Wednesday, 25 October 2017

Missing focus on R&D of Indian telcos

By Aarushi Singh

As competition in the telecom sector is elevating the need for more focus on R&D is required. Many telcos are trying to build strategies and investing huge amount on this sector. As the existing companies and the new comers need to prove themselves.

Recent announcement of Bharti Airtel acquiring consumer mobile business of Tata Teleservices ltd. and Tata Teleservices Maharashtra was not surprising as acquisition and mergers become necessary to survive in a competitive market. Over the last 10-15 years, the telecom sector has experienced advancements like VOIP (voice on internet protocol), broadband, smart phones, 3G and 4G technologies. These advancements have made India the world’s second largest telecom market and have third highest number of internet users in the world.

According to experts all factors necessary to fuel research and development are present in India which includes demanding customers, profits aplenty, financing options, intense competition and rapidly growing market. But the barriers for entry created in this technical market could collapse as happened in the case of Reliance Jio an year ago. Low prices helped Reliance to create its customer base and become the biggest competitor for other companies.

Therefore surviving of the telcos is totally dependent on the innovation and opportunities which they take up in the future and how they deal with the changing market scenarios.

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