Telecom industry

1. INTRODUCTION OF TELECOMMUNICATION
INDUSTRIES
Telecommunication The telecommunications industry is responsible for radio, television, voice
communications, and broadband services. The growth and innovation of the telecom industry has
enabled people to communicate across the globe and access endless amounts of information over
the internet. Broadband services are becoming faster and easier to access with fiber optic
networks and wireless services like WiMax and CDMA. Many of the major telecom companies
have merged over the last 10 years in order to offer massive product and service portfolios, as
well as further capitalize on bundled media packages ('triple play"). These new technologies and
growth through mergers are enabling these companies to find new revenue sources and growth
opportunities in a mostly mature market.
There are two types of communication networks: circuit-switched networks and packet-switched
networks. In circuit-switched networks a dedicated physical (digital or analogy) circuit between the
calling and called party is set up at the start of a call and released when the call has ended. Traditional
telephone networks are circuit-switched networks and collectively form the switched-circuit network
(SCN). Today these networks are used for speech and other purposes, such as facsimile, and are usually
referred to as telecommunication networks. Initially, all communication networks were circuit-switched
networks. Data networks, consisting of a number of nodes connected by digital links, made their
appearance around 1970. In these networks, a call (or session) consists of a series
of short data bursts (packets) followed by relatively long silent intervals. A physical circuit therefore does
not have to be dedicated to a single data call but can be shared by several simultaneous calls. The Internet
is an example of a data network. The terms “telecommunication network” and “data network” usually
imply circuit-mode and packet-mode, respectively. However, advances in packet technology are making

2. possible voice communication in data networks, in what is called convergence of voice and data. The
long-term trend is toward packet communication for voice, video, and data, so the word
“telecommunication” is also used sometimes to denote converged networks.
The Indian telecom market is expected to grow three fold by 2012 & market size over US $ 8 billion.
More over the government has set a target of 20 million broadband connections by 2010.
The National Telecom Policy 1999 targets tele-density at 15 cent by 2010. This will entail an investment
olt is expected that by the year 2010 there will be over 500 million subscribers in the Indian telecom
market. Cellular subscriber base is projected to grow at a CAGR (Compounded Annual Growth Rate) of
48 per cent & expected to reach 88 million in 2012.
Over 150% growth in telecom services is projected in 5 years. Indian will require large investments in
network infrastructure & Indian expected to be fasted growing telecom market in the world. Since the
project expected to reach 30-40% per year 250 subscribers by 2009-2010. Total estimate of investment
opportunity of USS 22 billion expected over the next five years.
Investment opportunity of $ 22 billion across many areas:
 Telecom Devices and Software for Internet
 Broadband and direct to home services
 Gateway exchange
 Set top box
 Modem
 Mobile handsets and consumer premise equipments
 Gaming devices
 EPABX
 Telecom Software
 Telecom Services for voice and data via a range of technologies.
With the rapid growth of the telecom network, there are further opportunities to expand the telecom
infrastructure and research and development.

3. COMMUNICATION IN INDIA
India is the world’s fastest growing Wireless market, with 752million mobile phone subscribers as of
February, 2011. It is also the second largest telecommunications network in the world in terms of
number of wireless connections after China.
The Indian Mobile Subscriber base has increased in size by a factor of more than one hundred since
2001 when the number of subscribers in the country was approximately 5 million to 752 million by Feb
2011.
As the fastest growing telecommunications industry in the world, it is projected that India will have
1.159 billion mobile subscribers by 2013. Further more, projection by several leading global
consultancies indicates that the total number of subscribers in India will exceed the total subscriber
count in the China by 2013. Furthermore, projections by several leading global consultancies indicate
that the total number of subscribers in India will exceed the total subscriber count in the china by 2013.
The industry is expected to reach a size of Rs344, 921crore (US&74.85Billion) by 2012 at a growth rate of
over 26 per cent, and generate employment opportunities for about 10million people during the same
period. According o analysts, the sector would create direct employment for 2.8 million people and for 7
million indirectly.
In 2008-09 the overall telecom equipment in India stood at Rs.136, 833crore (US&29.69 billion) during
the fiscal, as against Rs.115, 382crore (US&25.04 billion) a year before.
Modern growth

