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1851
1882
1985
1986
1994
1995
1997
2011
2013
2015
Evolution of Telecom in
India
Privatization Of TelecommunicationsPrivatization Of Telecommunications
IndustryIndustry
 Liberalization attempt in 1981 b...
Bharti Airtel:Bharti Airtel:
Bharti Airtel Limited is an Indian multinationalBharti Airtel Limited is an Indian multinatio...
Reliance:Reliance:
Reliance Communications Ltd. is an Indian Internet access andReliance Communications Ltd. is an Indian ...
Current ScenarioCurrent Scenario
Particulars Subscribers (in millions)
Wireless 975.78
Wireline 26.27
Total 1,002.05
Parti...
Source: Technopak
“A 10% increase in broadband
penetration increases the per capita
GDP by 1.38% in the developing
countri...
Pricing Strategies In TelecommunicationsPricing Strategies In Telecommunications
In telecommunications, people are provide...
Pricing Strategy MatrixPricing Strategy Matrix
 Penetration Pricing:-Penetration Pricing:-
The price charged for products and services is set artificially low in order ...
 Product Line Pricing:
Where there is a range of products or services, the pricing reflects the benefits of
parts of the ...
Other Pricing StrategiesOther Pricing Strategies
There are two possible alternatives for pricing any telecommunication ser...
Non-Price StrategiesNon-Price Strategies
Major Challenges for Telecom Providers
Major Technological changes andMajor Technological changes and
challenges in telecommunicationschallenges in telecommunica...
Changes….Changes….
An enormous amount of the activity drivingAn enormous amount of the activity driving
telecommunications...
Incorporating Human Senses inIncorporating Human Senses in
TelecommunicationsTelecommunications
 Telecommunications has a...
The Emergence of Wearable'sThe Emergence of Wearable's
Xybernaut's Mobile
Assistant IV (MA-IV),
a wearable
computer, provi...
Adapting to New TrafficAdapting to New Traffic
PatternsPatterns
 In today's environment, telecommunications embodies four...
Voice - ChallengesVoice - Challenges
 There is yet a huge market to be served. VoiceThere is yet a huge market to be serv...
Data- ChallengesData- Challenges
 Data communications refers to the exchange ofData communications refers to the exchange...
Image-ChallengesImage-Challenges
 Image communications requires medium to highImage communications requires medium to hig...
Video-challengesVideo-challenges
 Video communications, which are becomingVideo communications, which are becoming
increa...
Micro Economics : Oligopoly in the Indian Telecommunication Industry
Micro Economics : Oligopoly in the Indian Telecommunication Industry
Micro Economics : Oligopoly in the Indian Telecommunication Industry
Micro Economics : Oligopoly in the Indian Telecommunication Industry
Micro Economics : Oligopoly in the Indian Telecommunication Industry
Micro Economics : Oligopoly in the Indian Telecommunication Industry
Micro Economics : Oligopoly in the Indian Telecommunication Industry
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Micro Economics : Oligopoly in the Indian Telecommunication Industry

  1. 1. 1851 1882 1985 1986 1994 1995 1997 2011 2013 2015 Evolution of Telecom in India
  2. 2. Privatization Of TelecommunicationsPrivatization Of Telecommunications IndustryIndustry  Liberalization attempt in 1981 by then Prime Minister Indira Gandhi toLiberalization attempt in 1981 by then Prime Minister Indira Gandhi to bring French Company Alcatel to India but was scrapped due to politicalbring French Company Alcatel to India but was scrapped due to political pressurespressures  Privatization process started in 1992 wherein Government permittedPrivatization process started in 1992 wherein Government permitted private players to provide Value Added Services (VAS) such as paging,private players to provide Value Added Services (VAS) such as paging, cellular, data services and VSAT followed by Fixed Telephony Servicecellular, data services and VSAT followed by Fixed Telephony Service  The Telecom Sector received Rs. 59,796 crores of FDI from April 2000 toThe Telecom Sector received Rs. 59,796 crores of FDI from April 2000 to January 2014 that represents 6% of the total FDI received by all theJanuary 2014 that represents 6% of the total FDI received by all the sectors together.sectors together.
