Telecom Mar13

8/17/2019 Telecom Mar13

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2/25

• Telecommunication has emerged as a key driverof economic and social develomen! in an

increasingly kno"ledge in!ensive glo#al scenario$ in"hich %ndia needs !o lay a leadershi role&

• National Telecom Policy-2012 is designed !oens're !ha! %ndia lays !his role e(ec!ively and

!ransforms !he socio)economic scenario !hro'ghaccelera!ed equitable an inclu!i"e economic#$o%t& #y laying !'ecial em'&a!i! on rovidinga(o$able an quality telecommunication!e$"ice! in $u$al an $emote a$ea!)

INDIA’S TELECO* POLIC+


3/25

T&$u!t o, t&i! 'olicy *

• A"ailability o, a(o$able an e(ecti"e communication! for!he ci!i+ens is a! !he core of !he vision and #oal o, t&e National

Telecom Policy 2012)

• S's!ained ado!ion of !echnology for o(ering via#le o!ions ino"e$comin# e"elo'mental c&allen#e! in eucation. &ealt&.em'loyment #ene$ation. /nancial inclu!ion an muc& el!e)

• ,y form'la!ing a clear olicy regime$ NTP)-./- endeavo'rs !o crea!ean in"e!to$ ,$ienly en"i$onment ,o$ att$actin# aitionalin"e!tment! in t&e !ecto$ a'a$t ,$om #ene$atin# mani,olem'loyment o''o$tunitie! in "a$iou! !e#ment! o, t&e !ecto$)



4/25

• The las! decade "as charac!erised #y !i#ni/cant'enet$ation o, telecommunication! in Inia& TheNe" Telecom Policy /000 has #een a cataly!t ,o$#$o%t& of !he !elecom sec!or&

• The n'm#er of !elehone connec!ions$ a! !he end of

eb$ua$y 2012. %a! 3 million$ as comared !o 1million at t&e en o, Decembe$ 2001& This gro"!hhas #een f'elled #y !he cell'lar segmen! 1mo#ile

hones2 "hich alone acco'n!ed for 0// millionconnec!ions a! !he end of 3e#r'ary -./-&

• The com'o!ition o, t&e telecom !ecto$ !oo has"i!nessed a s!r'c!'ral change$ "i!h !he riva!e sec!oracco'n!ing for 44 5 o, t&e total connections&



5/25

• Today$ %ndia is one of !he fas!es! gro"ing!elecom marke!s in !he "orld&

• The 'nreceden!ed increase in teleen!ity

an !&a$' ecline in ta$i(! in !he %ndian!elecom sec!or have con!ri#'!ed signi4can!ly !o

!he co'n!ry5s economic gro"!h&

• ,esides con!ri#'!ing !o a#o'! 35 to Inia’!6DP$ Telecomm'nica!ions$ along "i!h%nforma!ion Technology$ has grea!ly accelera!ed!he gro"!h of !he economic and social sec!ors&



6/25

Some a!t act!7

• %ndia remains !he fas!es! gro"ing!elecomm'nica!ions marke! glo#ally$ !ho'gh !he

ace of gro"!h has slo"ed&• Call ra!es are !he cheaes! in !he "orld$ and can #e

less !han /&.6 er min'!e 'nder some lans&

• The %ndian marke! is in!ensely come!i!ive "i!h //

carriers$ mos! of !hem resen! !hro'gho'! !heco'n!ry&

• The share of !elecomm'nica!ion services in %ndia5sG7P is e8ec!ed !o increase !o /9: #y -./9&

INDIAN TELECO*SECTOR


7/25

Some a!t act!7 8Cont)97

• 3ollo"ing !he e8onen!ial gro"!h over !he las!decade$ marke! ene!ra!ion has increased !o ;9

!elehone connec!ions er /.. eole&• ,road#and in!erne! 'sage remains lo"$ "i!h only

