INTERNATIONAL SCHOOL OF BUSINESS &

MEDIA

A STUDY OF TELECOMMUNICATION SERVICE

PROVIDER IN INDIAN MARKET

Under the guidance of :- Dr Madan Survase

Submitted by :-

MEHREEN SHAIKH

MANOSIJ BASU

PARWEZ AHMED

HUSSAIN

HARSHIT
 ACKNOELEDGEMENT
It gives us an immense pleasure to have an opportunity working for such a project. This project helps
us to get a insight of the Indian telecommunication industry which becomes a necessary part in our
day to day activity.

This project has our whole efforts and heart which leads us to this far. This project helps us to grow
individually and makes us the importance of team player.

We would like to thank to our colleges which helps us and stays with us and support us in all possible
manner.

Our special thanks to Dr Madan Survase under the guidance of which we worked and who supported
us all in all possible ways whenever we get stuck and shows a path to go ahead.

In the end we would like to extend our gratitude towards the ISB&M, Pune for giving us this huge
opportunity to present our talent and make us who we are today.
 INTRODUCTION
1.1 Background of the study
Currently, INDIA is the second largest telecommunication market with a subscriber base if 1.16
billion and has registered a strong growth in the last decade. The Indian mobile economy is growing
rapidly and will contribute to GDP. In 2019, India surpasses US to become second largest country in
terms of app installed.

The liberal and reformist policies of the Government of India have been instrumental along with
strong consumer demand in the rapid growth in the Indian telecom sector. The Government has
enabled easy market access to telecom equipment and a fair and proactive regulatory framework,
that has ensured availability of telecom services to consumer at affordable prices. The deregulation
of Foreign Direct Investment (FDI) norms has made the sector one of the fastest growing and the top
five employment opportunity generator in the country.

1.1.1 Market size:

India is second largest telecommunication market in the world. According to a Zenith Media survey,
India is expected to become the fastest-growing telecom advertisement market, with an annual
growth rate of 11% between 2020 and 2023.

Telecom sector consist of 3 segments- wired, wireless and internet users. The total wireless or
mobile telephone subscriber base increased to 1,186.72 million in August 2021, from 1,147.92
million in August 2020. The total number of internet subscribers stood at 813.5 million in August
2021. Of this subscriber base, the number of wired internet subscribers was 24.29 million and
wireless internet subscribers was 787.94 million.

India is also the second-largest country in terms of internet subscribers. India is one of the biggest
consumers of data worldwide. As per TRAI, average wireless data usage per wireless data subscriber
was 11 GB per month in FY20. App downloads in the country increased from 12.07 billion in 2017 to
19 billion in 2019 and is expected to reach 37.21 billion by 2022. The total wireless data usage in
India grew 16.54% quarterly to reach 32,397 PB in the first quarter of 2022. 

1.1.2 Investments:

The Government of India, through its National Digital Communications Policy, foresee investment
worth US$ 100 billion in the telecommunications sector by 2022. The government is encouraging
global telecom network manufacturers such as Ericsson, Nokia, Samsung and Huawei to
manufacture all their equipment in India with 100% local products.

With daily increasing subscriber base, there have been a lot of investment and development in the
sector. FDI inflow into the telecom sector during April 2000 – March 2021 totalled US$ 37.97 billion
according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT).

There are mainly 4 telecommunication service providers in Indian market which include Reliance JIO,
Bharti Airtel, Vodafone Idea and BSNL. The industry witnessed exponential growth over the last few
years primarily driven by affordable tariffs, wider availability, expanding 3G, 4G and now upcoming
5G, evolving consumption patterns of subscriber.
1.2 Relevance and need of the study
The Telecommunication becomes our basic need and a part of our day to day activity. Information
technology has the ability to connect and communicate is a fundamental part of how our society
operates. In today’s digital ecosystem, telecommunication has become the foundation for business,
governments, communities and families to seamlessly connect and share information.

Our study focuses on how the different telecommunication service providers affect the Indian
consumers. Whose impact have more on Indian Telecommunication market and how it contributes
in Indian economy. Also, how it offers the robust growth opportunities by different factors.
1.3 Objective
Our main objective from the research is to identify that to what extent different telecommunication
service provider affects the different sectors of telecom industry. To have a brief understanding
about the market size, the evolution of different service providers over time and how it contributes
in different sectors of telecom industry. To analyse the determinants that influence the telecom
industry. Also, to identify the upcoming trends of Indian consumers in telecom industry and identify
the loops in it.

1.4 Research problem

India has experienced the enormous growth in Telecommunication sector in past few years. India
become the most internet data consumer in the entire World. With increase in population our
consumer has increased with double rate and making it second biggest Telecom industry. This
arouses some questions in our mind:

 What is the different factor which leads increase the Indian telecom industry?
 What are some determinants which affects the Telecom service providers?

And many more.

In order to work for such a big economy, we faced few challenges also which are:

 To find relevant and authentic data about the research.

 Limited sources in rural areas which leads to a loophole in our study.
 Difficult to identify or select the sample size.

