The Indian telecommunications industry is one of the fastest growing in the world. The industry has witnessed consistent growth during the last year on the back of rollout of newer circles by operators, successful auction of the third-generation (3G) and broadband wireless access (BWA) spectrum, network rollout in semi-rural areas, and increased focus on the value added services (VAS) market. Market entry strategy for Wireline telecommunication companies by eprobe Research Pvt Ltd explores the consequences and opportunities arising from this situation.
According to the Telecom Regulatory Authority of India (TRAI), the number of telephone subscribers based in the country reached 742.12 million on October 31 2010: an increase of 2.61% from 723.28 million in September 2010. With this the overall tele-density (telephones per 100 people) has touched 62.51. The wireless subscriber base increased to 706.69 million by the end of October 2010 from 687.71 million in September 2010, registering a growth of 2.76%.
The fixed-line telecommunications market is valued as the revenues obtained by operators for voice telephony and other non-voice information transmission using fixed lines (Wireline), rather than wireless systems. The Indian Wireline telecoms market achieved total revenue of $8,173.1 million in 2009-2010, representing a compound annual growth rate (CAGR) of 5.7% for the period spanning 2005-2009.
It is very important for any company entering this market to understand the industry, as the market is already developed and has also reached the stagnation point. Because of existence of so many players, the market entry is very difficult. Also since there are so many other options available to the customer, it is very difficult to attain a foothold in the Wireline market, as the buyer has got immense power.
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