Telecommunication Industry Literature Review

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Literature Review Market Structure Owing to the large population there is no wonder that the Indian Telecommunication market is one of the largest in the world. India has the second largest telecommunication market after China. The largest customer base has also made Indian telecommunication network as the third largest in the world in terms of the infrastructure with the lowest tariffs. Indian telecom sector is one of the fastest growing sectors in the world with the growth rate of 12%-14% [IBEF]. In India the telecommunication activities have been constantly gaining momentum over the last decade due to the fact of significant change in policy reforms and the constant support by the government. The total number of telecom subscribers has…show more content…
Following are the important measures and initiatives taken by Indian government for the growth of Telecom Sector 1. Liberalization: With the announcement of new economic policy, liberalization in 1991 helped the telecom sector to open its value-added services to the private sector 2. TRAI: Telecom Regulatory Authority of India was established to oversee the telecom services like tariffs fixation and bandwidth allocation etc. 3. Unified Access Service Licensing Regime: This allowed the players for the licensing of both the wireless and fixed line under single name 4. Universal Service Obligation: USO policy was implemented to provide telecom services in the rural parts. This led to bridge the gap between the urban and the rural tele-density and also improved the telecom infrastructure in the rural parts of the India. Also the implementation of New telecom policy and the Foreign Direct Investment post-liberalization era has converted the telecom sector into a vibrant industry by providing exemplary services to all the subscribers. Competitiveness in the…show more content…
The competition in Oligopoly market structure would be usually seen in the extent of Customer service, Quality of the product or service loyalty and the brand image rather that the price. Oligopoly mostly exists in the sectors where there are very high barriers for the players to enter into the market, high start-up costs, legal constraints etc. The oligopolists normally make decisions by colluding themselves and organize as well as determine the prices of the services or the

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