1.5 Structure of the study

The whole research is consisting of different chapters by which we can analyse the relevant study
about the topic.

Chapter 1 consists of Introduction about the topic, background of the study, need of the study,
objective and research problem.

Chapter 2 gives a detail about different service providers.

Chapter 3 tells a brief about the research methodology which includes research design, identifying
population and sample, data collection strategy and measuring tools and different sources of data.

Chapter 4 talks about our survey and finding the relevant data.

Chapter 5 are the findings and recommendation from our study.

 A REVIEW ON INDIAN TELECOM INDUSTRY
2.1 Introduction
JIO
Reliance Jio Info COMM Limited is an Indian telecommunication company headquartered
in Mumbai, India. It operates a national LTE network with coverage across all 22 telecom circles. It
does not offer 2G or 3G service, and instead uses only voice over LTE to provide voice service on its
4G network.
Jio soft launched on 27 December 2015 with a beta for partners and employees and became publicly
available on 5 September 2016. It is the largest mobile network operator in India and the third
largest mobile network operator in the World with over 42.62 Cr (426.2 million) subscribers.
In September 2019, Jio launched a fibre to the home service, offering home broadband, television,
and telephone services. As of September 2020, Reliance Industries has raised ₹1.65 lakh
crore (US$22 billion) by selling nearly 33% equity stake in Jio Platforms.

Jio’s vision is to transform India with the power of digital revolution to connect everyone and
everything, everywhere, always at the highest quality at the most affordable price.

Jio is creating a massive digital ecosystem for a billion Indians with domain expertise across business
verticals in the platform company. The platform company will not just provide world-class fixed-
mobile converged connectivity, but also digital solutions across business verticals and the customer
life cycle.

Jio has made investments in excess of US$50 billion since inception to create the largest and most
advanced digital and connectivity ecosystem in India, with a rich bouquet of successful apps and
platforms. Jio’s services span across connectivity and cloud, media, digital commerce, financial
services, gaming, education, healthcare, agriculture, Government to Citizen (G2C), smart cities and
manufacturing.

Jio has created strong internal capabilities across the following key digital technologies:
Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Big Data, Augmented Reality/Virtual
Reality (AR/VR), Internet of Things (IoT), Blockchain, Artificial Intelligence (AI), Machine Learning
(ML), edge computing, speech/natural language, supercomputing, computer vision, robotics and
drones. These capabilities will power the creation of reimagined solutions for various ecosystems.

JIO APPS
Jio pages: a web browser for Android devices
Jio chats: instant messaging app
Jio cinema: online HD video library
Jio cloud: cloud based backup tool
Jio health: health service app
Jio news: e-reader for news
Jio money: online payment/ wallet app
Jio meet: video conferencing platform
Jio saavn: online and offline music streaming
Jio security: security app
Jio TV: TV channel streaming service
Jio Voice: VOLTE phone simulator
My Jio: manages your Jio account and digital services associated with it.

Airtel
Bharti Airtel Limited, also known as Airtel, is an Indian multinational telecommunication services
company based in New Delhi, India established on July 07 1995. It operates in 18 countries across
South Asia and Africa, as well as the Channels Islands. Airtel provides 2G, 3G, 4G, 4G+ LTE mobile
services, fixed line broadband and voice services depending upon the country of operation. Airtel
had also rolled out its VOLTE technology across all Indian telecom circles. It is the second largest
mobile network in India and the fourth largest in the world. Airtel was named India's 2nd most
valuable brand in the first ever Brands ranking by Millward Brown and WPP.
Airtel is credited with pioneering the business strategy of outsourcing all of its business operations
except marketing, sales and finance and building the 'minutes factory' model of low cost and high
volumes. The strategy has since been adopted by several operators. The transmission towers are
maintained by subsidiaries and joint venture companies of Bharti including Bharti
enterprises and Indus towers in India. Ericsson agreed for the first time to be paid by the minute for
installation and maintenance of their equipment rather than being paid up front, which allowed
Airtel to provide low call rates of ₹1 (1.3¢ US)/minute.
Vision
Our vision is to enrich the lives of customers. Our obsession is to customers for life through
an exceptional experience.
Values
Alive, Inclusive, Respectful.
VODAFONE IDEA
Vi or Vodafone Idea Limited is an Indian telecom operator with its headquarters based in Mumbai
and Gandhinagar. It is a pan-India integrated GSM operator offering 2G, 3G, 4G, 4G+, VOLTE
and WIFI services.
As of 31 October 2021, VI has a subscriber base of 269.03 million making it third largest mobile
network in India and 10th largest in the world.
On 31 August 2018, Vodafone India merged with Idea Cellular, to form a new entity named
Vodafone Idea Limited. Vodafone currently holds a 28.5% stake in the combined entity and Aditya
Birla Group holds a 17.80% stake. Ravinder Thakkar, Ex-CEO of Vodafone Romania is the current CEO
of the company.
On 7 September 2020, Vodafone Idea unveiled its new brand identity, 'Vi' which involves the
integration of the company's erstwhile separate brands 'Vodafone' and 'Idea' into one unified brand.

