market forces in telecom industry?

Question

what are the market forces like Demand and supply in telecom industry in india for Airtel?

Answer 1

Airtel or Bharti Telecom is one of the largest GSM telecom operators in the country. The market forces which influence the telecom industry impact all the cellular operators. Today telecom in India is one of the most competitive markets in the country. The country has a vast number of people who could be target consumers for all the operators currently in the market. There are 2 types of services which are currently very prevalent in the Indian market presently GSM and CDMA. Primarily both the kind of services is used for telephony and not for other services like data transfer etc. The market is currently growing at a scorching speed as the penetration of cellular services is going deeper into the town class. There many times more would be users than the service providers' reach collectively. Reliance telecom is trying to break open this market through wide distribution and reach but has not achieved what it set out to. Eventually the reach will become a function of infrastructure provided by Indian government. Also the PP of Indian consumers is going up and in the cities using a cell phone is a essential thing, while in the lesser town class it is more of an lifestyle option and the largest telecom provider is still BSNL with landline connections. The telecom PSU has now got its act together and is gearing up with its own cellular service. The GSM and CDM regimes are both regulated by the issue of licenses by the Indian government for a particular circle and the license fees which a provider has to pay for to operate in the circle although have come down but even now are pretty hefty. Eventually this barrier will come down. Already present players like Airtel will have to explore frontiers of CDMA distribution, high end services (which eventually will become regular services like wireless connectivity, VOIP etc) to gain maximum profit and benefit by being in the telecom segment.

Answer 2

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