The govt regulator in the telecom sector (TRAI) has finally announced that the country will have Mobile Number Portability (MNP) by 31^st Dec of this year. What this means is that a subscriber of one telecom operator can now change to another operator without having to give up his mobile number. This will increase the switching of customers from one service provider to another. What might also happen is that operators with the largest networks will benefit the most as they might offer better rates on calls made within their networks thereby attracting even more customers to their folds.

The MNP news has probably brought further gloom to the telecom sector which has already been plagued by falling revenues even though the subscriber base is growing at record rates. India now has 500 Mn subscribers but still only around 35% tele-density. This spells a huge opportunity for new players to enter the market. The interest shown by foreign companies from Norway, Dubai, Russia and Malaysia in India’s telecom pie is proof of the long term viability of the market. Also the soon to be auctioned 3G licenses are an added attraction for players eyeing the Indian telecom market.

The latest price war based on per-second- billing has further intensified the competition within the industry. Even market leader Bharti Airtel has been drawn into the fray, having to defend it’s turf from companies like Tata Docomo.

To get a better picture of the Indian Telecom market, read the articles here.

Q. Create a PEST analysis for a new company considering entering the Indian telecom market as another mobile services provider.