This article provides insight into the cellular mobile industry of India. The exponential growth of the cellular mobile industry can be attributed to the introduction of digital cellular technology and decrease in tariffs due to severe competition. A complete SWOT analysis, application of Porter's `five forces model' to cellular mobile industry and a marketing strategy framework of the Global System for Mobile (GSM) market are the highlights of this article. The article concludes that the cellular mobile industry is bullish in outlook. Experts acknowledge that the convergence of the mobile phone and the Internet is a potential growth driver in the industry.
Telecommunications
is one of the most vital of all the infrastructure services
today. It is not only essential for the growth and development
of every other sector of the economy but also for the integration
of Indian economy with the rest of the world. Today call
rates in India are among the cheapest in the world. The
total number of telephones rose from just 22.8 million in
1999 to 102.8 million in May 2005. The next milestone for
this industry is to cross the 250 million telephone mark
by 2007, along with reaching a teledensity of 22%. The current
teledensity of India is 9%, as against 55% in China and
over 100% in the US, Germany and Japan.
The
expansion of the telecom industry in India has been fueled
by a massive growth in mobile phone users which had reached
to a level of 46 million users in November 2004. This exponential
growth of mobile telephony can be attributed to the introduction
of digital cellular technology and decrease in tariffs due
to competitive pressures. For the first time in India in
November 2004, the total number of cellular subscribers'
base had exceeded the fixed line subscribers' base. India
offers an unprecedented opportunity for telecom service
operators, infrastructure vendors, manufacturers and associated
services companies. |
