SWOT Analysis

of Telecom
Sector in India
Existence of The Private Companies

Only certain areas where

govt.
Monopolies exist
Like R ailway
Existence Of The PSU
1.1 Coal & Lignite
1.2 Minerals & Metals
1.3 Crude Oil
II. Manufacturing
2.1 Steel
2.2 Petroleum (Ref & Marketing)
2.3 Fertilizers
2.4 Chemicals & Pharmaceuticals
2.5 Heavy Engineering
2.6 Medium & Light Engineering
2.7 Transportation Equipment
2.8 Consumer Goods
2.9 Agro Based Industries
2.10 Textiles
Existence Of The PSU

III. Electricity
3.1 Generation
3.2 Transmission
IV. Services
4.1 Trading and Marketing
4.2 Transport Services
4.3 Contract & Construction
Services
4.4 Ind. Dev. & Tech. Consul.
Services
4.5 Tourist Services
4.6 Financial Services
4.7 Telecommunication Services
 PPP
 Advanced level of Telecommunication Training
Centre (ALTTC)
 Delhi Metro Rail corporation
 Electronic Corporation Of India Limited (ECIL)
 National Centre For Trade Information
Pipavav Railway Corporation Limited
Sataluj Jal Vidyut Nigam Limited
Tehri Hydro Development corporation limited
Strengths

• Welfare maximization

• Favour from the govt example

BSNL got the 3G license prior to all
private players

• Trust of the public and society

•Monopolies for certain sectors

• Large capital availability

Strengths…cont

• Readymade buyer from other

PSU
 
• Easy availability of loan from
banks and market due to govt
support
 
• Experience as majority of the
PSU are long established
 
• Huge resources
 Weakness

• Lack of professional management, being subject to

political interference
• Over capitalization
• Large overheads mainly due to overstaffing
• Under utilization of plant, equipment and personnel
• Slow decision making processes
• Inability to adopt to the requirements of the market.
• Weak marketing activities
 Weakness….cont

•Less or no profitability
•No emphasis on return on investment
•No autonomy
• Low emphasis on cost minimization
•Lack of service as per market standards
•Resistance or delays in implementation of
technological innovation
•No transparency in the recruitment process,
tender allocations, business strategy
Opportunities

• PPP
• Disinvestment to certain
extent
• Listing on stock markets
•Expansion in domestic as well
as international market
• Building the public sector
landscape of the future
• Marketing innovations
• Building good image
• Implementation of new
technologies
Threats

• Competition from
private players
• Globalization
• Disinvestment
• Increasing
consumer flow
toward private
companies
•Trade unions
BSNL
Bharat Sanchar Nigam Ltd
(BSNL), the corporate version
of erstwhile DOT, came to
existence on 1st October 2000.
Ever since the formation of
BSNL, Within the basic phone
service the value chain has
split into Basic services, long
distance players, and
international long distance
players.
STRENGTHS

• Pan-India reach

• Experienced telecom service

provider

• Total telecom service provider

• Huge Resources (financial &

technical pool)

• Huge customer base

STRENGTHS….cont
•Most trusted telecom brand

• Transparency in billing

• Easy deployment of new services

• Huge Optical Fibre network and

associated bandwidth

• All India presence, solid

infrastructure, huge customer base
WEAKNESS

• Non-optimization of network
capabilities

• Poor marketing strategy

• Bureaucratic organizational
set up

• Inflexibility in mindset
(DOT period legacies)

• Limited number of value

added services
WEAKNESS….cont

• Poor franchisee network

• Legacy of poor service image

• Huge and aged manpower

• Procedural delays

• Lack of strategic alliances

WEAKNESS….cont

• Problems associated with incumbency

like outdated technologies,
unproductive rural assets, social
obligations, political interference.

• Poor IT penetration within

organization

• Poor knowledge management

• Overstaffing, poor customer care,

legacy technology
OPPORTUNITIES

• Tremendous market growing at 20 lac

customers per month

• Untapped broadband services

• Untouched international market

• Can capitalize on public sector image

to grab government’s ICT initiatives

• ITEB service markets

• Diversification of business to turn-key

projects
OPPORTUNITIES…cont

• Leveraging the brand image to source

funds

• Almost un-invaded VSAT market

• Fuller utilization of slack resources

• Can make a kill through deep

penetration and low cost advantage

• Broaden market expected from

convergence of broadcasting, telecom
and entertainment industry
THREATS

•Competition from private operators

•Keeping pace with fast technological

changes

•Market maturity in basic telephone

segment

•Manpower churning

• Multinational eyeing

• Indian telecom market

THREATS….cont

•Private operators demand for sharing

last mile

•Decreasing per line revenues due to

competitive pricing

•Private operators demand to do away

with ADC(Access Deficit Charges) can
seriously effect revenues

• Populist policies of government like

“OneIndia” rates
AIRTEL
Bharti Airtel is one of the
leading providers of
telecommunications services in
India. The company offers
mobile, wire line, broadband
and television services.

The company's products reflect

a desire to constantly innovate.
STRENGTHS

• Huge customer base - 65 million

customers (July 2008).

• It is the largest cellular provider in India

and provide other services also.

• Bharti Airtel hold a strategic alliance

with other stakeholders. This means that
the business has access to knowledge and
technology from other parts of the
telecommunications world.
STRENGTHS….cont

• Pan-India Network

• Very focused on
telecom industry.

• The only operator in

India other than VSNL
having International
Submarine Cables
WEAKNESS

• Airtel did not own its own

towers

• the lack of any real emerging

market investment
opportunity

• Price Competition from

BSNL and MTNL

• Untapped Rural market

 OPPORTUNITIES

• The company possesses the Google search engine - enhance

broadband services.

• Key strategic player.

• Majority of work done by outsourcing in early days, this allowed

work from its own blank sheet of paper, and to question industry
approaches and practices

• ‘Matchbox’ strategy.

• Indus Towers

• The fast extending IPCL market

THREATS

• Airtel & Vodafone

tussle

• Acquisition trail –
example, MTN

• Target for takeover

• Competition