  3. 3. Bharti Airtel:Bharti Airtel: Bharti Airtel Limited is an Indian multinationalBharti Airtel Limited is an Indian multinational telecommunications services company headquartered in Newtelecommunications services company headquartered in New Delhi, India. It operates in 20 countries across South Asia, Africa,Delhi, India. It operates in 20 countries across South Asia, Africa, and the Channel Islands.and the Channel Islands. Founder: Sunil Bharati MittalFounder: Sunil Bharati Mittal Vodafone:Vodafone: Vodafone Group plc is a British multinational telecommunicationsVodafone Group plc is a British multinational telecommunications company headquartered in London and with its registered office incompany headquartered in London and with its registered office in Newbury, Berkshire.Newbury, Berkshire. Founders: Ernest Harrison, Gerry WhentFounders: Ernest Harrison, Gerry Whent IDEA:IDEA: Idea Cellular is an Aditya Birla Group Company, India's first trulyIdea Cellular is an Aditya Birla Group Company, India's first truly multinational corporation. Idea is a pan-India integrated GSMmultinational corporation. Idea is a pan-India integrated GSM operator offering 2G and 3G services, and has its own NLD and ILDoperator offering 2G and 3G services, and has its own NLD and ILD operationsoperations Founders: Aditya Vikram Kumar Mangalam Birla, G. D. BirlaFounders: Aditya Vikram Kumar Mangalam Birla, G. D. Birla
  4. 4. Reliance:Reliance: Reliance Communications Ltd. is an Indian Internet access andReliance Communications Ltd. is an Indian Internet access and telecommunications company headquartered in Navi Mumbai,telecommunications company headquartered in Navi Mumbai, India. Reliance Communications is the fourth largest telecomIndia. Reliance Communications is the fourth largest telecom operator in India with 109.80 million subscribers as of Apriloperator in India with 109.80 million subscribers as of April 2015.2015. Founders: Dhirubhai Ambani, Mukesh AmbaniFounders: Dhirubhai Ambani, Mukesh Ambani BSNL:BSNL: Bharat Sanchar Nigam Limited is an Indian state-ownedBharat Sanchar Nigam Limited is an Indian state-owned telecommunications company headquartered in New Delhi,telecommunications company headquartered in New Delhi, India.India. CEO: Shri Anupam ShrivastavaCEO: Shri Anupam Shrivastava
  5. 5. Current ScenarioCurrent Scenario Particulars Subscribers (in millions) Wireless 975.78 Wireline 26.27 Total 1,002.05 Particulars Teledensity Urban Teledensity 148.90 Rural Teledensity 48.60 Total Teledensity 79.67 Subscriber base as on May 31, 2015 Teledensity as on May 31, 2015 Total Broadband Subscribers 104.96 million Broadband subscribers as on May 31, 2015 Source: TRAI Report May 2015
  6. 6. Source: Technopak “A 10% increase in broadband penetration increases the per capita GDP by 1.38% in the developing countries.” - World Bank
  7. 7. Pricing Strategies In TelecommunicationsPricing Strategies In Telecommunications In telecommunications, people are provided services on the basis of pre-In telecommunications, people are provided services on the basis of pre- payment or post-payment. Companies adopt several pricing strategies topayment or post-payment. Companies adopt several pricing strategies to gain a considerable market share among various competitors and theygain a considerable market share among various competitors and they are as follows:are as follows: Penetration PricingPenetration Pricing Price SkimmingPrice Skimming Psychological PricingPsychological Pricing Product Line PricingProduct Line Pricing Captive Product PricingCaptive Product Pricing Promotional PricingPromotional Pricing Premium PricingPremium Pricing
  8. 8. Pricing Strategy MatrixPricing Strategy Matrix
  9. 9.  Penetration Pricing:-Penetration Pricing:- The price charged for products and services is set artificially low in order to gainThe price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased.market share. Once this is achieved, the price is increased.  Price Skimming:Price Skimming: Price skimming sees a company charge a higher price because it has a substantialPrice skimming sees a company charge a higher price because it has a substantial competitive advantage. However, the advantage tends not to be sustainable.competitive advantage. However, the advantage tends not to be sustainable. The high price attracts new competitors into the market, and the priceThe high price attracts new competitors into the market, and the price inevitably falls due to increased supply.inevitably falls due to increased supply.  Psychological Pricing:Psychological Pricing: This approach is used when the marketer wants the consumer to respond on anThis approach is used when the marketer wants the consumer to respond on an emotional, rather than rational basis.emotional, rather than rational basis. For Example: Mobile recharge charges Rs49, Rs99 instead of Rs50 or Rs100For Example: Mobile recharge charges Rs49, Rs99 instead of Rs50 or Rs100
