SlideShare une entreprise Scribd logo
1  sur  17
Télécharger pour lire hors ligne
INTRODUCTION

       The Indian telecommunication industry, with about 600.69 million mobile phone
connections as of February 2010, is the third largest telecommunication network in the world
and the second largest in terms of number of wireless connections of 563.73 million. The
Indian telecom industry is one of the fastest growing in the world and is projected that India
will have 'billion plus' mobile users by 2015. Projection by several leading global
consultancies is that India’s telecom network will overtake China’s in the next 10 years. For
the past decade or so, telecommunication activities have gained momentum in India. Efforts
have been made from both governmental and non-governmental platforms to enhance the
infrastructure. The idea is to help modern telecommunication technologies to serve all
segments of India’s culturally diverse society, and to transform it into a country of
technologically aware people.

EVOLUTION OF THE INDUSTRY AND MILESTONES
WIRELESS SERVICES IN INDIA

       The Mobile telecommunications system in India is the second largest in the world and
it was thrown open to private players in the 1990s. The country is divided into multiple
zones, called circles (roughly along state boundaries). Government and several private
players run local and long distance telephone services. Competition has caused prices to drop
and calls across India are one of the cheapest in the world. The rates are supposed to go down
further with new measures to be taken by the Information Ministry. The mobile service has
seen phenomenal growth since 2000. In September 2004, the numbers of mobile phone
connections have crossed fixed-line connections. India primarily follows the GSM mobile
system, in the 900 MHz band. Recent operators also operate in the 1800 MHz band. The
dominant players are Airtel, Aircel Uninor, Reliance Infocomm, Vodafone, Idea cellular and
BSNL/MTNL. There are many smaller players, with operations in only a few states.
International roaming agreements exist between most operators and many foreign carriers.


Major players and their market share




WIRELINE SERVICES IN INDIA

Landline service in India is primarily run by BSNL/MTNL and Reliance Infocomm though
there are several other private players too, such as Touchtel and Tata Teleservices. Landlines
are facing stiff competition from mobile telephones. The competition has forced the landline
services to become more efficient. The landline network quality has improved and landline
connections are now usually available on demand, even in high density urban areas. The
breakup of wireline market share in India as of february 2010 is given below.




MAJOR PLAYERS IN INDIAN TELECOMMUNICATION INDUSTRY

BSNL

       Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation
Limited) is a state-owned telecommunication company in India. BSNL is the sixth largest
cellular service provider, with over 57.22 million customers as of December 2009 and the
largest land line telephone provider in India. Its headquarters are at Bharat Sanchar Bhawan,
Harish Chandra Mathur Lane, Janpath, New Delhi. It has the status of Mini Ratna, a status
assigned to reputed public sector companies in India.

BSNL is India's oldest and largest Communication Service Provider (CSP). Currently has a
customer base of 90 million as of June 2008. It has footprints throughout India except for the
metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As on March
31, 2008 BSNL commanded a customer base of 31.55 million Wireline, 4.58 million CDMA-
WLL and 54.21 million GSM Mobile subscribers. BSNL's earnings for the Financial Year
ending March 31, 2009 stood at INR 397.15b (US$7.03 billion) with net profit of INR 78.06b
(US$ 1.90 billion). BSNL has an estimated market value of $ 100 Billion. The company is
planning an IPO within 6 months to offload 10% to public in the Rs 300-400 range valuing
the company at over $100 billion.

BHARTI

       Bharti Airtel formerly known as Bharti Tele-Ventures LTD (BTVL) is the largest
cellular service provider in India, with more than 124 million subscribtions as of February
2010. With this, Bharti is now world’s third-largest, single-country mobile operator and
sixth-largest integrated telecom operator. It also offers fixed line services and broadband
services. It offers its TELECOM services under the Airtel brand and is headed by Sunil
Bharti Mittal. The company also provides telephone services and broadband Internet access
(DSL) in top 95 cities in India. It also acts as a carrier for national and international long
distance communication services. The company has a submarine cable landing station at
Chennai, which connects the submarine cable connecting Chennai and Singapore.

It is known for being the first mobile phone company in the world to outsource everything
except marketing and sales. Its network operations are provided by Ericsson, business support
by IBM and transmission towers by another company. Ericsson agreed for the first time, to be
paid by the minute for installation and maintenance of their equipment rather than being paid
up front. This enables the company to provide pan-India phone call rates of Rs. 1/minute
(U$0.02/minute).

The businesses at Bharti Airtel have always been structured into three individual strategic
business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise Services.
The mobile business provides mobile & fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband &
telephone services in 95 cities and has recently launched a Direct-to-Home (DTH) service,
Airtel Digital TV.

VODAFONE

       Vodafone Essar, formally known as Hutchison Essar is a cellular operator in India
that covers 23 telecom circles in India based in Mumbai. Vodafone Essar is owned by
Vodafone 67% and Essar Group 33%. It is the second largest mobile phone operator in terms
of revenue behind Bharti Airtel, and third largest in terms of customers.
On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li
Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications,
Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole
company was valued at USD 18.8 billion. The transaction closed on May 8, 2007. Despite the
official name being Vodafone Essar, its products are simply branded Vodafone. It offers both
prepaid and postpaid GSM cellular phone coverage throughout India with good presence in
the metros.

Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 23 of the country's 23 licence areas. It is
among the top three GSM mobile operators of India.




RELIANCE

       Reliance Communications, formerly known as Reliance Infocomm, along with
Reliance Telecom and Flag Telecom, is part of Reliance Communications Ventures
(RCoVL).Reliance Communications Limited founded by the late Shri Dhirubhai H Ambani
(1932-2002) is the flagship company of the Reliance Anil Dhirubhai Ambani Group. The
Reliance Anil Dhirubhai Ambani Group currently has a net worth in excess of Rs. 64,000
crore (US$ 13.6 billion), cash flows of Rs. 13,000 crore (US$ 2.8 billion), net profit of Rs.
8,400 crore (US$ 1.8 billion).The Equity Shares of RCOM are listed on Bombay Stock
Exchange Limited and National Stock Exchange Limited. The Global Depository Receipts
and Foreign Currency Convertible Bonds are listed on Luxembourg Stock Exchange and
Singapore Stock Exchange respectively.

TATA TELESERVICES

       Tata Teleservices is part of the Tata Group. Tata Teleservices spearheads the Group’s
presence in the telecom sector. Incorporated in 1996, Tata Teleservices was the first to launch
CDMA mobile services in India with the Andhra Pradesh circle.

The company acquired Hughes Telecom (India) Limited [now renamed Tata Teleservices
(Maharashtra) Limited] in December 2002. With a total Investment of Rs 19,924 Crore, Tata
Teleservices has created a Pan India presence spread across 20 circles that includes Andhra
Pradesh, Chennai, Gujarat, J & K, Karnataka, Delhi, Maharashtra, Mumbai, North East,
Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh
(E), Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh and West Bengal.

Having pioneered the CDMA 3G1x technology platform in India, Tata Teleservices has
established 3G ready telecom infrastructure. It partnered with Motorola, Ericsson, Lucent and
ECI Telecom for the deployment of its telecom network.

The company is the market leader in the fixed wireless telephony market with a total
customer base of over 3.8 million.

Tata Teleservices’ bouquet of telephony services includes Mobile services, Wireless Desktop
Phones, Public Booth Telephony and Wireline services. Other services include value added
services like voice portal, roaming, post-paid Internet services, 3-way conferencing, group
calling, Wi-Fi Internet, USB Modem, data cards, calling card services and enterprise services.
Some of the other products launched by the company include prepaid wireless desktop
phones, public phone booths, new mobile handsets and new voice & data services such as
BREW games, Voice Portal, picture messaging, polyphonic ring tones, interactive
applications like news, cricket, astrology, etc.

Tata Indicom "Non Stop Mobile" allow pre-paid cellular customers to receive free incoming
calls.

Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limited have a
subscriber base of 36 million customers (as of April 2009) in more than 5,000 towns. Tata
Teleservices has also acquired GSM licenses for specific circles in India.

Tata Telelservices is an unlisted entity. Tata Group and group firms own the majority of the
company; NTT docomo holds 26% while investor C. Sivasankaran holds 8%.

IDEA

         Idea Cellular is a wireless telephony company operating in all the 22 telecom circles
in India based in Mumbai. It is the 3rd largest GSM Company in India behind Airtel and
Vodafone and ahead of state run player BSNL.

