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A REVIEW ON CHALLENGES AND OPPORTUNITIES OF MOBILE
PHONE SERVICE PROVIDERS IN INDIA
S. Nithiya Gowri1, Dr. N. Kesavan2
1Assistant Professor-cum-Administrative Officer, Department of Commerce, Sultana Abdullah
Rowther College for Women, Melapanakattankudi, Pudamangalam, Thiruvarur, Research
Scholar of Bharathiar University ; 2Research Supervisor, Associate Professor, Department of
Commerce, Annamalai University, Deputed to PG and Research Department of Commerce,
Sethupathy Govt. Arts College, Ramanathapuram
ABSTRACT
Telecom industry services in India are a major contributor of national economy. A
steadily growth industry has certain challenges and also opportunities. In that juncture, authors
have revealed mobile phone (cellular) service providers challenges and opportunities in India.
Using Meta analysis, the real challenges and opportunities persisted in the telecom industry has
been identified. The challenges of mobile phone (cellular) service providers are competition,
advertisement, sales, marketing, next generation of technology (5G), mobile phone
manufacturers, net banking, and social media. The opportunities of mobile phone (cellular)
service providers are next generation of technology (5G), technology updates, emerging new
Social Medias depended with mobile phone that needs high speed data, mobile banking and
green banking, corporate advertisement and marketing through mobile app, online educational
services, and all type of payment related sales through mobile phone. The findings and
suggestions and conclusion of the present paper will definitely admire the stakeholders of the
industry.
Keywords: Challenge, Opportunity, Mobile Phone, Service Providers, and Telecomm
Introduction
Connecting people is a service for their needs through wireless transmission of data by
the way of GSM, CDMA and VoLTE (Voice over Long Term Evolution) technology. The
present moment in India service providers strategies have been entrusted to fetching large
number of subscribers and also certain significant level of subscribers have been migrated to
other service providers due to their desires of data speed, cost and coverage in respective
localities. The impact of competition, advertisement strategies, sales target, marketing
environment, next generation of mobile data transmission technology (5G), new inventions in
mobile phone manufacturing, net banking facilities, and social media needs of the subscribers are
urged the mobile phone (cellular) service providers in to challenging the business. They also
expected their business to be extended their services as opportunities of mobile phone (cellular)
service providers are next generation of technology (5G), technology updates, emerging new
Social Medias depended with mobile phone that needs high speed data, mobile banking and
green banking, corporate advertisement and marketing through mobile app, online educational
services, and all type of payment related sales through mobile phone. The people are
accustoming with smart mobile phone data usage have been grown up day-by-days. The authors
Journal of Xi'an University of Architecture & Technology
Volume XII, Issue III, 2020
Issn No : 1006-7930
Page No: 4218
have revealed the previous studies in respect of challenges and opportunities of mobile phone
service providers in India for the benefit of stakeholders.
Mobile Phone Service Providers
India’s spectrum allocation for public wireless services should be enhanced significantly
on various frontiers to realize digital infrastructure as a core utility under Digital India. Also, the
cost of spectrum relative to per capita GDP is high. It is important that India builds a more
favourable spectrum policy in the 5G era.
1
The major service providers in India are BSNL +
MTNL, Reliance Jio Infocomm, Airtel + Tata DoCoMo, and Vodafone Idea Ltd.
Growth of wireless telecom subscribers
The number of telephone subscribers in India increased from 1,203.77 million at the end
of Jan-19 to 1,205.40 million at the end of Feb-19, thereby showing a monthly growth rate of
0.14%. The urban subscription increased from 672.91 million at the end of Jan-19 to 675.24
million at the end of Feb-19, however, the rural subscription declined from 530.86 million to
530.16 million during the same period. The monthly growth rates of urban and rural subscription
were 0.35% and -0.13% respectively during the month of Feb-19. The overall Tele-density in
India increased from 91.82 at the end of Jan-19 to 91.86 at the end of Feb-19. The Urban Tele-
density increased from 161.34 at the end of Jan-19 to 161.65 at the end of Feb-19, however Rural
Tele-density declined from 59.38 at the end of Jan-19 to 59.27 at the end of Feb-19. The share of
urban and rural subscribers in total number of telephone subscribers at the end of Feb-19 was
56.02% and 43.98% respectively.
