Airtel Oligopoly

3534 WordsSep 21, 201115 Pages
ECONOMICS ASSIGNMENT (Ms. Randeep Kaur) SUBMITTED BY: JATINDER PAL SINGH MBA-General Roll No. 12 UBS TELECOM INDUSTRY 'Indian Telecom Industry' is the fifth largest and fastest growing industry in the world. Three types of players exists in ' Telecom Industry India ' community - * State owned companies like - BSNL and MTNL. * Private Indian owned companies like - Reliance Infocom and Tata Teleservices. * Foreign invested companies like - Hutchison-Essar, Bharti Airtel Tele-Ventures, Idea Cellular, Spice Communications etc. Bharti Airtel now is the largest telecom company in India. There are many smaller players, with operations in only a few states. The following table gives details regarding the subscriber base of each Mobile…show more content…
Oligopoly dominates the modern economic landscape, accounting for about half of all output produced in the economy. MAIN FEATURES OF OLIGOPOLY: 1. Sellers are few in number 2. Any one of them is of such a size that an increase and decrease in his output will appreciably affect the market price. Infact, the size of each sellers output in relation to the total supply is the test. 3. Each seller knows his competitors individually in each market. Characteristics The three most important characteristics of oligopoly are: (1) An industry dominated by a small number of large firms, (2) Firms sell either identical or differentiated products, and (3) The industry has significant barriers to entry. * Small number of large firms: an oligopolistic industry is dominated by a small number of large firms, each of which is relatively large compared to the overall size of the market. This generates substantial market control, the extent of market control depending on the number and size of the firms. * Identical or differentiated products: Some oligopolistic industries produce identical products, while others produce differentiated products. Identical product oligopolies tend to process raw materials or intermediate goods that are used as inputs by other industries. Notable examples are petroleum, steel, and aluminum. Differentiated product oligopolies tend to focus on consumer
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