Vodafone Strategy

5649 WordsAug 29, 201123 Pages
EOS –Indian Telecom Industry - Vodafone Submitted By: Niraj Bhandari Rajesh Sarangi Rakesh A C Sushant Sehra - 25/5 - 32/5 - 33/5 - 45/5 EOS –Indian Telecom Industry - Vodafone Table of Contents Executive Summary ................................................................................................................................. 2 1. Indian Telecom Industry ....................................................................................................................... 3 2. Industry Analysis ................................................................................................................................. 7 2.1 Threat of New Entrants…show more content…
The government regulation has played a crucial role in boosting the industry growth and shifting it from a state owned monopoly to market oriented model. Presently there are more than 800 million subscribers with around 70 percent tele-density. The industry has 15 GSM service providers with 5 of them having pan India presence. With the maturing of the industry, the differentiation among the services provided by the players is also on a decline. The quality of service among the service providers is also converging to the industry standard and TRAI recommendations. This resulted in a price war, especially with the new players entering the existing circles. The price war has resulted in the erosion of market share of existing players and also affected the profitability of all the service providers. The average revenue per user is on a decline in the industry, and interestingly the lower tariff has not increased the minutes of usage per connection. The existing players are working hard to maintain steady addition to the subscriber base and to keep the costs of operation low. Although the market may not be attractive for a new entrant, there seems to be a strong value and upside potential remaining for the existing telecom operators to prevent the erosion of their market share. 2 EOS –Indian
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