EOS –Indian Telecom Industry - Vodafone
Submitted By: Niraj Bhandari Rajesh Sarangi Rakesh A C Sushant Sehra
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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
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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.
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EOS –Indian
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
One month has to look at competition since the early 1990’s, especially since the act 1996 act. The most effective competition has come from technology evolution that enabled multiple platforms with different product-characteristics and economics to compete. They, in turn, then forced each other into cycles of further innovation. When the telecommunications act of 1996 has passed, there were hints of incipient competition in both the long-distance and video-distribution markets as a result of new technology. Local telephony was still essentially a monopoly. Although wireless was thriving, it was seen primarily as a purely mobile service.”
Network expansion by India’s leading telecom majors - Bharti Airtel, Vodafone and Idea Cellular Ltd – will work in Bharti Infratel’s favour. Large-scale operations, first-mover advantage and pool sharing arrangement among the top three telecom majors is expected to improve Bharti Infratel’s operating leverage and
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.
Vodafone is one of the most important players on the European telecommunications market. However, this does not mean that the company has an easy job at retaining its customers and at increasing its market share. The most important competitors of Vodafone are represented by Orange and Cosmote. The regulations in the business field determine these companies to provide similar products and services, at similar prices. Therefore, it is important that Vodafone focuses on its communications strategy in order to strengthen its position on the market.
Over a quite long period prior, telecommunication system has incredible improvements from the wire to wireless phone technology. “The ability to convey information quickly, accurately, and efficiently has always been one of the main focuses driving human innovation. From prehistoric man with their signal fires to the smartphone-wielding high-powered executives of today, communication still remains a key for survival and success.” (The History of Telecommunication) Telecommunications set a worldwide network helping people closer together. Nowadays, there are many firms with good services, such as AT&T, Sprint, PCS, T- Mobile, and Verizon in the US. Among these firms, AT&T is the telecommunicating firm that I would like to mention here about its mobile share value plans. Besides its services and products supplied, the mobile share value plans are one of the major changes of AT&T in 2014. The AT&T’s competitiveness, which is based on its pricing and servicing policies, is to measure against other companies in the Telecommunication Industry market.
This paper will discuss how the American Telecom industry would have been impacted if AT&T and T-Mobile would have gone through with their merger. The Telecom is working every day to make itself better and with the increase in the uses of mobile-users, companies are doing their best to provide the best services for their customers. There are a lot of disadvantages of the growing number of customers though and that was the case when AT&T proposed to merge with T-Mobile.
The bigger the number of rivals, along with the number of products or services offer, enables to determine the power of a company. Buyers and supplier are seeking out a company's competition if they are unable to present a suitable deal. In the case os SingTel, the telecom industry is segmented by geography. Hence, the direct competitors of SingTel are mainly M1 and Starhub, since SingTel was develop in Singapore. The market for telecom service in Singapore is very saturated with high competitive intensity as each company tries various methods of differentiating itself from SingTel. This insinuate that the SingTel company will be driven by point of differentiation rather than pricing and in the case of the telecom industry, it is the unique service it can offer to the consumer as well as to their
In today’s telecommunication market there is a lot of competition by industry giants such as Sprint,
The business case presented focuses on insatiable demand amongst a growing population for a service built on dilapidated, poorly maintained infrastructure, against a backdrop of government deregulation in the telecoms sector. As of 1992, there were a mere 78k telephone lines for the 27m people living in 4.7m households (a population set to double over the coming 24 years), with users suffering success rates of just 25%. Demand was forecast to grow to 500k subscribers by 1996. The recent deregulation of the telecoms sector (via the break-up of TPTC into TPC and TTCL) and the formation of a regulator (TCC) had
In the Telecommunications industry, balancing assets and profitability is especially important in the survival of a given company. This is due to the fact that consumers are becoming more knowledgeable and understand the technical aspects much better now than in the past. Customers are always looking for new technological solutions and more bandwidth as their applications are becoming more sophisticated. Small Telecommunications companies, in an attempt to keep up with the technological changes, are moving too fast and often do not properly track their costs. In addition to the technical challenges, new regulatory changes are making hard for CLECs (Competitive Local Exchange Carriers) to compete
Is clear that AT&T is one of the few suppliers of telephony, given to them high supplier power. This condition gives them the ability, among others, to charging higher prices, limiting quality or services, and more importantly in this scenario, shifting cost to industry participants, meaning that is more profitable for them bring the accounts in-house, and this is possible given the high supplier power. The buyer power, on the other hand, is low, customers doesn’t have the power to force company down prices. In this case with AT&T taking control of their selling could down prices for the customers removing any chance of increment buyer power. The threat of substitute products or services and the threat of new entrants in this case was managed by AT&T, first, eliminating three party contractors and given the possibility directly AT&T to know and lure customers in order to increase not only their competitive advantage, but also, their competitive intelligence. Having direct communication with their customers enables AT&T to develop new strategies, products and services and avoid new entrants in their business. Also given the rivalry among existing competitors in this industry, AT&T found the possibility to interact with
In the guiding principles, ExxonMobil tries to address their shareholders, customers, employees and communities. Shareholders are promised “superior returns” while customers are ensured to be satisfied by “offering high quality and services at competitive prices.” (Our Guiding Principles, 2012) ExxonMobil’s guiding principles also shows that they hire only high quality specialists providing they have all necessary training and further development. In the communities section of their mission statement, they promise to obey all the “laws, rules, regulations and ethical standards.”
Executive Summary....................................................................................................................................... 3 Industry Analysis ........................................................................................................................................... 3 Threat of New Entrants ............................................................................................................................. 4 Power of Suppliers
When the market is controlled by a small number of big sellers and for any new company it is not easy to enter and establish owing to valid reasons mentioned above and we can experience this in the Indian telecom