However, on other hand, declining revenues and profitability had severely impacted the ability of most of the operators to commit large investments towards long term value creators. Increasing choice and one of the lowest tariffs in the world have made the cellular services in India attractive for the average consumer.
Barriers to entry Complex regulations, high capital investments, well-established players who have a nationwide network, license fee, continuously evolving technology and lowest tariffs in the world. As far as wireless broadband connections are concerned, the Indian wireless broadband industry subscriber base has increased to The industry added about The fixed line business continues to remain muted despite the low penetration levels in the country.
Further, in case there is a reduction in AGR of the service provider, the floor amount of SUC shall be reduced proportionately. Consumption of data services continues to grow at an exponential pace.
In addition, long-term economic growth will be driven by major factors: During the year, spectrum harmonisation has been completed in all the 22 service areas, making nearly MHz of paired spectrum available to the Government.
The benefit for operators due to this harmonisation is that the spectrum they currently hold becomes contiguous and, therefore, more efficient, thereby improving network quality and broadband speeds. The cellular segment is the dominant segment in the industry by making itself available in the rural areas where the teledensity is far lower The increasing demand for data based services such as the Internet is the major catalyst in the growth of the sector.
It has declined to Bargaining power of customers A wide variety of choices available to customers both in fixed as well as mobile telephony has resulted in increased bargaining power for the customers.
The scale of the mobile opportunity in India is therefore immense. Bargaining power of suppliers Improved competitive scenario, mobile number portability MNPand commoditisation of telecom services has led to reduced bargaining power for services providers.
Tariff reduction and decline in handset costs has helped the segment to gain in scale. The teledensity in urban areas is about Reduced tariffs have hurt all incumbent operators. Demand Given the low tariff environment and relatively low rural and semi urban penetration levels, demand will continue to remain higher in the foreseeable future across all the segments.
The tele-density level stood at about Therefore, the main driver for future growth would be the rural areas where wireless tele-density is around These free services on one hand transformed the sector with data traffic volumes growing significantly, forcing operators to commit significant investments, both in spectrum and networks, in order to remain competitive.
After the fall in mobile subscriber base in FY13 due to the cancellation of spectrum licenses of some of the operators in Februarythe sector continues to grow in terms of subscriber additions.
The prescribed limit on spectrum would be increased from 6. The fixed line segment continues to decline in terms of the subscriber base. Telecom players can, however, obtain additional frequency; there will be an auction of spectrum subject to the limits prescribed for the merger of licenses.
This paradoxical scenario of large investment requirement coupled with negative return forced operators to combine their operations or exit from the market, as evident from announcement of various deals among operators.KPMG’s M&A Outlook Survey provides insight into the main factors driving deal makers at a critical moment in the global economic cycle.
KPMG and Fortune Knowledge Group surveyed over M&A executives to get. M&A Trends in Indian Telecom Sector Tanmay Gupta Page 3 Executive Summary Indian telecom industry is the second fastest growing telecom market in the world after China.
The overall tele-density India has reached % at the end of January The growth has been fueled by progressive policies of TRAI and deregulation.
(TRAI), Department of Telecommunication (DoT) and the reports from Government of India and other sources. Different telecom magazines, newspapers and journals were consulted for gathering of information. Telecom Industry in India.
(GDP), according to report prepared by GSM Association (GSMA) in collaboration with the Boston Consulting Group (BCG). The Indian telecom sector is expected to generate four million direct and indirect jobs over the next five years according to estimates by Randstad India.
The employment opportunities are.
Operators who haven't focused on the unique demands of consumers in the region can regain the trust of the more than 1 billion subscribers to mobile broadband there—who represent 19 percent of global telecom revenues—using a five-element strategy. Learn more in the video or read the article or full report.
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