Telecome sector in india - By JONTY MOHTA STUDENT OF IIPM AHMEDABAD

1. IIPM AHMEDABAD (09-12) 1

2. Flow Of Presentation
2
 Industrial Scenario – Global
 National scenario
 Market scenario
 Telecommunication services
 Future trends
 Regulatory in INDIA
IIPM AHMEDABAD (09-12)

3. Industrial Scenario - Global
3
 Generate – USD 1.4 trillion (Year 2009) – Recession times
 Asia – Pacific Region : expecting highest growth in next 5 years.
 16% - India & China
 Latin America & Caribbean – 12%
 China (largest telecom operator) – 50% to rural areas
 Asia – booming market
 Japan 3rd largest – 30 million broadband users after US & China.
IIPM AHMEDABAD (09-12)

4. Mobile Subscriber Base (% Share Of World)
4
19%
China
India
12%
62% USA
7%
Others
Source: EIU (Economist Intelligence Unit)
IIPM AHMEDABAD (09-12)

5. National Scenario
5
 Emerged – largest & fastest economy
 Recession – but growth in economy
 Service Sector – primary engine growth
 Telecom Sector – significant contribution Private players
 Indian Mobile Market – attractive across the globe
 Internet/Broadband subscribers - 14.05m internet subscribers & 6.62m
broadband subscribers (June 2009)
 Advanced Technologies – GSM, CDMA, WLL, 3G , 4G and upcoming 5G
IIPM AHMEDABAD (09-12)

6. Contd…
6
 Contribution of nearly 1% to India’s GDP
 Broadband Policy 2004 – Government of India aims at 10 million
broadband connections & 20 million internet connections by 2008.
 9 GSM and 5CDMA operators providing mobile services in 19 telecom
circles and 4 metro cities, covering 2000 towns across the country
GSM CDMA/WLL Fixed LINE
• VODAFONE • BSNL • BSNL
• AIRTEL • MTNL • MTNL
• BSNL • TATA INDICOM
• BHARTI
• IDEA • TATA DOCCOMO
• VIRGIN MOBILE
• TATA TELECOM
• SPICE
• AIRCELL • RELIANCE
• RELIANCE
• TATA DOCCOMO
• TATA INDICOM
IIPM AHMEDABAD (09-12)

7. Market Scenario
7
 Adding 8-10 million subscribers every month
 Potential of 700 million subscribers in next 5 years.
 Mobile subscribers – 350 million, 2nd only to China.
 MVAS accounts for 10% of the total revenue.
 Stanford University Study – MVAS touch US $ 2.74 billion by 2010.
 Tata Teleservices – invest an additional US $ 1 billion in TATA DoCoMo
 BSNL – will put US $ 1.16 billion in WiMax Project
 Vodafone Essar – invest US $ 6 billion next 3 years to increase mobile subscriber
base
 Bharti Airtel – US $ 126.5 million to strengthen Assam & Northeast Circles.
IIPM AHMEDABAD (09-12)

8. Telecom Subscriber Base In India
8
464.82
325.79
225.01
153.42
104.22
76.53
Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09
IIPM AHMEDABAD (09-12) Source: TRAI

9. Connecting Rural India
9
 Contributes 45% of GDP
 76.65 million fixed & WLL.
 551,064 Village Public Telephones
 92% of the villages covered
 Highest in Punjab (20.69%), H.P (17.09%), Kerala (10.63) & Haryana
(10.20%)
 TRAI released recommendations for accelerating growth
“THE LARGELY UNTAPPED RURAL MARKET WILL DRIVE THE NEXT PHASE OF
TELECOM GROWTH IN THE COUNTRY, SUPPORTED BY AN ENABLING
ENVIRONMENT AND FOCUSED INITIATIVES BY TELECOM PLAYERS”
IIPM AHMEDABAD (09-12)

10. Market Share Of Wireless Service Operators In
India (June 2009)
10
1%
1% Bharti
5% Reliance
11% 23% Vodafone
BSNL
9% Tata
Idea
Aircel
13% 19%
MTNL
Others
18%
IIPM AHMEDABAD (09-12) Source: TRAI

