The Competitive Forces in the Cellular Industry

abhishreshthaa

Abhijeet S
High
• The entry of Reliance, government- owned MTNL and BSNL which have aggressive pricing strategy from inherent network advantage and legacy systems intensifies the competition within the industry


• It is, however, difficult for other new private operators to enter. Threats from


Low

Handset market is very competitive with substantially lower handset prices offered by the grey market


Low

• Penetration rate is still low but demand is increasing at a high rate of 74% p.a.

• Buyers are fragment with no influence on product or price



Medium


• Threat from Wireless in Local Loop


(WLL) based limited mobility was considerably reduced after TRAI


imposed the mobility of WLL based basic operator to 25Km and revenue share of domestic long distance to 5%
 
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