market form present in telecom industry in India
how reliance jio actually affected the market after the launch and how was the market structure before the launch of reliance jio
2. HISTORY
• Telecommunications in India began with the introduction of the
telegraph. The Indian postal and telecom sectors are one of the
worlds oldest. In 1850, the first experimental electric telegraph
line was started between Calcutta and Diamond Harbor. In 1851, it
was opened for the use of the British East India Company.
3. LIBERALIZATION AND PRIVATIZATION
• The demand for telephones was ever increasing and in the 1990s Indian
government was under increasing pressure to open up the telecom sector for
private investment as a part of LPG policies that the government had to
accept to overcome the severe fiscal crisis and resultant balance of
payments issue in 1991. Consequently, private investment in the sector of
Value Added Services (VAS) was allowed and cellular telecom sector were
opened up for competition from private investments
4. INTRODUCTION OF TRAI
• Telecom Regulatory authority of India was established on 20 February
1997 by an Act of Parliament to regulate telecom services and tariffs in India.
• TRAI has taken several measures to protect the interests of consumers of
telecom services. This website has been developed to help the customer in
processing their complaints. The primary responsibility for addressing
customer complaints lies with the service providers not with TRAI.
5. TYPE OF MARKET FORMS PRESENT
OLIGOPOLY
• An oligopoly is a market form wherein a market or industry is dominated by a
small number of sellers (oligopolies). Oligopolies can result from various
forms of collusion which reduce competition and lead to higher prices for
consumers. Oligopoly has its own market structure.
• With few sellers, each is likely to be aware of the actions of the others.
According to game theory, the decisions of one firm therefore influence and
are influenced by decisions of other firms
6. FEATURES OF OLIGOPOLY
• Strategic planning by oligopolies needs to take into account the likely
responses of the other market .
• Entry Barriers: High investment required.
• Strong consumer loyalty for existing brand.
• Economics of scale
7. TELECOM SERVICE PROVIDERS IN INDIA BEFORE 2016
• Vodafone
• Idea
• Airtel
• BSNL Mobile
• Aircel
• Reliance Communications
• Telenor India
• Tata DoCoMo.
8. BEFORE ENTRY OF RELIANCE JIO (MARKET SHARE)
bharti airtel
24%
vodafone
19%
idea cellular
16%
rcom
11%
aircel
9%
bsnl
8%
tata
6%
others
7%
SUBSCRIBERS IN 2015
bharti airtel vodafone idea cellular rcom aircel bsnl tata others
9. TELECOM CONSUMERS BEFORE 2016
• Mobile Phone Subscribers In India Q2 2015: 6.71% Growth To 980M Users. The number of
mobile phone subscribers in India has almost touched the billion figure mark. According to
the report from TRAI mobile phone subscriber base in India recorded 6.71% YoY growth
to 980.81 million users in Q2 2015.
10. AFTER ENTRY OF RELIANCE JIO
Bharti
24%
Vodafone
18%
Idea
16%
Reliance jio
10%
BSNL
9%
Aircel
8%
Reliance
7%
Others
8%
SALES
Bharti Vodafone Idea Reliance jio BSNL Aircel Reliance Others
11. TELECOM CONSUMERS AFTER 2016
• The Indian telecom industry added a net 2.8 million mobile subscribers in April 2017, taking
the total customer base close to the one billion mark.
• The total number of mobile phone subscribers at the end of April 2017 reached 934.6 million,
according to a statement by industry body Cellular Operators Association of India. This is an
increase of 21 percent from April last year.
12. AFTER EFFECT OF RELIANCE JIO
• It forced every other telecom operators in our country to reduce their data cost.
• Better connectivity
• Faster data network
• Better services
• Benefit to the weaker section of the society (cheaper rates )
15. CONCLUSION
• Form the stats above stated we could conclude that entry of
reliance JIO in the telecom industry has not snatched the
competition form the other telecom industry to large extent in the
market but it has created his own subscribers base. This means
that the telecom consumers in India had not shifted form there
existing subscribers but they had allowed the new company to
penetrate the market because of its cheap tariff plans and its
services
16.
17. CONCLUSION
• As we could conclude that there is fall in the gross revenue of all the major companies like
Vodafone ,Idea or Bharti Airtel etc. . but fall of revenue is not to such a extent that it will
result in closure of the business firms or they are incurring heavy losses
• This is because as the customers had not withdrawal their existing subscription with their
telecom service provider but they had also bought reliance JIO as an extra subscription or for
side purpose usage for their tele communication needs. This shows that there is a increase in
customer base.