The Indian telecom sector is the fifth largest network in the world and contributes 2% of India's GDP. It has experienced rapid growth, with wireless subscribers increasing from 110 million in 2005 to an expected 280 million by 2008. However, the sector faces challenges such as high regulatory charges of 17-26% of revenue and low average revenue per user (ARPU) of $8 compared to the global average of $21. The document discusses strategies for developing the sector into a new telecom business ecosystem to further drive economic growth.

1. INDIAN TELECOM SECTOR DEBMALYA KHAN

4. Major Players

9. Segmental Performance( contd )

10. Segmental Performance( contd )

11. Segmental Performance( contd )

12. Segmental Performance( contd ) Market share of Top 5 ISP ISP Subscriber base share in % BSNL 5640191 50.82 MTNL 1899747 17.12 Bharti Airtel Ltd. 815360 7.35 Reliance Communications ltd 696440 6.28 sify technologies 576047 5.19

14. Increasing Subscriber Base The per subscriber mE usage has increased from 12-15 mE per subscriber in 1999 to ~30 mE per subscriber in 2005. The minutes of usage per month per subscriber has also increased from 114 minutes in 1999 to 367 minutes in 2005

18. The New Business Strategy: From Services to Business Ecosystem Legacy Telecom Fixed Line Wireless Diversified Telecom Solutions Wireless Applications E/M Payment New Telecom Business Ecosystem Telecom Service Focused Business Telecom Service Blended with Emerging Areas like VAS & Mobile Applications Transform to be Telecom Ecosystem Enabler Early Vertical Specific programs Mobile Wallets and Payment Third-party consumer and early enterprise Access and early applications Historic Transition Future Radio Paging Fixed Line

19. The New Telecom Ecosystem – Feeder Model New Telecom Business Ecosystem Wireless Service Provider Fixed Line Service Provider Telecom Handset Manufacturers Telecom Network Equipment Manufacturers Telecom Transmission Equipment Manufacturers Application & Content Providers Active & Passive Infrastructure Providers Drive Indian Economy Towards the 10% Economy Growth Target