  10. 10.  Product Line Pricing: Where there is a range of products or services, the pricing reflects the benefits of parts of the range. For Example: BSNL sim card family combo packs  Captive Product Pricing: Where products have complements, companies will charge a premium price since the consumer has no choice. For Example: CDMA Handsets, Set top boxes.  Promotional Pricing: Pricing to promote a product is a very common application. There are many examples of promotional pricing including approaches such as BOGOF (Buy One Get One Free), money off vouchers and discounts. For Example: BSNL Pyari Jodi Plan
  11. 11. Other Pricing StrategiesOther Pricing Strategies There are two possible alternatives for pricing any telecommunication service:There are two possible alternatives for pricing any telecommunication service: Socially desirable pricingSocially desirable pricing This type of pricing strategy includes:This type of pricing strategy includes: Charges customers as per their paying capabilityCharges customers as per their paying capability Price of basic services should be low and not related to cost of processing servicesPrice of basic services should be low and not related to cost of processing services Cost based pricingCost based pricing This type of pricing strategy includes:This type of pricing strategy includes: Pricing components include fixed charges(rentals), capital cost of infrastructure required toPricing components include fixed charges(rentals), capital cost of infrastructure required to build networkbuild network Variable charges like usage charges, recovery operation, maintenance, administrative andVariable charges like usage charges, recovery operation, maintenance, administrative and inter-connection chargesinter-connection charges
  12. 12. Non-Price StrategiesNon-Price Strategies
  13. 13. Major Challenges for Telecom Providers
  14. 14. Major Technological changes andMajor Technological changes and challenges in telecommunicationschallenges in telecommunications emerging technologies are affecting industries and lifestyle highlights the importance of understanding the principles of telecommunications, and, hopefully, to inspire you to "think telecom."
  15. 15. Changes….Changes…. An enormous amount of the activity drivingAn enormous amount of the activity driving telecommunications has to do with the emergence oftelecommunications has to do with the emergence of advanced applications. The following sections discussadvanced applications. The following sections discuss some of the changes that are occurring in bothsome of the changes that are occurring in both telecommunications, as well as some of the changestelecommunications, as well as some of the changes expected in the next several years.expected in the next several years. Incorporating Human Senses in TelecommunicationsIncorporating Human Senses in Telecommunications The Emergence of Wearable'sThe Emergence of Wearable's
  16. 16. Incorporating Human Senses inIncorporating Human Senses in TelecommunicationsTelecommunications  Telecommunications has allowed a virtual world to emerge.Telecommunications has allowed a virtual world to emerge.  The human mind acts on physical sensations in the course of itsThe human mind acts on physical sensations in the course of its information processing; the senses of sight, sound, touch, andinformation processing; the senses of sight, sound, touch, and motion are key to our perception and decision making.motion are key to our perception and decision making.  Developments in sensory technologies and networks will allow aDevelopments in sensory technologies and networks will allow a new genre of sensory reality to emerge, bridging the gapnew genre of sensory reality to emerge, bridging the gap between humans and machines. One of the most significantbetween humans and machines. One of the most significant evolutions occurring in computing and communications is theevolutions occurring in computing and communications is the introduction of the human senses into electronic informationintroduction of the human senses into electronic information streams.streams.
