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Impact of technological
environment on Communication
sector
Anshu Singh
BBA
Navrachana University,
Vadodara
The rapid change in technology in has significantly impacted the
operational aspect of communication sector.
Coupled with ...
The technologies normally have a flow path from developed
markets to underdeveloped or developing markets
which has a lag...
Small changes can bring huge changes in the
entire setup and financial budgeting of the
companies.
Hence, volatile the tel...
3rd highest internet
users
2nd largest
Subscriber base
With a subscriber base of nearly 1058.86 million, as
of March 2016,...
Most of the
Internet accessed
through mobile
phones
Rising penetration
rate
Mobile based Internet is a key component of In...
Economic
Positive
Negative
Various Impacts
Economic Impacts
Economic
impact
Productivity
Creation Employments
Economic
Growth
Productivity
Improvement of total factor
productivity, particularly in
those industries that are ICT-
intensive but also i...
 Creation of qualified self-
employment resulting from
the availability of
communication networks
 Creation of employmen...
Positive Impact
1. Data Connectivity
2. Bridge between
Rural & Urban
3. Handset in hands
4. Ease of accessing
5. Overcomin...
Data Connectivity
Bridge rural and urban
Earlier, at the primary stage of Internet
revolution “Data Connectivity” was the ...
Handset in Hands
Ease of accessing
In mid & late 90’s when telecom sector was
setting his feet into the market, cellular p...
As people's ability to communicate improves,
the reach of their messages widens. This can
be especially important in polit...
Negative Impact
1. Voice call converting to
application call( Issue
for Rural )
2. Spectrum Issues
3. Call drop
4. Sudden ...
Voice calls converting
to application calls
Today’s, Biggest problem in the Indian rural
areas is the Voice call. People w...
Spectrum Issues Spectrum fees leave no money
in shareholders pockets
Market cap stagnant over past 7 years
The country fi...
Threats of
new
entrants
(Low)
Threats of
substitute
product
(Low)
Suppliers
bargaining
power
(High)
Bargaining
Power of
cu...
Bharti Airtel Jio Idea Vodafone
Total spectrum holding across all 22 circles(in
MHz)1,402
MHz
1,108
MHz
891
MHz
957
MHz
Bh...
Data Source:
Anshu
Bansari
Shailaja
Vraj
SY-BBA- B
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Technology vs Communication Sector

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The slideshow explains about the impact of technological environment on communication sector of India.

Publicado en: Economía y finanzas
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Technology vs Communication Sector

