Telecom sector analysis india-company analysis bharti analysis

Indian telecom industry has seen tremendous growth in last few years driven primarily by parallel economic growth, rising income levels and favorable demographics. With close to 300million customers presently and with a target of 500million customers by 2010(Annual report 2007-2008 of Bharti Airtel) it makes India one of the largest telecom markets in the world. Indian telecom industry is expected to face serious competition with new entrants and global telecom operators, many of which wish to re enter India to be a part of success regime of Indian Telecom industry.

The success of Indian telecom industry is attributed not only to the entrepreneurial spirit of telecom industry but also to various proactive and positive policy measures taken by the regulating authority.

Recent happenings*Recently two Indian companies were in the race of acquiring a South African telecom company MTN group which has operations in 21countries in Africa Middle East.

*Various regulatory changes were also implemented recently by department of telecommunication (DOT) and telephone regulatory authority of India (TRAI)Like gradual phasing out of access deficit charge regime (ADC), allowing sharing of active infrastructure viz antenna, feeder cable, transmission system etc but excluded sharing of spectrum.

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English: Sunil Mittal

Both the changes are with effect from 1 April 2008.

PEST analysisPolitical factorsTRAI and DOT are the two regulatory bodies which regulate telecom operations in India. These bodies are facilitating telecom companies by taking various proactive and positive policy measures. The pro rural steps taken in recent union budget provides a greater incentive to achieve deeper penetration in unexplored rural area thus providing opportunity to grow.

Economical Factors:Several economic reforms taken by the government, and increased per capita income increases the purchasing power of Indians thus leading to growth of industry. Companies also have to decide their prices according to the customers they are serving: rural or...