The document presents a brief study of the telecom industry, highlighting its status as the second largest globally with competitive pricing and significant GDP contribution. It discusses key players like Airtel, Vodafone, and Idea, as well as analyzing market dynamics using Porter's Five Forces model. Key barriers to entry and factors affecting supplier and customer bargaining power are also examined.

1. BRIEF STUDY OF
TELECOM INDUSTRY
Prepared By:
Abhishek Pachisia
MBA - IT

2. Brief Introduction
 Second Largest in the world based on number of users.
 Lowest Call Tariff
 Contribute to US$ 400 billion in terms of gross domestic product (GDP).
 Supported by INSAT (Indian National Satellite System)
 World’s Most Competitive and one of the Fasters Growing Telecom Market.
 Top Companies are
 Airtel
 Vodafone
 Idea
 Grew by 10.8% in FY 13-14.

3. Revenue Comparison - FY12-13 vs FY 13-14

4. Subscriber Shares – on March 31, 2014

5. Barrier
To
Entry
Supplier
Bargaining
Power
Customer
Bargaining
Power
Substitutes Rivalry
Competitors
Porter’s Five Force Model

6. Barrier to Entry
• Capital/ Finance
• Telecommunication
Licenses
• Established Service
Providers
• Operating Skills
• Scarce Management
experience.
• Loyalty to old Service
Providers.
• ARPU Declining
• Access to Optical Fibre
Network

7. Supplier Bargain Power
• Can be:
• Mobile Tower Companies
• SIM cards
• Mobile Phone Handsets
• Less Power
• Tower Companies
• Telecos
• ITTC
• Limited Talented managers
and engineers

8. Customer Bargain Power
• More Choices
• Lot of alternatives
• Lack of Interest to switch
• Sensible to Pricing
• No Differentiator as such.
• Competition between
buyers
• Size and concentration of
buyers

9. Substitutes
• Cable TV’s
• Broadband Internet
Services
• Satellite Links
• Railway and Energy Utility
Companies
• Internet Telephony
• Performance of Substitutes

10. Rivalry Competitors
• Concentration – Market
Share
• Value Added Services
• Low Profits
• Ex: Airtel, Vodafone,
Reliance, Idea
• Swift Obsolescence
• Global Presence
• Marketing Network

11. Barrier
To
Entry
Supplier
Bargaining
Power
Customer
Bargaining
Power
Substitutes Rivalry
Competitors
Conclusion of Study