abhishreshthaa
Abhijeet S
• The market is divided into 4 metro circles and 20 cellular circles. Only four cellular operators are allowed to operate in each circle. Government-owned MTNL and BSNL are the 3rd operators in each circle advent
• Regulatory Authority TRAI & TDSAT.
• The current market has 6 million subscribers (<1% penetration rate) but is expected to grow to 50 million subscribers by 2005
• Industry is highly regulated by the government: Foreign Direct Investment (FDI) restricted to 49%.
• Revenue sharing scheme implemented, Receiving Party Pays (RPP) regime governed
• Decreasing handset costs and the introduction of pre-paid card is stimulating demand
• Basic service providers offering Wireless in Local Loop (WLL) services like Reliance India Mobile has intensified competition
Market Performance
• Major foreign direct investment in telecom increased drastically from 2000 to 2001. Over the years, 27% of this investment has been in cellular segment
• Revenue growth achieved between 1998 and 2000 with expanding market size Average revenue per subscriber is declining due to intense competition and introduction of pre-paid cards
• Consolidation in the industry has given rise to 3 major groups with a combined market share of 70%
• Cellular operators are reporting losses because of heavy upfront investment in infrastructure, tariff reduction and intense competition, but are expecting to achieve profitability in the future.
• Regulatory Authority TRAI & TDSAT.
• The current market has 6 million subscribers (<1% penetration rate) but is expected to grow to 50 million subscribers by 2005
• Industry is highly regulated by the government: Foreign Direct Investment (FDI) restricted to 49%.
• Revenue sharing scheme implemented, Receiving Party Pays (RPP) regime governed
• Decreasing handset costs and the introduction of pre-paid card is stimulating demand
• Basic service providers offering Wireless in Local Loop (WLL) services like Reliance India Mobile has intensified competition
Market Performance
• Major foreign direct investment in telecom increased drastically from 2000 to 2001. Over the years, 27% of this investment has been in cellular segment
• Revenue growth achieved between 1998 and 2000 with expanding market size Average revenue per subscriber is declining due to intense competition and introduction of pre-paid cards
• Consolidation in the industry has given rise to 3 major groups with a combined market share of 70%
• Cellular operators are reporting losses because of heavy upfront investment in infrastructure, tariff reduction and intense competition, but are expecting to achieve profitability in the future.