Cases

Landscaping the Indian Fixed Line Telephone and Broadband Market for an International Consulting Firm

Challenge

An international management consulting firm was in discussion with a manufacturer of telecom hardware (CPE – Customer Premise Equipment) i.e. fixed line telephones, broadband devices and home media devices, which was considering entry into the Indian market.

The client wanted to have an understanding of the fixed line and broadband market in India with the following details:

  • Past trends in subscriber additions and forecasts over the next 3-5 years
  • Major operators, revenues, average revenue per user and future plans
  • Pricing of customer prices equipment (CPE) and the extent of subsidisation/ rentals charged by the operators
  • Technology used by various operators, alliances with hardware vendors
  • Equipment volumes, revenues, average selling price (ASP)
  • Key equipment players, market share, distribution network, manufacturing set-up
  • Distribution landscape for hardware
  • Distribution channels and the retail landscape (organised v/s unorganised, operator/ vendor driven distribution.

Thus, the client requested UC to conduct a detailed study of the fixed line telephone and the broadband market in India.

Our Approach 

To landscape the overall market for fixed line telephones and broadband devices in India, UC divided the study in the following four sectors:

  • Subscriber Trends
    • Analysed the growth of fixed line subscribers in the Indian market and forecast till 2010
    • Impact of fixed wireless terminal in the growth of fixed line subscriber base
    • Current state of broadband internet and expected growth (including the government targets)
  • Operator Profiles
    • Current market share of public service providers versus the private companies
    • Investments and future plans of major operators
    • Fixed line average revenue per user trends and key drivers like rural telephony, value added services (SMS, Voicemail, Caller tunes, etc.)
  • CPE Market
    • Market size and share of key hardware vendors for CPEs (fixed wireline instruments and broadband modems/ routers)
    • Product profile and ASP of the key players
    • Share of distribution through overseas experience and the after market
  • Regulatory Environment
    • Foreign direct investment regulations, relevant Indian acts and policies
    • Import tariffs
    • Product certification norms and process.

Impact

The client received a detailed understanding of the industry across the sectors.