4. A large population, low telephony penetration levels, and a rise in consumers’ income and spending
owing to strong growth have helped make India the fastest- growing telecom market in the world. The
first operator in the state-owned incumbent BSNL was created by corporatization of the erstwhile India
telecommunication series, a government unit responsible for provision of telephony services.
Subsequently, after the telecommunication policies were revised to allow private operators, companies
such as Vodafone, Bharti Airtel, Tata indicom, Idea cellular, Aircel and loop mobile have entered the
space. See mobile operators in India. In 2008-09, rural India outpaced urban India in mobile growth rate.
Bharti Airtel now is the largest telecom company in India.
India’s mobile phone market is the fastest growing in the world, with companies adding some 18.98
million new customers in Oct 2010.
The total number of telephones in the country crossed the 742.12 million mark on Oct 31 st 2010.The
overall tele-density has increased to 62.31% by Oct 31st 2010.
In the wireless segment, 18.98 million subscribers were added in Oct 2010. The total wireless
subscribers (GSM, CDMA &WLL (F)) base is more than 706.
Introduction of the telephone
In 1880, two telephone companies namely the oriental telephone company ltd. And the Anglo- Indian
telephone company ltd. approached the government of India to establish telephone exchanges in India.
The permission was refused on the grounds that the establishment of telephones was a government
monopoly and that the government itself would undertake the work 1881, the government later
reversed its earlier decision and a licence was granted to the oriental telephone company limited of
England for opining telephone exchanges at Calcutta, Bombay, madras and Ahmadabad and the first
formal telephone service was established in the country. 28 January 1882 is a red letter day in the
history of telephone in India. On this day major E.Baring, member of the governor general of India’s
council declared open the telephone exchanges in Calcutta, Bombay and madras. The exchanges in
Calcutta named “central exchange” was opened at third floor of the building at 7, council house street.

5. The central telephone exchange had 93 numbers of subscribers. Bombay also witnessed the opening of
telephone exchange in 1882
FUTHER DEVELOPEMENT
A MOBILE PHONE TOWER
1.1902-first wireless telegraph station establishes between sager islands and sand heads.
2. 1907 first central battery of telephones introduced in Kanpur.
3. 1913-1914 first automatic exchange installed shimla.
4. 23 July 1927 radios telegraph system between the UK and India, with imperial wireless chain beam
stations at khadki and daunt, inaugurated by Lord Irwin by exchanging greetings with King George V.
5. 1933 radiotelephones system inaugurated between UK and India.
6.1953 12 channel carrier system introduced.
7.1960 First subscriber truck dialling route commissioned between Lucknow and Kanpur.
8.1975 First PCM system commissioned between Mumbai city and andheri telephone exchange.
9.1976 First digital microwave junction introduced.
10. 1979 first optical fibre system for local junction commissioned at pune.
11. 1980 first satellite earth station for domestic communication established at secunderabad, A.P.
12. 1983 first analogy stored program control exchange for trunk lines
Commissioned at Mumbai.

6. 13.1984 C-DOT established for indigenous development and production of digital exchange.
14. First mobile telephone services started on non commercial basis on 15august 1995in Delhi.
OPPURTUNITIES FOR TELECOM INDUSTRIES:-
According to the report presented by taking into account the statement of Indian ministry of
communication and information technology, the telecom opportunities in India has been growing by 20
to 40 per cent every year since past 3 years. The telecom services in India have been recognized as a
world class tool for the socio-economic devolvement in India .India is knows to rank fourth in the
telecom industry in Asia after China, Japan, and South Korea and the telecom network in India is knows
to stand in the eighth position across the global.
The tele-density has grown leaps and bounds in the past few years from 2.3 percent in1999 to
4.8percent in 2002. The world average percentage for the telecom industry as against the Indian
average is 7.5 times while the Asian average against the same was 4.5 times. The current market range
of the telecommunication industry in India has been estimated to USD 8 billion and this is expected to
undergo an accretion by the end.
The growth witnessed by the telecom market in India has increased the number of opportunities for the
industry and this has been fuelled by the growing mobile sector, which has attained the consumer level
of 10 million by the end of December 2002 that was almost 100 in the year. This outstanding growth in
the mobile sector explains the advent of digital cellular technology and reduced tariffs as a consequence
of competitive pressures. The growth in cellular subscribers has surpassed the benchmark of subscriber
base. The telecom market has increased dramatically with the advent of wireless in local loop
technology.
Telecommunication sector opportunities in India assure a transparent, safe, and secured ambiance for
the telecom market. Around 300 million population of highly consumable middle-class status that is
advantageous for the industry surrounds the telecom sector in India. This is because, in some of the
Indian the possess land line telephones can be substituted by mobile phone that is very unlike
developed countries. Therefore, it adds up to growth in mobile sector in India.