/-&9 million 'sers in a co'n!ry of nearly /&- #illioneole&

•

The -./. governmen! a'c!ion of


8/25

:AC;6ROam'le o, &o% t&e$i#&t combination o, ne% tec&nolo#y. inno"ation. an!u''o$ti"e #o"e$nment 'olicie! can t$an!,o$m a !ecto$&

• Thro'gh !he ind's!ry5s s'ccess$ Inia’! la$#e con!ume$ ma$=et'otential %a! boo!te. att$actin# in"e!tment! into !e"e$alot&e$ !ecto$! o, t&e economy)



9/25

• >o"ever$ in!ense come!i!ion for marke! share eroded !he ind's!ry5s ro4!a#ili!y&Aggressive #idding for sec!r'm made i! di?c'l! !o main!ain rices a! as's!aina#le level and !he "ave of corr'!ion scandals involving senior governmen!o?cials has dimmed !he ind's!ry5s l's!re in recen! years& @i!h !his$ rela!ivelyyo'ng comanies con!in'e !o lose money& Never!heless$ !he %ndian

comm'nica!ions services marke! remains one of !he fas!es! gro"ing and !he mos!come!i!ive any"here in !he "orld&

•

The !ransforma!ion of !he %ndian !elecom sec!or and !he imac! i! had on !he livesof ordinary %ndians have #een almos! mirac'lo's& %n !he no! !oo dis!an! as!$ a!elehone connec!ion "as a l'8'ry for mos! %ndians& Since governmen!)o"nedcomanies had a monooly$ only !he a'en! and !he oli!ically)allied co'ld ge! a

connec!ion on demand& O!hers had !o "ai! for mon!hs or even years and of!enresor!ed !o #ri#ing !elehone comany emloyees !o make a call& @hen !hey4nally had a connec!ion$ callers "ere !yically #'rdened "i!h high call ra!es anderra!ic service&



10/25

• The con!ras! !o !he resen! day can hardly #e "ider& %ndia is !hefas!es! gro"ing marke! in !he "orld no"&

• @hile !he ace of gro"!h has slo"ed do"n$ i! is s!ill a#ove !hegro"!h ra!es in o!her large marke!s& @i!h nearly 0.. million 'sers

across !he co'n!ry$ %ndia is no" second only !o China in !o!aln'm#er of !elehone connec!ions&

• @i!h several service roviders even in r'ral marke!s$ %ndiancons'mers are soil! for choice& EB'imen! availa#ili!y andservice relia#ili!y are comara#le !o any develoed marke!$ "hile

!he call ra!es are !he lo"es! in !he "orld&• @i!h ra!es as lo" as a enny er min'!e and free incoming calls$

even !he lo"es! income gro's in %ndia can a(ord cell'lar!elehones no"& On !heir mo#ile hones !hey no" have access !oservices like #anking and real !ime informa!ion on rices of farmrod'ce&



11/25

E"olution an e>'an!ion

• The seeds of !he comm'nica!ions revol'!ion in %ndia"ere so"n in !he mid)nine!ies "hen !he governmen!allo"ed riva!e 4rms !o o(er mo#ile !elehone services&

• The /$!t licen!e! %e$e i!!ue in 1? for !he =larges! ci!ies$ follo"ed #y / o!her geograhies #y /00&

Tho'gh foreign o"nershi "as res!ric!ed !o =0: in !hese4rms$ many large foreign !elecomm'nica!ion comanies

ar!nered "i!h %ndian comanies !o en!er !he marke!&>o"ever$ high call ra!es and reg'la!ory res!ric!ionslimi!ed gro"!h for several years& 3r's!ra!ed #y !he slo"

gro"!h and large 4nancial cos!s$ mos! foreign comaniese8i!ed !he marke!&



12/25


• The reg'la!ions "ere f'r!her eased in -..