BSNL
BHARAT SANCHAR NIGAM LIMITED (BSNL) was incorporated on 15th September 2000. It took over
the business of providing of telecom services and network management from the erstwhile Central
Government Departments of Telecom Services (DTS) and Telecom Operations (DTO), with effect
from 1st October' 2000 on going concern basis. The company provides telecom services throughout
the country excluding Delhi & Mumbai.  BSNL is a 100% Govt. of India owned Public Sector
Undertaking with an authorized share capital of Rs.17,500 crores and paid-up capital of Rs.12,500
crores comprising of Rs.5,000 crores of Equity and Rs.7,500 crores of Preference shares capital.    Its
total income during FY 2019-20 was Rs.18,907crores. 

BSNL provides complete bouquet of telecom services that includes: 

 Land line services
 Mobile Services including 2G, 3G & 4G (in limited areas) services
 Internet, Broadband, Fiber to the Home (FTTH) services
 Wi-Fi services
 Data Center services
 Enterprise Data services such as Leased circuits, MPLS VPN etc
 National and International Long-Distance services

BSNL is one of major service provider in its license area. The company offers wide ranging & most
transparent tariff schemes designed to suit every customer. BSNL telecom network is part of modern
global network, providing access to countries around the world for transporting information in the
form of voice, data and video. The company has vast experience in planning, installation, network
integration & maintenance of switches & transmission networks & also has a world class ISO 9001
certified Telecom Training Institute.

The details of Services provided by BSNL as on 31.08.2020 as under: -

BSNL has been in the forefront of technology with 100% digital new technology switching network.
BSNL has a customer base of 1267.21 Lakh subscribers.
Wire-line Services: The vast switching network for landlines comprises of 31,898 exchanges having a
capacity of 254.04 Lakh lines serving 79.23 lakh customers.

GSM Mobile Services: BSNL has covered almost all the cities, and substantial length of National
Highways, Rail Routes and State Highways. The Cellular services of BSNL are also providing incidental
coverage to the rural areas falling en-route to National and important State Highways. GSM
connections are working 1187.98 Lakh against equipped capacity 1165.14 lakhs. BSNL has 86,524
(2G BTSs), No. of Node-B (3G) 61,979 and No. of e- Node-B (4G) 8,271. The 3G facility has been
rolled out in 6,254 cities/towns.

Broadband Services: BSNL had launched its Broadband services in January 2005 using ADSL2+
technology and had provided 70.70 lakh connections with the installed capacity of 100.18 lakhs
broadband ports, BSNL have been covered with broadband services (665 DHQ out of 676), (6157
BHQ out of 6,494), (4,524 Cities out of 4,609) and (1,71,476 Villages out of 6,04,363).
  
 BSNL is providing Wi-Fi broadband connections as on 31.08.2020, BSNL has 6.06 lakh WIFI unique
users.
  In addition, BSNL is providing a host of Value-Added Services (VAS) to its landline and mobile
customers.  VAS is normally a third-party item and is provided on franchise model on revenue share
basis. BSNL has modernized its network by incorporating state of the art technology and adopting
customer friendly approach.

VISION
 Be the leading telecom service provider in India with global presence.
 Create a customer focused organization with excellence in customer care, sales and
marketing.
 Leverage technology to provide affordable and innovative telecom. Services/products
across customer segments.

MISSION
Be the leading telecom service provider in India with global presence.
  Becoming the most trusted, preferred and admired telecom brand.
  Providing reliable telecom services that are value for money.
  Generating value for all stakeholders – employees, shareholders, vendors & business
associates.
  Excellence in customer service -friendly, reliable, time bound, convenient and courteous
service.
  Offering differentiated products/services tailored to different service segments.
  Developing a marketing and sales culture that is responsive to customer needs.
  Maximizing return on existing assets with sustained focus on profitability.
 
2.2 Trends in Indian telecom industry

Technological developments
The growth of the telecom industry has also been fueled by the introduction of newer telecom
technologies such as 4G and BWA, as well as the emergence of cloud technologies. Efforts are being
made on a continuous basis to develop affordable technology for the masses, reinvigorate maturing
urban markets, and contribute to the economy's balanced growth. Muller (1990) attributed the
success of mobile commerce to the personal nature of wireless devices in his research and asserted
that the sustained growth of mobile commerce around the world has been more due to technology
transfer based on local geographical needs. According to Uehara (1990), King (1990), Glynn (1992),
and Mutoh (1994), technological advances in telecommunications and computers have radically
altered the business landscape. Telecom-based technological innovations have been fueled by new
business demands. Singh (2004) predicted that data services would grow at an exponential rate in
the coming years, and that broadband would likely take the lead in the development of the Indian
telecom sector. Saran (2004) stated that telecom technology has evolved over time from manual
and electro-mechanical systems to digital systems. These technological systems have paved the way
for new and improved telecom services.

