abhishreshthaa
Abhijeet S
• Current penetration is about 0.6%, which is very low compared to other countries such as China (penetration of 6%).
• The Indian cellular market will have a huge demand potential of 50 million subscribers by the year 2005.
• Regulatory Authority is TRAI.
• Intense competition and strict regulatory policies (such as the restricted number of licenses) make it difficult for the new entrants to make a foray into the cellular services.
• Demand is growing with the reduction in tariffs and handset prices. If TRAI successfully introduces calling party pays (CPP), demand would further increase due to the potential cost savings.
• Cellular operators are acquiring existing small players, competing on pricing and value added service offerings to gain market share.
• The leader in this highly competitive sector is Bharti Cellular Services.
• Key players in this market have been reporting revenue growth. Operations are experiencing losses but are expecting to have significant profitability growth in the future.
• Competition is fierce with 70% of the market controlled by 3 major players. The incumbent fixed line operators like MTNL and BSNL entering the cellular foray further will intensify the competition.
• The average revenue per unit subscriber has been decreasing with introduction of pre-paid cards and tariff cuts
• The effect of new entrants like Reliance & Tata Telecom Services on established players.
• Introduction of wireless in local loop (WLL) also created additional competition.
• The Indian cellular market will have a huge demand potential of 50 million subscribers by the year 2005.
• Regulatory Authority is TRAI.
• Intense competition and strict regulatory policies (such as the restricted number of licenses) make it difficult for the new entrants to make a foray into the cellular services.
• Demand is growing with the reduction in tariffs and handset prices. If TRAI successfully introduces calling party pays (CPP), demand would further increase due to the potential cost savings.
• Cellular operators are acquiring existing small players, competing on pricing and value added service offerings to gain market share.
• The leader in this highly competitive sector is Bharti Cellular Services.
• Key players in this market have been reporting revenue growth. Operations are experiencing losses but are expecting to have significant profitability growth in the future.
• Competition is fierce with 70% of the market controlled by 3 major players. The incumbent fixed line operators like MTNL and BSNL entering the cellular foray further will intensify the competition.
• The average revenue per unit subscriber has been decreasing with introduction of pre-paid cards and tariff cuts
• The effect of new entrants like Reliance & Tata Telecom Services on established players.
• Introduction of wireless in local loop (WLL) also created additional competition.