Presentation 03.09.11
Transcript of Presentation 03.09.11
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KULDEEP SINGH
CMD, MTNLwww.mtnl.in
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www.mtnl.in
Presentation Plan
1 Telecom Industry Overview
2 MTNL Overview
3 Telecom Evolution
Telecom Emerging Environment4
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Presentation Plan
1 Telecom Industry Overview
2 MTNL Overview
3 Telecom Evolution
Telecom Emerging Environment4
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www.mtnl.in
Telephony services (mobile and basic) and Internet services
dominate the Indian telecom services
The Indian telecom market generated revenues of approximately USD 20 billion in 200607. It registered a CAGR of
approximately 22 percent from 200203 to 200607. The CAGR from 200607 to 200910 is expected to stabilise at
21 percent. Apart from mobile telephony services, other value-added services are also gaining importance.
Telecom Services India
Mobile Services
VSATs
The Indian telecom services can be divided predominantly into basic, mobile and Internet services. It also
comprises smaller segments, such as Very Small Aperture Terminals (VSATs), and Global Mobile Personal
Communications by Satellite.
The growth witnessed in the mobile services and Internet services segments was higher as compared to other
services, such as basic services and radio services.
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Indian Telecom IndustryA Lucrative Option
In recent years, the Indian telecom industry has witnessed phenomenal growth. A conducive business environment,
favourable demographic outlook and the political stability enjoyed by the country have contributed to the growth
of the industry. India achieved the distinction of having the world's lowest call rates, the fastest sale of million
mobile phones, the world's cheapest mobile handset and the world's most affordable colour phone .
Particulars Wireless Wireline Total
Wireless + Wireline
Total Subscribers (Million) 851.70 34.29 8 85.99
Total Net Addition (Million) 11.41 -0.11 11.30
% of Monthly Growth 1.36% -0.32% 1.29%
Urban Subscribers (Million) 562.12 25.82 587.94
% of Monthly Growth 1.33% -0.18% 1.26%Rural Subscribers (Million) 289.57 8.47 298.05
% of Monthly Growth 1.42% -0.73% 1.35%
Teledensity 71.11 2.86 73.97
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Mobile Number Portability requests increase from105.70 lakh subscribers at the end of May 2011 to
129.85 lakh subscribers at the end of June 2011.
Active wireless subscribers on the date of peak VLR in
June- 2011 are 594.77 Million.
Broadband subscription reaches 12.32 Million in June-
2011 from 12.12 Million in May-2011.
Indian Telecom IndustryA Lucrative Option
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Major Players in different segments of Indian telecom industry
Basic Services Operators:
BSNL
MTNL
Reliance
TTSL
Bharti
Internet Services Operators:
BSNL
MTNL
Reliance
TTSL
Airtel
Sify
GSM Services Operators:
BSNL
MTNL
Reliance
Vodafone
Airtel
CDMA Services Operators:
BSNL
MTNL
Reliance
TTSL
Each circle is having atleast one Govt. operator & three Private
operator for ensuring competetion.
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Service Provider wise Market Share as on 30.06.2011
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Presentation Plan
1 Telecom Industry Overview
2 MTNL Overview
3 Telecom Evolution
Telecom Emerging Environment4
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Date of Establishment 1986RevenueMarket Cap 22648.5 ( Rs. in Millions )Corporate Address Jeevan Bharti Building,Tower 1 12th Floor,124 Connaught
CircusNew Delhi-110001, Delhi
www.mtnl.net.in/www.bol.net.in Customer Base Wire-line
WirelessBroad-BandISDNLeased Circuit
Business Operation Telecommunication - Service Provider in Delhi & MumbaiBackground The company started its operations by establishing telephone
system with a manual exchange. Later in 1986 MTNL (Mahanagar
Telephone Nigam) was established. In the same year it brought in
digital exchange world technology for the first time in .
