Demand Analysis of the ISPs in the Indian Market and the changes in it due to the advent of Covid-19.

1. Imagine a computer system with a built-in modem and router, but without internet connection. it is not
of much use, is it? Now imagine a system with access to the worldwide web. Imagine the universe of
knowledge it opens up to the user at just a click of mouse. All thanks to the internet service provider.

2. • The demand of internet has exponentially grown
over the last decade all around the world.
• The advent of covid-19 forced most of the
households to be equipped with WiFi so as to
be able to work from home. This created an
unexpected surge.
• For years, communication technology such as
e-mail have drastically changed the way
business communticate and share plans.
• This demand shows the features of an Elastic
demand.
• In India, the number of users is close to 700 M
and it is expected to grow by approx. 50% by
2025.
© ourworldindata.org

3. • Pretty much all of the costs of an ISP are either fixed or indirect
variable costs, with fixed costs dominating. Routers cost the same
to own and to operate regardless as to whether they are running
at 0% or 100% capacity.
• The variable costs include the cost based on infrastructure and
administration.
• The cost of internet varies all throughout the world due to differing
GDPs and per capita incomes.

4. • High-speed Internet connections enable us to
communicate with various stakeholders around
the world in real-time. No more decision-making
delays due to unnecessary long-haul flights (and
haemorrhaging budgets).
• We can also work remotely or through satellite
offices, diversifying the workforce. Companies
can attract and retain the finest talent as they no
longer have the geographical restrictions that we
faced just over thirty years ago.
• The Internet also gives way to online currency
and financial transactions. Orders can be shipped
around the globe, and you don’t even need a
brick-and-mortar store to operate.
• Finally, businesses can save with cost-
effective, virtually unlimited, backup capabilities
afforded by cloud computing.
• It’s marginal utility has not decreased till yet
and owing to it’s rapid growth in the last decade,
we don’t even expect it’s scale to drop down in
the nearing future.
© Wikipedia

5. • Strategy is to achieve name, recognition and attract customers by aggressively pricing its services. Once
customers have been acquired, the company will seek to offer them additional services which will increase margins
and provide them with useful solutions they would not otherwise find.
• In such a highly competitive industry, every minimal change in price leads to a drastic change in the demand of
internet services. So implementing a low-cost strategy works. The costs could be cut by tying up with smaller local
media companies who already provide services at a cheaper rate, but aren’t recognised. Thus, a constant
evaluation of marketing strategy is necessary.
• The market structure is very cooperative, but yet competitive. A new player needs to have a great core knowledge
of the economics playing in the market.
• ISPs entered the market with dial-up connections that only worked on PCs. The increase in demand and the force
of invisible hand called for innovations, which led to the collaboration of the ISPs with Telecom industry and led to
the introduction of mobile data. Then came the collaboration with the TV companies, bringing in the era of smart
TVs and so on and so forth.
• Thus, it isn’t a monopolistic market and is striving to become a perfect market.

6. Jio
Bharti Airtel
Vodafone
The real success behind Jio
was -
• Great marketing strategy
• Cost reduction
• High initial investment
• Cutting edge technology -
Fibers and 5G
• Focussed untapped potential
of India - BPL families.
• Boosted digitalisation in India
© data.gov.in

7. Made by:
Gurshaan Singh(19104114)
Sehajbir Singh(19104116)
Virender Singh(19104117)
Devansh Agarwal(19104127)