7. Few more telecommunication sector opportunities in India include introduction of internet telephony
services, privatization of BSNL, and introduction of a number of international long distance services
sector. The opportunities in the Indian telecom sector in increasing at a massive pace with the
introduction of never and innovative schemes in various and at present the telecom sector in India is
claimed to be one of the major contributors in India’s flourishing economy.
THEATS OF TELECOMMUNICATIN INDUSTRIES:-
The telecommunication industry must plan its strategic responses to multiple economic scenarios.
without adequate forethought on the spiralling ramification on economic downturns and diligence in
detecting which scenario is upon them, telecom management terms will find their options for effective
course correction greatly constrained. Worse, some firms may fail or be forced into being acquired at
distressed prices. As the future economic reality unfolds, companies may face one of three scenarios: a
deep, long –lasting recession; a deep, short –lived recession: or a shallow, short – lived recession.
“The characteristics of the deep, loge –lasting recession scenario are elevated unemployment and
massive contraction in consumer spending, “says Dailey. “ this result in reduced enterprise spending ,a
broad –based contraction of gross domestic product (GDP) and may be accompanied by inflation”
Additionally, a deep long –lasting recession would almost certainly entail a protracted erosion of real
estate values continued weakening of the dollar and sustained increases in oil prices. In this scenario
telecommunication services, as well as consumer electronics, enterprise information technology, the
media and entertainment sector would all see a decline.
This valuable new research from Stratecast not only characterizes the deep, long- lasting recession
scenario, and appropriate strategies to deal with that scenario, but similarly assesses the deep, short-
lives recession scenario, and the shallow, short-lived recession scenario.

9. INTRODUCTION TO CDMA
Code Division Multiple Access (CDMA) is a radically new concept in wireless Communications. It has
gained widespread international acceptance by cellular radio system operators as an upgrade that will
dramatically increase both their system capacity and the service quality. It has likewise been chosen for
deployment by the majority of the winners of the United States Personal Communications System
spectrum auctions. It may seem, however, mysterious for those who aren't familiar with it. This site is
provided in an effort to dispel some of the mystery and to disseminate at least a basic level of
knowledge about the technology.
CDMA is a form of spread-spectrum, a family of digital communication techniques that have been used
in military applications for many years. The core principle of spread spectrum is the use of noise-like

10. carrier waves, and, as the name implies, bandwidths much wider than that required for simple point-to-
point communication at the same data rate. Originally there were two motivations: either to resist
enemy efforts to jam the communications (anti-jam, or AJ), or to hide the fact that communication was
even taking place, sometimes called low probability of intercept (LPI). It has a history that goes back to
the early days of World War II.
The use of CDMA for civilian mobile radio applications is novel. It was proposed theoretically in the late
1940's, but the practical application in the civilian marketplace did not take place until 40 years later.
Commercial applications became possible because of two evolutionary developments. One was the
availability of very low cost, high density digital integrated circuits, which reduce the size, weight, and
cost of the subscriber stations to an acceptably low level. The other was the realization that optimal
multiple access communication requires that all user stations regulate their transmitter powers to the
lowest that will achieve adequate signal quality.
CDMA changes the nature of the subscriber station from a predominately analogy device to a
predominately digital device. Old-fashioned radio receivers separate stations or channels by filtering in
the frequency domain. CDMA receivers do not eliminate analogy processing entirely, but they separate
communication channels by means of a pseudorandom modulation that is applied and removed in the
digital domain, not on the basis of frequency. Multiple users occupy the same frequency band. This
universal frequency reuse is not fortuitous. On the contrary, it is crucial to the very high spectral
efficiency that is the hallmark of CDMA. Other discussions in these pages show why this is true.
CDMA is altering the face of cellular and PCS communication by:
· Dramatically improving the telephone traffic capacity
· Dramatically improving the voice quality and eliminating the audible effects of multipath fading
· Reducing the incidence of dropped calls due to handoff failures
· Providing reliable transport mechanism for data communications, such as facsimile and internet traffic
· Reducing the number of sites needed to support any given amount of traffic
· Simplifying site selection
· Reducing deployment and operating costs because fewer cell sites are needed
· Reducing average transmitted power

11. · Reducing interference to other electronic devices
· Reducing potential health risks
Commercially introduced in 1995, CDMA quickly became one of the world's fastest growing wireless
technologies. In 1999, the International Telecommunications Union selected CDMA as the industry
standard for new "third-generation" (3G) wireless systems. Many leading wireless carriers are now
building or upgrading to 3G CDMA networks in order to provide more capacity for voice traffic, along
with high-speed data capabilities.
1. INTRODUCTION TO SPREAD SPECTRUM
ABOUT GSM SERVICES:-
GSM (Global system for mobile communications: originally from group special mobile) is the world’s
most popular standard for mobile telephony system. The GSM association estimates that 80%of the
global mobile market uses the standard.