MTNL, a state-owned telecom serviceFinancials Total Income - Rs. 50578.23 Million ( Year ending Mar 2010)
Net Profit - Rs. -26109.72 Million ( Year ending Mar 2010)
Overseas Operations Nepal, Marritus
MTNL Overview
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Presentation Plan
1 Telecom Industry Overview
2 MTNL Overview
3 Telecom Evolution
Telecom Emerging Environment4
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Wireline - Since 1878
Wireless Since 1946
2G (GSM/CDMA)Since 1983
2.5G: GPRS, EDGE, 2001X
3G: WCDMA
4G: NGN, IMS
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Services/Application
Fixed-line Services:Ring back Tone
Dial Tone
Emergency Services
Morning Alarm
Call Waiting
Call TransferFAX
Centrex
EPBAX
ISDN
Dynamic Lock
IN Services
VAS
Supplementary Services
Mobile Services:Ring Back Tone
Emergency Services
Call Waiting
Call Transfer
Call Conferencing
SMSMMS
VoIP
VAS
Supplementary Services
Data Services:Dial up Internet
ISDN
Leased Circuit
Broad Band
(ADSL/ADSL2+)
FTTHHSDPA (WCDMA)
LTE (4G)
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Switching Technologies
Transmission Technologies
Data Technologies
Evolution of Technologies
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Evolution of Switching Technologies
Fixed Line Switching Technologies:T-43 Board (Manual Exchange)
Strowger (Mechanical Exchange)
Cross Bar (Electromechanical Exchange)
Digital Exchange
IN
NGN/IMS
Mobile Switching Technologies:Pager/WLL/CorDECT
AMPS
CDMA
95A /95B
1X
2000EVDO
EVDV
WCDMA
GSM
2G
2G+GPRS
2G+ EDGE
2G + HSPA
WCDMA
4G (LTE)
MTNL presently has 100% digital & NGN exchanges for Wire-line & 3G for wireless network.
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Evolution of Transmission Technologies
PCM : 2MBPS
PDH : 155MBPS
SDH :
STM1 : 155.52 Mbps
STM4 : 622.08 Mbps
STM16:
CWDW/DWDM : Bandwidth in terms of lamda i.e. STM 16
FE/GE (each interface)
10GE/40GE (each interface)
MTNL presently has MPLS network in Delhi & Mumbai covering at-least
all centers of operations with 10G/40G Interface capabilities.
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Evolution of Data Technologies
Technology SpeedDial up Internet 56Kbps
ISDN 128Kbps
ATM
X.25
ADSL 2 MBPS
ADSL2+ 24 MBPS
Wi-fi
Wi-Max
HSDPA
FTTH
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Presentation Plan
1 Telecom Industry Overview
2 MTNL Overview
3 Telecom Evolution
Telecom Emerging Environment4
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Emerging Scenario
Customer Perspective
Operator Perspective
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Customer Perspective
The proliferation of multi-access, multi-use devices
Always-on, anywhere, ubiquitous communications
Ad-hoc conferencing- Leverages buddy lists to allow users to easily set up group
calls.
Chat- Allows users to talk at the same time they are sharing information and
applications.
Enhanced messaging- Allows users to escalate from IM to a voice call
Enhanced voice mail- Allows callers to leave messages in either voice, text, or email
format.
Application Share- A terminal user share an application than the opposite party can
use this shared application remotely.
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Customer Perspective
Electronic White Board- Both parties can write & draw on the same picture i.e.
discussion, remote teaching etc.
IP Centrex- Subscribers of domain/group can make intra-group calls with private
numbering plan.
Picture messaging. Leverages buddy lists and IM, allowing users to instantly share
photos
Find-me. Allows callers to choose to ring an alternative number
Location-based services. Allows users to specify areas of interest and have relevantinformation pushed to them based on their locale
Push-to-Talk. Near instant one-to-one or one-to-many walkie-talkie style calls
Session based transfers. Allows users to switch from voice, to video, to applicationsharing
e-Commerce/m-Commerce/e-learning
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Limitation of TodaysTelecom System
Expectations from New TelecomSystem
Circuit/Packet-switched Internet Protocol (IP) based
Vertical integration of
application and call control
layers, with dedicated networks.
Horizontally-integrated controls layers,
with simultaneous delivery of application.
Service related functions independent of
transport-related technologies
Limited mobility of end-userservices.
Broad-based generalized mobility.
Non-responsive network. New Network will be able to identify and
adapt to user needs in real time.
Operator Perspective
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Emerging Issues
FDI and other M&A activities increasing in number
Economic & Environmental Conditions
Spectrum Efficiency
Value Added Services
Interconnection
Technological Development
Regulations
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FDI and other M&A activities increasing in number
Major trends in the telecom sector is increasing M&A activity, de-regulation of telecom policies and
growing interest of international investors.
Deals
inTelecomS
ector
Vodafone purchased stake in Hutch from Hong
Kong's Hutchison Telecom International for
USD 11.08 billion.
Telekom Malaysia acquired a 49 percent stake in
Spice Communications for USD 179 million.