11. Market Share Of Mobile Handset Companies
11
MARKET SHARE OF MOBILE HANDSET COMPANIES
3.60%
1.30% 1.50%
3.50% 5.60% Nokia
Sony Ericsson
4.50% Samsung
LG
10%
Motorola
64% ZTE
6%
Huawei
Haier
Others
Source: TRAI
IIPM AHMEDABAD (09-12)

12. Market Share Of Network Provider
12
IIPM AHMEDABAD (09-12) Source: TRAI

13. Market Share – Rural & Urban
13
Rural Urban
73% 71.60% 70.70%
74.80% 74.40%
27% 28.40% 29.30%
25.20% 25.60%
Jun-08 Sep-08 Dec-08 Mar-09 Jun-09
IIPM AHMEDABAD (09-12) Source: TRAI

14. Value Added Services in India
14
Person-to-Person SMS
4%
10%
Ringtone Download
17% 44%
Person to Application &
Application to Person
SMS
Games & Data
25%
Others (MMS, etc. )
IIPM AHMEDABAD (09-12) Source: TRAI

15. Contd…
15
 As per COAI, income from VAS was 10% of total income of service providers
in 06-07
 SMS 57%
 Caller line identification 6%
 Other VAS 19%
 Ring tones 7%
 Content download 6%
 GPRS 5%
 VAS supplied by mobile network operators or VASP/CP
 Many national and international investors ready to invest in this segment of
telecom market.
IIPM AHMEDABAD (09-12)

16. GSM/CDMA/GPRS
16
 GSM - GSM (Global System for Mobile Communications)
 Code division multiple Access (CDMA)
 GPRS - General packet radio service (GPRS)
 charged per megabyte of traffic transferred
 Traditional circuit switching
 MMS
 PUSH TO TALK use cell phone as a WALKIE TALKIE
 INSTANT MESSAGING
 INTERNET BROWSING
IIPM AHMEDABAD (09-12)

17. 3G Technology
17
 Supports diverse multimedia applications
 Enables triple play and broadband services
 Requires huge bandwidth (15-20 MHz)
 Providing high-speed internet, fast downloading and video calling.
 More than 60 3G networks present across 25 countries.
 Transfers both voice data and non-voice data
IIPM AHMEDABAD (09-12)

18. Contd…
18
 BSNL and MTNL spectrums allotted immediately and private co. to get
spectrum allocations by 2009-10
 Main highlight – video calling
 Finance Ministry decided of reserve price to be Rs. 4040cr in 2008 but it
has been recently brought down by DOT to Rs. 3500cr.
 Metro & Circle A Rs. 160cr.
 Circle B Rs. 80cr.
 Circle C Rs. 30cr.
 Govt. to earn about Rs. 30k-40k cr. for 4 spectrum blocks
IIPM AHMEDABAD (09-12)

19. Future Trends
19
 Location based services
 Mobile music will increase with better bandwidth
 Migration to 3G will increase ARPU
 Mobile commerce might be developed further
 Mobile email will be driven by enterprises
 Stocks on mobile will see an uptake
IIPM AHMEDABAD (09-12)

20. Telecom Regulatory Authority of INDIA
20
 MISSION –
 “To create and nurture conditions for growth of telecommunications in
the country in a manner and at a pace which will enable India to play
a leading role in emerging global information society.”
 OBJECTIVES –
 Fair and transparent policy environment
 Issue of regulations, orders and directives from time to time
 Which covers tariff, interconnection and quality of service
IIPM AHMEDABAD (09-12)

21. The Cellular Operators Association of India
21
 COAI – registered, non-profit, non-governmental society
 Dedicated to the advancement of communication, particularly modern
communication
 VISION –
“To establish and sustain a world-class cellular infrastructure and
facilitate affordable mobile communication services in India.”
 OBJECTIVES –
To protect the common & collective interests of its members.
IIPM AHMEDABAD (09-12)

22. Department of Telecom
22
 Grant licenses for various telecom services
 Unified Access Service Internet and VSAT service
 Frequency management in the field of radio communication
 Enforces wireless regulatory measures by monitoring wireless transmission
in the country.
IIPM AHMEDABAD (09-12)

23. 23
IIPM AHMEDABAD (09-12)

24. 24
IIPM AHMEDABAD (09-12)