2
Out of the total wireless subscribers (1,183.68 million),
1,022.62 million wireless subscribers were active on the date of peak VLR in the month of Feb-
19. The proportion of active wireless subscribers was approximately 86.39% of the total wireless
subscriber base. The major market share of wireless telecom subscribers are held by Vodafone
Idea Ltd as on 28th February 2019. It has 334.10 million wireless subscribers because of its data
speed, services and coverage. It has the market share of 34.58 per cent. The Vodafone Idea Ltd is
owned by Vodafone Group (45.1%), Aditya Birla Group (26%) and Axiata Group Berhad
Providence Equity (28.9%). Vodafone Idea Ltd provides the technologies of GSM, LTE in
various Megahertz from 2100 to 2500 and VoLTE.
Jio is the second position in holding the market share of 30.25 per cent. It has wireless
subscribers 306 million wireless subscribers because of its offering free data and providing the
data at a low cost. It has owned by Reliance Industries Limited. Jio provides the technologies of
LTE in various Megahertz from 850 to 2300 and VoLTE.
Airtel+Tata DoCoMo are the third position in holding the market share of 30.19 per cent.
It has wireless subscribers 301.04 million wireless subscribers because of its wider network. It
has owned by Bharti Enterprises (64%) and Sign Tel (36%). Airtel+Tata DoCoMo provide the
technologies of GSM, LTE in various Megahertz from 900 to 2300 and VoLTE.
BSNL+MTNL are the fourth position in holding the market share of 10.11 per cent. It has
wireless subscribers 119.66 million wireless subscribers because of its state owned wider
network. It has owned by Government of India. BSNL+MTNL provide the technologies of
GSM, LTE in various Megahertz from 2100 to 2500 and VoLTE.
Journal of Xi'an University of Architecture & Technology
Volume XII, Issue III, 2020
Issn No : 1006-7930
Page No: 4219
The following graphical representation is expressed the growth of VLR (Visitor Location
Register) subscribers.
Source: Telecom Regulatory Authority of India, Press Release No. 27/2019
It is very clearly understood that Bharti has been held with 96.8 per cent of VLR
subscribers; Vodafone Idea has been held with 92.2 per cent of VLR subscribers; and R Jio has
been held with 84 per cent of VLR subscribers. Therefore, Bharti, Vodafone Idea and R Jio are
the major player of private mobile phone service provider.
BSNL and MTNL are having the problems of operating expenses due to various
administrative problems are persisted by means of political and marketing threatening. The
growths of its subscribership are continuously in declining stage. The hurdles are to be removed
by adopting new technology and updating its version of services on par with private service
providers. In the Digital Era of India, BSNL and MTNL have been facing problem is very
sorrow of citizen. The spectrum distribution is definitely for the purpose of making money by
private corporate. The Government of India is failed to adopt the facilities of spectrum for the
general public usage.
Review of literature
The following table portrays the review of literature with the details of authors, year,
findings/recommendations and concluding points and content of the study.
Author(s)
Year
Findings/recommendations and concluding points
Content of
the study
Anand Deo3
2017
Telecommunication sector has become an integral part of
the Indian economy. While the industry is working under
stringent regulations, latest government policies are
providing this sector with good growth opportunities
through reduced spectrum charges and flexible rate plans.
Challenge and
Opportunity
Journal of Xi'an University of Architecture & Technology
Volume XII, Issue III, 2020
Issn No : 1006-7930
Page No: 4220
Most analysts had expected telcos to avoid bidding for the
band, given the steep price, the financial strain on the debt-
ridden telecom industry and more intense competition
following the entry of Reliance Jio Infocomm Ltd.
Identified challenges are Substantial Investments in 4G
Infrastructure, Lack of Telecom Infrastructure in Semi-
rural and Rural areas, Pressure on Margins Due to Stiff
Competition, Rapidly Falling ARPU (Average Revenue
Per User), Delays in Roll Out of Innovative Products and
Services, Limited Spectrum Availability and Low Broad
Band Penetration. The opportunities are notified as Boost
to Telecom Manufacturing Companies, Continuous
Enhancements to the Mobile Value Added Services
(MVAS), Expeditious Roll-out of 4G Services,
Infrastructure Sharing, Availability of Affordable Smart
Phones and Lower Tariff Rates, and Rural Telephony–
Connecting the Real India.
Rahul
Gupta and
Shantipriya
Parida4
2013
End to End Quality of Service (E2E QoS) Delivery in
which Backhaul challenge, Site setup challenge and
Scalability challenge. Drop in MBB Revenue, Increase
Bandwidth Consumption, Device innovation, Popularity of
smart phone applications, and Long Term Evolution
Technology. The opportunities are Transformation from
Mobile to Smart Broadband and Monetization of Data
Services in which Seamless delivery and service (one
customer – many devices), Moving towards personalized
packages, Monetize OTT services usage, and Network
analytics; and Cloud-Based Services. They have concluded
that Mobile broadband opening up new internet
experiences, unlocking new opportunities and it is
becoming a force to change the socioeconomic levels in
every corner of the globe. The current research conveys
that subscribers want operators to be more trustworthy,
uncomplicated and honest.