12. GSM is used by over 1.5 billion people across more than 212 countries and territories.
This ubiquity means that subscribers can use their phones throughout the world, enabled by
international roaming arrangements between mobile network operators. GSM differs from its
predecessor technologies in that both signalling and speech channels are digital, and thus GSM is
considered a second generation 2G mobile phone system. this also facilitates the wide –spread
implementation of data communication applications into the system.
The GSM standard has been an advantage to both consumers, who may benefit from the ability to roam
and switch carriers without replacing phone, and also to network operators, who can choose equipment
from many GSM equipment vendors.
GSM also pioneered low cost implementation of the short message service (SMS) also called text
messaging, which has since been supported on other mobile phone standards as well. The standard
includes a worldwide emergency telephone number feature.
For, Release 97 of the standard added packet data capabilities by means of general packed radio
example newer versions of the standard were backward compatible with the original GSM system
service (GPRS).release 99 introduced higher speed data transmission using Enhanced data rate for GSM
evolution (EDGE.)
DEFINATION OF GSM:
Gsm (global system for mobile communication) is a digital mobile telephony system that is widely used
in Europe and other parts of the world. GSM uses a variation of time division multiple access (TDMA)
and is the most widely used of the three digital wireless telephony technologies (TDMA, GSM and
CDMA).GSM digitizes and compresses data, than sends it down a channel with two other streams of
user data, each in its own time slot. It operates at either the 900 MHz or 1800MHz frequency band.

13. Mobile services based on GSM technology were first launches in Finland in 1991.today ,more than 690
mobile networks provides GSM services across 213 countries and GSM represents 82.4%of all global
mobile connection .according to GSM world, there are now more than 2 billion GSM mobile phone users
worldwide. GSM world references china as “the largest single GSM market, with more than 370 million
users, followed by Russia with 145 million, India with 83 million and the USA with 78 million users.”
Since many GSM network operators have roaming agreements with foreign operators, users can often
continue to use their mobile phone when they travel to other countries, SIM cards (subscriber identity
module ) holding home network access configurations may be switched to those will metered local
access, significantly reducing roaming costs while experiencing no reductions in service.
GSM together with other technologies is part of the evolution of wireless mobile telecommunication
that includes high – speed circuit-switched data (HCSD), general packet radio system (GPRS), Enhanced
data GSM Environment (EDGE), and universal mobile telecommunication service (UMTS).
HISTORY:-
In 1982, the European conference of postal and telecommunication administrations (CEPT) created the
group special mobile (GSM) to develop a standard for a mobile telephone system that could be used
across Europe. in 1987, a memorandum of understanding was signed by 13 countries to develop a
common cellular telephone system across Erope.in 1989, GSM responsibility was transferred to the
European telecommunication standards institute and phase of the GSM specification were published in
1990 .the first GSM network was launched in 1991 by radioing in Finland with joint technical
infrastructure maintenance from Ericsson.by the end of 1993 , over a million subscribers were using
GSM phone networks being operated by 70 carriers across 48 countries.
EVOLUTION OF GSM SERVICES-
The explosive growth of global system for mobile (GSM) communication services over the last two
decades has changed mobile communication from a niche market to a fundamental constituent of the
global telecommunication markets. GSM is a digital wireless technology standard based on the notion

14. that users want to communicate wirelessly without limitations created by network or national borders.
In a short period of time, GSM has become a global phenomenon. The explanation for its success is the
cooperation and coordination of technical and operational evolution that has creates a virtuous circle of
growth built on three principles: interoperability based on open platforms, roaming and economies of
scale (GSM association, 2004) GSM standard are now adopted by more than 200 countries and
territories. It has become the main global standard for mobile communication 80 percent of all new
mobile customers are on GSM networks .GSM has motivated wireless adoption to the extent that
mobile phone now globally outnumbers fixed – line telephones. In February 2004, more than I billion
people, almost one in six of the world’s population, were using GSM mobile phone.
Some developed European nations such as the United Kingdom, Norway, Finland, and Spain have
penetration levels of between 80 to 90 % with other European nation not far behind. However, there
are some countries such as Hong Kong and Italy that have a100% penetration level. the importance of
the commissioned by a UK mobile operator establishes that the united kingdom’s mobile phone sector
now contributes as much to the UK gross domestic product as the total oil- and gas extraction industry
(MM02,2004).
Technical developments, competition, and deregulation have contribution to a strong growth in the
adoption of mobile phones in the third world. In Africa recent research has shown that mobile
telephony has been extremely important in providing an African telecommunication infrastructure. The
number of mobile phone users on the African continent has increased by over 1000% between 1998 and
2003 to reach a total of 51.8 million. mobile user numbers have exceeded those of fixed line, which
stood at 25.1 million at the end of 2003.the factors for success in this region include demand, sector
reform, the licensing of new competition, and the emergence of imported strategic investors (ITU, 2004)
FOCUS: EVOLUTION OF GSM NETWORKS:
Mobile communication can be divided into three distinct eras identified by an increase in functionality
and bandwidth, as illustrated in figures 1. These eras relate to the implementation of technological
advancements in the field. The industry in currently on the verge of implementing the third
technological era and at the beginning of defining the step for the fourth era.

