This document is a presentation on the cellular industry in India, detailing its growth, major players, and market dynamics since its inception in 1999. It analyzes the impact of telecom companies like Bharti Airtel and Reliance Jio, focusing on market share, subscription types, and economic conditions, while also addressing the regulatory environment and environmental concerns. The presentation concludes with insights on competition and the future of data services in the country.

1. A
Presentation
on
Cellular Industry
Submitted By:
Chirag Dabgar
Mamoni Kundu
Under the guidance
of
Prof. Sushil Mohanty
Assistant Professor

2. Flow of Presentation
 Introduction
 Major Players in Industry
 PESTELAnalysis
 Porter’s Five Force Model
 Finding
 Bibliography

3. Cellular Industry in India
 Cellular industries are a part of the telecommunication sector of India. It was launched in 1999 with the adoption of New
National Telecom Policy by Telecom regulatory authority of India (TRAI).
 Cellular services are further divided into two categories, namely GSM (Global System for Mobile Communications) and
CDMA (Code Division Multiple Access).GSM segment consists of players like Airtel, Vodafone, Idea, BSNL. Whereas,
CDMA segment consists of players like Reliance, Tata, etc.
 There are some private service operators in each area, and an incumbent state operator. Cellular companies provide two
types of subscriptions – pre-paid and post-paid. Almost 80% of the cellular subscriber base belongs to the pre-paid segment.

4. Continue…
 India is the fastest growing mobile phone market in the world. The booming telecom industry has been attracting large
amount of investments in the country.
 It is the world’s second largest telecommunication market with 898 million subscribers as of March 2013. The revenue grew
up by 13.4% to reach 64.1 billion US$ .According to the latest survey conducted by Voice and Data, Cyber Media group
journal, Bharti Airtel emerges as India's top mobile phone operator.

5. Major Player in Cellular Industry

6.  Bharti Airtel limited is an Indian multinational New
Delhi, India. It operates in 20 countries across South
Asia, Africa, and the Channel Islands. Airtel has a
GSM network 2G, 3G ,4G world's third largest cellular
service provider .
 Subscribers: 275 millions across 20 countries and in
India 192.22 millions.
 Vodafone is basically the biggest telecom service
provider of the U.K.
 It now has operations in 25 countries across 5
continents and 40 partner networks with over 200
million customers worldwide.

7.  As India's leading GSM Mobile Services operator,
IDEA Cellular has licenses to operate in 11 circles.
With a customer base of over 17 million.
 BSNL is India's oldest and largest communication
service provider (CSP). It had a customer base of 117
million.

8.  RCOM is India's second largest telecom operator, only
after Bharti Airtel. It is the 15th largest mobile phone
operator with over 150 million subscribers.
 Reliance Jio Infocomm Limited, doing business as Jio,
is a LTE mobile network operator in India.
 It is a wholly owned subsidiary of Reliance Industries
headquartered in Mumbai, that provides wireless
wireless 4G LTE service network (without 2G/3G
based services) and is the only 100% VoLTE (Voice
over LTE) operator in the country, with coverage
across all 22 telecom circles in India.

9. Effect of Reliance Jio on other telecom operators?
 Jio has the strongest fiber backbone.
 Jio has relatively cheaper tariffs.

11. Political factor analysis
 Excise Duty:
 They will help the cellular service provide by providing the cheaper equipment. The Govt. has committed to develop
telecommunication particularly in rural and remote areas to bridge the digital divide. It is therefore suggested that exception
from this additional duty of 4% be provided for fully assembled imported telecom equipment.
 Service Tax:
 It does not affect the operators because they will charge from the customers. But main impact is the prices of the product
will increase.
 Mergers and acquisitions
 Unified licensing

12. Economic analysis:
 The Indian Telecom Industry has been playing an important role in the world economy and global revenues in 2008 were
USD4 trillion, expected to grow at a steep 11% p.a. CAGR over the next 2 years.
 GDP contribution -2% .
 Increase in disposable incomes.
 Falling mobile phone prices.
 Falling call charges rates with more utility.

