Economic Analysis Of The Mobile Telecom Industry
The mobile telecom industry in India has seen an astonishing growth in the last decade and a half. It is one of the fastest growing telecom sectors in the world with an annual growth of 12% to 13 % . The sector has been given due importance by the government, as it caters to develop a nation socially and economically.
In recent years the industry has undergone some severe changes and has been supported by significant policy reforms. The country's total mobile subscriber base is over 908 million [Telecom regulatory authority of India].
Its phenomenal growth is propelled by drivers such as newer technology like 3G and 4G, better devices and most importantly change in consumer behaviour. The market share is dominated by a few larger firms although few smaller firms are also present. According to the research by Boneless Group , the market share is as follows. The following pie chart figures depict that over 80% of the market is held by 7 operators.
It can be deciphered that the nature of economic structure of mobile telecom industry in India can be described as an OLIGOPOLY. It is supported by further analysis in this work.
OLIGOPOLY IN INDIAN TELECOM 印度电信的寡头垄断
Oligopoly can be defined as a market structure with a small number of large players also called as Oligopolists. These large players have a significant share of the total market size. Immense competition is concentrated within these competitors. The other competitors are small and have a minor market share; they are also called niche players of the market
Few Sellers - There are few strong and influential firms operating and competing against each other. The other few firms operating in the market are not dominant and have an imperceptible share of the market. The smaller firms in the market do not have the power to retaliate the larger firms. It suggests that firms in oligopoly are interdependent on each other for decision making. Each firm measures, predicts or assumes its potential competitor's reaction when it chooses any business strategy. These decisions could be regarding setting up / change in prices, output or product lines. In a nation, where population is more than 1.3 billion, lies a huge market potential. The fact that there are just 10-12 active players in the market, 7 of which constitute more than 80% of the markets share ,substantiates the few sellers assumption of oligopoly.(责任编辑：BUG)