Telecom sector - foundation upon which an information society id built on!

 

India is the world's second-largest telecommunications market. The telecom market can be split into three segments – wireless, wireline and internet services. The wireless market segment accounted for 98.28 per cent of the total subscriber base as of March 2020. Rural subscribers comprised 44.27 per cent of the total telephone subscribers as of March 2020.

Gross revenue of the telecom sector stood at Rs 185,291 crore (US$ 26.51 billion) in FY20 (April-December 2019). Strong policy support from the Government has been crucial to the sector’s development. Foreign Direct Investment (FDI) cap in the telecom sector has been increased to 100 per cent from 74 per cent. FDI inflow in the telecom sector totalled US$ 37.27 billion during April 2000-March 2020. 

Jio has schemed plans of mobile prepaid recharge that bundles up data + calls+ SMS and premium packages which includes subscription charges for Disney owned Hotstar. This bundling makes for a lucrative offer for the consumers as they don’t have to recharge separately, hence it provides ease of recharge and come off as economical as well, thus attracting more subscribers. To support the public schooling and working from home during lockdown, it has introduced value recharge packs like “work from home’ pack. Jio followed Penetrative strategy. This is the strategy in which the focus is on grabbing maximum markets-hare. Hence, the price of the product was set very low initially (at launch) so that it can penetrate the market and attract buyers of all segments. The prices of services were zero at launch, eventually they were set at a fraction of the existent competition’s prices. Consequently, Jio has been able to grab a significant market-share despite being a new entrant in the industry.

 Vodafone too has taken steps to counter the market leader has come   up with great value offers on recharge and has ventured with ZEE5 an online streaming channel for which you get a combined recharge scheme. It has also extended incoming call benefit during lockdown at no additional cost. Bundled data allocation is available over and above the existing data quota.§  prices its products competitively to beat its competitors. Vodafone has ensured loyalty by providing high quality services and strong range. Its marketing mix pricing strategy is done differently for every segment that it targets based on various needs that each price can cater to. Prices its products competitively to beat its competitors. Vodafone has ensured loyalty by providing high quality services and strong range. Its marketing mix pricing strategy is done differently for every segment that it targets based on various needs that each price can cater to. Vodaphone recently merged with Idea and changed its name to "Vi".

§       Bharti Airtel- Airtel follow customer-based pricing&flexible pricing mechanism. Airtel thinks customers believe higher price offer higher quality and bargain hunters are attracted by low prices. Airtel keep all its recharge schemes with 9 as the ending digit like 49, 99 ,199 etc because the 9 series pricing style has greater impact on customers. Almost all brands follow this pricing style now.

 

§          BSNL- As the company BSNL is a state-owned telecommunication company it provides services at low rates to facilitate telecommunication services that is affordable by every sector of the population. The usage charges in relation to tariff is the deciding factor for making pricing policies. Another important factor is the cost incurred during the installation of the product and its service. 

 D   DoT is targeting a combination of 100% broadband connectivity in the villages, 55% fiberisation of mobile towers, average broadband speeds of 25 mbps and 30 lakh kms of optic fibre rollouts by December 2022. By December 2024, it is looking at 70% fiberisation of towers, average broadband speeds of 50 Mbps and 50 lakh kms of optic fibre rollouts at a pan-India level.