Indian telecom industry- its existence and current scenario in India shubham

INDIAN TELECOM

INDUSTRY

1. Introduction

2. Economic Contribution

3. Major Players

4. Govt. Rules & Regulations

5. SWOT Analysis

6. Suggestions & Conclusions

CONTENTS

• Postal means of communication was the only mean communication until the year

1850.

• In 1850 experimental electric telegraph

started for first time in India between Calcutta (Kolkata) and Diamond 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.

Post men running

with postal articles 1850'spicturecalled“dawk wallah”

O'Shaughnessy's

Indian "Reverser" or Transmitter 1851

•Dr.William O’Shaughnessy, who pioneered

the telegraph and telephone in India,

•In early1881, Oriental Telephone Company

Limited of England opened telephone

exchanges at Calcutta (Kolkata), Bombay

(Mumbai), Madras (Chennai) and Ahmedabad.

•On the 28th January 1882 the first formal

telephone service was established with a total

of 93 subscribers.

•From the year 1902 India drastically changes

from cable telegraph to wireless telegraph,

radio telegraph, radio telephone, trunk

dialing.

Dr. Williams

O’shaughnessy

136 years since the first telephone call 136 years since the first

telephone call

•Driven by wireless revolution, the Indian

telecommunications industry is one of the fastest

growing in the world.

•According to TRAI's report 'Telecom Sector in India: A

Decadal Profile', the tele-density has increased from 4.3

in March 2002 to 78.1 in February 2012.

•The share of telecommunication services (excluding

postal and miscellaneous services), as per cent of the

total gross domestic product (GDP), has increased

from 0.96 in 2000-01 to 3.78 in 2009 -10.

•Wherein the rural areas registered an increase from 1.2

in March 2002 to 38.5 in February 2012.

•According to the same report, international

comparisons (among 222 countries) show

that India has the second largest number of

telephone subscribers in the world

accounting for 12 per cent of the world's total

telephone subscribers.

•India is today one of the largest telecom

markets in the world, with an addition of

more than 18 million subscribers every

month.

• Telecom sector has continued to emerge as

the prime engine of economic growth,

contributing to nearly 2% of the Indian GDP.

GSM Services Operators

TTSL

Reliance

BSNL

TTSL – Tata Teleservices Ltd.MTNL – Mahanagar Telecom Nigam Ltd.

BSNL

MTNL

RELIANCE

COMM.

TTSL

BHARTI

AIRTEL

IDEA

VODAFONE

UNINOR

MTS

TATA

DOCOMO

AIRCEL

MARKET COVER (wire line)

MARKET COVER (wireless)

•The Government of India is focusing on improving rural tele-

density and broadband connectivity, effective expansion of thenetworks with efficient utilization of scarce spectrum and ensuring

equal sharing of highly capital intensive infrastructure.

•TRAI, the telecom sector regulator, intends to create standards toensure quality of service for mobile phone companies which

deliver mobile data services to the users.

•TRAI has created nine parameters benchmarks including service

activation clause (that the service would be activated within three

hours with a 95 per cent success rate), drop rate (or the network's

inability to upload or download, should be below 2 per cent) etc.

•Considering the fact that roll out of 3G and 4G high-speed data

access services across the country will lead to quantum jump in

the number of mobile internet users.

STRENGTH1. Huge Customer potential

2. High Growth Rate:-

3. Allowed FDI limit ranging from 74% to 100:-

4. High return on Investment

5. Liberalization efforts by Govt.

6. Lower capital expenditure

7. Fastest growing telecom market

8. Forward looking approach of the government

9. Fast adaption of technology development i.e MNP, NGN,

3G,Broadband Wireless Access(BWA) & IPv6etc.

10. Establishment of decentralize unit of DoT like , Controller

of Communication Account (CCA) and telecom

Enforcement, Resource and Monitoring (TERM) Units

etc.

WEAKNESS1. Poor Telecommunication Infrastructure

Result : Large number of call drops

2. Late adopters of New Technology

3. Most competitive market

4. A market strongly regulated by Government

5. Difficult to enter because of requirement of huge

financial resources.

6. High cost of data hosting in India

7. Low profitability of telecom PSU’s

8. Low broadband penetration in the country

9. Comparatively slower growth of telecom services in

rural /remote areas.

10.Non availabilty of adequate spectrum

OPPORTUNITY1. The industry is expected to reach a size of

344,921 Crore (US$ 68.81 billion) by 2012 at a

growth rate of over 26 per cent, and generate

employment opportunities for about 10 million

people during the same period.

2. For developing a new comprehensive Telecom

Policy.

3. For accelerating the growth of Tele-density in

the country.

4. For creation of telecom infrastructure in rural

and remote areas by utilization of the USO

funds.

5. For huge broadband potential in the country.

6. For R&D, product development and

indigenous telecom manufacturing.

1. Non availability of adequate spectrum for telecom services.

2. Dependence on foreign telecom equipments supplier.

3. Cyber threats on ICT networks, leading to

security concerns.

4. Obsolesce of existing network elements due

to fast changing telecom technologies.

Source : www.dot.gov.in

THREATS:

LATEST SCENERIO 2012•The telecom tower industry has been granted infrastructure

status by the Government of India, say news reports.

•According to TRAI, he telecom subscriber base in the country

increased from 951.34 million in March, 2012 to 965.52 million inJune, 2012. Subscriber additions from rural areas constituted a

large portion of this growth. Between March and June 2012, the

rural areas contributed to about 91.30 per cent of the total

additions to the country’s subscriber base.

As per TRAI data the gross revenue and adjusted gross revenue

of the telecom sector increased from

Rs 35.49 billion in previous quarter to Rs 52.51 billion for the

quarter ended June, 2012.

Aircel has entered a strategic partnership with NEC for software

as a service (SaaS). Aircel and NEC will be providing cloud

services solutions to customers under the brand name Business

Unplugged.

•Bharti Airtel has made an investment of $150 million in its African operations,

say news reports.

• 6th National Telecom Awards 2012:

Best Broadband & Fixed Line Operator Bharat Sanchar Nigam Ltd.•Best Quality Mobile Network Services Provider Bharti Airtel Ltd.

Ranking as per their total customer across the country.

1. bharti airtel -256 million customers.2. reliance -150 million customers

3. idea cellular- 117 millions customer

Contd.

Finding and suggestions

FINDINGS

1.Reducing the product and service

price.

2.New advertisement campaign.

3.Pressurizing the government to

make the policy tough for new

competitors.

4.New offer for current customer in terms of price and service.

SUGGESTIONS

1. Since tele-density is still around

21% therefore telecom companies

have to try to those market which is

still untapped by the other telecom

companies.

2. Keep their technology up to date so

that they should always offer

something new to their existing

customer and also new customer.

3. Should provide better customer

service through better customer

relation so that old customer doesn't

left.

Source : www.ibef.org

References:1. http://www.telecomindiaonline.com/cmai-association-of-india-announced-the-

prestigious-6th-national-telecom-awards-2012.html

2. www.Ibef.org

3. www.trai.gov.in/

http://www.telecomindiaonline.com/cmai-association-of-india-announced-the-prestigious-6th-national-telecom-awards-2012.html

http://www.ibef.org/

Indian telecom industry- its existence and current scenario in India shubham

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Transcript of Indian telecom industry- its existence and current scenario in India shubham