Competitive dynamics of the Indian telecom industry in the digital age: a panel data analysis

Purpose This study aims to evaluate the competitive landscape of Indian telecom in the digital age by analysing changes in market concentration and the factors affecting the market share of mobile network operators (MNOs). Design/methodology/approach This study initially investigates the industry’s competitive environment by computing market concentration with select concentration indices. A model incorporating technology, policy and competition as determinants of Indian MNOs’ market share is specified using a Prais−Winsten regression with a panel-corrected standard error model using secondary data from 2007 to 2023. Findings The analysis indicates a highly concentrated market, with incumbents maintaining dominance by leveraging technology adoption strategies. The market share of MNOs is significantly and positively affected by the economic regulation and the firm’s level of technology adoption. Practical implications This study underscores the need for policies fostering antitrust enforcement, swift adoption of next-generation technology and fair competition to prepare the industry for the digital revolution. Originality/value This paper contributes to existing literature by identifying the existence of dominant firm in highly concentrated telecom market. It also offers empirical evidence on the relationship between market power and digital technology adoption as well as economic regulation.