Industry Analysis (7/10)

Telecom Industry:

The Indian Telecom Industry is the second largest in the world with a subscriber base of over 1.17 bn. India has an overall Tele-density of ~85% (number of phones per hundred people) of which the rural market is largely untapped, only 58.16% while the urban market is at 134.7%. Primary drivers for change in this industry have been 3G & 4G penetration, Affordable tariffs and government initiatives.

🌟 Cyclicity: The telecom industry is a Non-cyclical industry as demand for
communication is present despite the economic situation.

🌟 Value Chain:
➡️ Tower Infrastructure
➡️ Network Equipment (Manufacturing of Telecommunication equipment-
modems, routers, optical fiber)
➡️ Technology Provider (Software and Sterile Technology)
➡️ Network Operators
➡️ Consumers (Services, Promotions, Advertisements)

🌟 Revenue Drivers:
➡️ Voice and Internet services
➡️ Affiliations (Entertainment, Brand collaborations)

🌟 Cost Drivers:
➡️ Spectrum costs
➡️ Infrastructure and Equipment costs
➡️ Operating and Financing costs

🌟 Growth Drivers:
➡️ Rural Penetration
➡️ Digital Literacy
➡️ Affordable tariffs
➡️ Technological advancement (5G rollout)

🌟 Key Market Players:
➡️ Jio
➡️ #IDEA

Here's another post of mine which will help you understand the latest market trends across this industry:

Telecom Industry was majorly dominated by Airtel and Idea before the entry of Jio in 2015 when things turned quickly, Airtel lost its monopoly status, Vodafone and Idea merged to survive, government started spending enormously on BSNL to revive it and to prevent private sector domination in the industry. With spectrum auctions and 5G rollouts, this industry has become more competitive.

Which company do you think will thrive through the competition and emerge as a leader?
Investment Ideas - 12632028