In 2000, Tata Cellular was a company providing mobile services in AP. When Birla-AT&T
brought Maharashtra and Gujarat to the table, the merger of these two entities was a reality.
Thus Birla-Tata-AT&T, popularly known as Batata, was born. In 2001, the Batata triumvirate
agreed to merge its operations with the Rajeev Chandrasekhar promoted BPL
Communications. The merger could have brought in regions like Mumbai, Maharashtra,
Kerala and Tamil Nadu, which seemed to be a perfect accompaniment to what it already had.
This was critical with the bid for the fourth operator licence round the corner. However, the
engagement with BPL was broken. Then Idea set sights on RPG’s operations in Madhya
Pradesh which was successfully acquired, helping Batata have a million subscribers, and the
licence to be the fourth operator in Delhi was clinched. In 2004, Idea (the company had by
then been rechristened) bought over the Escorts group’s Escotel gaining Haryana, Uttar
Pradesh (West) and Kerala — and licences for three more — UP (East), Rajasthan and
Himachal Pradesh. By the end of that year, four million Indians were on the company’s
network. In 2005, AT&T sold its investment in Idea, and the year after Tatas also bid good
bye to pursue an independent telecom business. And Idea was left only with one promoter,
the AV Birla group when the company’s stock listed on the bourses in March 2007, its
subscriber base was 13 million with presence in 11 circles. In less than three years, the
subscriber numbers have more than quadrupled. The public issue was oversubscribed 50
times and raised Rs 2,450 crore. In June 2008, Idea Cellular bought out BK Modi’s stake in
Spice Communications for Rs 2,700 crore adding Punjab and Karnataka circles. Modi’s joint
venture partner, Telekom Malaysia, invested Rs 7,000 crore for a 14.99% stake in Idea. Just
around then, Idea’s subsidiary, Aditya Birla Telecom sold a 20% stake to US-based
Providence Equity Partners for over Rs 2,000 crore.

The company has its retail outlets under the "Idea n' U" banner. The company has also been
the first to offer flexible tariff plans for prepaid customers. It also offers GPRS services in
urban areas.

Idea Cellular won the GSM Association Award for "Best Billing and Customer Care
Solution" for 2 consecutive years.

AIRCEL

       Aircel is a mobile phone service provider in India. It offers both prepaid and postpaid
GSM cellular phone coverage throughout India. Aircel is a joint venture between Maxis
Communications of Malaysia and Apollo Hospital Enterprise Ltd of India. Maxis has a 74%
stake in Aircel and the remaining 26% is with Apollo Hospitals. It is India’s fifth largest
GSM mobile service provider with a subscriber base of over 27.7 million, as of October 31,
2009. It has a market share of 12.8% among the GSM operators in the country. As on date,
Aircel is present in 18 of the total 23 telecom circles (including Andhra Pradesh, Assam,
Bihar & Jharkhand, Chennai, Delhi & NCR, Himachal Pradesh, Jammu & Kashmir,
Karnataka, Kerala, Kolkata, Mumbai, North East, Orissa, Rest of Maharashtra & Goa, Rest of
Tamil Nadu, Rest of West Bengal, Uttar Pradesh East, Uttar Pradesh West) and with licences
secured for the remaining 5 telecom circles, the company plans to become a pan-India
operator by 2010. Additionally, Aircel has also obtained permission from Department of
Telecommunications (DoT) to provide International Long Distance (ILD) and National Long
Distance (NLD) telephony services. It is also a category A ISP. It is also having the largest
service in Tamil Nadu.

MTS INDIA

       MTS India, is a brand owned by Sistema Shyam TeleServices (SSTL). SSTL is a joint
venture company between Sistema {LSE-SSA} of Russia and Shyam Group of India.
Sistema is the majority share holder in this joint venture with a 73.71% equity stake, along
with the Shyam Group, holding a 23.79% stake and the rest 2.5% being public partake. SSTL
has the spectrum to provide mobile telephony services in all the 48 circles across the country.
Presently SSTL offers mobile telephony services in the Bihar-Jharkhand, Delhi, Haryana,
Karnataka, Kerala, Kolkata

Maharashtra (Pune), Mumbai, Rajasthan, Tamil Nadu and West Bengal circles. In a recent
development, SSTL tied up with Mobile TeleSystems OJSC of Russia to bring the globally
acclaimed telecom brand-MTS-to India. MTS is the 8th largest telecom brand in the world
and has recently been voted the 71st ranked brand out of the 100 top global brands in the
world by Millward Brown.
TELECOM POLICY ENIVIRONMENT IN INDIA

Liberalization

       The process of liberalization in the country began in the right earnest with the
announcement of the New Economic Policy in July 1991. Telecom equipment manufacturing
was de-licensed in 1991 and value added services were declared open to the private sector in
1992, following which radio paging, cellular mobile and other value added services were
opened gradually to the private sector. This has resulted in large number of manufacturing
units been set up in the country. As a result most of the equipment used in telecom area is
being manufactured within the country. A major breakthrough was the clear enunciation of
the government’s intention of liberalizing the telecom sector in the National Telecom Policy
resolution of 13th May 1994.

National Telecom Policy 1994

       In 1994, the Government announced the National Telecom Policy which defined
certain important objectives, including availability of telephone on demand, provision of
world class services at reasonable prices, improving India’s competitiveness in global market
and promoting exports, attractive FDI and stimulating domestic investment, ensuring India’s
emergence as major manufacturing / export base of telecom equipment and universal
availability of basic telecom services to all villages. It also announced a series of specific
targets to be achieved by 1997.

Telecom Regulatory Authority of India (TRAI)

       The entry of private service providers brought with it the inevitable need for
independent regulation. The Telecom Regulatory Authority of India (TRAI) was, thus,
established with effect from 20th February 1997 by an Act of Parliament, called the Telecom
Regulatory Authority of India Act, 1997, to regulate telecom services, including
fixation/revision of tariffs for telecom services which were earlier vested in the Central
Government.

TRAI’s mission is to create and nurture conditions for growth of telecommunications in the
country in manner and at a pace, which will enable India to play a leading role in emerging
global information society. One of the main objectives of TRAI is to provide a fair and
transparent policy environment, which promotes a level playing field and facilitates fair
competition. In pursuance of above objective TRAI has issued from time to time a large
number of regulations, orders and directives to deal with issues coming before it and
provided the required direction to the evolution of Indian telecom market from a Government
owned monopoly to a multi operator multi service open competitive market. The directions,
orders and regulations issued cover a wide range of subjects including tariff, interconnection
and quality of service as well as governance of the Authority.

The TRAI Act was amended by an ordinance, effective from 24 January 2000, establishing a
Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT) to take over the
adjudicatory and disputes functions from TRAI. TDSAT was set up to adjudicate any dispute
between a licensor and a licensee, between two or more service providers, between a service
provider and a group of consumers, and to hear and dispose of appeals against any direction,
decision or order of TRAI.

New Telecom Policy 1999

       The most important milestone and instrument of telecom reforms in India is the New
Telecom Policy 1999 (NTP 99). The New Telecom Policy, 1999 (NTP-99) was approved on
26th March 1999, to become effective from 1st April 1999. NTP-99 laid down a clear
roadmap for future reforms, contemplating the opening up of all the segments of the telecom
sector for private sector participation. It clearly recognized the need for strengthening the
regulatory regime as well as restructuring the departmental telecom services to that of a
public sector corporation so as to separate the licensing and policy functions of the
Government from that of being an operator. It also recognized the need for resolving the
prevailing problems faced by the operators so as to restore their confidence and improve the
investment climate.

Key features of the NTP 99 include:

   •   Strengthening of Regulator.

   •   National long distance services opened to private operators.

   •   International Long Distance Services opened to private sectors.
•   Private telecom operators licensed on a revenue sharing basis, plus a one-time entry
         fee. Resolution of problems of existing operators envisaged.

   •   Direct interconnectivity and sharing of network with other telecom operators within
         the service area was permitted.

   •   Department of Telecommunication Services (DTS) corporatised in 2000.

   •   Spectrum Management made transparent and more efficient.

All the commitments made under NTP 99 have been fulfilled; each one of them, in letter and
spirit, some even ahead of schedule, and the reform process is now complete with all the
sectors in telecommunications opened for private competition.

Internet Service Providers (ISPs)

       Internet service was opened for private participation in 1998 with a view to encourage
growth of Internet and increase its penetration. The sector has seen tremendous technological
advancement for a period of time and has necessitated taking steps to facilitate technological
ingenuity and provision of various services. The Government in the public interest in general,
and consumer interest in particular, and for proper conduct of telegraph and telecom services
has decided to issue the new guidelines (Details) for grant of licence of Internet services on
non-exclusive basis. Any Indian company with a maximum foreign equity of 74% is eligible
for grant of licence.