13/25


• The high degree of innova!ion #y !he service roviders also layed a fair ar! in!u!tainin# t&e boom in Inia& Mos! large !elecom comanies out!ou$ce almos! all of!heir ne!"ork and o!her infras!r'c!'re$ !o ins!ead concen!ra!e on marke!ing and c's!omers'or!&

• %ns!ead of in"e!tin# la$#e amount! o, ca'ital in t&ei$ o%n in,$a!t$uctu$e$ !he

!elecom carriers ay !he eB'imen! vendors$ "ho #'ild$ o"n$ and oera!e !he ne!"ork$#ased on ac!'al 'sage&

• This !rend oened ' !i#ni/cant o''o$tunitie! ,o$ #lobal equi'ment manu,actu$e$!li=e No=ia an E$ic!!on. be!ie! tec&nolo#y !e$"ice '$o"ie$! li=e I:* &

• %ndian service roviders no" also !&a$e in,$a!t$uctu$e like !ransmission !o"ers$ "hichhels !hem e8and !o ne" !erri!ories B'ickly and manage cos!s #e!!er&

• A!!rac!ed #y !he oor!'ni!y$ ine'enent t$an!mi!!ion to%e$ o'e$ato$! have alsoen!ered !he marke!&

• Also$ !he ,a!t e>'anin# ma$=et ,o$ mobile &an!et! att$acte #lobalmanu,actu$e$! to Inia) Inia i! no% t&e !econ la$#e!t manu,actu$in# ba!e ,o$No=ia$ "hich remains !he glo#al leader in mo#ile !elehone handse!s& More recen!ly$selec! domes!ic handse! man'fac!'rers have gained marke! share #y o(ering a!!rac!ivelyriced rod'c!s !o val'e)conscio's #'yers&



14/25

Com'etition an Cont$o"e$!ie! 7

• The high gro"!h ra!es enco'raged !he governmen! !o allo" even more service roviders !o en!er!he ind's!ry&

• %n -..$ t&e Inian #o"e$nment a%a$e licen!e! to !e"e$al ne% com'anies$ oening ' anoor!'ni!y for #lobal com'anie! to #ain a ,oot&ol in t&e ma$=et& Telenor of Nor"ay$ Sis!emaof R'ssia$ and E!isala! of !he AE B'ickly acB'ired maFori!y con!rol of ne" license holders and

la'nched services&• To gra# marke! share$ !he ne" en!ran!s la'nched !heir !e$"ice! at att$acti"e '$ice 'oint!& @hen

!he more es!a#lished layers resonded "i!h rice c'!s of !heir o"n$ i! #le" ' in!o a ,ull-@e#e'$ice %a$)

• The #$o%t& in !ub!c$ibe$ aition! !lo%e. t&e '$o/t ma$#in! o, e"en t&e mo!te!tabli!&e com'anie! in t&e inu!t$y ecline an lo!!e! 'ile u' ,o$ t&e ne%com'anie!& Stoc= '$ice! of !elecom comanies$ "hich "ere inves!or favori!es for several years.!ta$te to une$'e$,o$m&

•

• Even more damaging "ere t&e co$$u'tion !canal! t&at ,ollo%e& %n 2010. !he governmen!invi!ed alica!ions from e8is!ing service roviders for licen!in# aitional telecom !'ect$um,o$ '$o"iin# &i#&-en 36 !e$"ice!) %n a devia!ion from i!s earlier rac!ice of />e '$icin# ,o$ai$%a"e !'ect$um$ !he governmen! decided !o #i"e out t&e ne% licen!e! on t&e ba!i! o, acom'etiti"e auction& The rices B'o!ed #y !he #idders "ere !e"e$al time! &i#&e$ !han !he 48edrice gran!ed revio'sly #y !he governmen! for older licenses$ incl'ding F's! a year #efore in -..0&



15/25


16/25

See=in# #$o%t& o"e$!ea!

