indian telecom industry –a snapshot

8/6/2019 Indian telecom industry –a snapshot

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�� India has one of the biggest telecom markets in the world. It has more GSM subscribers than fixedIndia has one of the biggest telecom markets in the world. It has more GSM subscribers than fixed--lineline

subscribers.subscribers.

�� Total telecom subscribersTotal telecom subscribers 525 million (Dec 2009)525 million (Dec 2009)

�� TeledensityTeledensity 42.27 per cent (August 2009)142.27 per cent (August 2009)1

�� Addition of mobile subscribers (JulyAddition of mobile subscribers (JulyAugust 2009)August 2009) 15.08 million115.08 million1

�� Annual growth rate of telecom subscribers (June 2008Annual growth rate of telecom subscribers (June 2008June 2009)June 2009) 42.68 per cent42.68 per cent

�� Average Revenue Per User (ARPU) for GSM (as on 30 June 2009)Average Revenue Per User (ARPU) for GSM (as on 30 June 2009) Rs 184.83Rs 184.83

�� Telecom equipment market (2008Telecom equipment market (200809)09) US$ 24.99 billionUS$ 24.99 billion

�� Handset market (2008Handset market (2008--09)09) US$ 5.82 billionUS$ 5.82 billion

�� Expected mobile subscriber base (2013)Expected mobile subscriber base (2013) About 771 million.About 771 million.



� 10The telecom subscriber base in India is likely to reach 500 million by 2010.

� The subscriber base grew to 494.07 million (August 2009), registering a growthof approximately 42.67 per cent over last year. It grew at a CAGR of 45.21 percent from June 2004 to June 2009.

� Teledensity in India is still low as compared to that in some countries. As onAugust 2009, India had a teledensity of 42.27 per cent as compared to the

previous years figure of 29.83 per cent

1 2 3 4 5 6

Teledensity 7.04 9.61 13.96 19.06 28.33 39.86

05

1015

20

25

30

3540

45

Teledensity



� Large population.

� Low telephony penetration which is giving a

lot of scope to increase subscriber base.� Rise in consumer income & spending owing

to strong economic growth



� By selling VAS



� ARPU numbers as reported by playerscurrently are understated.

�

Increase in profitability in the next five yearsbecause of Increase in revenue

Decrease in operating cost

� Larger and more profitable operators arebound to emerge after a wave of consolidation

�



� 3G services will help increase revenues

� Mobile Number Portability will benefit the

companies users switch to



� Lower tariff rates

Greater savings

Easy availability of service providers

More options in terms of network providers

� Usage increased

�

Mobile number portability



� Improvement in quality of services

Network coverage

Call drops are less

Easy bill paying options

Payment Kiosks

Online payments

Drop boxes

Improved customer helplines



� Value added services

Can plan their own tariff plan

Internet services have improved

Ring tones downloads, Caller tunes

MMS, GPRS

Infotainment etc.



� Focus on careful market segmentation and

value-based differentiation

� adopt a dynamic pricing strategy� well designed self service system

� differentiate services offered to thesesegments through better network

quality, customer care and marketing

indian telecom industry –a snapshot

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