Broadband Policy 2004

       Recognizing the potential of ubiquitous Broadband service in growth of GDP and
enhancement in quality of life through societal applications including tele-education, tele-
medicine, e-governance, entertainment as well as employment generation by way of high-
speed access to information and web based communication; Government has announced
Broadband Policy in October 2004. The main emphasis is on the creation of infrastructure
through various technologies that can contribute to the growth of broadband services. These
technologies include optical fibre, Asymmetric Digital Subscriber Lines (ADSL), cable TV
network; DTH etc. Broadband connectivity has been defined as “ Always On” with the
minimum speed of 256 kbps. It is estimated that the number of broadband subscribers would
be 20 million by 2010. With a view to encourage Broadband Connectivity, both outdoor and
indoor usage of low power Wi-Fi and Wi-Max systems in 2.4 GHz-2.4835 GHz band has
been delicensed. The use of low power indoor systems in 5.15-5.35 GHz and 5.725-5.875
GHz bands has also been delicensed in January 05. The SACFA/WPC clearance has been
simplified. The setting up of National Internet Exchange of India (NIXI) would enable
bringing down the international bandwidth cost substantially, thus making the broadband
connectivity more affordable.

The prime consideration guiding the Policy includes affordability and reliability of
Broadband services, incentives for creation of additional infrastructure, employment
opportunities, induction of latest technologies, national security and brings in competitive
environment so as to reduce regulatory interventions.




By this new policy, the Government intends to make available transponder capacity for
VSAT services at competitive rates after taking into consideration the security requirements.
The service providers permitted to enter into franchisee agreement with cable TV network
operators. However, the Licensee shall be responsible for compliance of the terms and
conditions of the licence. Further in the case of DTH services, the service providers permitted
to provide Receive-Only-Internet Service. The role of other facilitators such as electricity
authorities, Departments of ITs of various State Governments, Departments of Local Self
Governments, Panchayats, Departments of Health and Family Welfare, Departments of
Education is very important to carry the advantage of broadband services to the users
particularly in rural areas.

Target has been set for 20 million broadband connections by 2010 and providing Broadband
connectivity to all secondary and higher secondary schools, public health institutions and
panchayats by 2010.

In rural areas, connectivity of 512 KBPS with ADSL 2 plus technology (on wire) will be
provided from about 20,000 existing exchanges in rural areas having optical fibre
connectivity.    Community Service Centres, secondary schools, banks, health centres,
Panchayats, police stations etc. can be provided with this connectivity in the vicinity of
above-mentioned 20,000 exchanges in rural areas. DOT will be subsidizing the infrastructure
cost of Broadband network through support from USO Fund to ensure that Broadband
services are available to users at affordable tariffs.
Tariff Changes

    The Indian Telecom Sector has witnessed major changes in the tariff structure. The
Telecommunication Tariff Order (TTO) 1999, issued by regulator (TRAI), had begun the
process of tariff balancing with a view to bring them closer to the costs. This supplemented
by Calling Party Pay (CPP), reduction in ADC and the increased competition, has resulted in
a dramatic fall in the tariffs. ADC has been abolished for all calls w.e.f. 1st October 2008.

•   The peak National Long Distance tariff for above 1000 Kms. in 2000 has come down
    from US$ 0.67 per minute to US$ 0.02 per minute in 2009.

•   The International Long Distance tariff from US$ 1.36 per minute in 2000 to US$ 0.16 per
    minute in 2009 for USA, Canada & UK.

•   The mobile tariff for local calls has reduced from US$0.36 per minute in 1999 to US$
    0.009 - US$ 0.04 per minute in 2009.

•   The Average Revenue Per User of mobile is between US$ 5.06 - US$ 7.82 per month

Foreign Direct Investment (FDI)

•   In Basic, Cellular Mobile, Paging and Value Added Service, and Global Mobile Personal
    Communications by Satellite, Composite FDI permitted is 74% (49% under automatic
    route) subject to grant of license from Department of Telecommunications subject to
    security and license conditions.

•   FDI upto 74% (49% under automatic route) is also permitted for the following: -

       ·      Radio Paging Service

       ·      Internet Service Providers (ISP's)

•   FDI upto 100% permitted in respect of the following telecom services: -

       ·      Infrastructure Providers providing dark fibre (IP Category I);

       ·      Electronic Mail; and

       ·      Voice Mail
Subject to the conditions that such companies would divest 26% of their equity in favor of
Indian public in 5 years, if these companies were listed in other parts of the world.

•   In telecom manufacturing sector 100% FDI is permitted under automatic route.

•   The Government has modified method of calculation of Direct and Indirect Foreign
    Investment in sector with caps and have also issued guidelines on downstream investment
    by Indian Companies.

•   Guidelines for transfer of ownership or control of Indian companies in sectors with caps
    from resident Indian citizens to non-resident entities have been issued

Investment Opportunities and Incentives

    An attractive trade and investment policy and lucrative incentives for foreign
collaborations have made India one of the world’s most attractive markets for the telecom
equipment suppliers and service providers.

•   No industrial license required for setting up manufacturing units for telecom equipment.

•   Automatic approval of 100 percent foreign equity, technology fee up to US $ 2 million,
    royalty up to 5 percent for domestic sales and 8 percent for exports in telecom
    manufacturing projects.

•   Foreign equity of 74% (49 % under automatic route) permitted for telecom services -
    basic, cellular mobile, paging, value added services, NLD, ILD, ISPs - and global mobile
    personal communications by satellite.

•   Full repatriability of dividend income and capital invested in the telecom sector.

Opportunities

    India offers an unprecedented opportunity for telecom service operators, infrastructure
vendors, manufacturers and associated services companies. A host of factors are contributing
to enlarged opportunities for growth and investment in telecom sector:

•   An expanding Indian economy with increased focus on the services sector

•   Population mix moving favorably towards a younger age profile
•   Urbanization with increasing incomes

Investors can look to capture the gains of the Indian telecom boom and diversify their
operations outside developed economies that are marked by saturated telecom markets and
lower GDP growth rates.

Inflow of FDI into India’s telecom sector during April 2000 to March 2009 was about Rs
275,444 million. Also, more than 8 per cent of the approved FDI in the country is related to
the telecom sector.




3G & Broadband Wireless Services (BWA)

       The government has in a pioneering decision, decided to auction 3G & BWA
spectrum. The broad policy guidelines for 3G & BWA have already been issued on 1st
August 2008 and allotment of spectrum has been planned through simultaneously ascending
e-auction process by a specialized agency. New players would also be able to bid thus leading
to technology innovation, more competition, faster roll out and ultimately greater choice for
customers at competitive tariffs. The 3G will allow telecom companies to offer additional
value added services such as high resolution video and multi media services in addition to
voice, fax and conventional data services with high data rate transmission capabilities. BWA
will become a predominant platform for broadband roll out services. It is also an effective
tool for undertaking social initiatives of the Government such as e-education, telemedicine, e-
health and e-Governance. Providing affordable broadband, especially to the suburban and
rural communities is the next focus area of the Department.

BSNL & MTNL have already been allotted 3G & BWA spectrum with a view to ensuring
early roll out of 3G & WiMax services in the country. They will pay the same price for the
spectrum as discovered through the auction. While, Honbl’e Prime Minister launched the
MTNL’s 3G mobile services on the inaugural function of ‘India Telecom 2008’ held on 11th
December 2008, BSNL launched its countrywide 3G services from Chennai, in the southern
Tamil Nadu state on 22nd February 2009.
Mobile Number Portability (MNP)

       Mobile Number Portability (MNP) allows subscribers to retain their existing
telephone number when they switch from one access service provider to another irrespective
of mobile technology or from one technology to another of the same or any other access
service provider. The Government has announced the guidelines for Mobile Number
Portability (MNP) Service Licence in the country on 1st August 2008 and has issued a
separate Licence for MNP service w.e.f. 20.03.2009. The Department of Telecommunication
(DoT) has already issued licences to two global companies (M/s Syniverse Technologies Pvt.
Ltd. and M/s MNP Interconnection Telecom Solutions India Pvt. Ltd.) for implementing the
service.

MNP is to be implemented in Delhi, Mumbai, Maharashtra & Gujarat service areas of Zone –
1 and Kolkata, Tamil Nadu including Chennai, Andhra Pradesh & Karnataka service areas of
Zone - 2 within six months of the award of the licence i.e. by 20.09.2009 and in rest of the
service areas within one year of the award of the licence i.e. by 20.03.2010.

   •   Quadrupling production in 2010.

   •   Achieving exports of 10 billion during 11th Five year plan.

