thanks harish, Its true that cartel in Telecom industry is not there but i would like to say that its not visible from naked eyes but if you have seen the recent move of airtel & vodafone both have increased their call rates by 25 paisa, others dont did it. and reason will be 10% stake of vodafone in airtel ltd..
Its all about anticipation & assumptions...