Critical Success Factors of Mobile Telephony Companies

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CRITICAL SUCCESS FACTORS OF THE MOBILE TELEPHONY COMPANIES OPERATING IN THE EASTERN REGION BY : AMARTYA DHAR(08BS0000240) ICFAI BUSINESS SCHOOL

10.12.09

CRITICAL SUCCESS FACTORS OF MOBILE TELEPHONY COMPANIES OPERATING IN THE EASTERN REGION

SUBMITTED BY : AMARTYA DHAR(08BS0000240) SUBMITTED TO :PROF BHASKAR BASU

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ABSTRACT:
India, the world’s fastest-growing mobile services market, has added a record 16.02 million new wireless subscribers in March 2009, which are the highest ever additions in a single month till now. As the country continues to add around 10-11 million new connections each month, the target of 500 million telephone subscribers by 2010 is expected to be met in advance.

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INTRODUCTION: The Indian mobile telephony industry is highly competitive with increasing number of players the companies are on the lookout for factors differentiating their service from the competitors. When a business takes a product to market, whether it is a basic product like corn or a highly engineered offering like the digital camera the company must make the product itself compelling (Frances X.Frei HBR April 2008). With price cuts and attractive rental schemes being offered by each and every service provider the two above mentioned factors are no longer the factors which can guarantee a large consumer base .That is why the mobile telephony companies are continuously on the lookout for factors which can give them a competitive edge. This project is an effort to find out the critical success factors which are necessary for the success of a mobile telephony company in the present scenario. The data have been collected through secondary research , primary research with the help of questionnaires was also done.

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CURRENT INDIAN TELECOM SECTOR SCENARIO: India’s telecom sector has made rapid progress since the announcement of the National Telecom Policy – 1999 (NTP-1999). Since 2000, the telecom sector has been a key contributor to the Indian economy’s impressive performance registering sustained high growth rates. Predominantly, over the last three years, the telecom sector has grown remarkably in the range of 29% – 47%. Growth in mobile phones was the principal driver for telecom growth in the country as they have been in other parts of the world. Currently, India continues to be one of the fastest growing telecommunication markets in the world. A progressive regulatory regime, network expansion by operators, reduction in tariffs and cost of handsets, which essentially make the service affordable for the common users, all acted as demand booster to the growth of the telecom sector.

Growth of the Telecom Sector in India: Year (End March) 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Mobile Fixed Total Additions (during calendar year) 21.84 (28.5) 41.96 (42.4) 65.54 (46.7) 94.65 (46.0) 129.21 (43.0)

35.61 56.95 98.78 165.11 261.09 391.76

40.92 41.42 41.54 40.75 39.42 37.96

76.53 98.37 140.32 205.86 300.51 429.72

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The mobile sector has grown from around 10 million subscribers in 2002 to around 35.61million in 2003-04. The year 2004 was a watershed year for the fixed-line services in India, as mobile subscribers outnumbered fixed phone subscribers. In October 2004, the number of mobile phone users in India has crossed the number of fixed-line subscribers for the first time. So the year 2004 can be viewed upon as a landmark year in the history of Indian mobile telephony. Today, the mobile subscribers are not only much more than the land-line subscriber in the country, but their number is also increasing at a much faster pace. This was along the expected lines as, for the past few years, mobile phone subscriptions are growing at much faster rate than fixed phone subscriptions with almost all leading operators focusing more on wireless. Consequently, between March 2005 and March 2009, the country has added around 335 million new wireless subscribers to reach a total of 391.76 million;...
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