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AHMEDABAD UNIVERSITY

H.L. INSTITUTE OFCOMMERCE

PROJECT AND PRESENTATION IN THE SUBJECTS OF

1) SPECIAL TRANSACTIONS ACCOUNTING

2) CORPORATE ACCOUNTING PROCEDURES

TELE-COMMUNICATION



F.Y.BCOM SECTION 2GROUP 12

ROLL NUMBER 231 -240

231) SHREY MAHETA

232) BHARTI MAKWANA

233)234) DISHA MALHOTRA

235) KULDEEP MANDALIA

236) HEMANT MANDAN

237) HIMADRI MANIAR

238) PRANAV MANIAR239) PRIYAL MANIAR

240) NEHAL MANSUKHANI

NOTE: ROLL NUMBER 233 HAS LEFT



TELECOMMUNICATION

SECTOR



INTRODUCTION OF

TELECOMMUNICATION INDUSTRY Communication is basic need of everyone in

today's world.

In 1850, the first experimental electric

telegraph Line was started between Kolkata

and Diamond Harbor

The introduction of services like phones

(landline), mobile phones, internet hasbrought a revolutionary change in this

industry as well as in life of people.



BUT During the Middle Ages,

chains of beacons werecommonly used onhilltops as a means of relaying a signal.

Beacon chains sufferedthe drawback that theycould only pass a singlebit of information, so the

meaning of themessage such as "theenemy has beensighted" had to beagreed upon inadvance.



AND BEFORE THAT

The oldest-known forms of writing were primarilylogographic in nature,based on pictographic and

ideographic elements.Most writing systems canbe broadly divided intothree categories:logographic , syllabic andalphabetic (or segmental );

however, all three may befound in any given writingsystem in varyingproportions, often makingit difficult to categorize asystem uniquely.



In 1880, two telephone companies namely

The Oriental Telephone Company Ltd. and

The Anglo-Indian Telephone Company

Ltd. approached the Government of India

to establish telephone exchanges in India. Internet has now become a daily need for

people. The total subscriber base for

internet users in India is 81 million as of 2009.



SCOPE OF TELCOM SECTOR

IN INDIA

The state

operators (BSNL

and MTNL),

account for

almost 90 per

cent of revenues

from basicservices.



The GSM sector is dominated byAirtel, Vodfone-Hutch, and Idea

Cellular, while the CDMA sector isdominated by Reliance and TataIndicom.

Touch screen and advancedtechnological handsets are gainingpopularity. Radio services have alsobeen incorporated in the mobilehandsets, along with other applicationslike high storage memory, multimedia

applications, multimedia games, MP3Players, video generators, Camera's,etc



FIXED SERVICE PROVIDER CELLULAR SERVICES

CDMA GSM

TELECOM

SECTOR

Telecommunication sector in India can be

divided into two segments:



Showndepicted is aFrench

Gower telephone of 18th century.



1994 National Telecom Policy ± 1994announced

Aug 1995 Kolkata became the first metro tohave a cellular network

1997 Telecom Regulatory Authority of India was setup

1999 Tariff rebalancing exercises gets

initiated March 1999 National Telecom Policy ± 99announced

Growth of Telecom in India



Oct-2002 BSNL entered in to GSM cellular

operation w.e.f 19th October, 2002.

Made incoming call free & initiated

tariff equalization process Tariff for GSM cellular mobiles reduced

Nov 2003 Unified Access (Basic & Cellular)

Service License (USAL) introducedas a first step towards Unified

License Regime Technology neutral

and allows provisioning any kind of

service

Apr 2004 License fee reduced by 2% across

the board all the access licenses.



Opportunities Rural teledensity is less than 10%. Overall teledensity is only 24%.

Broadband penetration is just 0.25%, hence vastscope.

BPO business is growing fast: Telecom can ride on it. Value added services like M-Commerce, M-Marketing,

Special Information, Ring tones, etc. offer venues of additional revenue.

As globalization is increasing, more percentage of

global business for Indian telecom. Technologies like NGN, 3G, WiMAX, will open up new

frontier of business.



