India - A Study of Dynamic Market Development

SUMMARY

India has become one of the world's most competitive markets for telecommunications services. In the past six years, the number of mobile subscribers has rocketed from just over 1 million in 2000 to over 75 million in 2006. The reasons for the rapid growth are mainly due to intense competition, telecoms deregulation, positive economic conditions and strong domestic demand.

This report introduces the dynamic and rapidly growing Indian mobile market, describing the developments and services that are bringing communications to a broad spectrum of consumers in one of the world's most populous countries. The success factors are described with an assessment of the challenges of sustaining growth. The offers and progress of the major players are profiled, followed by conclusions and recommendations for mobile network operators in developing markets that face similar challenges to those in India.

TABLE OF CONTENTS

1 Overview

2 Introduction

• 2.1Demographics & Economy
• 2.2Rapid Teledensity Growth
• 2.3Summary of Mobile Market Regulation
• 2.4Profile of the Indian Mobile Customer

3 Success Factors

• 3.1Strong Economic Conditions
• 3.2Government Policy
• 3.3The Lack of Existing Infrastructure
• 3.4Lower costs
• 3.5Mobile Tariffs, Customer Volumes
• 3.6Handsets and Distribution
• 3.7Disruptive Entrants
  • 3.7.1One Private...
  • 3.7.2... The Other Public

4 Challenges

• 4.1Falling ARPU, High Capex, Disappointing Customer Growth
• 4.2Churn, Customer Registration Scheme
• 4.3Consolidation
• 4.4Recharge Volumes
• 4.5Horizon

5 Players

• 5.1Reliance
  • 5.1.1Dhirubai Ambani Pioneer Offer
  • 5.1.2Monsoon Hangama, 'Budget 9' and 'Budget 9'
  • 5.1.3'Free Talk Hangama'
  • 5.1.4'Joy' Tariffs
  • 5.1.5'Zero Rate' Plans
  • 5.1.6Prepaid Tariffs and Offers
  • 5.1.7'Jeevan bhar ka saath' ? Lifetime Validity Prepaid Card
  • 5.1.8Bad debts...?
• 5.2Airtel
  • 5.2.1Recent Offers
  • 5.2.2Prepaid
• 5.3BSNL, MTNL
  • 5.3.1"One India Plan"
• 5.4Hutch/Orange
  • 5.4.1Prepaid and Postpaid Tariffs
  • 5.4.2Market Risks

6 Conclusion

• 6.1Summary
• 6.2Lessons from the Indian Market