7. Research & Development

   •   Pre-eminence of India as a technology solution provider.

   •   Comprehensive security infrastructure for telecom network.

   •   Tested infrastructure for enabling interoperability in Next Generation Network.

   •   Doubling the telecom equipment R&D by 2010 from present level of 15%.
32932654 telecom-industry-profile

Contenu connexe

Tendances

Indian telecom industry
Indian telecom industryIndian telecom industry
Indian telecom industryRavindra Kumar
 
TELECOM REPORT PRESENT PAST FUTURE , INDIA 2013
TELECOM REPORT PRESENT PAST FUTURE , INDIA  2013 TELECOM REPORT PRESENT PAST FUTURE , INDIA  2013
TELECOM REPORT PRESENT PAST FUTURE , INDIA 2013 Kaustav Sarkar
 
Telecom ppt 1st part
Telecom ppt 1st partTelecom ppt 1st part
Telecom ppt 1st partWEBD2012
 
Cellularindustryinindia
CellularindustryinindiaCellularindustryinindia
CellularindustryinindiaJonty Mohta
 
Management Information Systems: Telecom Industry
Management Information Systems: Telecom IndustryManagement Information Systems: Telecom Industry
Management Information Systems: Telecom IndustryKashif Choudhury
 
Comparative analysis of various companies of telecom industry
Comparative analysis of various companies of telecom industryComparative analysis of various companies of telecom industry
Comparative analysis of various companies of telecom industryisha
 
Copy of reliasnce jio 3
Copy of reliasnce jio 3Copy of reliasnce jio 3
Copy of reliasnce jio 3Nirali Nayi
 
BSNL: A STRATEGIC ANALYSIS
BSNL: A STRATEGIC ANALYSISBSNL: A STRATEGIC ANALYSIS
BSNL: A STRATEGIC ANALYSISANOOPA NARAYANAN
 
Indian Telecom Industry
Indian Telecom Industry Indian Telecom Industry
Indian Telecom Industry Rishabh Dogra
 
Vodafone summer internship- Branding & Pos Material development
Vodafone  summer internship- Branding & Pos Material developmentVodafone  summer internship- Branding & Pos Material development
Vodafone summer internship- Branding & Pos Material developmentAbhimanyu Singh
 
Service operations in telecom sector
Service operations in telecom sectorService operations in telecom sector
Service operations in telecom sectorAakash Varma
 
Strategic analysis of Telecom sector
Strategic analysis of Telecom sectorStrategic analysis of Telecom sector
Strategic analysis of Telecom sectorPratik Pandey
 
Telecommunication industry of bangladesh
Telecommunication industry of bangladeshTelecommunication industry of bangladesh
Telecommunication industry of bangladeshSarker Shuvo
 
Indian Telecom Industry
Indian Telecom IndustryIndian Telecom Industry
Indian Telecom IndustryAshish Nangla
 
Telecom industry in india
Telecom industry in indiaTelecom industry in india
Telecom industry in indiaRavindra Kumar
 
Impact of covid 19 on telecom industry
Impact of covid 19 on telecom industryImpact of covid 19 on telecom industry
Impact of covid 19 on telecom industryShwetaBhosale23
 

Tendances (20)

Indian telecom industry
Indian telecom industryIndian telecom industry
Indian telecom industry
 
TELECOM REPORT PRESENT PAST FUTURE , INDIA 2013
TELECOM REPORT PRESENT PAST FUTURE , INDIA  2013 TELECOM REPORT PRESENT PAST FUTURE , INDIA  2013
TELECOM REPORT PRESENT PAST FUTURE , INDIA 2013
 
Telecom ppt 1st part
Telecom ppt 1st partTelecom ppt 1st part
Telecom ppt 1st part
 
Cellularindustryinindia
CellularindustryinindiaCellularindustryinindia
Cellularindustryinindia
 
Telecom ppt
Telecom pptTelecom ppt
Telecom ppt
 
Cellular Industry In India
Cellular Industry In IndiaCellular Industry In India
Cellular Industry In India
 
Telecom industry new
Telecom industry newTelecom industry new
Telecom industry new
 
Management Information Systems: Telecom Industry
Management Information Systems: Telecom IndustryManagement Information Systems: Telecom Industry
Management Information Systems: Telecom Industry
 
Comparative analysis of various companies of telecom industry
Comparative analysis of various companies of telecom industryComparative analysis of various companies of telecom industry
Comparative analysis of various companies of telecom industry
 
Copy of reliasnce jio 3
Copy of reliasnce jio 3Copy of reliasnce jio 3
Copy of reliasnce jio 3
 
BSNL: A STRATEGIC ANALYSIS
BSNL: A STRATEGIC ANALYSISBSNL: A STRATEGIC ANALYSIS
BSNL: A STRATEGIC ANALYSIS
 
Indian Telecom Industry
Indian Telecom Industry Indian Telecom Industry
Indian Telecom Industry
 
Vodafone summer internship- Branding & Pos Material development
Vodafone  summer internship- Branding & Pos Material developmentVodafone  summer internship- Branding & Pos Material development
Vodafone summer internship- Branding & Pos Material development
 
Telecom
TelecomTelecom
Telecom
 
Service operations in telecom sector
Service operations in telecom sectorService operations in telecom sector
Service operations in telecom sector
 
Strategic analysis of Telecom sector
Strategic analysis of Telecom sectorStrategic analysis of Telecom sector
Strategic analysis of Telecom sector
 
Telecommunication industry of bangladesh
Telecommunication industry of bangladeshTelecommunication industry of bangladesh
Telecommunication industry of bangladesh
 
Indian Telecom Industry
Indian Telecom IndustryIndian Telecom Industry
Indian Telecom Industry
 
Telecom industry in india
Telecom industry in indiaTelecom industry in india
Telecom industry in india
 
Impact of covid 19 on telecom industry
Impact of covid 19 on telecom industryImpact of covid 19 on telecom industry
Impact of covid 19 on telecom industry
 

Similaire à 32932654 telecom-industry-profile

mba project on vodafone
mba project on vodafonemba project on vodafone
mba project on vodafoneProjects Kart
 
barriers and use case study of mobile internet for the age group above 40-- A...
barriers and use case study of mobile internet for the age group above 40-- A...barriers and use case study of mobile internet for the age group above 40-- A...
barriers and use case study of mobile internet for the age group above 40-- A...Shwetanshu Gupta
 
Rate war in telecom sector
Rate war in telecom sectorRate war in telecom sector
Rate war in telecom sectorRitesh Goyal
 
Rate war in telecom sector
Rate war in telecom sectorRate war in telecom sector
Rate war in telecom sectorRitesh Goyal
 
A Study Of Telecom
A Study Of TelecomA Study Of Telecom
A Study Of Telecompinki_moti
 
Telecom Sector of India
Telecom Sector of IndiaTelecom Sector of India
Telecom Sector of IndiaShubham Bathe
 
Project completed copy
Project completed   copyProject completed   copy
Project completed copyshafique987321
 
Report on 4G - LTE
Report on 4G - LTEReport on 4G - LTE
Report on 4G - LTERahul Ghai
 
Marketing research
Marketing researchMarketing research
Marketing researchSapna Sood
 
STUDY OF DATA CARD BY 5 TELOCOM COMPANY
STUDY OF DATA CARD BY 5 TELOCOM COMPANYSTUDY OF DATA CARD BY 5 TELOCOM COMPANY
STUDY OF DATA CARD BY 5 TELOCOM COMPANYMithun Ghosh
 
F figure3
F figure3F figure3
F figure3vinuhr
 
Cellular industry
Cellular industryCellular industry
Cellular industry915738
 
BHARTI AIRTEL PROJECT CVV - Nirupam Varma
BHARTI AIRTEL PROJECT CVV - Nirupam VarmaBHARTI AIRTEL PROJECT CVV - Nirupam Varma
BHARTI AIRTEL PROJECT CVV - Nirupam VarmaBhupathi Raju Varma
 
Customer satisfaction among b2 b customers of relience communication in tamil...
Customer satisfaction among b2 b customers of relience communication in tamil...Customer satisfaction among b2 b customers of relience communication in tamil...
Customer satisfaction among b2 b customers of relience communication in tamil...Mohan Suyamburaj
 

Similaire à 32932654 telecom-industry-profile (20)

Vodafone
VodafoneVodafone
Vodafone
 
mba project on vodafone
mba project on vodafonemba project on vodafone
mba project on vodafone
 
barriers and use case study of mobile internet for the age group above 40-- A...
barriers and use case study of mobile internet for the age group above 40-- A...barriers and use case study of mobile internet for the age group above 40-- A...
barriers and use case study of mobile internet for the age group above 40-- A...
 