15. FIRST GENERATION NETWORKS-
The first generation 1G cellular system were the simplest communication networks deployed in the
1980s. The first generation networks were based on analogue-frequency- modulation transmission
technology. Challenges faced by the operators included inconsistency. Frequent loss of signals, and low
bandwidth. The 1G network was also expensive to run due to a limited customer base.
SECOND GENERARTION NETWORK:-
The second – generation 2G cellular systems were the first to apply digital transmission technologies for
voice and data communication. The data transfer rate was in the region of 10s of kbps. Other examples
of technologies in 2G systems include frequency- division multiple access (FDMA), time – division
multiple access (TDMA), and code – division multiple access.
The second – generation networks deliver high – quality and secure mobile voice, and basic data
services such as fax and text messaging along with full roaming capability across the world.
To address the poor data transmission rates of the 2G network, developments were made to upgrade
2G networks without replacing the networks. These technological enhancements were called 2.5G
technologies and include networks such as general Packet Radio Service (GPRS). GPRS-enabled networks
deliver features such as always-on, higher capacity, Internet-based content and packet-based data
services such as colour Internet browsing, e-mail on the move, visual communications, multimedia
messages, and location-based services. Another complementary 2.5G service is Enhanced Data Rates for
GSM Evolution (EDGE). This network upgrade offers similar capabilities as those of the GPRS network.
Another 2.5G network enhancement of data services is high-speed circuit switched data (HSCSD). This
allows access to novice services 3 times faster than conventional networks, which means subscribers are
able to send and receive data from their portable computers at speeds of up to 28.8 Kbps; this is
currently being upgraded in many networks to 43.2 Kbps. The HSCSD solution enables higher rates by
using multiple channels, allowing subscribers to enjoy faster rates for their 27 countries around the
world in Europe, Asia Pacific, South Africa and Israel (GSM, 2002) Internet, e-mail, calendar and file-
transfer services. HSCSD is now available to more than 100 million customers across.

16. Current Trend: Third-Generation Networks
The most promising period is the advent of third-generation (3G) networks. These networks are also
referred to as the universal mobile telecommunications systems (UMTSs). The global standardization
effort undertaken by the ITU is called IMT-2000. The aim of the group was to evolve today’s circuit-
switched core network to support new spectrum allocations and higher bandwidth capability. Over 85%
of the world’s network operators have chosen 3G as the underlying technology platform to deliver their
third-generation services (GSM, 2004b). The implementation of the third generation of mobile systems
has experienced delays in the launch of services. There are various reasons for the delayed launch,
ranging from device limitations, application and network related technical problems and lack of
demand. A significant factor in the delayed launch that is frequently discussed in the telecommunication
literature (Klemperer, 2002; Maitland, Bauer & Westervelds, 2002; Melody, 2000) is the extortionate fee
paid for the 3G-spectrum license in Europe during the auction process. Most Technical problems along
with device shortage have been overcome, but there are still financial challenges to be addressed
caused by the high start-up costs and the lack of a subscriber base due to the market saturation in many
of the countries launching 3G.
GSM vs. CDMA GSM and CDMA are the two main competing network technologies deployed by cellular
service provider’s world over. GSM (Global System for Mobile Communications) originated in Europe in
1990. The GSM Associations an international organization founded in 1987, dedicated to developing,
providing and overseeing the worldwide wireless standard of GSM While CDMA (Code Division Multiple
Access)is a proprietary standard designed by Qualcomm Inc in United States and has been the dominant
network standard for North America and parts of Asia. It became an international standard in
1995.However now, GSM networks have penetrated the United States and the CDMA networks have
spread in other parts of the world. People of both the camps claim that their architecture issuer or to
the other.
RESTRAINTS ON TELECOM SECTOR
 Sluggish pace of reform process

17.  Lack of infrastructure in semi-rural and rural areas, which make sit difficult to make inroads into
this market segment
 Limited Spectrum availability