Presentation on 'Telecom Industry' made by MBA students of Jhunjhunwala Business School, Faizabad.

1. Presented by:
akash Agrawal
Monu
Sagar rawalani
VArsha maurya
Anmol rastogi

2.  Telecommunication is the exchange of
information over significant distances by
electronic means.
 Telecom stands as one of the most essential
elements of the business world in terms of
“Connecting the World”.

3. Historically telecom network in India
was owned and managed by
Government as it is considered as a
strategic service. At that time the
Telecom industry was monopoly in
nature.

4.  Reforms in telecom sector began in 1980 with
telecom manufacturing being opened for
private sector followed by NATIONAL
TELECOM POLICY (NTP) in 1994 and 1999.
 In 1990 telecom revolution in many countries
which resulted in better quality of service with
lower tariff rates force Indian policy makers to
open up telecom sector for private players.

5. Phase1
3 phases Phase 2
Phases 3

6. The decade of 1980's saw private sector
being allowed in telecommunications
equipment manufacturing.
Mahanagar Telephone Nigam Limited
(MTNL) and Videsh Sanchar Nigam
Limited (VSNL) were formed.
 A telecom commission was set up to give
focus to telecommunications policy
formation

7.   In 1990s, telecommunication sector also benefited
from the general opening up of the economy.
 NTP 1994 was the first attempt to give a comprehensive
roadmap for the Indian telecommunications sector.
 Availability of telephones on demand (targeted by
1997) .
 Universal service covering all villages and one pco per
500 persons in urban areas at the earliest (targeted to be
achieved by 1997) .
 Telecom services at affordable and reasonable prices .

8. NTP 1999 brought in the third generations of reforms in the
Indian Telecommunications sector.
FDI increase from 49% to 74%.
Internet telephony in 2002.
Launch of CDMA technology.
3-6 operator in each circle.
Intra circle merger guidelines.
Broadband policy 2004.

9. Indian
Independent
Government
Bodies
Bodies

10. They formulate various policies and pass laws to regulate the
telecom industry in India.
Handle spectrum
Wireless Planning and Coordination
allocation & management
(WPC)
DoT – Licensee and frequency
Department of Telecommunications management for telecom
Exclusive policy making
Telecom Commission
body of DoT
Group on Telecom and IT (GoT-IT) Handles ad hoc issues of
the telecom industry

11. They undertake various research activities and monitor the
quality of service provided in the Indian telecom industry.
They also provide various recommendations to improve
the status of telecom operations in India.
Telecom Regulatory Authority of India
Independent regulatory body
(TRAI)
Telecom Disputes Settlement and Appellate
Tribunal (TDSAT) Telecom disputes settlement body

12. Telecom Regulatory Authority of India
Abbreviation TRAI
Formation 1997
Created by Telecom Regulatory Authority
Legal status
of India Act, 1997
Purpose/focus Independent regulator
Mahanagar Doorsanchar Bhawan,
Headquarters
Jawaharlal Nehru Marg, New Delhi 110 002
Region served India
Chairman J. S. Sarma
Website trai.gov.in/Default.asp

15. TYPE Public
INDUSTRY Telecommunications
FOUNDED 2004
FOUNDER(S) Dhirubha Ambani
HEADQUARTERS Navi Mumbai, Maharashtra, India
AREA SERVED India
KEY PEOPLE Hasit Shukla, (President)
Fixed-line and mobile telephony, broadband
PRODUCTS and fixed-line internet services, digital
television, IT and network service.
EMPLOYEES 28,065 (2010)
PARENT Reliance Group
WEBSITE rcom.co.in

16. Public company
TYPE
(BSE: 532454 NSE: BHARTIARTL)
INDUSTRY
Telecommunications
FOUNDED
7 July 1995 (1995-07-07)
FOUNDER(S)
Sunil Bharti Mittal
HEADQUARTERS
New Delhi, India
KEY PEOPLE Sunil Bharti Mittal
(Chairman) and (MD)
PRODUCTS Fixed-line and mobile telephony, broadband
and fixed-line internet services, digital
television, IPTV and network services

17. TYPE Public
BSE: 500483
TRADED AS NSE: TATACOMM
NYSE: TCL
INDUSTRY Telecommunications network
FOUNDED 1986
FOUNDER(S) JRD Tata
HEADQUARTERS Mumbai, Maharashtra, India
KEY PEOPLE Ratan Tata (Chairman)
EMPLOYEES 6,457 (2010)
PARENT Tata Group
WEBSITE tatacommunications.com

18. PUBLIC
TYPE BSE: 532822
NSE: IDEA
INDUSTRY Telecommunications
FOUNDED 1995
HEADQUARTERS Santacruz East, Mumbai, India
Kumar Mangalam Birla
KEY PEOPLE
(Chairman)
Mobile telephony, Wireless
PRODUCTS
Internet service
EMPLOYEES 6,481 (2010)
Aditya Birla Group (49.05%)
PARENT Axiata Group Berhad (15%)
Providence Equity (10.6%)
WEBSITE ideacellular.com

