Name Enrollment No.

Sandeep Taparia 08BS0002937

Srinath R 08BS0002474

Ritu Panwar 08BS0002652

Ravi Kumar 08BS0002633

Shivangi Kadam 08BS0002836

Rajan Sehgal 08BS0002533

Richa 08BS0002658
 Introduction - Rajan
 Brief History - Richa
 Market Structure - Richa
 Major Firms & Shares – Ritu
 Pricing Policy – Ritu
 Trends in Investment – Yashodhan
 Exports - Yashodhan
 Market Strategy - Ravi
 Performance (Financial Analysis) - Srinath
 Future Analysis - Sandeep
 Conclusion - Shivangi
 Indian Telecom had gone through phases of growth and
diversification.
 Telegraphic and telephonic systems in the 19th century
 Use of advanced technologies like:
o GSM,
o CDMA,
o WLL &
o 3G Technology.
 Both Public and Private Players.
 Give maximum facilities to the customers.
 The Telecom sector contributes 2.83 % to the total GDP in
2006-07 as against 2.71 % in 2005-06.
 Telecommunications Industry includes:
o Telecom services:
- Telephone Services:
 Fixed Line Telephony.
 Mobile Telephony.
- Internet Services.
- Broadband Services.
- Network Infrastructure.
- Telecom Equipments:
- Phone Instruments.
- Semiconductors.
 India – Fastest growing market in World – 190 mn subscribers
 4th largest mobile market growing at 6 mn Sub/month
 4th largest internet market, 3rd largest by 2007
 Voice Revenue dropping;
 PCOs - 4.5 mn @ CQGR of 7.22%
 Paying highest taxes and regulatory charges; Variable License fee.
1851 First operational land lines were laid by the government
near Calcutta (seat of British power)
1881 Telephone service introduced in India
1883 Merger with the postal system
1923 Formation of Indian Radio Telegraph Company (IRT)
1932 Merger of ETC and IRT into the Indian Radio and Cable
Communication Company (IRCC)
1947 Nationalization of all foreign telecommunication
companies to form the Posts, Telephone and Telegraph
(PTT), a monopoly run by the government's Ministry of
Communications
1985 Department of Telecommunications (DOT) established, an
exclusive provider of domestic and long-distance service
that would be its own regulator (separate from the postal
system)
1986 Conversion of DOT into two wholly government-owned
companies: the Videsh Sanchar Nigam Limited (VSNL) for
international telecommunications and Mahanagar
Telephone Nigam Limited (MTNL) for service in
metropolitan areas.
1997 Telecom Regulatory Authority of India created.
1999 Cellular Services are launched in India, New National
Telecom Policy is adopted.
2000 DoT becomes a corporation, BSNL
 Ministry of Communication & Information Technology

Licensor
Dept of Telecom Unified License Operators

Fixed Line Operators

Regulator
Telecom Regulatory National Long Distance Operators
Authority of India CDMA
International Long Distance
1800Mhz
Judiciary Operators
Telecom Dispute
Wireless Operators
Settlement Appellate
Tribunal GSM
900 &
1800
 Subscribers Jul 06 (mn) Share (%)
Company Presence
Fixed Mobile Fixed Mobile

BSNL Government owned. Has ramped up GSM services. 37.4 17.7 74.7% 19.6%
National presence (except Mumbai and Delhi)
Government owned. Operates in Delhi and
MTNL 3.8 2.0 7.7% 2.3%
Mumbai.
Integrated operator, with presence in all sectors.
Bharti 1.4 19.6 2.7% 21.7%
Largest mobile services provider.
Integrated operator. Plans expansion of GSM
Reliance network apart from being the largest private 3.0 17.3 6.0% 19.2%
CDMA operators.
Hutch Pure play GSM operator in 11 circles.   15.4   17.0%
IDEA Pure play GSM operator in 6 circles   7.4   8.2%
Integrated operator (along with VSNL) with
Tata
presence in all segments. Provides CDMA services 4.0 4.9 8.0% 5.4%
Teleservices
in 20 circles
Operates in 2 circles. Announced Plans to expand
Aircel   2.6   2.9%
GSM footprint in North and North east
Spice Pure play GSM player in 2 circles   1.9   2.1%
Others   0.4 1.4    
Total   50 90    
 International Bandwidth Usage
Gbps

