| Topic : New Competitive Landscape in Telecom |
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Indian Telecom Professionals
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Activity:
Question posted: 08 27 2010 10:31:56 +0000,
5 answers, 333 views, last activity
01 16 2011 18:44:01 +0000
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India's two largest private telcos Bharti Airtel and Reliance Communications claim that “virtual” consolidation is underway in the country’s crowded telecom market, with new entrants scaling down their rollout plans and shying away from reducing tariffs further. Although 14-15 telcos continue to exist, consolidation has already begun in the virtual sense. So, why today Consolidation is the new buzzword in telecom?
Better late than never - for their own sake.
Indian Telecom Industry is a Classic case of Michael Porter Analysis, Looking at vast growth potential and huge profits many companies jumped into fray as the market got crowded, rivalry among the market players led to fierce competition resulting in reduced margin for players, now small companies and new entrants are finding this margin too hot to handle , so it,s consolidation period for Indian Telecom Industry.
These companies may not be effected by such competition because they spread their wings accross the world.
THERE IS A WIDE UNTAPPED MARKET POTENTIAL AND THE MARKET IS GROWING VERY FAST MAY BE WE ARE THE NO 1 OR 2 IN THE WORLD MARKET. WITH TOO MANY PLAYERS ALREADY IN AND MORE EXPECTED TO JUMP INTO THE FRAY IT WILL BE DIFFICULT TO FACE COMPETITION FROM VARIOUS CIRCLES FROM VARIOUS PLAYERS WITH VARIOUS PLANS.IT WILL BE EASIER TO FACE LIMITED COMPETITION WITH INCREASED STRENGTH GAINED BY WAY OF CONSOLIDATION.IT IS A 2 WAY ADVANTAGE.MINIMISE COMPETITION AND INCREASE YOUR STRENGTH.EARLEIR THE BETTER FOR THE PLAYERS CONCERNED.
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