Declining tariff

Telephone tariffs have dropped dramatically over the years, making mobile phones more affordable
to the average person. Subscribers now have a plethora of options from which to choose based on
their usage profile in the market. All of this has resulted in increased competition among market
participants. Tariffs have been further reduced as a result of the intense competition among players
(Indian Infrastructure Report, 2005). Call rates have dropped significantly, reaching as low as 0.5
paisa per second (TRAI). According to Ghosh (2003), the most significant development since 1999
has been the gradual reduction in tariffs.

According to Narinder K Chibber (2008), mobile telecommunication technology is rapidly evolving,

with people demanding mobile services with greater bandwidth and new innovative services such as
seamless connectivity, 3G, and 4G.

Telecom equipment manufacturing

The phenomenal growth of the telecom industry has resulted in the development of telecom
equipment manufacturing and other supporting industries. In 2012-13, the Indian mobile handset
market generated Rs. 359.46 billion in revenue, up from Rs. 313.30 billion the previous fiscal year. As
a result, it can be seen that deregulation, the introduction of newer technologies, changing customer
behaviour, and intense competition among players were the primary drivers of change in the
telecommunications industry. With new policy initiatives, the industry is poised for even more
change in the coming years.
Mobile Number Portability (MNP)

MNP services were introduced in 2011, allowing subscribers to keep their existing mobile phone
number even if they switched from one service provider to another, regardless of mobile
technology. The implementation of MNP has benefited subscribers not only by providing them with
a wide range of options, but it has also prompted service providers to offer innovative, affordable,
and competitive tariff plans for the benefit of subscribers (TRAI).

Foreign Direct Investment (FDI)

The government has decided to allow 100 percent FDI in the telecommunications sector, allowing
foreign telecommunications companies to buy out their Indian partners. At the moment, India
allows up to 74 percent FDI in this sector – 49 percent through the automatic route and the
remainder with Foreign Investment Promotion Board approval. The government wants to turn India
into a teleport hub. This initiative is expected to attract foreign investment, improve technology, and
create long-term job opportunities in the country.

Coping with change- change strategies adopted by key market players

Change is a constant with which organisations must contend in order to survive. Companies must
adapt quickly and effectively in an industry marked by fierce competition and constant change. To
that end, businesses are making strategic moves to strengthen their position and increase their
value. The following section focuses on Vodafone's and Bharti Airtel's strategies and action plans to
deal with the rapidly changing environment in the Indian telecommunications industry.
 RESEARCH METHODOLOGY
3.1 Introduction
The research is based on descriptive and analytical type study. Research methodology is the integral
part of the research which used to identify, select, process and analyse the information about the
research topic. Our research methodology consists of experimental and observational based
methods which consists primary source of data.

3.2 Research design:

Our research design is based on Descriptive nature with include survey and observations of different
consumers in Indian telecom industry.

3.3 Population and sample:

Since our Study is based on geographical locations of India, therefore our population has to be India.
In order to get the samples we have to collect it from different parts of India based on the different
categories which are Urban, Sub-urban and Rural areas. This will help us in getting data about all
types of consumers from different parts of India which makes it less biased. It allow us to make our
research more authentic and relevant in nature.

3.4 Sources of data and collection of data:

Our data collection strategy is done through survey method from the different selected sample for
the research. For the survey we must form a sampling instrument which is questionnaire. We must
form a logical and correct questionnaire which will provide us all the relevant information about the
project represented through graphs and charts.

3.5 Measuring tools:

 Interviews
 Surveys
 Observational information

3.6 Research Questions

Our study examines the study of telecommunication service provider in Indian market. After the in-
depth study about different service provider, we must analyse what people think about the service
providers in India. As our data collection is done through survey method, we have prepared some of
the questions for our sample for data collection. Some of them are:

 Which tech are you currently using?

 Which network you are using currently ?
 How much are you paying for your mobile bill & Wi-Fi services per month currently?
3.7 Research Methodology
Research design: Explorative and Descriptive

Sampling strategy: Non- profitable and Unbiased

Study population: India

Sample frame: Urban, Sub-urban and rural areas of India

Data collection strategy: Survey method

Data collection tool: Questionnaire

 ANALYSIS OF DATA
4.1 Introduction
4.1.1 Five Force Analysis

Porter's five forces is a framework for the

industry analysis and business strategy
development. Porter explains that there are
five forces that determine industry
attractiveness and long-run industry
profitability. These five "competitive forces"
are

1. Competitive Rivalry within Industry (The

degree of rivalry between existing
competitors)
2. Supplier Power (The bargaining power of
suppliers)
3. Buyer Power (The bargaining power of
buyers)
4. The threat of substitutes
5. Potential for New Entrants (The threat of
entry of new competitors)

4.1.2- 5 Forces The study as model for Mobile Sector in the India as following:

Competition in the industry

The competition between the firms in any industry is powerful. The firms may adopt to cutting and
bring down the whole industry. Hence, the rivalry between firms affects the industry, and thus
rivalry between the firms is a major aspect. This factor is dependent on-price wars, corporate on
price wars, corporate image, adoption of new technology, value added services, and so on.

