Comparative Analysis of Customer Satisfaction of Public and Private Sector Telecom Service Providers in Haryana

Abstract

India stands at second position in the world with 1.14 billion subscribers. Telecom sector has witnessed large FDI flow of USD 4.6 billion in FY20. Global Technology Companies and global funds have recently sold 22.38 % stake for USD 14.75 billion to a global giant. Digital India , ease of doing business initiatives by the government have been given special thrust for bringing investments in the economy and building up a facilitating environment. Telecom sector is beleaguered with tremendous threats and these threats are leading to existence risk for Telecom companies in the sector. Extraordinary financial burden (debt of more than INR 7 trillion) has been faced by these Telecom Service Providers due to enormous AGR related dues (More than INR 1.47 trillion) and some other challenges such as accelerated market competition, High Cost for spectrum acquisition, disruptive pricing, modification in tax structure after implementation of GST and high amount of subscription towards Universal Source Obligation Fund (USOF). Important Policy changes have been made recently by Government for improving ease of doing businesses . But incentives to Telecom Companies are lacking. Telecom sector s role is indispensable to achieve digital economy target of 3 trillion dollar. Hence, ease of doing businesses should be refocused on priority and financial health of Telecom sector needs to be improved. Telecom sector has seen powerful disruption during last few years. and there is a market consolidation to only 3 active private players from more than 10-12 players earlier. It is apprehended that Indian Telecom Market is moving towards duopoly steadily due to heavy loss of market share by Vodafone- Idea. In such eventuality, Airtel would turn out to be the main beneficiary due to consolidation of market in a two player scenario. Presently, market share of Airtel, Vodafone-Idea and Reliance-Jio is 27.76 %, 26.75 % and 34.82 respectively. newline