Teledensity

0.52 0.68 0.93 1.21 1.49 1.57 1.73 1.86

5.887.96.94 8.36

10.3712.2

14.32

20.74

26.88

39.45

48.52

60.04

2.32 2.86 3.58 4.29 5.117.02

8.95

12.74

18.31

23.21

0

10

20

30

40

50

60

70

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 7 ( N

o v )

Year

Rural Urban Total



Challenges

No. of operators are increasing per circle: hencemore competition

Cost/ Customer is very high in rural areas

Spectrum ± a scare commodity

Infrastructure readiness in rural

PC prices are very high

Availability of Contents in local language

Availability of Contents for Rural Population

International Bandwidth is costly Telecom Manufacturing in India.



GrowthGrowth-- the way aheadthe way ahead

Network expansion

± 250 million by 2007 - Already achieved

± 600 million by 2012

Rural connectivity ± 100 million by 2010

± 200 million by 2012

Broadband

± 20 million broadband connections and 40 millioninternet connections to provide by 2010

± Broadband connections to provide on demand acrossthe country by 2012



OPERATING ENVIRONMENT - GLOBAL AND

LOCAL

The telecom sector is also afflicted by anumber of restraints. These include:

Sluggish pace of reform process.

Lack of infrastructure in semi-rural andrural areas, which makes it difficult tomake inroads into this market segment as

service providers have to incur a hugeinitial fixed cost.

Limited spectrum availability.



Two major factors responsible for the growth

of telecommunications industry are use of

modern technology and market competition.

One of the products of modern technologies

is optical fibers, which are being used as a

medium of data transmission instead of.

Using coaxial or twisted pair cables.

. Use of ISDN (Inter Services Digital Network)

makes this telecommunication industry a

total digitalized system and eventuallyenhanced the speed and quality of digital

communication



GOVERNMENT POLICY

The first wind of reforms in telecommunications

sector began to flow in 1980s when the private

sector was allowed in telecommunications

equipment manufacturing. In 1985, Department of

Telecommunications (DOT) was established.

In 1986, two wholly government-owned companies

were created: the Videsh Sanchar Nigam Limited

(VSNL) for international telecommunications and

Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas.

National Telecom Policy (NTP) 1994 was the first

attempt to give a comprehensive roadmap for the

Indian telecommunications sector.



1997, Telecom Regulatory Authority of India (TRAI) wascreated. TRAI was formed to act as a regulator tofacilitate the growth of the telecom sector.

New National Telecom Policy was adopted in 1999 andcellular services were also launched in the same year.

With a subscriber base of more than 650 million, theMobile telecommunications system in India is thesecond largest in the world and it was thrown open toprivate players in the 1990s.

After economic liberalization in 1992, many private ISPs(Internet Service Providers) have entered the market,many with their own local loop and gatewayinfrastructures. The telecom services market isregulated by the TRAI and the DoT, which has beenknown to impose censorship on some websites.

The Ministry of Communications and InformationTechnology (MCIT) is has very aggressive plans toincrease the pace of growth, targeting 250 milliontelephone subscribers by end-2007 and 500 million by2010

India¶s rural telephone density has been languishing ataround 1.9%;



MAJOR PLAYERS OF

TELLECOMMUNICATIONRANK COMPANY SUBSCRIBERS( IN

MILLIONS)

1 AIRTEL 139.75

2 VODAFONE 109.06

3 BSNL 68.88

4 IDEA 66.88



MAJOR PLAYERS IN MARKET



CONCLUSION With the help of the information ,we can see

that there is fast and rapid growth in telecomindustry since its invention. Vodafone, airtel,idea and reliance are the leading telecomcompanies of the industry. Communication

being the basic need of people sotelecommunication industry will never go indepression as this industry thrives on thebasic need of people to communicate. The

future of telecommunication is very brightbecause of new and efficient technologyavailable at reasonable prices. This industryprovides employment opportunities to about10 million people (approx.) during the same

period.



THANK YOU

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