P.E.S.T Analysis of the Indian Telecom Industry

1. Macro environment analysis: the major externals which affect company’s decision making, marketing strategy and performance. It includes:

The future of the telecommunication industry is an exciting future. No longer can these companies depend on telephone service plans to maintain profit. Each company needs to find other avenues, packages and services that can be sold to existing customers while attracting new customers. The companies

The major thrust for the telecommunications sector is coming from within the industry due to continuous network and product upgrade and invention by industry players.

India is one country which is developing rapidly at the moment along with China (Lal and Clement, 2005). The political, economic, social, cultural, technological and legal climate in India is extremely suitable for international entrepreneurs since business prospects in a country are heavily dependent on the above mentioned parameters. Since India is the second most heavily populated country in the world, British telecommunication company, Vodafone has enormous business opportunities in India. Mobile phone usage in India is increasing rapidly in recent times (Press Information Bureau: Government of India, 2010). A substantial portion of Indian

Macro environment are the external and uncontrollable factors that influence an organization’s decision making and affects its performance and strategies.

The telecommunications industry has steadily rebound since 2009; this is because of the growth of not only the mobile and broadband structures, but also the increase of the video market. In Figure 1, the projected outcome is indicates a steady increase in the new 4G mobile broadband networks which will fuel continued wireless growth. “Business customers in particular will continue to use this technology to expand their capabilities beyond the desktop computer. Emerging markets such as China, India and Latin America are expected to see strong growth,” (Verizon, 2011).

Overview of Industry The telecom industry is a major epicenter of growth, innovation, and disruption for virtually any industry. Mobile devices and related broadband connectivity continue to be more and more embedded in the fabric of society today and they are key in driving the momentum around some key trends such as video streaming, Internet of Things (IoT), and mobile payments. (Deloitte US) A mobile service provider (MSP) is a company that offers transmission services to users of wireless devices through radio frequency (RF) signals rather than through end-to-end wire communication.

The telecommunication act bought about a drastic change, ILEC- provided wireline subscriptions started to decline whereas cable-telephone, VoIP and wireless subscriptions started to increase. According to the statistics, more than 40 % of the consumers started to consider mobile as their primary means of communication.

The number of wireless subscriber connections worldwide reached 3 billion at the end of 2007. China led with the most subscribers followed by US. The emerging mobile market in Asia Pacific is very attractive with a lower penetration and higher growth rate compared to mature markets such as North America. Western Europe's mobile market was highly nationalistic with most users preferring home-grown mobile companies.

60.1 million retail customers -- most retail customers of any carrier, an increase of 14.3 percent; 62.1 million total customers, an increase of 13.2 percent. (Verizon 2007)

BT is the leading telecommunication company in Europe. As the information and telecommunication requirements of people increases, British Telecommunication (BT) has a leading corresponding growth in the size and number of information processed. Therefore, the genuine analyses on BT are required for such an important and strategic company.

For 15 years and counting, Verizon has grown to be one of the largest communication technology companies, and has

The dominant economic traits of this industry start with having an enormous amount of capital required for staying competitive. One is also required to spend lots of money on research and development, as the telecommunications industry seems to be the vision of the future. More and more companies like AT&T are trying very hard to combine their network services of phone line, video and data transfer, high speed internet access, and television cable via one line in the consumers homes. With a successful combination of the above stated services AT&T is hoping to be the industry leader in the near future.

In this following report I will discuss the phone industry and analysed it in great detail. I will analysis the market structure and try and understand why the mobile industry falls to heavily oligopoly structure. I will highlight all the structures, however I will discuss in detail how, for example Vodafone can be incorporated in the porter’s five forces method to show how the mobile industry has devolved over the years and to understand if consumers are driven by the actual technology of the phone but if it driven more by style.

Macro environment consist of those major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies.