India have witnesses fast growth bith in terms of number of subscribers , coverage and introduction of mobile broadband.
Some stats for Indian telecom growth
1. 860 mn subscribers as of July 2011 expected to cross 1000 mn by 2013.
2. Addition of 15 mn subscribers per month
3. Three lakhs cell sites expected to grow to 4.5 lakhs by 2015
2. Addition of 15 mn subscribers per month
3. Three lakhs cell sites expected to grow to 4.5 lakhs by 2015
4. Rural teledensity stands at 33 % whereas urban is touching 100 %
5. Average revenue per subscriber (ARPU) 150-200 INR
Some stats on India
1. Popullation at 1.2 billion
2. 77% lives in Rural and 23 % in Urban
3. 50 % below 25 yrs and 65 % below 35 yrs
Operator perspective
- Past two years have seen licenses being allocated which has increased competition and have driven prices to abysmal low. This has resulted in addition of subscribers but overall profits have not responded proportionally.
- 3G aution has been very expensive affairs for operators .
-With profit growth hampered along with cost of 3G roll out means cost optimization will be key driver for operators.
Some of the initiatives envisaged includes:
1. Becoming lead operator : We have seen realignmnet of manpower which has led to lay off by major operators in recent past . This is only one part of being lean , it has to be supported by systems and processes E2E otherwise actual benefits will short fall.
2. Power is major operation cost of network accounting for 60 % . Two billion litres of diesel is consumed each year by telecom operator which is huge amount and leads to higher outlay . Alternate source of fuel like solar system have huge cost barrier . This area of alternate energy requires innovation and governmant support .
3. Optimize infrastructure sharing , which will be more important for rural and semi urban areas.
4. Business analytics to drive decisions with so many information in multiple systems
5. Customer insight to drive personalized products/offerings
I dont think Indian operators will have time to take challenge or take pie from over the top operators like facebook, google, apple etc . Operators will be mere pipe provider , will be spending time in operations and evolving networks to 3G to LTE in near future.
Customer Perscpective
1. One of the cheapest telecom services rates
2. Mobile broadband services providing on move access to internet and applications with Smartphone penetration
3. Offerings of application from over the top providers ex apple , google etc
4. Service Quality like speed will be not the key differentiator for customer as all operators will have more and less same quality but operator with better coverage will be winner.
5. Bundling of products personalized to end user will be lucrative offer to catch customer mindset
In my opinion , operator which can work on below three aspect will be winner in long run
1. lean operator: In terms of cost of running business , agile time to market products .
2. Better rural strategy
3. Capture mindset of Indian Youth
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