Maxis Communications acquired a 74percent stake in Aircel for USD 1.08 billion.
Ericsson to design, plan, deploy and
manage Bharti Airtel network and facilitate
their expansion in the rural areas, under a
USD 2 billion contract.
Reliance Communications Limited has sold a five percent equity
share capital of its subsidiary Reliance Telecom Infrastructure
Limited to international investors across the US, Europe and Asia.
The deal was worth USD 337.5 million.
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Economic & Environmental Conditions
Worlds largest democracy
Independent judiciary
Skilled and competitive labour force
The government promoting telecom manufacturing by providing tax sops andestablishing telecom specific Special Economic Zones
Unified Access Service License Regime (UASL)
Universal Service Obligation (USO)
Increasing mobile subscriber numbers and low level of teledensity offers large
opportunities to Indian companies
Green Telecom
Utilization of less Carbon Content emission equipment
Un-conventional Power Sources for equipments
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Spectral Efficiency
Spectrum Sharing/Trading
Optimum Utilization
Spectrum Re-farming
Price Discovery
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Interconnection
Interconnection crucial for communicating across networks:Various types of Interconnection in changing scenario:
Interconnection between access service providers
Interconnection with long distance operators
Interconnection with ISPs
Mobile Termination Charges
Interconnection models:
TDM based interconnection
IP based interconnection
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Value Added Services
Video On Demand
Interactive Gaming
T.V.
Tele/Video Conferencing
M-commerce
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Emerging Technologies
Fixed Mobile Convergence
Common Core for Wire-line & Wireless (MPLS)
Next Generation Network (IP Multimedia Subsystem)
Cloud Computing
FEMTO-CELL
4G (LTE) System
FTTH
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Regulatory Framework
The Department of telecommunications (Government of India) is the main governing body for the industry.
Telecom Regulatory Authority of India (TRAI) assists the Government of India (GoI) to take timely decisions and
introduce new technologies in the country.
Indian Telecom Industry Framework
Indian Government
BodiesIndependent Bodies
They formulate various policies and pass laws to
regulate the telecom industry in India.
They undertake various research activities and monitor
the quality of service provided in the Indian telecom
industry. They also provide various recommendations to
improve the status of telecom operations in India.Wireless Planning
and Coordination
(WPC)
Department of
Telecommunications
Telecom Commission
Group on Telecom
and IT (GoT-IT)
Handles spectrum allocation
and management
DoT Licensee and
frequency management for
telecom
Exclusive policy making body
of DoT
Handles ad hoc issues of the
telecom industry
Telecom Regulatory
Authority of India
(TRAI)
Telecom DisputesSettlement and
Appellate Tribunal
(TDSAT)
Independent regulatory body
(1997)
Telecom disputes settlement
body
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Go-ahead to
the CDMA
technology
INDIA
Private players
were allowed in
Value Added
Services
National Telecom
Policy (NTP) was
formulated
1992
1994
1997
Independent
regulator, TRAI,
was established
NTP-99 led to
migration from high-
cost fixed license fee
to low-cost revenue
sharing regime
1999
2000
2002
BSNL was
established
by DoT
ILDservices was
opened to
competition
Internet
telephony
initiated
Reduction of
licence fees
2003
Calling Party Pays
(CPP) was
implemented
Unified Access
Licensing (UASL)
regime was
introduced
Reference
Interconnect
order was
issued
2004
Intra-circle merger
guidelines were
established
Broadband
policy 2004 was
formulated
targeting 20
million
subscribers
2005
FDI limit was
increased from
49 to 74 percent
Attempted to
boost Rural
telephony
2009
Number
portability
3G services
2010
Department of Telecommunication (DoT) is the main body formulating laws and various regulations for the Indian
telecom industry.
Various important regulations and laws have been passed in the
Indian telecom industry post-liberalisation era
ILD International Long Distance
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Telecom Regulatory Authority of India
Prevailing Regulatory frameworkTRAI set up in 1997 by government of India
Independent regulator for business of
Telecommunication in the countryMandated to provide an effective framework
To protect the interest of consumers
To encourage the growth of telecom
To form transparent and fair policy environment
To ensure fair competition
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Features of Telecom Regulatory Authority of India
Cost basedTechnology neutral
Level playing field
Consumer centric
Light touch regulations
Ensure fair competition
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Benefits from Telecom Regulatory Authority of India
Exponential growth in tele-density
Affordable tariffs
Increase in number of operators
Intense competition
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THANK YOU