Tuesday, March 29, 2016

India Internet Access Markets are Unstable

As on 31st January, 2016, the top five fixed network Internet access providers were BSNL (9.90 million), Bharti Airtel (1.68 million), MTNL (1.12 million), Atria Convergence Technologies (0.89 million) and YOU Broadband (0.51 million).  

The top five mobile Internet access providers were Bharti Airtel (31.02 million), Vodafone (26.23 million), Idea Cellular (22.04 million), Reliance Communications Group (15.37 million) and BSNL (10.26 million).

The market for high speed access is fragmented, almost always a sign of an unstable market likely to consolidate, eventually. A theoretical stable market structure would have the leader with market share (installed base, actually) twice that of the number-two player, which, in turn, would have installed base double that of the number three provider.

Classically, a stable market would have the leading provider having up to half the installed base of customers in the market, with three top providers having 85 percent or more of the installed base.

The Internet access market, the mobile services market and the fixed network Internet access markets in India are, by such measures, unstable.




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