Rate war in telecom sector
Rate war in telecom sectorRate war in telecom sector
Rate war in telecom sector
 
Rate war in telecom sector
Rate war in telecom sectorRate war in telecom sector
Rate war in telecom sector
 
A Study Of Telecom
A Study Of TelecomA Study Of Telecom
A Study Of Telecom
 
Telecom sector
Telecom sectorTelecom sector
Telecom sector
 
Airtel
AirtelAirtel
Airtel
 
Telecom Sector of India
Telecom Sector of IndiaTelecom Sector of India
Telecom Sector of India
 
Project completed copy
Project completed   copyProject completed   copy
Project completed copy
 
Telecom Industry
Telecom IndustryTelecom Industry
Telecom Industry
 
Report on 4G - LTE
Report on 4G - LTEReport on 4G - LTE
Report on 4G - LTE
 
Marketing research
Marketing researchMarketing research
Marketing research
 
ISP India
ISP IndiaISP India
ISP India
 
STUDY OF DATA CARD BY 5 TELOCOM COMPANY
STUDY OF DATA CARD BY 5 TELOCOM COMPANYSTUDY OF DATA CARD BY 5 TELOCOM COMPANY
STUDY OF DATA CARD BY 5 TELOCOM COMPANY
 
F figure3
F figure3F figure3
F figure3
 
PROJECT ON AIRTEL
PROJECT ON AIRTELPROJECT ON AIRTEL
PROJECT ON AIRTEL
 
Cellular industry
Cellular industryCellular industry
Cellular industry
 
BHARTI AIRTEL PROJECT CVV - Nirupam Varma
BHARTI AIRTEL PROJECT CVV - Nirupam VarmaBHARTI AIRTEL PROJECT CVV - Nirupam Varma
BHARTI AIRTEL PROJECT CVV - Nirupam Varma
 
Customer satisfaction among b2 b customers of relience communication in tamil...
Customer satisfaction among b2 b customers of relience communication in tamil...Customer satisfaction among b2 b customers of relience communication in tamil...
Customer satisfaction among b2 b customers of relience communication in tamil...
 

Dernier

VIP Call Girls In Saharaganj ( Lucknow ) 🔝 8923113531 🔝 Cash Payment (COD) 👒
VIP Call Girls In Saharaganj ( Lucknow  ) 🔝 8923113531 🔝  Cash Payment (COD) 👒VIP Call Girls In Saharaganj ( Lucknow  ) 🔝 8923113531 🔝  Cash Payment (COD) 👒
VIP Call Girls In Saharaganj ( Lucknow ) 🔝 8923113531 🔝 Cash Payment (COD) 👒anilsa9823
 
Socio-economic-Impact-of-business-consumers-suppliers-and.pptx
Socio-economic-Impact-of-business-consumers-suppliers-and.pptxSocio-economic-Impact-of-business-consumers-suppliers-and.pptx
Socio-economic-Impact-of-business-consumers-suppliers-and.pptxtrishalcan8
 
GD Birla and his contribution in management
GD Birla and his contribution in managementGD Birla and his contribution in management
GD Birla and his contribution in managementchhavia330
 
Pharma Works Profile of Karan Communications
Pharma Works Profile of Karan CommunicationsPharma Works Profile of Karan Communications
Pharma Works Profile of Karan Communicationskarancommunications
 
Regression analysis: Simple Linear Regression Multiple Linear Regression
Regression analysis:  Simple Linear Regression Multiple Linear RegressionRegression analysis:  Simple Linear Regression Multiple Linear Regression
Regression analysis: Simple Linear Regression Multiple Linear RegressionRavindra Nath Shukla
 
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...Dipal Arora
 
Eni 2024 1Q Results - 24.04.24 business.
Eni 2024 1Q Results - 24.04.24 business.Eni 2024 1Q Results - 24.04.24 business.
Eni 2024 1Q Results - 24.04.24 business.Eni
 
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service AvailableCall Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service AvailableDipal Arora
 
Catalogue ONG NƯỚC uPVC - HDPE DE NHAT.pdf
Catalogue ONG NƯỚC uPVC - HDPE DE NHAT.pdfCatalogue ONG NƯỚC uPVC - HDPE DE NHAT.pdf
Catalogue ONG NƯỚC uPVC - HDPE DE NHAT.pdfOrient Homes
 
DEPED Work From Home WORKWEEK-PLAN.docx
DEPED Work From Home  WORKWEEK-PLAN.docxDEPED Work From Home  WORKWEEK-PLAN.docx
DEPED Work From Home WORKWEEK-PLAN.docxRodelinaLaud
 
Call Girls in Gomti Nagar - 7388211116 - With room Service
Call Girls in Gomti Nagar - 7388211116  - With room ServiceCall Girls in Gomti Nagar - 7388211116  - With room Service
Call Girls in Gomti Nagar - 7388211116 - With room Servicediscovermytutordmt
 
VIP Kolkata Call Girl Howrah 👉 8250192130 Available With Room
VIP Kolkata Call Girl Howrah 👉 8250192130  Available With RoomVIP Kolkata Call Girl Howrah 👉 8250192130  Available With Room
VIP Kolkata Call Girl Howrah 👉 8250192130 Available With Roomdivyansh0kumar0
 
A DAY IN THE LIFE OF A SALESMAN / WOMAN
A DAY IN THE LIFE OF A  SALESMAN / WOMANA DAY IN THE LIFE OF A  SALESMAN / WOMAN
A DAY IN THE LIFE OF A SALESMAN / WOMANIlamathiKannappan
 
The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024christinemoorman
 
Call Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine ServiceCall Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine Serviceritikaroy0888
 
Tech Startup Growth Hacking 101 - Basics on Growth Marketing
Tech Startup Growth Hacking 101  - Basics on Growth MarketingTech Startup Growth Hacking 101  - Basics on Growth Marketing
Tech Startup Growth Hacking 101 - Basics on Growth MarketingShawn Pang
 
7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...Paul Menig
 
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesMysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesDipal Arora
 
M.C Lodges -- Guest House in Jhang.
M.C Lodges --  Guest House in Jhang.M.C Lodges --  Guest House in Jhang.
M.C Lodges -- Guest House in Jhang.Aaiza Hassan
 
It will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 MayIt will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 MayNZSG
 

Dernier (20)

VIP Call Girls In Saharaganj ( Lucknow ) 🔝 8923113531 🔝 Cash Payment (COD) 👒
VIP Call Girls In Saharaganj ( Lucknow  ) 🔝 8923113531 🔝  Cash Payment (COD) 👒VIP Call Girls In Saharaganj ( Lucknow  ) 🔝 8923113531 🔝  Cash Payment (COD) 👒
VIP Call Girls In Saharaganj ( Lucknow ) 🔝 8923113531 🔝 Cash Payment (COD) 👒
 
Socio-economic-Impact-of-business-consumers-suppliers-and.pptx
Socio-economic-Impact-of-business-consumers-suppliers-and.pptxSocio-economic-Impact-of-business-consumers-suppliers-and.pptx
Socio-economic-Impact-of-business-consumers-suppliers-and.pptx
 
GD Birla and his contribution in management
GD Birla and his contribution in managementGD Birla and his contribution in management
GD Birla and his contribution in management
 
Pharma Works Profile of Karan Communications
Pharma Works Profile of Karan CommunicationsPharma Works Profile of Karan Communications
Pharma Works Profile of Karan Communications
 
Regression analysis: Simple Linear Regression Multiple Linear Regression
Regression analysis:  Simple Linear Regression Multiple Linear RegressionRegression analysis:  Simple Linear Regression Multiple Linear Regression
Regression analysis: Simple Linear Regression Multiple Linear Regression
 
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
 
Eni 2024 1Q Results - 24.04.24 business.
Eni 2024 1Q Results - 24.04.24 business.Eni 2024 1Q Results - 24.04.24 business.
Eni 2024 1Q Results - 24.04.24 business.
 