The competition in the telecom industry is a stiff because of the ever-ongoing price wars, short life of
new innovations. Moreover, due to the deregulation and increasing capital markets has opened the
gates to new competitors. The effects of this force are determined by the following:

High Exit Barrier:

In any industry, if the exit barrier is high it increases the difficulty of any organization to leave the
industry sector. Thus, the companies who are willing, find it difficult to leave the industry. The
telecom industry has high exit barriers, due to its specialized equipment.
High fixed cost:

The telecom industry has high fixed cost, which makes the entry barrier also very high for the
industry. But the biggest entry barrier for this industry is access to finance. Undoubtedly, when the
financing options are less, the rate of entry in the industry slows.

More innovations; more competition:

In this industry, companies focus their resources on research and development and marketing more
than anything else. Due of this, if one of the firms launches a new innovation, the others attack with
counter innovation. To sum up, this is a main reason of rivalry in this industry.

Power of suppliers

The supplier power is the mirror of buyer power. If there is monopoly of supplier, then the power
has no limits. This force is also dependent on the level of switching cost and the terms and
conditions laid down by the supplier. Undoubtedly, without all the equipment such as, the high-tech
broadband, fibre-optic cables and wires, mobile handsets etc. the firms in this industry, won’t be
able to provide the required services and products to the customers. It may appear that supplier
have a upper hand with the telecom operators, but there are a large number of suppliers and it
helps to dilute the bargaining power.

Power of customers

Today’s market is becoming buyer-centric, thus giving the buyers/customers the power of bargaining
and to demand better and efficient products and services for the same price, impacting the
profitability of any firm. The behaviour and power of the buyer base is dependent on the availability
of alternatives, market awareness, preferences and so on. Mostly, the size and the concentration of
customers are the determinants of power of a buyer.

Due to privatization and increasing competition in the telecom industry, the buyers/customers have
various options to choose from and demand. Also, due to the decrease in the switching prices, the
increase in income along with the development of the IT technologies has resulted in change of
buying pattern of the costumers.

Threat of substitute products

A substitute of a product is the one which is similar to the product and not identical. As this industry
is ever-evolving, the threat of substitutes is always high, especially the services and products from
non-traditional telecom industries, like the cable TV and satellite operators which compete for the
buyers. The voice traffic of the wireless telecom operators has been drastically reduced due to
substitutes like IP telephone, E-mail and other instant messaging platforms. But there are no
commercially viable substitutes available as of today’s situation. To sum up, in this industry, force of
threat of substitute is determined by availability of very close substitutes and low customer loyalty.

Potential of new entrants into the industry

The potential and existing competitors, both, influence this industry’s profitability. The entry of the
potential competitors is based on the entry barriers of this industry. But the new entrants are a weak
force in any industry. The competition in the industry grows when the entry barriers are less because
it allows more new companies to mark their entry in the industry. Undoubtedly, these new
companies enter the industry with low prices, innovative products, or even new features and
benefits.
4.2 The findings
This industry has many entry barriers. Since, the telecom industry is capital-intensive in nature, the
biggest barrier becomes access to finance. The threat of entrants increases, when the capital market
is generous, and if there are fewer financing opportunities available in the market, then this threat
decreases considerably. Other entry barriers are the licensing and operating regulations adapted by
the government of India and so is the consolidation.

Respond profile

Sl. No. Gender Frequency Percentage

1 Male 25 55%
2 Female 20 45%
3 Total 45 100%

Respond profi le

Male
Female 55%
45%

Male Female

Q- 1 Which part of India you live?

From the data collected we can have a idea that majority of our sample are belong to South Zone of
India. From this we can have idea about the connectivity and different service provider in different
zones of India.

25 Sampling zones
20

15

10

0
1
Central East North South West

Q-2 Which type of location do you live in?

This tells us brief about the location of our sample frame whether they are in urban, sub-urban or
rural areas. This will lead us to how is the performance of different service providers in different
locations. Is there any network issues in any of these areas or will they able to solve consumer issues
or not.

Locati ons
40
35
30
25
20
15
10
5
0

Rural Sub-Urban Urban

Q-3 Which tech are you currently using?

This tells us which network speed you are using, whether it’s 2G, 3G, 4G etc. Everyone from the
survey voted for 4G, which shows everyone is using latest speed available. From the study also we
get to know that majority of the Indian population is using 4G.

Q-4 Which network you are using currently?

From this question we will get to know that which of our sample are using which service provider’s
network. This will give a small idea about the popularity of different service providers from different
parts of India. From our survey we get to know that majority of the people are using Airtel’s service
and followed by JIO. By the limited services of the BSNL, the majority of the competition or market
share is divided among JIO, Airtel and Vodafone Idea.

25
Service Providers
20

15

10

0
1
Airtel BSNL JIO VI

Q-5 Why do you use your current network?

This question tells us the reason for choosing the particular type of network and why people are
associated with them. From the study we see that majority of the people are using the particular
type of network because of the Internet. They get good internet connection that’s why majority of
people are using it. Now days you can use mobile internet for even calling as well, there fore its easy
to connect with others through Internet.

Reason
25

20

15

10

Connectivity Internet Prices

Q-6 How much are you paying for your mobile bill & Wi-Fi services per month currently?

