Study of Reliance Infotel in 4G services in India

Abstract

The Indian Telecommunications network is the 3rd largest in the world and the second largest in Asia. The expected growth rate of Indian Telecom industry is at 15% CAGR. It will reach to USD 82 billion. The total number of subscriber of wireless and non-wireless in India in the year 2010-2011 increased from 621.28 million to 846.32 million, there by a growth of 36.22% 6.13 million. More and more number people want access to faster and cheaper sources of technology because of rapid improvement in technology. After seen the big failure of 3G services in India it would be interesting to study the strategy with which Reliance comes for the 4G services for Indian telecom users. Major reasons for the failure of 3G could be identified as high cost of cellular devices, poor connectivity, high tariffs etc. Indian consumers who are very price sensitive did not use 3G as they are happy with the services offered to them in 2G network. With the buzz of 4G, major telecoms such as AT&T and Verizon have invested money in the 4G. Reliance’s telecom division Infotel has decided to move into the already competitive telecom market by introduction of 4G services.