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Approach

The entire telecom industry can be analysed for the years 20072008 to 2010-2012 and 2014-1 with respect to its Political,
Economical, Social, Technological, Environmental and Legal
Aspects. An EFE matrix can be drawn for the same.
The fact that these analysis factors change through these years
must be taken into consideration.
The market share of each telecom operator can be calculated
using the information present on the TRAI website.
Later we can draw infographics about the number of subscribers,
churn rate, growth of the industry, competitor analysis, revenue
of major operators in telecom sector
Finally, we can come up with data for Bharti Airtel and compare
its performance with that of the industry
Sources used to obtain data:

TRAI website
Euromonitor/ Other Electronic resources
Indian Telecom Industry Report

Telecom industry
India is currently the second-largest telecommunication market and has the third
highest number of internet users in the world. India's telephone subscriber base
expanded at a CAGR of 24.1 per cent to 933 million over FY200714
Telecom industry is the backbone of industrial and economic development, aiding
delivery of voice and data services at rapidly increasing speeds, and thus, has
been revolutionising human communication.
Indian telecom industry is one of the fastest-growing industries in the world
The Indian telecom industry is characterised with intense competition, and
continuous price wars. Currently, there are around a dozen telecom service
providers who operate in the wired and wireless segment. The government has
been periodically implementing suitable fiscal and promotional policies to boost
domestic demand and to create volumes for the industry.
The Indian telecom industry has immense growth potential. The wireless
segment growth has played a dominant role in taking the teledensity to the
current levels. In the next few years, the industry is poised to grow further, in
fact, it has already entered a consolidation phase as foreign players are
struggling to acquire a pie in this dynamic industry.
Airtel

Vodafone India
Idea Cellular
Reliance Communications
BSNL
Aircel
Tata Docomo
Uninor
MTS India
Videocon
MTNL

PESTEL Analysis
Political Analysis

Changes in government policies affect every business sector including


Telecom
National telecom Policy defined certain objectives, including availability of
telephone, FDI, manufacturing of Telecom equipment
TRAIs regulations and issues to provide a required direction to the
telecom market
Increase and FDI limits paved the way for remarkable growth in the sector

Economic Analysis

The Indian Telecom industry plays an important role in the economy. The
contribution of the sector to GDP has been increasing gradually.
Increase in disposable incomes leads to greater affordability
Higher demand leading to falling phone prices and call charges
Telecom industry (manufacturing) has a huge share in the export sector
India being most attractive market for telecom equipment suppliers and
service providers

Social Analysis

Telecom industry must cater to different segments in the country with


respect to age, demographics etc
Customers have low brand loyalty thus leading to shifts from one operator
to the other
Changes in lifestyle (tastes & preferences) lead to price wars and
increased churn rates as customers want better offers and services

Technological Analysis

With growing technological concerns, the economy also grows bringing the
telecom operators to bring in new technology
Potential for innovation very high with services like 3G and 4G and these
services seem to be very profitable
Increased spend on R&D

Environmental Analysis

Environmental issues have become one of the most important factors to


be considered in the telecom industry
Various regulations on environment protection especially for Telecom
operators and manufacturers are being performed
Products and solutions are created to reduce negative environmental
impact

Legal Analysis

The National Telecom Policy (NTP) of 1994 provided the basis for
liberalizing the telecommunication market. It recognized the importance of
liberalization and private sector participation as key elements of economic
development.
Legal framework of telecom in India is supported by TRAI (Telecom
Regulatory Authority of India), having purpose of Independent regulator to
control telecom industry.
India is the fastest growing telecom markets in the world. Reforms
introduced by successive Indian governments over the last decade have
dramatically changed the nature of telecommunications in the country.

Top three players


Revenue Market Share
Idea; 23%

Airtel; 44%

Vodafone; 33%

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