While the market is increasing rapidly, the industry is shifting from the growth period to the shakeout phase, but the cut-throat rivalry is reducing the profit margins, which is very typical in the later growth phase, and those players who do not have good financial support will be sold to the stronger players. So it is very clear that the potential benefit will be made by players with a stronger reputation and financial backup.Do you want to learn more? click here for more
In other telecom fields, such as landline, ISP, broadband, corporate data & voice services, etc the larger players are also operating to become a one-stop solution provider, thereby increasing market share, which clearly indicates the sorry situation for the smaller players. The entry barrier is too powerful for any new player.
The mobile industry in India is likely to reach the mature market once the shakeout phase is over in the next few years.
But there is also another theory: the economic growth in India, the market is currently growing more on the growth of the network area, suppliers are moving from big cities to smaller cities, demand is generated from ‘B’ class & ‘C’ class cities – middle class population. Because of the Government, a large portion of India’s middle-class population in smaller cities could not enjoy the benefits of telecom service. Monopoly, low power, regulations; these are the mobile operators’ immediate customers. For new Telco customers, the Landline is no longer the default choice; people like to use cell phones because of its added advantages and quick subscription. The size of the middle class is also expected to rise in India in the next decades, so the mobile market in India is likely to be in a longer period of growth – shakeout phase.