*Source : Telegeography

• The above figure is for usage of bandwidth

• China has more than 10 times of higher bandwidth usage as comparison to India
 September 2005
Players % Share
Bharti 20.89
BSNL 18.30
Hutch 13.54
Idea 6.59
Reliance 20.06
Tata 9.56
Aircel 2.93
MTNL 1.87
Spice 1.69
BPL 0.80
HFCL 0.11
Shyam 0.05
 September 2006
Players % Share
Bharti 22.50
BSNL 17.90
Hutch 16.10
Idea 8.60
Reliance 20.50
Tata 7.01
Aircel 3.21
MTNL 1.69
Spice 1.61
BPL 0.66
HFCL 0.46
Shyam 0.21
 February 2007
Players % Share
Bharti 20.30
BSNL 18.50
Hutch 14.90
Idea 10.20
Reliance 21.10
Tata 1.60
Aircel 3.40
MTNL 1.30
Spice 3.30
BPL 5.40
HFCL 0.00
Shyam 0.00
International Pricing Policy
The Authority has prescribed a composite ceiling roaming
charges as indicated below:
 Rs. 1.40 per minute for outgoing local calls

 Rs. 2.40 per minute for outgoing NLD calls

 Rs. 1.75 per minute for incoming calls

 
The other salient features prescribed are: -
 No rental permitted for National roaming in any form

 No surcharge is leviable for any of the national roaming

services
 No separate PSTN charges on roaming calls

 Receiving SMS is free while roaming

 Players Countries Services Subscribers Partners
Bharti
Emtel of Mauritius,
34000 (March (Since 1998) private
Seychelles Fixed, FWP, cellular
 Telec om 2006) investors and the Gov of
Seychelles Seychelles

Jersey Telenet State of Jersey 2G and 3G, ILD Services from

Oct 2006
MTNL
CDMA-based WLL 45,032 (March TCIL VSNL, and NVPL
United Telecom Nepal
servic es 2006) Wholly
(Sinc e 2002)

MTML (Sinc e 2005) Mauritius CDMA-based WLL 20000 (March owned subsidiary
services 2006)
Reliance
ILD servic es to India,
Australia, Canada,
US, UK and
France, Germany, 500,000 + -
Canada
IndiaCall services Malaysia, NZ, Singapore,
(Since 2005) and UK

VSNL (acquired South Africa Transnet/ Transtel,

license in 2005) Eskom, Nexus, Two,
Fixed (Servic es to
CommuniTel
commence in Aug-Sep
2006)
BSNL

 Networks in non-lucrative areas esp. in rural areas

 Access Deficit Charges (ADC)

 Uni-brand strategy

 Mobile TV for GSM users

 Wi-max in rural regions

 Reduce fares on fixed lines

Bharati Cellular Ltd

 Airtel concentrates on VAS (Value Added Services)

 Improving on brand image

 Broadband - classes instead of the masses to drive the profits

Vodafone-Essar Ltd

 updated news on a wide range of subjects

 Brand image with trademark ads

Reliance Communications Ltd
 Optic fiber network
 CDMA phones
 Focused on markets driven by volume, instead of premium segment
Idea cellular Ltd.
 Restructuring the organization – acquire the internal share
 Merger with Spice telecom to improve the subscriber base
Tata Teleservices Ltd.
 Three pillar strategy
 Brand Image (cheap brand and refresh the image by offering more),
 Innovation (mobile internet and VAS) &
 Driving numbers (offering exciting products, services and packages).
Semiconductor industry

 Concentrating on chip designing

 18 of the top 25 industries had set up chip design centers in India

Instruments

 Mostly imported from China by non-Indian players – Nokia, Cisco, etc

 More models in low segment

 More choice on features in youth segment
 Restricted up gradation in executive segment
Network Infrastructure

 Segregating the tower business

 Bharati, Vodafone-Essar & Idea merged their tower business
Indus Towers
 Reliance – optic fibers
 BSNL – rural networks
Sterlite Technologies Limited:

 Leading global service provider.

 Power Transmission Conductor, Optical Fibres, Telecommunication

cables.
 ‘National Telecom Award 2008’ for excellence in exports ( > 4 Cr.)