  1. 1. Impact of technological environment on Communication sector Anshu Singh BBA Navrachana University, Vadodara
  2. 2. The rapid change in technology in has significantly impacted the operational aspect of communication sector. Coupled with increased competition and emergence of rural market, the telecom sector is faltering in its evolution.
  3. 3. The technologies normally have a flow path from developed markets to underdeveloped or developing markets which has a lag time. Now, with better connectivity and processes this lag time has constantly reducing featuring a global launch of technology than in segments. This has made the total business framework complicated.
  4. 4. Small changes can bring huge changes in the entire setup and financial budgeting of the companies. Hence, volatile the telecom market is and the companies are fighting this on small margins.
  5. 5. 3rd highest internet users 2nd largest Subscriber base With a subscriber base of nearly 1058.86 million, as of March 2016, India accounted for the second- largest telecom network in the world With 342.65 million internet subscriptions, as of March 2016, India stood third-highest in terms of total internet users in 2016.
  6. 6. Most of the Internet accessed through mobile phones Rising penetration rate Mobile based Internet is a key component of Indian Internet usage, with seven out of eight users accessing internet from their mobile phones As of March 2016, urban tele-density stood at 154.01 per cent and rural tele-density at 51.37 per cent
  7. 7. Economic Positive Negative Various Impacts
  8. 8. Economic Impacts Economic impact Productivity Creation Employments Economic Growth
  9. 9. Productivity Improvement of total factor productivity, particularly in those industries that are ICT- intensive but also in • those that are not Creation Relocation of enterprises based on the availability of high capacity telecommunications networks (as one of many infrastructure factors) and quality of life (driven by availability of networks in schools, hospitals, public administration etc.) Economic impact
  10. 10.  Creation of qualified self- employment resulting from the availability of communication networks  Creation of employment in manufacturing and installation of telecommunications equipment Increase in efficiency of industries with high transaction costs (retail distribution, finance etc.) Consumer surplus generated by the availability of new telecommunications services, reduction of travel time and transportation etc Economic impact Employments Economic Growth
  11. 11. Positive Impact 1. Data Connectivity 2. Bridge between Rural & Urban 3. Handset in hands 4. Ease of accessing 5. Overcoming Disabilities 6. Reaching Broader Audience
  12. 12. Data Connectivity Bridge rural and urban Earlier, at the primary stage of Internet revolution “Data Connectivity” was the biggest issue. People could not access the internet easily. But after the global change in in technology the era of “weak connectivity” is slightly moved downstream. Although, In India we have the “Connectivity” problem. When the technological environment started boosting the need to connect the urban and rural areas came into the picture. In many parts of the world the networking started growing. Now, rural people can easily connect with urban and it also encouraged the Rural entrepreneurship.
  13. 13. Handset in Hands Ease of accessing In mid & late 90’s when telecom sector was setting his feet into the market, cellular phones generation started. Mobile phone was the boon for this communication sector. Now, people need not depends on the string and cord telephones the place was started taking by mobile phones. Now 9 out of 10 people carry handset in their hands. With increase in technology, the towers started getting advanced and the connectivity with satellite increased. Signal strengthen , with hexagonal waves the call connectivity increased. But still, in our country we faced “call drops”
  14. 14. As people's ability to communicate improves, the reach of their messages widens. This can be especially important in politics and activism. For instance, photos and video recorded covertly through a cell phone can be quickly and easily shared online through websites such as YouTube, making it harder for oppressive regimes to keep control; social networks such as Facebook and Twitter can be used to organize and coordinate meetings and protests. The Egyptian revolution of 2011-2012 was spurred greatly by social media. Reaching Broader audience Positive Impact
  15. 15. Negative Impact 1. Voice call converting to application call( Issue for Rural ) 2. Spectrum Issues 3. Call drop 4. Sudden hike or decline in prices 5. Telecom sector in loss
  16. 16. Voice calls converting to application calls Today’s, Biggest problem in the Indian rural areas is the Voice call. People who aren’t have even proper 2G connection struggling between the wars of 4G. For the poor rural’s the voice call over internet is very far, they don’t even have proper network to call. The technology is diverting the voice calls over internet which to many extent better for urban society not the rural one. Since, the connectivity is the issue and market share of telecom sector is decreasing due to political and technological factors. The GAP is widening
  17. 17. Spectrum Issues Spectrum fees leave no money in shareholders pockets Market cap stagnant over past 7 years The country five listed telecom operators- Bharti Airtel,Idea, Reliance, Tata Tele MTNL are currently valued at Rs1.71 lakh Cr. Downed from their combined market cap of around Rs 1.84 lakh Cr in March 2010. Operators have taken the billion dollar loans but due to instability the sector is not able to generate reveneue.
  18. 18. Threats of new entrants (Low) Threats of substitute product (Low) Suppliers bargaining power (High) Bargaining Power of customer (High) Porter’s Five force analysis
  19. 19. Bharti Airtel Jio Idea Vodafone Total spectrum holding across all 22 circles(in MHz)1,402 MHz 1,108 MHz 891 MHz 957 MHz Bharti continues to lead in terms of overall spectrum NOTE: Spectrum includes both uplink and downlink. Red boxes indicate spectrum purchased in current auction.
  20. 20. Data Source: Anshu Bansari Shailaja Vraj SY-BBA- B

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