• As !he home)gro"n %ndian !elecom comanies gained in si+eand reali+ed !ha! !he s'#scri#er gains in !he domes!ic marke!"o'ldn5! las! forever$ !hey s!ar!ed searching for oor!'ni!ies

in overseas marke!s !ha! "ere 'nderdeveloed&• ,har!i Air!el s!ar!ed o(ering services in Sri Lanka and

,angladesh$ #'! !hose marke!s "ere rela!ively small& 3orcomanies seeking large 'n!aed marke!s$ Africa "as !hemos! o#vio's des!ina!ion as !he !elecom ind's!ry in !ha!

con!inen! "as rela!ively less develoed and o(ered gro"!hoor!'ni!ies&

• Ta!a Comm'nica!ions "as !he 4rs! !o ven!'re in!o Africa "i!h arela!ively small #'siness in o(ering 48ed line services in So'!hAfrica&



17/25

utu$e #$o%t& o''o$tunitie!

• Af!er several B'ar!ers of #loodle!!ing$ !he ind's!ry has reali+ed !ha! !he rice "ars canno!#e s's!ained inde4ni!ely$ as !hey "o'ld h'r! #o!h !he es!a#lished layers and !hechallengers&

• As a res'l!$ call ra!es have grad'ally s!ar!ed moving ' higher& Some of !he es!a#lishedcarriers have seen an imrovemen! in ro4!a#ili!y$ !ho'gh !he call vol'mes con!in'e !o

!rend lo"er& Tho'gh none of !he ne" en!ran!s are as ye! ro4!a#le$ !heir losses are'nlikely !o "orsen any f'r!her&

• A! !he same !ime$ i! may #e di?c'l! for !he smaller layers !o s'rvive in !he long)r'n andi! is ossi#le !ha! some may #e acB'ired #y !he larger carriers& This is 'nlikely in !he shor!!erm as !he c'rren! reg'la!ions and licensing condi!ions res!ric! mergers and acB'isi!ionsin !he ind's!ry&

• 3or ins!ance$ c'rren! r'les do no! ermi! *

) a carrier !o have more !han a =.: marke! share in any of !he co'n!ry5s -- !elecomregions&

) 3'r!her$ no !elecom carrier can hold more !han /.: eB'i!y s!ake in ano!her comany in!he same region&

>o"ever$ if !he governmen! acce!s !he recen! roosals #y !he Telecom Reg'la!oryA'!hori!y of %ndia 1TRA%2$ !hese r'les "ill #ecome less res!ric!ive and enco'rageconsolida!ion in !he !elecom sec!or&



18/25

• 3or f'!'re gro"!h$ !he ind's!ry is #anking on &i#& "alue 36 anata !e$"ice! !ha! fe!ch higher reven'es er 'ser and are morero4!a#le& Tho'gh 'ecte to bia##$e!!i"ely)

•



19/25

• Ano!her segmen! !ha! o(ers signi4can! gro"!h o!en!ial is inte$net b$oaban !e$"ice!&7esi!e %ndia5s glo#al re'!a!ion as a tec&nolo#y !e$"ice! 'o%e$&ou!e. b$oabaninte$net !e$"ice! a$e not a! 'o'ula$& The services availa#le !o re!ail cons'mers have lo"connec!ions seeds and are of oor B'ali!y& Several comanies are #e!!ing !ha! increaseddemand for online m'l!imedia "ill lead !o signi4can! gro"!h in !his sace$ if higher B'ali!y

services are rovided a! a(orda#le rice oin!s&

• The #idding for =G "ireless #road#and licenses in -./. "ere no less aggressive !han !ha! for


20/25

• The Na!ional Telecom Policy -./- 1NTP-./-2 is concei"e a#ain!t t&i!

bac=$o'& The vision is !o !ransform!he co'n!ry in!o an emo"ered andincl'sive kno"ledge)#ased socie!y$'sing !elecomm'nica!ions as ala!form&



21/25

• No!"i!hs!anding !he economic rogress over !he las! decade$ !hei#ital i"ie in t&e count$y continue! to be !i#ni/cant)

• On !he one hand$ e8ansion of !elecomm'nica!ions in !he $u$ala$ea! &a! been !lo%e$ t&an u$ban a$ea!. "i!h !he former

acco'n!ing for only 35 o, t&e total connection!&• On !he o!her$ !he ability o, t&e 'oo$e$ !ection! o, t&e

!ociety. bot& in $u$al an u$ban a$ea!. to bene/t ,$omtec&nolo#y nee! to be en&ance)

• NTP)-./- has !he vision Broadband on Demand and

envisages leveraging telecom infrastructure to enable allcitizens and businesses, both in rural and urban areas, to

participate in the Internet and web economy therebyensuring equitable and inclusive development across thenation.



