Indian Telecom Sector – Market Analysis

In this report we try to provide some information of the Indian Telecom Sector in June, 2011, based on secondary research. The boom phase for Indian telecom market continues to thrive on the availability of cheaper telecom services alongside an aggressive marketing strategy by the service providers. The growth phase is panning out across India and is not just limited to urban India. While the customer satisfaction has increased substantially in 2010 and 2011, as per a survey done by TRAI, the profitability of the sector has decreased substantially in 2011.

While the market continues to be led by Bharti Airtel, in terms of market share by revenue, it is closely followed by Vodafone and the relative younger player, Idea Cellular. BSNL is continuing to witness a sharp decline in its subscriber base, with probably the highest ever telecom churn in the industry.

One of the major causes while the telecom operators have seen such a mixed bag of fortune is due to the introduction of the Mobile number portability (MNP).  Due to the introduction of this service via regulation, customers will be able carry their mobile number across service providers in India. The biggest affected service providers had been Reliance and BSNL, while Airtel has been the leading gainer from this exercise.

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Author: Kar

Dr. Kar works in the interface of digital transformation and data science. Professionally a professor in one of the top B-Schools of Asia and an alumni of XLRI, he has extensive experience in teaching, training, consultancy and research in reputed institutes. He is a regular contributor of Business Fundas and a frequent author in research platforms. He is widely cited as a researcher. Note: The articles authored in this blog are his personal views and does not reflect that of his affiliations.