Indian Telecom Sector Analysis Essay Example
Indian Telecom Sector Analysis Essay Example

Indian Telecom Sector Analysis Essay Example

Available Only on StudyHippo
  • Pages: 4 (914 words)
  • Published: October 13, 2018
  • Type: Case Study
View Entire Sample
Text preview

Freshtel's focus for corporate consumers is on India's booming Business Process Outsourcing (BPO) industry. This presents an ideal target market for Freshtel, as many large fortune 500 companies are either planning to establish their businesses in India or are in the early stages of doing so. With the support of TCS, a leading provider of IT infrastructure for corporate players, Freshtel will have access to a ready market. By demonstrating excellence and tapping into potential markets, Freshtel can expand financially. Additionally, targeting corporate consumers ensures that Freshtel does not need to manage a large and dispersed distribution network.

Promotion Strategies Freshtel should rely on trade organizations and associations such as the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (FICCI) to display our strengths and capabilities. Our marketing director for South Asia will present detailed

...

services and plans to CII. FICCI, being one of the largest business associations in India, serves as a useful gateway for foreign investors like Freshtel. The Indian government’s Department of Commerce assists in promoting services and products for Foreign Direct Investment and Institutional Investors, following their foreign investment plan guidelines (Directorate General of Foreign Trade, 2006).

Distribution Network To strategically ally with a local player that has a decentralized network, Freshtel's focus on corporate consumers leads us to consider partnering with HCL Infotech. HCL is the largest manufacturer and assembler of enterprise-level network solutions in India. Since HCL primarily focuses on hardware-based IT products, their existing clients will be exposed to Freshtel's offerings.

Oracle India has played a leading role in advancing database management in Indian corporate businesses. A reliable communication infrastructure is crucial fo

View entire sample
Join StudyHippo to see entire essay

managing large databases effectively. By partnering with Oracle India, Freshtel can benefit greatly. The strategic location of Oracle support and distribution centers close to Freshtel's target customers provides a significant advantage.

The existing network of Oracle will be advantageous for establishing Freshtel’s distribution. Kotak Mahindra Kotak, a leading financial institution in India, provides various services to industries, particularly foreign investors. Kotak excels in retail banking, corporate insurance, capital venture management, and financial portfolio development. In addition to assisting Freshtel in overcoming licensing obstacles, this partnership will protect investments and capital through insurance coverage. Growth Barriers Freshtel anticipates the following challenges in implementing our plan for India: Telecom Licensing Indian laws for telecommunication regulation have not fully incorporated VOIP technology into their existing licensing structure. To facilitate the adoption of this new technology, several legal parameters would need to be evaluated.

Other telecom companies from foreign countries do not experience the same difficulties as VOIP-based telephony because they are more clearly regulated under existing communication technology laws. CISCIO and NORTEL, international competitors, have a significant advantage in the VOIP sector in India since they established their operations several years ago. Although they face some challenges, their customer base remains loyal and stable. However, given the positive outlook for the future, Freshtel can easily capture a significant portion of the expanding market.

Freshtel, a company operating in a vast market like India, would need to raise a significant amount of capital to make effective progress. This venture would require the creation of fundraising and self-sufficient channels to generate funds. It would also take a specific period of time for Freshtel operations to become self-sustaining and achieve break-even.

One of the

challenges faced in India is internet congestion, which can cause delays in speech and result in poor voice quality. This is due to the varying intervals at which voice data arrives on the data networks. Additionally, the design of data lines is not as fault tolerant as traditional landlines, leading to service interruptions for phone calls made over the internet.

To overcome these challenges, Freshtel will need to heavily invest in stable and advanced IT infrastructure. However, TCS will handle this challenge on behalf of Freshtel.

TCS has a successful history of offering cutting-edge solutions. The integration and deployment of new communication systems in Small and Medium Enterprises (SMEs) pose a universal challenge for the VOIP industry. This challenge becomes even more difficult in India due to the existing players already providing VOIP services in the market. Luckily, India has a large pool of highly trained and skilled manpower that Freshtel can utilize. By utilizing technology transfer experts and subject matter experts, Freshtel can overcome integration and deployment issues.

The Indian government and trade associations have concerns about the convergence of data and voice transmission in IP telephony. Freshtel needs to address these concerns regarding eavesdropping, data loss, monopolizing IP services, etc. It is crucial for Freshtel to present a convincing viewpoint on these security concerns. (Thomas K. Thomas, 2006) To tackle these issues, Freshtel plans to utilize the services of Norton Symantec, a renowned enterprise-level security solutions company that already has established infrastructure in India. Additionally, the Ministry of Defense in India recently implemented a ban on telecommunication and data transmission companies offering remote access to foreign managed enterprises, raising policy issues.

(Shailaja Neelakantan, 2006) Freshtel needs

to anticipate and address this kind of uncertainty in a proactive manner. One way to overcome any obstacles related to policies or licensing is through our close cooperation with FICCI and CII. These business associations have successfully engaged with the government in negotiating foreign and domestic trade policies. Additionally, when sending teams of experts from Freshtel's Australian bases to India, it is crucial that we ensure our employees are well-versed in the prevailing business culture and etiquettes.

Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New