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INDUSTRY STRUCTURE PORTER’S MODEL

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INDUSTRY STRUCTURE PORTER’S MODEL
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Abhijeet S
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INDUSTRY STRUCTURE PORTER’S MODEL - October 18th, 2010

The earlier pattern used to be that the national telecom company used to own every segment of the value chain till the international gateway. With liberalization there was competition in virtually every segment. There are companies that provide local connectivity, those that function as long distance carriers, and those that provide only gateway links. Some integrated players operate in all segments. The intensity of competitive pressures across the chain is reflected in the downward spiral being witnessed in tariffs and prices to customer.
The value chain for cellular mobile service and Internet Service Providers (other than cable based net connections) are similar in as much as the calls reach the destination through similar local loop, long distance and international gateway.
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