13. Social factors analysis
 Change in lifestyle:
 Fast –changing lifestyle are forcing telecom companies to enlarge the breadth and depth of their services.
 Regional shift in population:
 The rural Indian consumer managed to remain an attractive proposition, especially in the demand for consumer goods and
telecom services.
 Chain of information flow.
 Building awareness and connecting people.
 Exploitation of young minds, too compulsive, and sometimes too much information.

14. Technology Factor Analysis:
 Driven by 3G and 4G services, it is expected that there will be huge machine-to-machine (M2M) growth in India in 2016-17
 New and upgraded devices and applications with massive features like GPS, WiFi, etc.
 SIM cards, Nano SIM cards, etc.
 Expand and upgrade networking and high end computing infrastructures
 Increase cyber security
 Information management

15. Environmental analysis:
 The strong growth of the telecom, industry and increased equipment obsolescence has caused a dramatic rise in the amount
of electronic waste worldwide.
 Operators are paying increasing attention to their environment performance and are cooperating more closely with telecom
equipment manufacturers.
 Environmental Issues are increasing on daily basis.
 Excess use of Electricity.
 Causing air pollution, by emitting unnecessary radio waves, strangling cables all over the cities.
 No proper and systematic installation.
 Unnecessary Ads, Billboards and exploitation of papers.

16. Legal analysis:
 In India Legal framework with respect to telecom infrastructure is made up of main acts:
 The Indian Telegraph Act 1885.
 The Wireless Telegraphy Act 1933.
 The Telegraph Wireless (Unlawful Possession)Act 1950
 The Cable Television Network (Regulation) Act 1996.
 The genesis of the telecommunication regulatory authority of Indian (TRAI) lies in the bidding process for the grant of
cellular licenses.

18. Threats from the New Entrants
 Factors
 Capital Requirement = Low
 Government Policy = Low to Moderate
 TRAI Rules = Law to Moderate
 Customer Switching Costs = Moderate to High
 Economics of Scale = Law to Moderate
 Customer Loyalty = Moderate

19. Threat from the Substitute Product
 Factors
 CDMA = Moderate to High
 Fixed line service = Moderate to High
 Online call through Internet (VOIP) = Low to Moderate
 Online Chat = Moderate
 E-mail = Moderate

20. Bargaining power of Suppliers
 Factors
 Number of Supplier = Moderate to High
 Switching Cost = High
 Scarcity inputs = Low to Moderate
 Differentiation of inputs of suppliers = Low to Moderate
 Rivalry among suppliers = Moderate to High
 Backward integration = Moderate to High

21. Bargaining Power of Buyer
 Factors
 The number of buyer = Low
 The switching cost = High
 Brand preferences = Moderate to High
 Awareness about different offers = High

22. Rivalry among the Competitors
 Factors
 Number of Firms = High
 Market Growth = High
 Fixed cost = Moderate
 Switching cost = High
 Product Differentiation = Moderate
 Exit Barrier = High

23. Findings
 New entrants can take advantage of gaps in the offerings of these aging pioneers, or find innovation ways
to market product or service.
 Data revenues to provide 'Buffer':
 India's data revolution is going to be powered by 3G and 4G. For the data revolution to reach villages, low-
cost access devices, and community initiatives such as E-governance need to be in place.

24. Bibliography
 www.ibef.org
 www.trai.gov.in
 www.dot.gov.in
 https://en.wikipedia.org/wiki/Telecommunications_in_India
 www.telecom.economictimes.indiatimes.com
 www.indiainbusiness.nic.in/newdesign/index.php?param=industry
services.../2
 https://www.quora.com/What-is-the-effect-of-Reliance-Jio-on-
other-teleco...
 www.businessinsider.in/...effect-Reliance-Jio-offers