A Study on Indian Telecommunication Industry with Special Reference to Airtel

Abstract

India is the second largest telecom market in the world and is amongst the fastest growing markets. The country offers robust growth opportunities driven by strong growth fundamentals, increasing urbanization, rising income levels and favorable demographics. The majority of new customers are likely to come from the rural areas with inadequate basic infrastructure and limited or no connectivity, demanding lower tariffs for voice calls and value added services like information about market and commodity prices, weather updates, health updates coupled with vernacular support at the user interfaces. The urban consumer demands high speed internet connectivity, audio video streaming, navigation and location maps, music downloads, gaming, m-commerce, IPTV and mobile TV. Innovations like shared infrastructure, new low cost technology and energy saving devices are critical for roll-out in rural areas.

M-Commerce will emerge as the future growth engine as the industry shifts from voice to data services. The convenience of the mobile phone as an instrument for conduct of financial transactions and its potential in the process of financial inclusion and growth has been well recognised. There is a large untapped potential for these services in the Indian market. Given the huge growth potential offered by the telecom industry through the increased coverage and newer products and services, the competition will remain intense with both existing and new players attempting to maximise their share of the growing telecom pie.

Keywords: M-commerce, Marketing

JEL Classification: M12