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service AvailableCall Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
 
Catalogue ONG NƯỚC uPVC - HDPE DE NHAT.pdf
Catalogue ONG NƯỚC uPVC - HDPE DE NHAT.pdfCatalogue ONG NƯỚC uPVC - HDPE DE NHAT.pdf
Catalogue ONG NƯỚC uPVC - HDPE DE NHAT.pdf
 
DEPED Work From Home WORKWEEK-PLAN.docx
DEPED Work From Home  WORKWEEK-PLAN.docxDEPED Work From Home  WORKWEEK-PLAN.docx
DEPED Work From Home WORKWEEK-PLAN.docx
 
Call Girls in Gomti Nagar - 7388211116 - With room Service
Call Girls in Gomti Nagar - 7388211116  - With room ServiceCall Girls in Gomti Nagar - 7388211116  - With room Service
Call Girls in Gomti Nagar - 7388211116 - With room Service
 
VIP Kolkata Call Girl Howrah 👉 8250192130 Available With Room
VIP Kolkata Call Girl Howrah 👉 8250192130  Available With RoomVIP Kolkata Call Girl Howrah 👉 8250192130  Available With Room
VIP Kolkata Call Girl Howrah 👉 8250192130 Available With Room
 
A DAY IN THE LIFE OF A SALESMAN / WOMAN
A DAY IN THE LIFE OF A  SALESMAN / WOMANA DAY IN THE LIFE OF A  SALESMAN / WOMAN
A DAY IN THE LIFE OF A SALESMAN / WOMAN
 
The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024
 
Call Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine ServiceCall Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine Service
 
Tech Startup Growth Hacking 101 - Basics on Growth Marketing
Tech Startup Growth Hacking 101  - Basics on Growth MarketingTech Startup Growth Hacking 101  - Basics on Growth Marketing
Tech Startup Growth Hacking 101 - Basics on Growth Marketing
 
7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...
 
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesMysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
 
M.C Lodges -- Guest House in Jhang.
M.C Lodges --  Guest House in Jhang.M.C Lodges --  Guest House in Jhang.
M.C Lodges -- Guest House in Jhang.
 
It will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 MayIt will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 May
 

