Q.1 List Down The Revenue Segments of Telecom Companies

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Q.

1 List down the revenue segments of Telecom companies


Answer: Revenue segments of the telecom companies are as follows:
1. Tel
ecom & Telemedia :Wireless and fixed line technology, national and international long distance
connectivity. It comprises  voice revenue, SMS, data revenue, VAS revenue, Broadband, wired
and wireless, 2G, 3G & 4G
1. DT
H: Digital TV andInternet Protocol television (IPTV) services
2. Mo
bile Commerce: Mobile Banking Services: Business correspondent business, payment bank,
Mobile wallet, money transfer, utility bills payments, NEFT, IMPS
3. Pas
sive Infrastructure: Infrastructure Services, tower sharing on lease basis
4. Net
work: End-to-end telecom solutions to big firms, network integration, data centres, managed
services, enterprise mobility applications and digital media

O.2 Explain KPIs help in analysing the performance.


Answer: The key performance indicators (KPIs) help in analysing the performance of the business
enterprises. KPIs provide performance metrics for assessment and evaluation. Apart from the
traditional ratios such as profitability ratios, solvency ratios, liquidity and turnover ratios following
KPI are used
1. EO
P Subs (in 000’s): Number of subscribers at the end of the period under review
2. Tel
edensity: Number of telephone connections for every hundred individuals living within an
area.
3. MO
U (in mins/sub): Minutes of Usage per subscriber
4. RP
M (in Rs): Revenue Per Minute in rupees
5. AR
PU (in Rs):Average Revenue Per User
6. MO
Us (in mn):Minutes Of Usage
For the performance evaluation, KPIs of a company may be compared with the industry average
and also may be benchmarked with the piers.

Q.3 Describe the challenges faced by the telecom companies


Answer:
1. Hig
h cost of spectrum and capital investments
2. Co
mplex tax structures resulting in multiple tax levies
3. De
bt and costs of funding
4. Un
certainty over Over-the-Top (OTT) players and implications of net neutrality on revenue
models
5. Dif
ficulties in Capital Expenditure (CAPEX) deployment including Right of Way (RoW) norms.
Q.4 Write down your learnings from this case study.
Answer :
Telecommunication has witnessed an exponential growth in India in the last two decades. It is a
critical infrastructure constituent and plays a significant role in a country like India, where the
infrastructure is still an issue. It contributes to GDP, tax revenue, employment, digitisation,
bridging the divide between urban and rural, data revolution, logistics and supply chain
management, e-commerce, e-governance, payment banksand the list goes on. The present case
study dwells on the strategic analysis of telecom industry in India.
Challenges Telecom companies face challenges like higher licence fees and annual spectrum user
charges. The lack of clarity on tax implication of spectrum trading is another issue. Poor
infrastructure in rural areas is an impediment for growth in rural region

Q.5 Suggest two points for better performance and improvements for the telecom from your
perspective.
Answer:
1. Tel
ecom providers must also continually increase their networks’ capacities to handle more
traffic, particularly due to today’s demand for data in both developed and emerging markets.
2. The
telecom industry should widen the network services in Rural areas as fast as they are doing
in the Urban areas around India.The telecom industry should listen and take the customer
complaints seriously and immediate action should be taken to resolve the problem.

NAME: SONAL AGARWAL


SECTION: F
USN NO: JU2021MBA13960

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