This shows how much people are spending on their mobile or internet recharge monthly. From the
survey we can see that most of the people are spending between 500 to 1000 for the recharge of
their mobile balance or internet connectivity on monthly basis. Also quite a people are spending
more than 1000 on monthly basis which is a large amount. This shows the need of the good
connectivity and potential growth.

20
Money spend monthly
18
16
14
12
10
8
6
4
2
0
1
Less than 500 500-1000 More than 1000

Q-7 Which network are you likely to recommend to a tourist who is in town for a few days?
Majority of the people are recommending Airtel and Jio averagely same to the tourist which are
coming to India for few days. As both are providing good connectivity throughout the India there is
always a competition between them.

Recommendati on for tourists

20
18
16
14
12
10
8
6
4
2
0

Airtel BSNL JIO VI

Q-8 Do you use any Broadband service?

It’s a broadband service which provide internet to multiple devices like mobile, laptop, desktop etc.
From this you can also connect to multiple device at the same time according to the company’s
recharge policy. As we can see majority of people are using Airtel fiber as a broadband followed by
Jio fiber. Still most of the people are not using broadband shows there is a scope of broadband
services in Indian market.

18 Broadband
16
14
12
10
8
6
4
2
0
Airtel fiber Jio1 Fiber BSNL
VI fiber Other No

Q-9 How much support do you think these companies are obtaining from the government?
This shows the is there any need of government spending on telecommunication industry in India or
not from consumer’s point. We can see that the majority of people saying that gov are not spending
too much neither too less. Some consumers think that Gov is spending much amout to support the
telecommunication industry in India.

20
Government spending
18
16
14
12
10
8
6
4
2
0
1 2 3 4 5

Q10- Do you think the telecommunications market in India is shifting towards a monopoly?

As increase in Jio market share in Indian market, the question of monopoly is coming in the mind. As
many people think that it’s a Jio market which is backet up by Reliance Industries which is one of the
leading companies of India. Majority of people are saying that they have no idea about the
monopoly in Indian telecom industry. And many people still believe that yes, it’s moving towards
monopoly which is a matter of concern for other service providers.

25
Monopoly in market
20

15

10

0
Yes No Maybe

Q-11 Any recommendations for service provider?

When people are asked about any recommendations then most of the consumers talked about the
lowering of prices. As increase in the competition and inflation, most of the service providers have
increased their rates. Jio which earlier provided the internet for free also increased it’s prices which
is quite large.

FINDINGS AND RECOMMENDATIONS

5.1 Telecom sector has become a highly revolutionize industry since the emergence of
internet. These are some factors affecting the telecom service provider:
 Political factor: Guideline issues come up often times. Where the administration has one
thought of how telecoms ought to be taken care of while the general population has
another.
WIFI and web are now an everyday part of life. Clients with the administration tend to
recognize the web as a fundamental human right. It is required for instruction in numerous
professions. Not with standing applying to occupation is an online encounter, heading off to
an organization site and a transferring a resume on their servers is basic.
A fight for and against unhindered internet is seeing. Clients trust web and information
ought to be dealt with the equivalent by specialist organizations and the administration.
Unhindered internet would avoid, for instance, specialist organizations from throttling web
and information speed.

 Economical factor: Financing costs, expansion and expenses influence the telecom industry.
Costs influence the estimating per plan offered to clients as well. It’s costly to construct
towers and assets in provincial regions. Clients who don’t live in huge urban areas are
influenced.
As more houses are fabricated, the requirement for telecom sector increases. This may drive
cost up contingent upon the areas, a measure of clients in a region and the requirement for
telecom industry.

 Social factor: Telecommunications horizon growth is limited. Specifically, it’s difficult to

extend in rural areas. Customers are left with less than a handful of options when it comes
to buying internet, mobile and television packages.
Because telecommunication corporations are monopolies, they’re in change of both internet
and mobile carriers. Customers need these packages to communicate with friend, partake in
social media challenges, buy products online, find stable careers and more.

 Technological factor: Both needs and requirements for telecom services are advancing. For
example, telephone companies install fiber wire in their builds over copper now. Phones are
becoming more compact, moving and telecom business into a primarily wireless business.
Now people want internet access on the go. So data is added to mobile plans. WIFI has been
build into buses and cars too.

 Legal factor: The telecom industry is often impacted by legislation issues. Particularly issues
with the Gov, monopolies and customers. But the industry has allowed importing and
exporting of telecom products allowing more development in telecom industry

 Environmental factor: Climate change and global warming can affect how telecom products
reach customers. In terms of employment with technology advancing, employees need to
adapt to changes.

5.2 Challenges faced by telecom service providers

 Revenue growth
  Subscriber growth
 Profit margin
 Number of operators
 Rural penetration
 Mobile number portability
 Security clearance for technical equipment
 Network
 Low terrif offers

5.3 SWOT Analysis of Indian Telecomm Industry

Strengths

Cutting-edge fiber-optics technology, high-performing cable equipment, a respected brand name,

excellent customer service and a strong sales team are just a few strengths that boost the resource
capabilities of a telecommunication company. These strengths are attributes that enhance the
company's competitive advantage.