32932654 telecom-industry-profile

  • 1. INTRODUCTION The Indian telecommunication industry, with about 600.69 million mobile phone connections as of February 2010, is the third largest telecommunication network in the world and the second largest in terms of number of wireless connections of 563.73 million. The Indian telecom industry is one of the fastest growing in the world and is projected that India will have 'billion plus' mobile users by 2015. Projection by several leading global consultancies is that India’s telecom network will overtake China’s in the next 10 years. For the past decade or so, telecommunication activities have gained momentum in India. Efforts have been made from both governmental and non-governmental platforms to enhance the infrastructure. The idea is to help modern telecommunication technologies to serve all segments of India’s culturally diverse society, and to transform it into a country of technologically aware people. EVOLUTION OF THE INDUSTRY AND MILESTONES
  • 2. WIRELESS SERVICES IN INDIA The Mobile telecommunications system in India is the second largest in the world and it was thrown open to private players in the 1990s. The country is divided into multiple zones, called circles (roughly along state boundaries). Government and several private players run local and long distance telephone services. Competition has caused prices to drop and calls across India are one of the cheapest in the world. The rates are supposed to go down further with new measures to be taken by the Information Ministry. The mobile service has seen phenomenal growth since 2000. In September 2004, the numbers of mobile phone connections have crossed fixed-line connections. India primarily follows the GSM mobile system, in the 900 MHz band. Recent operators also operate in the 1800 MHz band. The dominant players are Airtel, Aircel Uninor, Reliance Infocomm, Vodafone, Idea cellular and BSNL/MTNL. There are many smaller players, with operations in only a few states. International roaming agreements exist between most operators and many foreign carriers. Major players and their market share WIRELINE SERVICES IN INDIA Landline service in India is primarily run by BSNL/MTNL and Reliance Infocomm though there are several other private players too, such as Touchtel and Tata Teleservices. Landlines are facing stiff competition from mobile telephones. The competition has forced the landline
  • 3. services to become more efficient. The landline network quality has improved and landline connections are now usually available on demand, even in high density urban areas. The breakup of wireline market share in India as of february 2010 is given below. MAJOR PLAYERS IN INDIAN TELECOMMUNICATION INDUSTRY BSNL Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation Limited) is a state-owned telecommunication company in India. BSNL is the sixth largest cellular service provider, with over 57.22 million customers as of December 2009 and the largest land line telephone provider in India. Its headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi. It has the status of Mini Ratna, a status assigned to reputed public sector companies in India. BSNL is India's oldest and largest Communication Service Provider (CSP). Currently has a customer base of 90 million as of June 2008. It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As on March 31, 2008 BSNL commanded a customer base of 31.55 million Wireline, 4.58 million CDMA- WLL and 54.21 million GSM Mobile subscribers. BSNL's earnings for the Financial Year ending March 31, 2009 stood at INR 397.15b (US$7.03 billion) with net profit of INR 78.06b (US$ 1.90 billion). BSNL has an estimated market value of $ 100 Billion. The company is
  • 4. planning an IPO within 6 months to offload 10% to public in the Rs 300-400 range valuing the company at over $100 billion. BHARTI Bharti Airtel formerly known as Bharti Tele-Ventures LTD (BTVL) is the largest cellular service provider in India, with more than 124 million subscribtions as of February 2010. With this, Bharti is now world’s third-largest, single-country mobile operator and sixth-largest integrated telecom operator. It also offers fixed line services and broadband services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Bharti Mittal. The company also provides telephone services and broadband Internet access (DSL) in top 95 cities in India. It also acts as a carrier for national and international long distance communication services. The company has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. It is known for being the first mobile phone company in the world to outsource everything except marketing and sales. Its network operations are provided by Ericsson, business support by IBM and transmission towers by another company. Ericsson agreed for the first time, to be paid by the minute for installation and maintenance of their equipment rather than being paid up front. This enables the company to provide pan-India phone call rates of Rs. 1/minute (U$0.02/minute). The businesses at Bharti Airtel have always been structured into three individual strategic business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities and has recently launched a Direct-to-Home (DTH) service, Airtel Digital TV. VODAFONE Vodafone Essar, formally known as Hutchison Essar is a cellular operator in India that covers 23 telecom circles in India based in Mumbai. Vodafone Essar is owned by Vodafone 67% and Essar Group 33%. It is the second largest mobile phone operator in terms of revenue behind Bharti Airtel, and third largest in terms of customers.
  • 5. On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued at USD 18.8 billion. The transaction closed on May 8, 2007. Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the metros. Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 23 of the country's 23 licence areas. It is among the top three GSM mobile operators of India. RELIANCE Reliance Communications, formerly known as Reliance Infocomm, along with Reliance Telecom and Flag Telecom, is part of Reliance Communications Ventures (RCoVL).Reliance Communications Limited founded by the late Shri Dhirubhai H Ambani (1932-2002) is the flagship company of the Reliance Anil Dhirubhai Ambani Group. The Reliance Anil Dhirubhai Ambani Group currently has a net worth in excess of Rs. 64,000 crore (US$ 13.6 billion), cash flows of Rs. 13,000 crore (US$ 2.8 billion), net profit of Rs. 8,400 crore (US$ 1.8 billion).The Equity Shares of RCOM are listed on Bombay Stock Exchange Limited and National Stock Exchange Limited. The Global Depository Receipts and Foreign Currency Convertible Bonds are listed on Luxembourg Stock Exchange and Singapore Stock Exchange respectively. TATA TELESERVICES Tata Teleservices is part of the Tata Group. Tata Teleservices spearheads the Group’s presence in the telecom sector. Incorporated in 1996, Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle. The company acquired Hughes Telecom (India) Limited [now renamed Tata Teleservices (Maharashtra) Limited] in December 2002. With a total Investment of Rs 19,924 Crore, Tata Teleservices has created a Pan India presence spread across 20 circles that includes Andhra Pradesh, Chennai, Gujarat, J & K, Karnataka, Delhi, Maharashtra, Mumbai, North East,
  • 6. Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh and West Bengal. Having pioneered the CDMA 3G1x technology platform in India, Tata Teleservices has established 3G ready telecom infrastructure. It partnered with Motorola, Ericsson, Lucent and ECI Telecom for the deployment of its telecom network. The company is the market leader in the fixed wireless telephony market with a total customer base of over 3.8 million. Tata Teleservices’ bouquet of telephony services includes Mobile services, Wireless Desktop Phones, Public Booth Telephony and Wireline services. Other services include value added services like voice portal, roaming, post-paid Internet services, 3-way conferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling card services and enterprise services. Some of the other products launched by the company include prepaid wireless desktop phones, public phone booths, new mobile handsets and new voice & data services such as BREW games, Voice Portal, picture messaging, polyphonic ring tones, interactive applications like news, cricket, astrology, etc. Tata Indicom "Non Stop Mobile" allow pre-paid cellular customers to receive free incoming calls. Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limited have a subscriber base of 36 million customers (as of April 2009) in more than 5,000 towns. Tata Teleservices has also acquired GSM licenses for specific circles in India. Tata Telelservices is an unlisted entity. Tata Group and group firms own the majority of the company; NTT docomo holds 26% while investor C. Sivasankaran holds 8%. IDEA Idea Cellular is a wireless telephony company operating in all the 22 telecom circles in India based in Mumbai. It is the 3rd largest GSM Company in India behind Airtel and Vodafone and ahead of state run player BSNL. In 2000, Tata Cellular was a company providing mobile services in AP. When Birla-AT&T brought Maharashtra and Gujarat to the table, the merger of these two entities was a reality. Thus Birla-Tata-AT&T, popularly known as Batata, was born. In 2001, the Batata triumvirate
  • 7. agreed to merge its operations with the Rajeev Chandrasekhar promoted BPL Communications. The merger could have brought in regions like Mumbai, Maharashtra, Kerala and Tamil Nadu, which seemed to be a perfect accompaniment to what it already had. This was critical with the bid for the fourth operator licence round the corner. However, the engagement with BPL was broken. Then Idea set sights on RPG’s operations in Madhya Pradesh which was successfully acquired, helping Batata have a million subscribers, and the licence to be the fourth operator in Delhi was clinched. In 2004, Idea (the company had by then been rechristened) bought over the Escorts group’s Escotel gaining Haryana, Uttar Pradesh (West) and Kerala — and licences for three more — UP (East), Rajasthan and Himachal Pradesh. By the end of that year, four million Indians were on the company’s network. In 2005, AT&T sold its investment in Idea, and the year after Tatas also bid good bye to pursue an independent telecom business. And Idea was left only with one promoter, the AV Birla group when the company’s stock listed on the bourses in March 2007, its subscriber base was 13 million with presence in 11 circles. In less than three years, the subscriber numbers have more than quadrupled. The public issue was oversubscribed 50 times and raised Rs 2,450 crore. In June 2008, Idea Cellular bought out BK Modi’s stake in Spice Communications for Rs 2,700 crore adding Punjab and Karnataka circles. Modi’s joint venture partner, Telekom Malaysia, invested Rs 7,000 crore for a 14.99% stake in Idea. Just around then, Idea’s subsidiary, Aditya Birla Telecom sold a 20% stake to US-based Providence Equity Partners for over Rs 2,000 crore. The company has its retail outlets under the "Idea n' U" banner. The company has also been the first to offer flexible tariff plans for prepaid customers. It also offers GPRS services in urban areas. Idea Cellular won the GSM Association Award for "Best Billing and Customer Care Solution" for 2 consecutive years. AIRCEL Aircel is a mobile phone service provider in India. It offers both prepaid and postpaid GSM cellular phone coverage throughout India. Aircel is a joint venture between Maxis Communications of Malaysia and Apollo Hospital Enterprise Ltd of India. Maxis has a 74% stake in Aircel and the remaining 26% is with Apollo Hospitals. It is India’s fifth largest GSM mobile service provider with a subscriber base of over 27.7 million, as of October 31,
  • 8. 2009. It has a market share of 12.8% among the GSM operators in the country. As on date, Aircel is present in 18 of the total 23 telecom circles (including Andhra Pradesh, Assam, Bihar & Jharkhand, Chennai, Delhi & NCR, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Kolkata, Mumbai, North East, Orissa, Rest of Maharashtra & Goa, Rest of Tamil Nadu, Rest of West Bengal, Uttar Pradesh East, Uttar Pradesh West) and with licences secured for the remaining 5 telecom circles, the company plans to become a pan-India operator by 2010. Additionally, Aircel has also obtained permission from Department of Telecommunications (DoT) to provide International Long Distance (ILD) and National Long Distance (NLD) telephony services. It is also a category A ISP. It is also having the largest service in Tamil Nadu. MTS INDIA MTS India, is a brand owned by Sistema Shyam TeleServices (SSTL). SSTL is a joint venture company between Sistema {LSE-SSA} of Russia and Shyam Group of India. Sistema is the majority share holder in this joint venture with a 73.71% equity stake, along with the Shyam Group, holding a 23.79% stake and the rest 2.5% being public partake. SSTL has the spectrum to provide mobile telephony services in all the 48 circles across the country. Presently SSTL offers mobile telephony services in the Bihar-Jharkhand, Delhi, Haryana, Karnataka, Kerala, Kolkata Maharashtra (Pune), Mumbai, Rajasthan, Tamil Nadu and West Bengal circles. In a recent development, SSTL tied up with Mobile TeleSystems OJSC of Russia to bring the globally acclaimed telecom brand-MTS-to India. MTS is the 8th largest telecom brand in the world and has recently been voted the 71st ranked brand out of the 100 top global brands in the world by Millward Brown.
  • 9. TELECOM POLICY ENIVIRONMENT IN INDIA Liberalization The process of liberalization in the country began in the right earnest with the announcement of the New Economic Policy in July 1991. Telecom equipment manufacturing was de-licensed in 1991 and value added services were declared open to the private sector in 1992, following which radio paging, cellular mobile and other value added services were opened gradually to the private sector. This has resulted in large number of manufacturing units been set up in the country. As a result most of the equipment used in telecom area is being manufactured within the country. A major breakthrough was the clear enunciation of the government’s intention of liberalizing the telecom sector in the National Telecom Policy resolution of 13th May 1994. National Telecom Policy 1994 In 1994, the Government announced the National Telecom Policy which defined certain important objectives, including availability of telephone on demand, provision of world class services at reasonable prices, improving India’s competitiveness in global market and promoting exports, attractive FDI and stimulating domestic investment, ensuring India’s emergence as major manufacturing / export base of telecom equipment and universal availability of basic telecom services to all villages. It also announced a series of specific targets to be achieved by 1997. Telecom Regulatory Authority of India (TRAI) The entry of private service providers brought with it the inevitable need for independent regulation. The Telecom Regulatory Authority of India (TRAI) was, thus, established with effect from 20th February 1997 by an Act of Parliament, called the Telecom Regulatory Authority of India Act, 1997, to regulate telecom services, including fixation/revision of tariffs for telecom services which were earlier vested in the Central Government. TRAI’s mission is to create and nurture conditions for growth of telecommunications in the country in manner and at a pace, which will enable India to play a leading role in emerging
