Ambuja Cement Ltd Essay

1233 Words Mar 8th, 2012 5 Pages
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The wireless service provider market in the United States is \extremely competitive. The wireless market for individuals and/or families (nonenterprise market) is the most competitive segment. In this segment, there are a few big wireless service providers (wireless carriers), four of which can be categorized as having substantia1,market share. There has been some consolidation. Although these acquisitions have somewhat changed the dynamics of the market, there are still many players. An oligopoly market is considered to have three to four players, and such markets are typically stable in terms of growth, technical innovation, and pricing policies. It seems that the wireless carrier market
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This has somewhat easel1 the prcssurc 011the larger players. Currently, it's unusual to find carriers competing aggressively on price alone. Instead, the bigger players seem to be trying to retain their lllost covctcd cuvtomcrs undcr cxtcndad two-ycar contracl renewals. Although carriers are offering more "anytime" minutes and monthly rollover minutes in their rate plans, as well as handset subsidies, larger carriers are expcricncing growth in higher average fevenue per user (ARPU), n key industry metric. In addition to voice, new data scrviccs such as WiFi, photo, video, and multimedia applicutiolls are fueling this ARPU growth. Industry analysts look tbr n growing subscriber base. However, even with incrcasud ARPU, the net subscriber addition in this industry hns bccri

Percentage of Subscribers (in millions)

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Wireless Industry Growth
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Subscribers in 1000s Service revenue in ~nilIions $

June
1995

June
2000

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2005

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2008

somewhat low. Therefore, industry analysts are concerned whether the carriers can maintain high ARPU for long. Upgrades to enhance data networks and third-generation handsets with Web-based capability can potentially boost growth, but not at the same magnitude

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