Weaknesses

Corroded cable lines, slow service and lacklustre sales are three weaknesses that can hurt a
telecommunications company. Company weaknesses are competitive deficiencies that place the
company at a disadvantage in the marketplace. If corroded cable lines aren't replaced and slow
service continues, for example, angry customers will switch to a rival telecommunications company
that offers better services.

Opportunities

New technologies, increasing consumer interest and a decrease in competition are just a few
external opportunities that can really help a telecommunications company in the long run.
Opportunities are beneficial, outside events that a company can use to boost its existing strengths. A
telecommunication company keen on rapidly adopting new technologies, for example, would highly
benefit from immediately investing in new fiber optics the moment they're introduced in the
marketplace, especially if they speed up service.

Threats

A sluggish economy, increasing competition and increased government regulations against the
telecommunications industry are just a few external threats that can limit a telecommunications
company's future success. Threats are outside events or influences that create future hurdles for a
company. New rivals that offer customers fast service and cutting-edge technology, for example,
may lure an older telecommunications company's existing customers away, especially if the older
company can't offer the same new features.

5.4 Results from the Study

  From the study and survey we get to know that people which are staying in Rural and Sub-
Urban areas are using Airtel as a service provider. This is because of the Airtel’s connectivity
which is more then any other service provider.
 People which are using Airtel as a service provider and also its broadband are paying more
than 1000 per month it’s because Airtel has higher rate packages which make user to pay
higher.
 People who are preferring the connectivity as a priority are ready to pay and big amounts on
good connectivity.

5.5 EFFECT OF TELECOMMUNICATION INDUSTRY PRE & POST COVID IN ECONOMY

"Work from home" and "social distancing" have become buzzwords in today's business landscape
with the telecom sector acting as the unseen hand driving this transformation, as the global
economy continues to struggle from the shock and long-term effects of the new coronavirus (COVID-
19) pandemic. During the lockdown, remote working, video conferencing, and telecommunications
technology have quickly emerged as key enablers for business operations, and streaming services
like Netflix have quickly become the go-to source for entertainment, putting the telecommunications
sector in the spotlight today.

The government recognises the importance of having a strong telecommunications network during
this lockdown in guidelines issued by the Ministry of Home Affairs (MHA) on March 24, 2020, which
state that "telecommunications, internet services, broadcasting and cable services, IT and IT-enabled
services (ITeS) only (for essential services)" are essential services and are exempt from the lockdown.
The MHA notification on April 15, 2020 (which extended the lockdown until May 3, 2020) and the
MHA notification dated May 1, 2020 both allowed this exemption (which further extended the
lockdown for a further period of two weeks).

According to news reports, overall traffic has increased by 10%, while viewership on streaming
platforms has increased by 20%. As a result, unlike the industrial and other industries that have
come to a halt, numerous observers now anticipate that the telecom industry will emerge as the
economic slowdown's golden child. However, the telecom sector faces a new set of issues as a result
of greater reliance on communication networks and other COVID-19-related regulations, as detailed
below.

Implementation of exemptions for the telecom industry:

Despite the MHA's clarification that telecoms, IT, and ITeS were exempt from the lockdown, local
authorities have asked telecom service providers to shut down activities at NOCs (network operating
centres) and call centres. On March 21, the Department of Telecommunications (DoT) sent a letter
to state chief secretaries encouraging them to allow telecom company field personnel to migrate.

As a result, it is critical that suitable instructions are received at the field level in order for services to
remain uninterrupted. On March 24, the Department of Transportation wrote to all state chief
secretaries, urging that they appoint a nodal officer who can be contacted by service providers and
telecom licensees in the event of a problem.
This is crucial because on-ground personnel require continuous access to towers for maintenance,
risk assessment, and refuelling (for towers with diesel gensets). This step could assist to alleviate
some of the challenges that have arisen at the local level by ensuring that the telecom sector
operates smoothly.

Rising demand and current infrastructure:

Given India's reliance on wireless traffic, there is significant pressure on cellular infrastructure as
demand for services continues to rise.

According to reports, India's average mobile and broadband download speeds fell in March due to
network congestion. As a result, the Cellular Operators Association of India (COAI) has written to the
government requesting that streaming service providers such as Netflix, Amazon Prime Video, and
Zee5 decrease commercials and pop-ups, among other things, in order to relieve the burden on
existing networks. Several service providers have already begun to address this problem.

Fears of network choking, according to industry observers, are unjustified in the case of
telecommunication networks because there is sufficient additional capacity. However, the shift in
network usage from enterprise networks to residential networks (which are technologically better
suited for high-load traffic) may provide new issues in terms of network load management. This
development could lead to greater household broadband uptake. In order to satisfy future demand,
the COAI has written to the Government, requesting that it relax regulations and expedite approvals
for supplying services, erecting towers, and instructing state-owned enterprises (MTNL and BSNL)
not to terminate any connecting points.

