Dynamics of the Indian Telecom Industry

Transcription

1 Smart Research Insights (SRI) equips clients with critical industry insights to support business decision making. SRI is a research organisation specializing in niche sector market reports. We conduct in-depth secondary research to arrive at key insights, which are supported by data that has been analyzed impartially to present a clear picture of the industry. All recent developments and industry opinions which impact the sector dynamics are captured and used to support the research hypothesis. Dynamics of the Indian Telecom Industry May 2012 For more information please visit us at

2 Executive summary India is one of the leading telecom markets across the world, which still has a huge potential for further growth. The country s telecom revenues increased at a CAGR of 18.1% during , driven by the robust telecom infrastructure, various proactive initiatives taken by the industry and the Government, along with liberal policies and a fair regulatory framework that helps offer telecom services at affordable prices. While mobile subscriptions are currently driving the growth in the Indian telecom industry, internet subscribers are also expected to increase rapidly in the coming years, driven by the launch of 3G services in the country. The focus of leading telecom players is shifting towards the rural markets of India, which are being touted as the next key growth drivers for the Indian telecom industry. While the penetration of mobile phones in rural India is increasing steadily, there still exists a large gap in this segment, representing a potential market for the key players. Why should the report be purchased? Our report Dynamics of the Indian Telecom Industry highlights key trends and drivers of the telecom industry in India. It analyses the challenges being faced by the industry that can hamper its future growth. The report also studies the various legislations that impact the industry. A detailed study of key players in the market has also been presented. Research methodology Smart Research Insights has conducted in depth secondary research to arrive at key insights. Data collected from key industry sources has been analyzed impartially to present a clear picture of the industry. All recent developments which impact the sector dynamics have been captured and used to support the research hypothesis. About Smart Research Insights (SRI) SRI is a research organization which specializes in niche sector reports. We have a team of dedicated researchers with rich experience across industry segments that focus on delivering high quality analysis. We are also engaged in providing customized research solutions and company reports. For any research requirements please write to smartresearchinsights@gmail.com 2

3 Table of Contents 1. India Telecom Industry: Introduction Performance Analysis Segment Assessment Emerging Trends & Drivers Legislative Initiatives Industry Challenges Competitive Landscape MTNL Airtel Vodafone BSNL Reliance Communications Tata Teleservices Idea Cellular Future Outlook Research Methodology About Smart Research Insights

4 1. India Telecom Industry: Introduction 1.1 Performance Analysis The total telecom subscriber base in the country grew to approximately 886 million at the end of June 2011 as compared to 875 million in the same period in the previous year. In March 2012 the telecom subscriber base rose by 1% month on month to million while net subscriber addition stood at approximately seven million down 24.8% month on month. In this month, Bharti Airtel led the market in terms of net GSM subscriber addition, adding 2.5 million subscribers which was 36% of the total net subscriber addition. 1 The overall subscriber base grew at a CAGR of 50% in the period as a result of which the teledensity in India grew from 18% in FY 2007 to 68% in FY With voice revenues falling by the day, the fresh round of revenues in the industry is expected from come from data. In India the non-voice revenue as a proportion of total revenue is just a meagre 11% in India in comparison to approximately 20%-30% in key Asian countries. This is projected to double over next few years. Figure 2: Total Telecom Subscriber Base in India (Million) Jun 2011 Source: TRAI In the next 2-3 years, rural areas will grow faster than the urban areas and will contribute 60% of the net subscriber addition. Revati Kasture, Head - CARE Research, CARE 1 Angel Broking 2 IRIS Business Services Limited 4

5 1.2 Segment Assessment 2. Emerging Trends & Drivers 3. Legislative Initiatives 4. Industry Challenges The growth of India s dynamic telecom industry is restricted by various challenges, with both operators and software vendors seeking alternative models of operation. The transitional phase of this industry is marred by intense competition, a tight regulatory regime and rural-urban divide. Recent scams have also slowed the pace of growth of the industry. However, efforts are being made by the players, the government and the telecom regulatory body to overcome these barriers of growth and drive the growth of the Indian telecom industry. Figure 1: Growth Barriers for the Indian Telecom Sector Intense Competition Inadequate Telecom Infrastructure XXX XXX XXX 5. Competitive Landscape 5.1 MTNL 5.2 Airtel 5.3 Vodafone 5.4 BSNL 5.5 Reliance Communications 5.6 Tata Teleservices 5.7 Idea Cellular 5

6 6. Future Outlook 7. Research Methodology 6

7 8. About Smart Research Insights Smart Research Insights (SRI) equips clients with critical industry insights to support business decision making. SRI is a research organization specializing in niche sector market reports. We have a team of dedicated researchers with rich experience across industry segments that focus on delivering high quality analysis. We are also engaged in providing customized research solutions and company reports. We conduct in-depth secondary research to arrive at key insights, which are supported by data that has been analyzed impartially to present a clear picture of the industry. All recent developments and industry opinions which impact the sector dynamics are captured and used to support the research hypothesis. Our team includes business research professionals with extensive management and research experience. SRI reports are aimed at providing support for a wide variety of business decisions surrounding: Market entry Strengthening market foothold Product and brand performance Competitor benchmarking Emerging trends and technology Consumer behaviour and response Standard Reports Niche Industry Reports Custom Reports For more information please visit us at 7

8 Disclaimer The report is prepared by Smart Research Insights for general circulation and is not intended to serve as the basis for an investment decision on a standalone basis. Any kind of unlawful use or disclosure of the content in this report is forbidden. This research report is not meant to be construed as a prospectus within the meaning of the applicable laws under any jurisdiction. The analysis and opinions included in this report have been collected or arrived at from sources understood to be reliable in good faith, but no representation or warranty, express or implied. The analysis contained in this report disclaims all warranties as to the correctness, completeness or adequacy of such All Rights Reserved 8