How Telecom Industry Revolutionized In Last 2 Years?

Telecom Sector in Last 2 Years

As we all know that telecom sector has changed rapidly and within the last 2 years. We could not even think that India will be so digital as many developed countries. India is the only country in the world who has achieved fastest growth Digitally within the span of just 2 Years. 

There is some micro-level research which will show that how the telecom industry has completely changed.

Before Jio Launch:-

• Telecom companies used to be competitive for the launch of products and attraction.(Eg:- The consumer will get 100 Sms @ Rs.20 and other as competitive as @ Rs.19.)
• Revenues were good for Distributors and Sales People of Telecom
• The attrition rate of channel partners was very low because of continuous income
• Companies were earning from varieties of products in same or different customer segment on the basis of demographic factors (VAS: Value Added Services)
• ARPU: Average Revenue Per User was quite high 
• Paper Coupons was the basic need for people for middle-class people so that they recharge when no option is available
• Telecom outlet opening rate was high (Talk-time balance and attractive schemes was the most relevant component of retailer's income.
• Smartphones sales dropped to 14% because of Demonetization and other factors
• FREE and UNLIMITED was Missing
• For Distributors (Small Area High Revenue Equation based on Network reach)
• Fight for Customer Market Share and Revenue Market Share was less as compared to now

After Jio Launch:-

• FREE & Unlimited is everywhere
• Paper Coupons are becoming the part of history
• ARPU of the consumer is stable but not growing
• Channel Partner's attrition rate is too high
• Big Area and Low Revenue Equation including the presence of Network
• Retailer's income is now negligible as compared to past
• 80% of the newly added customer is based on SmartPhone
• Digitally Strong India (Paytm, Phonepe)
• E-commerce revolution (Many people choose the way to sell online and optimized the cost)
• All payments on one GO
•  People interaction together is too high
• Death of 3G & 2G
• The shift of business from Traditional Marketing to Digital Marketing
• Increased hunger for Discounted Digital Currency (Cashback offers)
• Closing and Merger of companies 
1. Closed Companies:- Reliance Communication, Aircel, MTS
2. Merger:- Idea & Vodafone, Airtel & Tata in some part of India 
• Revenue Losses to competitors (Idea, Airtel, Vodafone)