19. TYPE State-owned enterprise
INDUSTRY Telecommunications
FOUNDED 19th century, incorporated 2000
HEADQUARTERS New Delhi, India
Rakesh Kumar Upadhyay
KEY PEOPLE
(CMD)
Fixed line and mobile telephony, Internet
PRODUCTS
services, digital television
EMPLOYEES 281,635 (March 2011)
WEBSITE bsnl.co.in

20. MAHANAGAR TELEPHONE NIGAM LIMITED
TYPE A publicly-listed state-owned enterprise
NSE: MTNL
TRADED AS BSE: 500108
NYSE: MTE
INDUSTRY Telecommunications
FOUNDED 1986
HEADQUARTERS New Delhi, India
Kuldip Singh
KEY PEOPLE
(Chairman & MD)
Fixed-line and mobile telephony, broadband
PRODUCTS and fixed-line internet services, digital
television
EMPLOYEES 45,000 (2010)
WEBSITE mtnl.net.in

22.  Cheap Calling Services
 Network Coverage
 Customer Care
 DTH Programme Packages
 Internet Speeds offered
 Number Series offered
 Push mail services

23.  Audio Conferencing
 Video conferencing
 Prepaid Mobile
 Postpaid Mobile
 Handsets
 Internet
 Home Phone
 Global Calling

25. Rank Country No. of Phones % of Population
1
95,23,10,000 71
2
86,57,08,379 71.59
3
32,75,77,529 103.9
4
22,74,00,000 118.2
5
22,42,60,000 154.5
6
16,82,64,000 73.1
7
12,12,46,700 95.1
8
10,88,94,518 65.4
9
10,70,00,000 130.1
10 Nigeria 9,05,83,306 64.7

37. Huge Customer potential :
*) Wireless Teledensity increased from 67.98 to 71.11.
*) Number of Broadband subscribers increased from 11.89
million at the end of Mar-11 to 12.35 million at the end of
Jun-11, registering a quarterly growth of 3.89% and Y-O-Y
growth of 30.37%.
High Growth Rate:
*) The Rural Wireless subscribers increased from 273.54
million at the end of Mar-11 to 289.57 million at the end of
Jun-11..
*)Allowed FDI limit ranging from 74% to 100%.
High return on Investment:
*)Easier to create economies of scale thereby increasing
return on investment.

38. Liberalization efforts by Govt.:
*)The share of private sector in total telephone
connections is now 84.33% as per the latest statistics
available for June 2010 as against 5% in 1999.
Lower capital expenditure:
*)The Indian telecom market is a high density area,
which means more population per tower. This
means lower capital expenditure cost.

40. • Poor Telecommunication Infrastructure
Result : Large number of call drops.
• Late adopters of New Technology
India will be among the last countries in the world
to get access to 3G technology. Some estimates
suggest that nearly 132 countries across the world
already have 3G technology and mobile services in
one form or the other.
• Most competitive market
▫ 10 to 12 companies offer mobile services in most
parts of India, globally, the average is 4.

41. • A market strongly regulated by Government.
• Difficult to enter because of requirement of huge
financial resources.
• Wireless business segment is growing faster than
wire line and more demand is coming for pre-paid
services.

43.  4G Telecom services and 5G services.
 Value added Services (VAS)
 Value added services like M-Commerce (Mobile banking, Mobile
Ticketing , M-Marketing, Special Information, Ring tones, etc. offer
venues of additional revenue.
 Boost to Telecom Manufacturing Companies:
 Production of telecom equipments in value terms has increased from Rs. 412700
million (2007-09) to Rs.488000 million during 2008-09 and expected to
increase to Rs. 575840 million during 2011-12.
 Telecom Equipment Exports:
 Projected teledensity is 1 billion, 84% of population by 2012. the current
teledensity is 73.97%.

44.  Providing fibre Connectivity to 2,50,000 village
panchayat by 2012.
 More scope in content related services, since the
consumer is influenced by local culture like
Baisakhi, Chhath Puja, religious festivals like
Diwali, Chrismas etc., National festivals like
Independence Day etc.

46. MORE QUALITY SERVICE:
 Mobile Number Portability forced the Service provider to
improve their quality to avoid losing subscribers.
 TRAI intentions of rolling out 4G or the fourth-generation
technology, known as the ultra-broadband in 2-3 years
raising fears rendering 3G services somewhat obsolete.
• DECLINING ARPU (AVERAGE REVENUE PER
USER):
▫ Telecom companies price wars like per-second billing which
is deflating revenues and making sure the ‘survival of the
fittest’.
▫ FEAR OF LOOSING LANDLINE CUSTOMERS:
 Wireline subscriber base declined from 34.73 million at the end
of Mar-11 to 34.29 million at the end of Jun-11 with

47.  Indian Telecom market is one of the fastest
growing markets in the world.
 With 900 million wireless & landline
connections (July 2011), Indian telecom has
become the second largest network in the
world after China.
 Bharti airtel is the leading operator with 169.19
million wireless subscribers at the end of Jun-
11, followed by Reliance (143.27 million) and
Vodafone (141.52 million).
 The share of private sector in total telephone is
about 85.62% as on June 2011.

48. Contribution of telecom sector in terms of
revenue is 2.1 % of GDP as compared to 2.8% in
developed economies.
About 18 million connections are being added
every month.
Wireless telephones are increasing at faster rate.
The share of wireless telephones as on June, 2011 is
above 96% of the total phones.