  17. 17. The Emergence of Wearable'sThe Emergence of Wearable's Xybernaut's Mobile Assistant IV (MA-IV), a wearable computer, provides its wearer with a full- fledged PC A wrist keyboard sports 60 keys. Headgear suspended in front of the eye provides a full-color VGA screen, the size of a postage stamp but so close to the eye that images appear as on a 15- inch monitor. A miniature video camera fits snugly in a shirt pocket.
  18. 18. Adapting to New TrafficAdapting to New Traffic PatternsPatterns  In today's environment, telecommunications embodies fourIn today's environment, telecommunications embodies four main traffic types, each of which has different requirements inmain traffic types, each of which has different requirements in terms of network capacity, tolerance for delays—andterms of network capacity, tolerance for delays—and particularly variations in the delay—in the network, andparticularly variations in the delay—in the network, and tolerance for potential congestion and therefore losses in thetolerance for potential congestion and therefore losses in the network:network:
  19. 19. Voice - ChallengesVoice - Challenges  There is yet a huge market to be served. VoiceThere is yet a huge market to be served. Voice communications are typically referred to ascommunications are typically referred to as beingbeing narrowbandnarrowband, meaning that they don't require a, meaning that they don't require a large amount of network capacity.large amount of network capacity.  For voice services to be intelligible and easy to use,For voice services to be intelligible and easy to use, delays must be kept to a minimum, however, so thedelays must be kept to a minimum, however, so the delay factors in moving information from Point A todelay factors in moving information from Point A to Point B have to be tightly controlled in order toPoint B have to be tightly controlled in order to support real-time voice streams.support real-time voice streams.
  20. 20. Data- ChallengesData- Challenges  Data communications refers to the exchange ofData communications refers to the exchange of digitized information between two machines.digitized information between two machines. Depending on the application supported, theDepending on the application supported, the bandwidth or capacity requirements can range frombandwidth or capacity requirements can range from medium to high.medium to high.  As more objects that are visual in nature (such asAs more objects that are visual in nature (such as images and video) are included with the data, thatimages and video) are included with the data, that capacity demand increases. Depending again on thecapacity demand increases. Depending again on the type of application, data may be more or less toleranttype of application, data may be more or less tolerant of delays. Text-based exchanges are generally quiteof delays. Text-based exchanges are generally quite tolerant of delays.tolerant of delays.  But again, the more real-time nature there is to theBut again, the more real-time nature there is to the information type, as in video, the tighter the controlinformation type, as in video, the tighter the control you need over the latencies.you need over the latencies.
  21. 21. Image-ChallengesImage-Challenges  Image communications requires medium to highImage communications requires medium to high bandwidth—the greater the resolution required, thebandwidth—the greater the resolution required, the greater the bandwidth required.greater the bandwidth required.  For example, many of the images taken in medicalFor example, many of the images taken in medical diagnostics require very high resolution. Imagediagnostics require very high resolution. Image traffic tolerates some delay because it includes notraffic tolerates some delay because it includes no motion artefacts that would be affected by anymotion artefacts that would be affected by any distortions in the network.distortions in the network.
  22. 22. Video-challengesVideo-challenges  Video communications, which are becomingVideo communications, which are becoming increasingly popular and are requiring ever-greaterincreasingly popular and are requiring ever-greater bandwidth, are extremely sensitive to delay. Thebandwidth, are extremely sensitive to delay. The future is about visual communications.future is about visual communications.  We need to figure out how to make video availableWe need to figure out how to make video available over a network infrastructure that can support it andover a network infrastructure that can support it and at a price point that consumers are willing to pay.at a price point that consumers are willing to pay. When our infrastructures are capable of supportingWhen our infrastructures are capable of supporting the capacities and the delay limitations required bythe capacities and the delay limitations required by real-time applications, video will grow by leaps andreal-time applications, video will grow by leaps and bounds.bounds.
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