Impact of the lockdown restrictions:

While demand for communication services is growing, the telecom sector is dependent on a number
of other industries that have been negatively impacted by the lockdown.

Effect on hardware and other systems manufacturing

According to studies, global supply chain disruptions would affect phone and network equipment
makers, resulting in higher pricing and a lack of availability. Manufacturing of IT gear is permissible
even red zones, according to an MHA order of May 1, 2020; however, no such activities are
permitted in containment zones.

Manufacturers could lose approximately INR 15,000 crore due to the suspension of production,
according to industry association Indian Cellular and Electronics Association (ICEA). To relieve the
strain on the manufacturing sector, market analysts have proposed lowering taxes and levies, as well
as lowering financial aid costs, which will have a domino impact on the telecom business.

Increase in the number of new customers

Due to the restrictions on movement during the lockdown, the number of customers acquiring fresh
sim cards has dropped dramatically (including for migration to 4G networks).

According to COAI, the typical net addition during a routine month is 3 million subscribers, but due
to COVID-19, the amount in March may be less than 1 million. Revenues are unlikely to be affected
until the first quarter of FY 2020-21. According to COAI, new subscriptions take 30-45 days to effect
income, thus the impact of a drop in new subscribers will be felt only around the end of April or early
May.
Furthermore, because network operators are presently focused on fulfilling rising demand without
sacrificing service quality, the lockout is likely to postpone 5G spectrum auctions and subsequent
rollout. Due to limits on production and the transfer of goods, the capacity to roll out 5G-enabled
handsets will be limited.

Retention of Subscribers

Telcos hold market share as one of their most crucial performance metrics close to their chests.
Given the difficulties of expanding market share in such circumstances, the focus would naturally
shift to preserving the present subscriber base. This is especially difficult for subscribers with low
ARPU (Average Revenue Per User). There are claims that Telcos have offered dispensations to their
users during the lockdown period, such as prolonged validity, more talk time advantages, and so on,
as incentives to keep their service running. [10] Concerned about price discrimination, TRAI wrote to
Telcos on April 7, 2020, saying that they were selectively boosting the validity of prepaid subscribers
during the shutdown. The telcos, on the other hand, have written back to the regulator, claiming
that they have delivered benefits worth millions of dollars.

Electricity tariffs

The Tower and Infrastructure Providers Association (TAIPA), whose members include Bharti Infratel
and Indus Towers, has written to numerous states, requesting relief in power costs due to the
growing pressure on existing telecom infrastructure. The Maharashtra State Electricity Regulatory
Commission (MSERC) has proposed lowering tariffs by up to 10-15% across the state. In the current
scenario, TAIPA believes that similar relief from other state bodies will help telecom infrastructure
providers.

[Link] and other existing issues in the telecom sector:

The COVID-19 outbreak and subsequent lockdown occurred at a time when the telecoms industry
was already dealing with the issue of AGR payment (AGR). The Supreme Court recently dismissed a
few Telcos' self-assessments of AGR dues and refused to take up the Centre's petition to provide
telecom companies a 20-year extension to pay AGR dues, indicating that the matter would be listed
in two weeks.

Now, because of COVID-19, the matter's listing at the Supreme Court is in jeopardy. According to
reports, no letters for AGR dues have been delivered to Telcos as of yet, and the Department of
Transportation is focusing on ensuring smooth operations throughout the pandemic.

The financial impact on Telcos could be significant if the Supreme Court does not grant the
requested relief and the Telcos are compelled to pay the AGR in full or without any postponement.
Telecom sector may be obliged to explore raising debt to satisfy demand if revenues and available
cash are insufficient to pay the licence fees (based on the updated interpretation of AGR). However,
given the difficult financial conditions, lenders willing to grant financial help will be limited, and
borrowing costs will be greater (than in the pre-COVID environment), creating a vicious cycle.
Other difficulties include the exemption from GST on licence fees and payments for spectrum
acquired in auctions, as well as the exemption from service tax on the amount of licence fee payable
due to a Supreme Court order. While these conversations (with the government) were ongoing, the
lockdown and pandemic will cause a delay in the decision.

Outlook and way forward:

The telecom sector, both internationally and in India, is seen as one of the few that may be spared
from the epidemic and the ensuing shutdown, according to the general outlook. Given the current
situation, the government and all stakeholders recognise the importance of these services. Steps are
being taken to remedy short-term difficulties when they arise. Despite the problems, growing
demand for services, particularly among high-end users and others who work from home and
require a strong and dependable network to function, may help offset any income loss.

Telcos may also be able to aid the government with outreach and analytics in order to raise
awareness about COVID-19 and supply anonymized data to the government for analytics, which
could be used to formulate plans to combat the pandemic. The Department of Transportation and
mobile phone companies are working together to collect call location details in order to closely
follow COVID-19 patients' movements as well as to monitor migrant labourers in order to provide
them with food and jobs. [15] Several telecommunications companies have already begun to take
efforts in this direction. More interaction between regulators and service providers would go a long
way toward resolving some of the concerns raised above, especially given the importance of the
telecom sector today, and crafting effective regulations.
 SOURCES AND REFRENCES
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