Tata TeleservicesEssay Preview: Tata TeleservicesReport this essayTable of ContentsOverview of Telecom IndustryMarket OverviewGrowth ForecastCore competencies -IndustryValue added services in India: SnapshotMarketing PlanPricingSales tacticsAdvertising & PromotionDistributionFuture services to look for: Tata TeleservicesGPS ServiceBVC: Buy Via CellSocial NetworkingMobilize FinanceAssociations with different Websites & ChannelsTelephonic Trading (Via SMS)Call blocksEmergency — Zero balance CallsCONCLUSIONEXHIBITSOverview of Telecom IndustryThe Indian Telecom market is going through a very dynamic phase with lots of mergers and acquisitions happening around. The major players have been in constantly reinventing their services to hedge the shifts in their market share.

Initially three major private players — the erstwhile Hutchison Telecom, Bharti, and Idea Cellular в? emerged in the battlefield. The entry of the state-owned enterprises —BSNL and MTNL — as mobile operators saw BSNL, in particular, emerge as a major contender to these private players. And finally we have seen the arrival of Reliance and Tata Indicom come into the CDMA market, although now Reliance is coming in the GSM in a big way. The release of the spectrum to the players has intensified the contest amongst these.

However for the mobile subscribers it has been a joy ride with more and more value added services being dished to them at minimum prices. The price wars of the operators have left the Indian consumer satiated and this has resulted in increasing of the mobile consumer base in India. The mobile sector has grown from around 10 million subscribers in 2002 to 150 million by the start of 2007. Whilst GSM technology still dominates the mobile market, CDMA has quickly grabbed an almost 30% share. The mobile industry should continue to boom.

Market OverviewThe telecom market of India had seen annual growth in excess of 100% for a number of years in succession. The Indian mobile market has been characterised by fierce competition. Mobile call charges in India are claimed to be the lowest in the world due to vigorous competition among the money-losing mobile companies. Into 2006, call charges — and as a consequence ARPUs — are dropping as intense competition continue in the industry.

Growth ForecastGartner’s prediction has forecasted that India would continue to be the highest telecom growth market in the Asia-Pacific region. Gartner expected Indian companies to spend US$16.7 billion on telecommunications in 2005. It predicted that by end-2008 mobile penetration would rise to 14.5% and combined mobile-fixed penetration to reach 19.1%. Its predicted that, by 2008 that every 1 in 5 Indians will have a mobile subscription. An Indian government report in June 2002 said that the telecom market would grow from its 2001 level of US$7.4 billion in annual revenues to US$27 billion by 2010. In November 2004, the MCIT said it expected investments worth 1.6 trillion rupees over a three year period up to 2007 would be directed towards expanding the country’s rapidly growing telecommunications network. In January 2005, one Indian market research company said that the country’s total teledensity was expected to reach 25% by 2010 and that it would be �one of the world’s largest telecommunications markets’ by 2008. India’s total Tele-density had been forecast to grow to 7% by 2004, but it had surpassed expectations and grown to 8.2%. Mobile services were set to dominate the Indian telecom market until at least 2010. Since mid-2003, mobile services accounted for over 90% of the growth in the telecom subscriber base.

Core competencies -IndustryQuality: The quality of the service provided has increased manifold. There has been a consistent decrease in the faults reported. According to the statistics there has been a reduction of around 23.8% reduction in faults every 100 lines.

Affordability: There has been on an average of 25% decrease in the rates.Access: The coverage of the networks has increased tremendously with almost all players putting in their towers in the remotest of the places.Value added services in India: SnapshotThe Indian mobile consumer base is placed well above 100 million and is all set to grow exponentially over the coming years. The increasing subscriber base has pulled down the operating margin and consequently the average revenue per user has fallen. Consequently, retaining the customers is a challenge that all the telecom operators are facing. To ward off this challenge the companies are increasingly investing in developing alternatives which will differentiate their product from that of the others and create an alternative revenue stream.

In light of this challenge, the telecom operators are now banking upon the Value Added Services or the VAS to differentiate their product and generate revenue. The VAS is expected to succeed because of the favorable conditions on the demand as well as the supply side. Some of the major drivers for it on the demand side include cheaper handsets, increasing comfort levels in operating the mobile services and booming Indian economy which provides a greater base. On the other hand, the supply side factors include the declining trend of the average revenue per user, the need to differentiate your product and the increasing focus of the service providers on entertainment related content. Another supporting factor is the emergence of the new business eco-systems

In conclusion, the competition is on to do more. Our business is more competitive than ever before. Telecom companies can continue to offer an attractive, high level of service and we should take the opportunity to compete and to compete in India to the best extent possible. We will be very profitable within two to three years. Our goal is to reach a certain level of availability to customers for which we have been selling premium products for many years, as well as to reach their highest e-commerce prices which in India could be higher.”

It also adds, “Currently the industry does not reach a complete regulatory compliance or the public is not aware of our existence. It’s important to maintain our competitive position in this sector and work on solving our challenges. I am confident the telecom community will take significant action in the interest of our products”.

First Published: Aug 17, 2017 18:54 IST

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Mobile Operators And Indian Telecom Market. (August 9, 2021). Retrieved from https://www.freeessays.education/mobile-operators-and-indian-telecom-market-essay/