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Executing Strategies - A Birds Eye View of the Future of the Communications Sector

Telecom Business Review

Volume 12 Issue 1

Published: 2019
Author(s) Name: Saibal Samaddar | Author(s) Affiliation: Industry Principal in Infosys Consulting, Bangalore, Karnataka, India.
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Abstract

Scenario: Dec’ 2024, Annual Board Meeting of two different Telecom operators. One of them, Smart Telecom, remained the undisputed leader with 46% Revenue Market share as opposed to 35% in 2019, with EBITDA growing at CAGR of 5.5% over the last 5 years, and profits going up by 7%, making it extremely lucrative for investors. On the other hand, GTel, once an incumbent leader in its own market, saw a slump in revenue market share from 45% to 32% over the course of 5 years, with EBITDA growth down to -2% between 2019-2024 from 3% between 2015-2019. Customer complaints grew more than usual during this period along with an uncharacteristic degradation of network quality, which caused many customers to switch over to other operators. The story of the radically different fates of these two Telecom operators serves as an important lesson to other operators who are looking to gain a competitive advantage to sustain in the next decade.

Keywords: Communication, Strategy, Value Chain, Business Model, Agile

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