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

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P.E.S.T. Analysis of the Indian Telecom Industry 2009 This is an analysis of the Political, Economic, Social and Technological environment surrounding the Indian Telecommunication Industry. By- Akshar Mehta 02 2nd January 2009 Particulars | Page | 1. Introduction 2.1 Panoramic Scene of Indian Telecom Industry 2.2 The Road Ahead | 2-323 | 2. P.E.S.T. Analysis – What is it? 3.3 Meaning 3.4 Main Aspects of P.E.S.T. Analysis | 444 | 3. Political Environment3.1 Policies Framed By the Government for the Telecom Industry3.2 Impact of Policies on the Industry | 5-767 | 4. Economic Environment 5.5 Current Economic Scenario4.2 Mergers and Acquisitions4.3 Foreign Direct Investment (FDI) | 8-9899 |…show more content…
The dominance has been much more pronounced in the mobile market, where private operators have added 124.68 million subscribers, while public sector operators added only 31.79 million subscribers. 1.2 THE ROAD AHEAD According to a report by Boston Consulting Group, while only one in 20 of the world's first two billion mobile subscribers live in India, as many as one in every four of the next billion subscribers will be an Indian. The department of telecommunication estimates the total subscriber base to total 500 million by 2010, out of which 80 million are expected to be from rural areas. The Indian telecom industry's revenue, , is estimated to increase, which according to Ernst & Young is expected to total US$ 43 billion, accounting for 4.2 per cent of the total GDP. With such growth projection, this industry is likely to see increased investments. In fact, total investment is projected at US$ 76.6 billion during the eleventh plan period (2007-12). Private sector is estimated to continue its dominant share, accounting for 67 per cent of the total projected investment while public sector accounts for the rest. Figure 1.1: Expected Growth of the Industry 2. PEST ANALYSIS – WHAT IS IT? 2.1 MEANING In analyzing the macro-environment, it is important to identify the factors that might in turn affect a number of vital

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