Challenges
and
Opportunities:
Mobile
Broadband
Telecom
Regulatory
Authority
of India5
2017
The need for the policy and regulatory framework to
evolve along with this convergence has already become
one of the key challenges for regulators across the globe.
Yet, even as convergence is undeniable, there continue to
be many significant differences between these sectors, in
terms of their genesis, market structures and the regulatory
frameworks governing them. Accordingly, TRAI find it
useful to highlight the developments in each of these areas
through dedicated sections in the report.
Need new
Policy
Framework
due to
advance
technology in
the telecomm
services
KPMG6
The key challenges of mobile phone service providers in
India are installation of telecomm towers, Uniformity in
guidelines for telecom tower installation in government
Challenges:
installation of
telecomm
Journal of Xi'an University of Architecture & Technology
Volume XII, Issue III, 2020
Issn No : 1006-7930
Page No: 4221
premises, Operating challenges with respect to power,
Reclassification of common infrastructure, Security
protection of telecom infrastructure, Lack of infrastructure
status benefits, Challenges related to taxation structure, and
Exclusion of telecom towers from availing CENVAT
credit.
towers and
Lack of
infrastructure
Global
Internet
Report7
2017
Recommendations from Alliance for Affordable Internet,
Asian Development Bank, GSMA and the World
Economic Forum emphasize the needs are manage
spectrum for mobile-based digital services, reduce taxation
for devices, SIM cards and mobile services, incorporate
mobile broadband adoption in universal service fund
initiatives, incorporate mobile Internet in digital literacy
programmes, promote the development and adoption of
open standards and approaches for the interoperability of
mobile devices, apps and platforms, as well as the data
collected and processed, create an open and level playing
field to allow industry players to deliver innovative mobile
services. At the same time, it is important to bear in mind
the policy and regulatory challenges, such as, addressing
the backbone and backhaul infrastructure deficit, and
influencing companies' behaviours to ensure that the public
interest is integrated in decision-making.
Challenges
Kapil
Kumar8
2017
All operators must aspire to take their pie in the overall
data market space. In order to achieve this, operators have
to face the following challenges: Availability of sufficient
spectrum; Technology to enable faster connections and
availability by new compression and other techniques;
Making available more innovative and interesting
applications for customer’s usage; The government and the
regulators (TRAI)must provide the right mix of policy to
help in making all that happen and In the whole echo
system all operators, phone manufacturers, software /
application developers, infrastructure providers should
remain agile and healthy.
Key
Challenges of
Telecom
Sector in India
The
Mobile
Economy9
2016
Although digital convergence is benefitting consumers, it
also creates regulatory challenges. Rapid innovation in
terms of both technology and business models is blurring
the boundaries between once distinct markets and
regulatory regimes. The net result is a complex and
dynamic digital ecosystem in which both consumers and
businesses face regulatory uncertainty. Regulation can
easily distort digital markets, harming competition,
slowing innovation, and ultimately depriving consumers of
the benefits of technological progress. Recognizing these
challenges, policymakers all over the world are working to
Challenges
Journal of Xi'an University of Architecture & Technology
Volume XII, Issue III, 2020
Issn No : 1006-7930
Page No: 4222
implement reforms that will protect competition and
consumers without impeding social and economic
progress. In most markets, regulatory policies and
institutions need to be reviewed, and potentially
overhauled.
Vani Kola
et al10
2017
In most developed markets, telecom operators get more
revenue from data than voice. In India telecom players get
50% of revenue from voice and 20% from data. But in the
next 3-4 years this balance will reverse and data will
become a major contributor to the top line. It is estimated
that 500M subscribers will consume average 10GB data
per month as compared to 120M subscribers consuming
average 1GB data per month in 2016. This is 40 time
increases in total data consumption. The 4 time increase in
3G/4G connected smart phone users and 40 time increase
in data consumption will open massive opportunities for
consumer internet companies. Depending on the sector - e-
commerce, digital media or financial services - companies
will still be required to solve India specific challenges. But
a strong foundation is being laid through rapid smart phone
and 3G/4G mobile data penetration for internet economy to
thrive.
