The slideshow explains about the impact of technological environment on communication sector of India.

1. Impact of technological
environment on Communication
sector
Anshu Singh
BBA
Navrachana University,
Vadodara

2. The rapid change in technology in has significantly impacted the
operational aspect of communication sector.
Coupled with increased competition and emergence of rural market, the
telecom sector is faltering in its evolution.

3. The technologies normally have a flow path from developed
markets to underdeveloped or developing markets
which has a lag time.
Now, with better connectivity and
processes this lag time has constantly
reducing featuring a global launch
of technology than in segments.
This has made the total business
framework complicated.

4. Small changes can bring huge changes in the
entire setup and financial budgeting of the
companies.
Hence, volatile the telecom market is and the
companies are fighting this on small margins.

5. 3rd highest internet
users
2nd largest
Subscriber base
With a subscriber base of nearly 1058.86 million, as
of March 2016, India accounted for the second-
largest telecom network in the world
With 342.65 million internet subscriptions, as of
March 2016, India stood third-highest in terms of
total internet users in 2016.

6. Most of the
Internet accessed
through mobile
phones
Rising penetration
rate
Mobile based Internet is a key component of Indian
Internet usage, with seven out of eight users
accessing internet from their mobile phones
As of March 2016, urban tele-density stood at
154.01 per cent and rural tele-density at 51.37 per
cent

7. Economic
Positive
Negative
Various Impacts

8. Economic Impacts
Economic
impact
Productivity
Creation Employments
Economic
Growth

9. Productivity
Improvement of total factor
productivity, particularly in
those industries that are ICT-
intensive but also in • those
that are not
Creation
Relocation of enterprises
based on the availability of
high capacity
telecommunications
networks (as one of many
infrastructure factors) and
quality of life (driven by
availability of networks in
schools, hospitals, public
administration etc.)
Economic
impact

10.  Creation of qualified self-
employment resulting from
the availability of
communication networks
 Creation of employment in
manufacturing and
installation of
telecommunications
equipment
Increase in efficiency of
industries with high
transaction costs (retail
distribution, finance etc.)
Consumer surplus
generated by the availability
of new telecommunications
services, reduction of travel
time and transportation etc
Economic
impact
Employments
Economic
Growth

11. Positive Impact
1. Data Connectivity
2. Bridge between
Rural & Urban
3. Handset in hands
4. Ease of accessing
5. Overcoming
Disabilities
6. Reaching Broader
Audience

12. Data Connectivity
Bridge rural and urban
Earlier, at the primary stage of Internet
revolution “Data Connectivity” was the biggest
issue. People could not access the internet easily.
But after the global change in in technology the
era of “weak connectivity” is slightly moved
downstream. Although, In India we have the
“Connectivity” problem.
When the technological environment started
boosting the need to connect the urban and rural
areas came into the picture. In many parts of the
world the networking started growing. Now, rural
people can easily connect with urban and it also
encouraged the Rural entrepreneurship.

13. Handset in Hands
Ease of accessing
In mid & late 90’s when telecom sector was
setting his feet into the market, cellular phones
generation started. Mobile phone was the boon
for this communication sector. Now, people
need not depends on the string and cord
telephones the place was started taking by
mobile phones. Now 9 out of 10 people carry
handset in their hands.
With increase in technology, the towers started
getting advanced and the connectivity with
satellite increased. Signal strengthen , with
hexagonal waves the call connectivity increased.
But still, in our country we faced “call drops”

14. As people's ability to communicate improves,
the reach of their messages widens. This can
be especially important in politics and
activism. For instance, photos and video
recorded covertly through a cell phone can be
quickly and easily shared online through
websites such as YouTube, making it harder
for oppressive regimes to keep control; social
networks such as Facebook and Twitter can
be used to organize and coordinate meetings
and protests. The Egyptian revolution of
2011-2012 was spurred greatly by social
media.
Reaching Broader
audience
Positive Impact

15. Negative Impact
1. Voice call converting to
application call( Issue
for Rural )
2. Spectrum Issues
3. Call drop
4. Sudden hike or decline
in prices
5. Telecom sector in loss

16. Voice calls converting
to application calls
Today’s, Biggest problem in the Indian rural
areas is the Voice call. People who aren’t have
even proper 2G connection struggling between
the wars of 4G. For the poor rural’s the voice
call over internet is very far, they don’t even
have proper network to call. The technology is
diverting the voice calls over internet which to
many extent better for urban society not the
rural one. Since, the connectivity is the issue
and market share of telecom sector is
decreasing due to political and technological
factors.
The GAP is widening

17. Spectrum Issues Spectrum fees leave no money
in shareholders pockets
Market cap stagnant over past 7 years
The country five listed telecom operators-
Bharti Airtel,Idea, Reliance, Tata Tele MTNL
are currently valued at Rs1.71 lakh Cr.
Downed from their combined market cap of
around Rs 1.84 lakh Cr in March 2010.
Operators have taken the billion dollar
loans but due to instability the sector is not
able to generate reveneue.

18. Threats of
new
entrants
(Low)
Threats of
substitute
product
(Low)
Suppliers
bargaining
power
(High)
Bargaining
Power of
customer
(High)
Porter’s Five force analysis

19. Bharti Airtel Jio Idea Vodafone
Total spectrum holding across all 22 circles(in
MHz)1,402
MHz
1,108
MHz
891
MHz
957
MHz
Bharti
continues to
lead in
terms of
overall
spectrum
NOTE: Spectrum includes both uplink and downlink. Red boxes
indicate spectrum purchased in current auction.

20. Data Source:
Anshu
Bansari
Shailaja
Vraj
SY-BBA- B