  • 10. global information society. One of the main objectives of TRAI is to provide a fair and transparent policy environment, which promotes a level playing field and facilitates fair competition. In pursuance of above objective TRAI has issued from time to time a large number of regulations, orders and directives to deal with issues coming before it and provided the required direction to the evolution of Indian telecom market from a Government owned monopoly to a multi operator multi service open competitive market. The directions, orders and regulations issued cover a wide range of subjects including tariff, interconnection and quality of service as well as governance of the Authority. The TRAI Act was amended by an ordinance, effective from 24 January 2000, establishing a Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT) to take over the adjudicatory and disputes functions from TRAI. TDSAT was set up to adjudicate any dispute between a licensor and a licensee, between two or more service providers, between a service provider and a group of consumers, and to hear and dispose of appeals against any direction, decision or order of TRAI. New Telecom Policy 1999 The most important milestone and instrument of telecom reforms in India is the New Telecom Policy 1999 (NTP 99). The New Telecom Policy, 1999 (NTP-99) was approved on 26th March 1999, to become effective from 1st April 1999. NTP-99 laid down a clear roadmap for future reforms, contemplating the opening up of all the segments of the telecom sector for private sector participation. It clearly recognized the need for strengthening the regulatory regime as well as restructuring the departmental telecom services to that of a public sector corporation so as to separate the licensing and policy functions of the Government from that of being an operator. It also recognized the need for resolving the prevailing problems faced by the operators so as to restore their confidence and improve the investment climate. Key features of the NTP 99 include: • Strengthening of Regulator. • National long distance services opened to private operators. • International Long Distance Services opened to private sectors.
  • 11. Private telecom operators licensed on a revenue sharing basis, plus a one-time entry fee. Resolution of problems of existing operators envisaged. • Direct interconnectivity and sharing of network with other telecom operators within the service area was permitted. • Department of Telecommunication Services (DTS) corporatised in 2000. • Spectrum Management made transparent and more efficient. All the commitments made under NTP 99 have been fulfilled; each one of them, in letter and spirit, some even ahead of schedule, and the reform process is now complete with all the sectors in telecommunications opened for private competition. Internet Service Providers (ISPs) Internet service was opened for private participation in 1998 with a view to encourage growth of Internet and increase its penetration. The sector has seen tremendous technological advancement for a period of time and has necessitated taking steps to facilitate technological ingenuity and provision of various services. The Government in the public interest in general, and consumer interest in particular, and for proper conduct of telegraph and telecom services has decided to issue the new guidelines (Details) for grant of licence of Internet services on non-exclusive basis. Any Indian company with a maximum foreign equity of 74% is eligible for grant of licence. Broadband Policy 2004 Recognizing the potential of ubiquitous Broadband service in growth of GDP and enhancement in quality of life through societal applications including tele-education, tele- medicine, e-governance, entertainment as well as employment generation by way of high- speed access to information and web based communication; Government has announced Broadband Policy in October 2004. The main emphasis is on the creation of infrastructure through various technologies that can contribute to the growth of broadband services. These technologies include optical fibre, Asymmetric Digital Subscriber Lines (ADSL), cable TV network; DTH etc. Broadband connectivity has been defined as “ Always On” with the minimum speed of 256 kbps. It is estimated that the number of broadband subscribers would be 20 million by 2010. With a view to encourage Broadband Connectivity, both outdoor and
  • 12. indoor usage of low power Wi-Fi and Wi-Max systems in 2.4 GHz-2.4835 GHz band has been delicensed. The use of low power indoor systems in 5.15-5.35 GHz and 5.725-5.875 GHz bands has also been delicensed in January 05. The SACFA/WPC clearance has been simplified. The setting up of National Internet Exchange of India (NIXI) would enable bringing down the international bandwidth cost substantially, thus making the broadband connectivity more affordable. The prime consideration guiding the Policy includes affordability and reliability of Broadband services, incentives for creation of additional infrastructure, employment opportunities, induction of latest technologies, national security and brings in competitive environment so as to reduce regulatory interventions. By this new policy, the Government intends to make available transponder capacity for VSAT services at competitive rates after taking into consideration the security requirements. The service providers permitted to enter into franchisee agreement with cable TV network operators. However, the Licensee shall be responsible for compliance of the terms and conditions of the licence. Further in the case of DTH services, the service providers permitted to provide Receive-Only-Internet Service. The role of other facilitators such as electricity authorities, Departments of ITs of various State Governments, Departments of Local Self Governments, Panchayats, Departments of Health and Family Welfare, Departments of Education is very important to carry the advantage of broadband services to the users particularly in rural areas. Target has been set for 20 million broadband connections by 2010 and providing Broadband connectivity to all secondary and higher secondary schools, public health institutions and panchayats by 2010. In rural areas, connectivity of 512 KBPS with ADSL 2 plus technology (on wire) will be provided from about 20,000 existing exchanges in rural areas having optical fibre connectivity. Community Service Centres, secondary schools, banks, health centres, Panchayats, police stations etc. can be provided with this connectivity in the vicinity of above-mentioned 20,000 exchanges in rural areas. DOT will be subsidizing the infrastructure cost of Broadband network through support from USO Fund to ensure that Broadband services are available to users at affordable tariffs.
  • 13. Tariff Changes The Indian Telecom Sector has witnessed major changes in the tariff structure. The Telecommunication Tariff Order (TTO) 1999, issued by regulator (TRAI), had begun the process of tariff balancing with a view to bring them closer to the costs. This supplemented by Calling Party Pay (CPP), reduction in ADC and the increased competition, has resulted in a dramatic fall in the tariffs. ADC has been abolished for all calls w.e.f. 1st October 2008. • The peak National Long Distance tariff for above 1000 Kms. in 2000 has come down from US$ 0.67 per minute to US$ 0.02 per minute in 2009. • The International Long Distance tariff from US$ 1.36 per minute in 2000 to US$ 0.16 per minute in 2009 for USA, Canada & UK. • The mobile tariff for local calls has reduced from US$0.36 per minute in 1999 to US$ 0.009 - US$ 0.04 per minute in 2009. • The Average Revenue Per User of mobile is between US$ 5.06 - US$ 7.82 per month Foreign Direct Investment (FDI) • In Basic, Cellular Mobile, Paging and Value Added Service, and Global Mobile Personal Communications by Satellite, Composite FDI permitted is 74% (49% under automatic route) subject to grant of license from Department of Telecommunications subject to security and license conditions. • FDI upto 74% (49% under automatic route) is also permitted for the following: - · Radio Paging Service · Internet Service Providers (ISP's) • FDI upto 100% permitted in respect of the following telecom services: - · Infrastructure Providers providing dark fibre (IP Category I); · Electronic Mail; and · Voice Mail
  • 14. Subject to the conditions that such companies would divest 26% of their equity in favor of Indian public in 5 years, if these companies were listed in other parts of the world. • In telecom manufacturing sector 100% FDI is permitted under automatic route. • The Government has modified method of calculation of Direct and Indirect Foreign Investment in sector with caps and have also issued guidelines on downstream investment by Indian Companies. • Guidelines for transfer of ownership or control of Indian companies in sectors with caps from resident Indian citizens to non-resident entities have been issued Investment Opportunities and Incentives An attractive trade and investment policy and lucrative incentives for foreign collaborations have made India one of the world’s most attractive markets for the telecom equipment suppliers and service providers. • No industrial license required for setting up manufacturing units for telecom equipment. • Automatic approval of 100 percent foreign equity, technology fee up to US $ 2 million, royalty up to 5 percent for domestic sales and 8 percent for exports in telecom manufacturing projects. • Foreign equity of 74% (49 % under automatic route) permitted for telecom services - basic, cellular mobile, paging, value added services, NLD, ILD, ISPs - and global mobile personal communications by satellite. • Full repatriability of dividend income and capital invested in the telecom sector. Opportunities India offers an unprecedented opportunity for telecom service operators, infrastructure vendors, manufacturers and associated services companies. A host of factors are contributing to enlarged opportunities for growth and investment in telecom sector: • An expanding Indian economy with increased focus on the services sector • Population mix moving favorably towards a younger age profile
  • 15. Urbanization with increasing incomes Investors can look to capture the gains of the Indian telecom boom and diversify their operations outside developed economies that are marked by saturated telecom markets and lower GDP growth rates. Inflow of FDI into India’s telecom sector during April 2000 to March 2009 was about Rs 275,444 million. Also, more than 8 per cent of the approved FDI in the country is related to the telecom sector. 3G & Broadband Wireless Services (BWA) The government has in a pioneering decision, decided to auction 3G & BWA spectrum. The broad policy guidelines for 3G & BWA have already been issued on 1st August 2008 and allotment of spectrum has been planned through simultaneously ascending e-auction process by a specialized agency. New players would also be able to bid thus leading to technology innovation, more competition, faster roll out and ultimately greater choice for customers at competitive tariffs. The 3G will allow telecom companies to offer additional value added services such as high resolution video and multi media services in addition to voice, fax and conventional data services with high data rate transmission capabilities. BWA will become a predominant platform for broadband roll out services. It is also an effective tool for undertaking social initiatives of the Government such as e-education, telemedicine, e- health and e-Governance. Providing affordable broadband, especially to the suburban and rural communities is the next focus area of the Department. BSNL & MTNL have already been allotted 3G & BWA spectrum with a view to ensuring early roll out of 3G & WiMax services in the country. They will pay the same price for the spectrum as discovered through the auction. While, Honbl’e Prime Minister launched the MTNL’s 3G mobile services on the inaugural function of ‘India Telecom 2008’ held on 11th December 2008, BSNL launched its countrywide 3G services from Chennai, in the southern Tamil Nadu state on 22nd February 2009.
  • 16. Mobile Number Portability (MNP) Mobile Number Portability (MNP) allows subscribers to retain their existing telephone number when they switch from one access service provider to another irrespective of mobile technology or from one technology to another of the same or any other access service provider. The Government has announced the guidelines for Mobile Number Portability (MNP) Service Licence in the country on 1st August 2008 and has issued a separate Licence for MNP service w.e.f. 20.03.2009. The Department of Telecommunication (DoT) has already issued licences to two global companies (M/s Syniverse Technologies Pvt. Ltd. and M/s MNP Interconnection Telecom Solutions India Pvt. Ltd.) for implementing the service. MNP is to be implemented in Delhi, Mumbai, Maharashtra & Gujarat service areas of Zone – 1 and Kolkata, Tamil Nadu including Chennai, Andhra Pradesh & Karnataka service areas of Zone - 2 within six months of the award of the licence i.e. by 20.09.2009 and in rest of the service areas within one year of the award of the licence i.e. by 20.03.2010. • Quadrupling production in 2010. • Achieving exports of 10 billion during 11th Five year plan. 7. Research & Development • Pre-eminence of India as a technology solution provider. • Comprehensive security infrastructure for telecom network. • Tested infrastructure for enabling interoperability in Next Generation Network. • Doubling the telecom equipment R&D by 2010 from present level of 15%.