TELECOM SECTOR IN INDIA

Presented by :Soumil Agarwal (J001)Abhishek Jain (J009)

Aayush Maheshwari (J015)Rohan Nagpal (J019)

Brief Introduction■ India – second largest telecom market in the world■ Telecom Regularity Authority of India (TRAI) – Regulator of telecom sector in

India■ In FY 2013-14, telecom sector contributed in GDP - ₹4.29 lakh crore (US$64

billion)■

■ There are various telecom service providers, private as well as public sector undertaking (PSU).

Total Mobile Fixed Line0

200

400

600

800

1000

1200 1059.29 1034.25

25.04

Subscribers April '16in

Mill

ions

Overall Urban Rural0

20

40

60

80

100

120

140

160

83.32

153.14

51.67

Teledensity April '16

in P

erce

ntag

e

According to the TRAI Press Release No. 49/2016, here is the highlights of telecom subscription data as on 30 th April, 2016.

Growing Market■ One major factor of growing market – Government liberal and reformist

policies■ According to BRICS – • Market is likely to grow by 10.3 per cent per year in order to reach US $103.9

billion by 2020• Sector is also expected to generate over 4 million direct and indirect jobs over

a span of next 5 years■ According to DIPP (Department of Industrial Policy and Promotion) –• Industry has also attracted FDI worth US $18.38 billion between 2000 April

and 2016 March■ Growth in number of 4G enables smartphones shipped to India - the figure

went up from 32 per cent of 100 million in 2015 to about 72 per cent of the 120 million this year.

■ On September 1st , 2016, world’s biggest startup with investment of ₹1,50,000 crores, Reliance Jio Infocomm Limited (RJIL) was launched by the Chairman Mr. Mukesh Ambani.

■ Jio has created vast employment and it has nearly 50,00,000 family members across India

■ Jio also launched its own 4G enabled smartphones in the branding name LYF with prices starting from ₹2,999 to ₹5,999

Impact of Jio on other Operators1. During the launch of Jio • Cheapest 4G tariff plans

• Free 3 months introductory period offer• Free subscription to Jio apps worth

₹15,000 per year• Free Voice Calls for lifetime• Largest 4G network• Target to achieve 90% Indian population

by March 17

■ 2. Goldman Sachs, leading global investing firm expects Jio to garner 35 million subscribers over the next two years, with data volume growth for incumbents slowing to 50 percent in FY17 from 70 percent in FY16.

■ 3. KINSITE, Kotak Institutional Equities’ Network, lowered their FY17-18 Ebitda (operating profit) by 3-5% for Bharti Airtel and by 2-4% for Idea Cellular and earnings estimates by 9-16% for Bharti Airtel and by 13-19% for Idea cellular.

■ 4. Other Operators are merging together

Impact of Jio on other Operators

■ 5. With the cheapest tariff plans, Jio has pressurized other incumbents to lower the prices of their tariff plans as customer will choose the cheapest plan.Airtel and Vodafone also launched plans in competition of Jio which offering more data in less money.

Impact of other Operators on Jio

Source: http://www.ibtimes.co.in/reliance-jio-accuses-airtel-vodafone-idea-rejecting-mnp-requests-693913

1. Call Failures

2. MNP Rejections

Source: http://economictimes.indiatimes.com/news/economy/policy/jio-call-drop-rate-is-unacceptable-says-trai/articleshow/54534086.cms

Impact of other Operators on Jio3. Jio and BSNL Deal

Source: http://economictimes.indiatimes.com/news/economy/policy/jio-call-drop-rate-is-unacceptable-says-trai/articleshow/54534086.cms

TRAI Actions

Source: http://gadgets.ndtv.com/telecom/news/call-drops-trai-to-issue-notice-to-warring-telecom-operators-1466653 ■ Due to higher call failures between Jio and other

operators, TRAI issued notice to warn telecom operators.

■ Chief Justice of Delhi High Court ordered a penalty order to three incumbent operators.

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Source: http://www.ndtv.com/india-news/fine-airtel-vodafone-idea-rs-9-900-crore-for-jio-call-drop-former-high-court-justice-1466813

India’s Largest Spectrum Auction

Source: http://economictimes.indiatimes.com/news/company/corporate-trends/indias-biggest-ever-spectrum-auction-kicks-off-today/articleshow/54617881.cms

Source: http://indianexpress.com/article/technology/tech-news-technology/spectrum-auction-reliance-jio-airtel-idea-vodafone-3059467/

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