 Total Telecom exports – 100 Cr.

 Sterlite Tech. – 4 Million. Increase by 75%.

 Accounted for 31% of their revenue.

 For Q1 FY ‘09 the company reported a Strong Order Book of Rs.

1,020.00 of which its exports amounted to Rs. 320 Cr.

Telecom Software Exports from India:

 Size of Software Exports – Rs 4100 Cr (Exports & Domestic).

 Size of Telecom Software market was Rs 66 Cr. 1.6% of total Industry

Sales.
  2003(Cr.) 2004 (Cr.) 2005 (Cr.) 2006 (Cr.)
Bharti 2,084.00 3,261.00 5,436.00 7,928.00
Hutch 1,735.00 2,701.00 4,365.00 6,837.00
Reliance 683.00 2,571.00 4,089.00 6,673.00
BSNL 590.00 1,984.00 3,956.00 6,574.00
Idea 1,080.00 1,313.00 2,262.00 2,966.00
Tata Indicom 56.00 253.00 523.00 1,878.00
Spice 550.00 520.00 706.00 855.00
Aircel 230.00 375.00 561.00 880.00
MTNL 155.00 227.00 338.00 599.00
HFCL 11.00 12.00 10.00 22.00
Shyam Telelink 10.00 11.00 6.00 12.00
Escotel 322.00 350.00* *
BPL 963.00 1,030.00* *
 Revenue Projections CSP
Bharti
Hutch
14000
Reliance
12000
BSNL
10000 Idea
Crore Rs.

8000 Tata Indicom

6000 Spice
4000 Aircel
2000 MTNL
0 HFCL
2003 2004 2005 2006 2007 2008 Shyam Telelink
Year
OPPORTUNITIES:
 
 To offer value added services on GSM, CDMA and IP.

 Language independent services.

 Mobile Marketing concepts.

 Content influenced by local culture and Global success stories.

 M-Commerce / E-Ticketing.

 Content Services – Music/Video etc

 Unified messaging platforms.--coordinated,interconnected,merged sms

 Foreign investment in form of equity or technology.

 India as Asia’s third largest economy is adding at least 1mn new mobile

phone users every month.

 Mobile phone users rate hitting a saturation point in big cities.

 Income levels in the rural areas rising due to robust agricultural output.

 Share of the rural market in the country’s mobile population is however

less than 15%.

 
THREATS:
 
 Low cost service providers – no possibility of breaking even in short term.

 Weak IPR (Intellectual Property Rights) protection.---copy right

 Software and digital content Piracy.--duplicate

 Political instability.—unstableness,unreliable

 Regulatory interference.—legal bodies wt lot of new rules

CHALLENGES

 Regulatory Policies
 Lack of level playing field
 Penetration Level
 Across the world and within India
 Seamless Roaming
 Infrastructure Program
 Manufacture telecom equipment in India
 Passive Infrastructure Sharing
 VoIP –voice over internet protocol
 Value Added Services
 Unutilized software capability
Digital Divide
 Non Availability of technology, equipment, network access for
millions of poor.
 Emerging Markets
 Driving Volume Growth
 Low Tariffs (ARPUs)

 Developed Markets
 Low Subscriber Base
 Technological Advancements

Indian Telecom depends on the global telecom industry for technology

platforms & network management

While Indian market size attracts telecom giants

STRENGTHS:
 
 Hike in the proposed FDI limit to 74 %.

 Unified license regime.

 Huge wireless subscriber potential.

 Fastest growing mobile market in the world.

 Consumers are ready to pay for cutting edge technology.

 India possesses cheap labor to attract foreign investment.

 Telecom software, telecom professionals, telecom infrastructure and

telecom services are the key players in shaping today’s economy.

 Revenue sharing strategies are leading to mergers and acquisitions,

helping companies to enter new business opportunities and generate

employment boosting the country’s economy.
WEAKNESSES:
 
 Lowest call tariffs in the world.

 Market strongly regulated by Government body – Governing both ISP and

Telecom sectors.
 Too many authorities ruling the sector.

 Huge potential for low end and cheap handsets.

 Primarily a voice based market.

 High costs of services provision.

 Low income country like India cannot afford to replicate expensive telecom

infrastructure.
Thank You