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S-curve in Indian telecom sector
Mar 18, 2013

A concept you learn in the business schools is that of the S-curve. It typically portrays the life cycle of a product, technology or even an industry. So the life cycle is characterized by the initial or the development and introduction phase, followed by a growth phase. Eventually the growth wanes as the industry enters its maturity stage and eventually declines. The chart shows us that the telecom industry in India is entering the maturity stage. If we look at the way the penetration level has moved, it would certainly appear that the telecom industry is in the top end of the S-curve. Overall tele-density in the country stood at 77.04% at the end of September 2012. Therefore the rate of increase in subscribers is only going to slowdown. This would mean that the kind of explosion that we had seen in the telecom sector in the past is unlikely to return at least on the subscriber front. The one thing that can drive growth is change and up gradation of technology. But given the government restrictions and regulations, this driver has not really kicked in as of now.

Data Souce: TRAI

This Chart Of The Day was published in The 5 Minute WrapUp - Is lack of bankruptcy law hurting India?

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