22/25

• Telecomm'nica!ions is no longer limi!ed !o voice& The evol'!ionfrom analog !o digi!al !echnology has facili!a!ed !he conversion ofvoice$ da!a and video !o !he digi!al form& %ncreasingly$ !hese areno" #eing rendered !hro'gh single ne!"orks #ringing a#o'! a

convergence in ne!"orks$ services and also devices&• Th's$ !he olicy aims !o address and ena#le !he coordina!ed

ac!ion !o resond !o !he dynamic needs res'l!ing from conH'enceof !elecom$ #roadcas!ing and %T sec!ors&

• Given !he con!in'ed redominan! role of "ireless !echnologies in

delivery of services in %CT sec!or$ NTP)-./- incorora!esframe"ork for inc$ea!in# t&e a"ailability o, !'ect$um ,o$telecom !e$"ice! incl'ding !rile lay services 1voice$ video andda!a2 for "hich b$oaban i! t&e =ey $i"e$) This "ill #efacili!a!ed #y deloymen! of services !hro'gh aroria!eins!r'men!ali!ies$ "hile safeg'arding na!ional in!eres!s&



23/25

• Once a mere comm'nica!ion device$ !he Telehonehas no" !he o!en!ial of #eing an ins!r'men! ofemo"ermen!& There is need !o reorien! !he

!elecomm'nica!ion olicy& This vision is madeossi#le !hro'gh '#iB'i!o's ne!"ork connec!ivi!yof mo#ile !echnology$ #road#and %n!erne!$ 4#reene!ra!ion in all villages$ high)!echnology lo")cos!a(orda#le devices and sof!"are sol'!ions "hichena#le elec!ronic access !o service& A 'niB'eAA7>AR #ased elec!ronic a'!hen!ica!ionframe"ork "o'ld #e in!egral ar! of rovidingservice !o !he eole&



24/25

• A concer!ed e(or! !o #oos! man'fac!'ring ac!ivi!y is no"e8igen! as ro#'s! economic gro"!h in !he co'n!ry is leading!o an e8!raordinarily high demand for elec!ronic rod'c!s ingeneral and !elecom rod'c!s in ar!ic'lar& NTP)-./-

rovides a roadma for %ndia !o #ecome a leader in c'!!ingedge$ s!a!e of !he ar! !echnologies !hro'gh RI7 and crea!ionand incorora!ion of %ndian %PRs in glo#al s!andards&

• NTP)-./- recognises !ha! !he raid gro"!h in !he !elecomsec!or reB'ires !o #e s'or!ed #y an enhanced ace of

h'man cai!al forma!ion and caaci!y #'ilding& %! #ecomesimera!ive !o '! in lace an in!egra!ed skill develomen!s!ra!egy for !he converged %CT sec!or as a "hole so !ha!!here is con!in'o's ')grada!ion of skills in !'ne "i!h !he!echnological develomen!s&



25/25

• NTP)-./- recognises !he imor!ance of crea!ion of !he ro#'s! and resilien! !elecom ne!"orks foradeB'a!ely addressing !he need for roac!ive s'or! for mi!iga!ing disas!ers$ na!'ral and man made&

• BISION

• To '$o"ie !ecu$e. $eliable. a(o$able an &i#& quality con"e$#e telecommunication!e$"ice! anytime. any%&e$e ,o$ an accele$ate inclu!i"e !ocio-economic e"elo'ment)

• *ISSION

•

O:ECTIBES• STRATE6IES

• RD

• LICENSIN6

• SPECTR

Telecom Mar13

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