A complete market analysis on Indian telecom industry, With comparative data analysis of Reliance and Vodafone.

1. Group Presentation on
Market Analysis of Indian Telecom Industry
September 5,
2014
Presented By
A. Wadut Al Mamun

2. September 5, 2014
2nd Largest
Subscriber Base
3rd Highest Number
of Internet Users
Rising Penetration
Rate
Affordability &
Lower Tariff Rates
With a subscriber base of 922.04 million as on 31st January 2014,
India has the 2nd largest telecom network in the world.
With 251.59 million subscriptions at the end of March 2014, India
stood 3rd highest in terms of total internet users in the 2014.
Urban tele density stood at 139.42 percent and rural tele
density is 42.43% as of March 2014 up from 111% and 21.2%
respectively in 2009.
Availability of affordable smart phones and lower tariff rates are
expected to drive growth in the Indian telecom industry.

3. 2008 2009 2010 2011 2012 2013 2014
1000
900
800
700
600
500
400
300
200
100
No of Subscribers(in millions) 384.79 562.21 787.28 846.32 895.51 898 922.04
Teledensity 33.2 47.89 66.16 70.9 73.3 73.32 74.5
80
70
60
50
40
30
20
10
0
September 5, 2014
0
No of Subscribers(in millions) Teledensity

4. • TRAI recommendation: At least 50% of all Rural towers and 33% of urban
towers to be powered by renewable energy sources by 2015.
September 5, 2014
Green
Telecom
• Over 62443 uncovered villages in India
• On 31st January 2014, the rural subscriber base accounted for 40% of the
total subscriber base
Expansion to
Rural Market
• BWA Technologies such as WiMAX have been among the recent
developments in wireless communication
•WiMAX is expected to have attracted around 8 to 10 million subscribers and
account for around USD 1-1.5 billion in 2012.
Emergence
of BWA
Technologies

5. • To boost local research and manufacturing of telecom
products, the government has proposed the investment of
UD$ 32.2 billion during the 12th five year plan.
September 5, 2014
Rising
Investments
• As part of the recent outsourcing trend operators have
outsourced functions such as network maintenance, IT
operations and Customer Service.
Outsourcing
Non Core
Activities
• 7.7 million mobile banking transactions in October 2013 were reported, a
7.1% growth month on month.
• Availability of affordable smartphones is expected to boost the growth
of various transactions via mobile; M-Paisa in Vodafone, Airtel Money.
Mobile
Banking

6.  Over the top users on smartphones are expected to rise from 276.8
September 5, 2014
million in 2012 to 1.32 billion in 2016.
 20% of global Smartphone users were actively using such services,
and this is predicted to reach 45% by 2016.
 Over-the-top users in 2012 accounted for 2% of the total global
mobile subscription base and are expected to increase to 18% in
2016.
 The market is expected to be worth US$166.5 billion in 2016
 5G expected to be launched by 2020

7. September 5,
2014
Students
Young
Professionals Enterprise Family Special
Service Type Voice Data Voice Data Voice Data Voice Data Voice Data
Usage Rate High MediumMediumMediumMedium High Medium Low Medium Low
Purpose S/C SN S/C SN CC/GS VC/IA C/S IA C/S VC/SN
Sex M/F M/F M/F M/F -- -- M/F M/F M/F M/F
User Age 15-24 24-35 18-60 18-80 20-25
Peak Hours 17:00-20:00 Hrs 10:00-17:00 Hrs 10:00-17:00 Hrs 17:00-20:00 Hrs 22:00-02:00 Hrs
Segment
Attractivene
ss High MediumMedium High Medium High Medium Low High Low
Name of
Product
Discounted
Packs Unlimited Plan
Corporate
Connection Family Plan Buddy Plan

8. PESTEL Analysis
September 5,
2014

9. Porters Five Forces Model
Threats of
new
Entrance
M
Intensity
of Rivalry
H
Bargaining
power of
buyers
H
Threats of
substitutes
L
Bargaining
power of
Suppliers
L
September 5,
2014

10. September 5,
2014
Major Players

11. September 5,
2014
Total Subscribers

12. Distribution Channel
September 5,
2014
Company
Company
Online Web
Company
outlet
3rd Party
Portal
Customer
Direct sale
Retailer
Campaign
Bundle

13. Recent Developments
 High Speed 4G technology in Mumbai, Chennai, Bangalore,
Kolkata.
 TCS and Bharti Airtel have promised to build public toilets
estimated to be Rs 200 Cr
 74% FDI in ISP, 74% basic and cellular, 100% in IP, 100% in
manufacture of telecom equipment's.
 Aircel launches 4G LTE technology in J&K, Tamil Nadu.
 TRAI drops plans to impose extra fees on social media(WhatsApp,
Skype).
 Reliance Jio and Vodafone enter into an agreement to build an
8000 Km Submarine telecom and data cable system.
September 5,
2014

14. THANK Y OU
September 5,
2014