India Internet
Challenge and
Opportunity
TeleTech
Report11
2014
India’s mobile service providers (MSP’s) have yet to tap
the full potential of rural India, as large parts of rural India
is in dire need of telecom services. Bridging the rural-
urban digital divide is critical for India’s inclusive growth
in financial, healthcare and education sector, among others.
The challenge, however, is to deliver a mobile service to
rural users, that is viable and profitable at the current low
levels of average revenue per user.
Addressing
the rural
challenge
Robin
Mansell12
2012
The complex challenge of enabling people to acquire the
knowledge essential for developing innovative applications
that are responsive to their local needs, however, is being
neglected. The necessary digital skills include operational
expertise and an understanding of information structures
when the mobile phone is used as a medium for
communication. They also include information search and
selection skills, communication and content creation skills,
and strategic skills needed to use mobile phones in ways
that support individual or professional goals. The
widespread failure to acquire these abilities is limiting
opportunities for empowerment through the use of mobile
phones.
Challenge of
enabling
people to
acquire the
knowledge
essential
Conclusion
Authors have revealed the previous studies and reports pertaining to the challenges and
opportunities of mobile phone service providers in India. From these reviews authors have been
Journal of Xi'an University of Architecture & Technology
Volume XII, Issue III, 2020
Issn No : 1006-7930
Page No: 4223
understood that there is existence of challenges and opportunities in the mobile phone service
providers in India. They are finding the solutions to eradicate and wiped-out the challenges in the
future for the betterment of the future generation. The major challenges of the mobile phone
service providers in India is advertisement, sales, marketing, next generation of technology (5G),
mobile phone manufacturers, net banking, social media, installation of telecomm towers, towers
maintenance cost and lack of infrastructure, enabling people to acquire the knowledge essential,
addressing the rural challenge, digital markets, harming competition, slowing innovation, and
ultimately depriving consumers of the benefits of technological progress. The opportunities are
transformation from Mobile to Smart Broadband and Monetization of Data Services in which
Seamless delivery and service (one customer – many devices), Moving towards personalized
packages, Monetize OTT services usage, and Network analytics; and Cloud-Based Services; next
generation of technology (5G), technology updates, emerging new Social Medias depended with
mobile phone that needs high speed data, mobile banking and green banking, corporate
advertisement and marketing through mobile app, online educational services, and all type of
payment related sales through mobile phone; and also depending on the sector - e-commerce,
digital media or financial services - companies will still be required to solve India specific
challenges. But a strong foundation is being laid through rapid smart phone and 3G/4G mobile
data penetration for internet economy to thrive.
Reference:
1
The Steering Committee, “Making India 5G Ready”, Report of the Department of
Telecommunications, Ministry of communication, Government of India, 23 August, 2018, p 10
2
Telecom Regulatory Authority of India, Press Release No. 27/2019, p 2
3
Anand Deo , “Telecom Industry in India: Evolution, Current Challenges & Future Road Map”,
IMR (Indira Management Review), Volume XI, Issue I, July, 2017, pp 92-105
4
Rahul Gupta and Shantipriya Parida, “Challenges and Opportunities: Mobile Broadband”,
International Journal of Future Computer and Communication, Vol. 2, No. 6, December 2013,
PP 660-664
5
Telecom Regulatory Authority of India, “A Twenty Year Odyssey 1997-2017”, National
Institute of Public Finance and Policy, 2017, p 1
6
Indian Registered Partnership and a member firm of the KPMG network of independent
member, 2017
7
Internet Society Global Internet Report 2015 on mobile Internet, “challenges and opportunities
specific to the Asia-Pacific region”, p 6
8
Kapil Kumar, “Key Challenges of Telecom Sector in India”, International Journal Of
Engineering Research And Development, Volume 13, Issue 9 (September 2017), PP.05-08
99
GSMA Head Office, United Kingdom.
10
Vani Kola, Darshit Vora, Vinod Shankar and Naman Narain, “India Internet Challenge and
Opportunity”, Kalaari Capital Advisors, May 2017, Pp 7-8
11
TeleTech Report , “Telecom: Enabling growth and serving the masses”, Confederation of
Indian Industry, MIT School of Telecom Management, Deloitte Touche Tohmatsu Limited
presented the report 2014, P 9
12
Mansell, Robin, “Mobile phones: challenges of capability building”, Georgetown journal of
international affairs, 2012, P 1
Journal of Xi'an University of Architecture & Technology
Volume XII, Issue III, 2020
Issn No : 1006-7930
Page No: 4224
