Presentation by students of Chitkara Business School

1. TELECOM INDUSTRY IN INDIA
Presented By:
Submitted To:
Dr. Sandhir Sharma Group 10
Chitkara Business School Gagandeep Singh
Mohit Sharma
Aman Mahajan
Karun Sharma
Kanika Dhawan
Ashima Gupta

2. Well Postal means of communication was
the only mean communication until the
year 1850. In 1850 experimental electric
TELECOM INDUSTRY
telegraph started for first time in India
between Calcutta (Kolkata) and Diamond
IN INDIA
Harbor (southern suburbs of Kolkata, on
the banks of the Hooghly River).
In 1851, it was opened for the use of the
British East India Company. Subsequently
construction of telegraph started through
out India. A separate department was
opened to the public in 1854. Dr.William
O’Shaughnessy, who pioneered the
telegraph and telephone in India.

3. ESTABLISHMENT
 1851
 First operational landlines were laid by government
near Calcutta
 1881
 Telephone services introduced into India.
 1883
 Merger with postal system.
 1923
 Indian radio telegraph company formed.
 1932
 Merger of ETC and IRT Indian radio and cable
communication company

4. CONT..
 1947
 Nationalization of foreign telecom companies to
form posts, telephone & telegraph.
 1985
 Department of telecommunication established.
 1986
 Conversion of DOT into two wholly state owned
companies VSNL for international
telecommunications & MTNL for service &
metropolitan areas.
 1994
 National telecom policy created with a motto

5. CONT..
 1995
 Entry of GSM in india triggering telecom
revolution. BPL mobile services launched.
 1997
 Telecom regulatory authority of india formed
in January.
 1999
 NTP-99. national telecom policy with
reformed goals set.
 2000

6. CONT..
 2005
 ILD & NLD annual license fees reduced from
15% to 6%.
 2008
 3G guidelines issued, spectrum allocation
through auction, foreign players allowed to
bid.
 2009
 TRAI announces rules & regulations to be
followed for mobile number portability.

7. MAJOR PLAYERS OF TELECOM
INDUSTRY & YEAR
OF ESTABLISHMENT
1) Bharti airtel-1985
2) BSNL-2000
3) Vodafone Essar-2007
4) Reliance communications-1999
5) Idea cellular-1995
6) Tata communications-1986
7) Tata teleservices-1996
8) Aircel-1999
9) MTNL-1986
10) TTML-1998

8. CONTD.
 Bharti Airtel is holding the lead position in India by
recording a five per cent growth in the year 2011. The
company is dealing with four major categories namely
digital television, enterprise, telemedia and mobile.
 BSNL or Bharat Sanchar Nigam Limited is the oldest player
in the telecom sector in India and they hold the pride of
being the first to connect even remote villages through
their telephone service.
 Vodafone Essar began its operations in the year 1994 and
the company has operations all over India with more than
106.34 million customers.

9. CONTD.
 Idea Cellular is a part of Aditya Birla Group and
they are the leading GSM Mobile service provider
in India. They are offering both pre-paid and post
paid mobile service.
 Tata Communications influence its domain
expertise and advanced solutions across India and
global network, with connectivity to more than
400 PoPs & 200 countries.
 Tata Teleservices hold the pride of being the first

10. CONTD.
 Aircel have earned the status of the leading mobile
operator in the state of Tamil Nadu in India. The
company has emerged as leader in the North
Easter states of India within a short period of its
launching.
 Mahanagar Telephone Nigam Limited or MTNL has
grabbed a customer base of 8.06 million in Mumbai
and Delhi. They have become the leaders in
technology induction by converting its telephone
exchange network into digital mode.
 TTML is another telecommunication company under
the Tate group. The company has more than 6 lakh

11. TELECOM COMPANIES MARKET
SHARE IN INDIA AS OF AUGUST
2011

12. TELECOM COMPANIES MARKET SHARE IN
INDIA AS IN AUGUST
Name of Total Sub Additions in % Market
Sl. No.
Company Figures Aug Share
Bharti 171,846,
1 1,150,298 28.09%
Airtel 824
Vodafon 144,144,
2 1,133,024 23.56%
e Essar 031
98,441,7
3 IDEA 2,330,239 16.09%
14
90,622,2
4 BSNL 388,057 14.81%
19
59,191,6
5 Aircel 602,312 9.68%
61
27,738,1
6 Uninor 349,488 4.53%
54

13. MARKET LEADER
 As we see the above there are four
major companies in telecom industry.
Airtel, Reliance, Vodafone, Idea and
BSNL.
 Airtel
is a market leader with 28.09%
market share and Vodafone on the 2nd
place with 23.56% market share.

14. CHALLENGES FACED BY TELECOM
INDUSTRY
 Unlike many countries where the allocation
of spectrum is separate from the grant of
license to provide service, in India licenses
are still bundled with the allotment of a
certain amount of spectrum.
 Limited spectrum availability and
interconnection charges between the private
and state operators.

15. CONTD.
 Lack of infrastructure in semi-rural and rural
areas, which makes it difficult to make
inroads into this market segment as service
providers have to incur a huge initial fixed
cost.
 One of the major challenge is the absence of
a uniform approval process across the
country for setting up telecom towers and
other infrastructure.

16. CONTD.
 Multiple levies and high taxes on the set up
of mobile towers.
 lack of reliable power for telecom towers and
higher tariffs on telecom sites. This increases
the dependence on diesel- fueled power
sources, which is considered expensive and
more harmful to the environment.
 Low penetration.

17.  The prepaid services were terminated by
DoT during September 2009 which was
subsequently allowed in January 2010 on
condition that all prepaid subscribers will be
reverified by the operators. For new
customers the guidelines have been further
strengthened. Prepaid services in J&K and
North East and Assam are renewed on yearly
basis.
 The launch of 3G operations require huge
funds for spectrum fee and also for network

18. IMPACT OF GLOBAL CRISIS
 As we know world economy is fighting with economic slow
down.
 It seems something special about the telecom industry
which renders it partially immune to the worst effect of the
down turn.
 Total base of connection in world is 3.2 bln.
 Quarterly 3, 2011 Anticipated 177 million connection world
wide but it could not cross 160 million mark.

19. CONTD.
 There is less impact of global crisis on Indian
telecom industry as India became the 1st
country in the world to have 10.4 million new
connections in a month.