The document provides an overview of the business environment and telecom sector in India. It discusses key aspects like the number of players in the industry, market shares, growth rates, regulations, taxation, and timeline of communication technologies. The telecom sector is growing rapidly in India, with increasing mobile and internet penetration. The government regulates the sector through policies around foreign investment, licensing, and spectrum auctions.

1. BUSINESS ENVIRONMENT Submitted By : Anubha Mathur(10810008) Anurag Mathur (10810013) Bidyut Saikia (10810016) Saryu Kamra (10810056) Vineet Chama (10810072)

5. Services Sector growth in India

7. Major players in Indian Telecom

9. Indian Telecom Sector Scenario Source: Cellular Operators Association of India

10. Average Revenue per User Source: Department of Telecom India

13. Classification

14. Public Sector Players Name Additional Information Bharat Sanchar Nigam Ltd. 55,140,282 2G cellular customers and 88,493 3Gcustomers as on November 2009. It has 35.1 million Basic Phone subscribers Mahanagar Telephone Nigam Ltd The company was a monopoly until 1992, when the telecom sector was opened to other service providers. MTNL provides fixed line telephones, cellular connection of both GSM & CDMA and internet

15. Private Players In Telecom Name States Where they have Reached Additional Information Reliance Communications Ltd Andhra Pradesh, Bihar, Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Kolkata, Madhya Pradesh, Maharashtra, Mumbai, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh (E), Uttar Pradesh (W), West Bengal.(AUSPI) Second private sector telecom company (Fourth overall) to launch 3G services in India TATA Teleservices Ltd Andhra Pradesh, Bihar, Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh, J & K, Karnataka, Kerala, Kolkata, Madhya Pradesh, Maharashtra, Mumbai, North East, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh First private company to launch 3G services

16. Private Players In Telecom Bharti Airtel Ltd Delhi (Metro), Mumbai (Metro), Kolkata (Metro), Chennai (Metro), Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Kerala, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh (E), Uttar Pradesh (W), West Bengal (COAI). 5 th largest Company

17. Telecom Market in Indian States Source :http://www.dot.gov.in/annualreport/annualreport.htm State Subscriber base Population (01/03/2011) Mobile phones per 1000 population Uttar Pradesh 106,192,054 199,581,477 532 Maharashtra 94,841,692 112,372,972 844 Tamil Nadu 68,168,580 72,138,958 945 Andhra Pradesh 59,364,339 84,665,533 701 West Bengal 60,928,561 91,347,736 667 Gujarat 45,881,267 60,383,628 760 Rajasthan 42,380,958 68,621,012 618 Madhya Pradesh 44,256,394 72,597,565 610 Delhi 16,753,235 37,539,635 2,241 Kerala 30,954,858 33,387,677 927 Punjab 27,817,459 27,704,236 1,004 India 791,381,574 1,210,193,422 654

22. Number of Subscribers in last 10 years Source :http://www.dot.gov.in/annualreport/annualreport.htm Year Fixed line including WLL(F) Mobile (GSM+WLL(M) Total Tele density 2001 14.54 0.34 14.8 1.57 2002 26.65 1.9 28.55 2.81 2003 32.71 3.58 36.29 3.52 2004 38.33 6.54 44.87 4.28 2005 41.48 13 54.48 5.1 2006 42.84 33.69 76.53 7.04 2007 46.19 52.22 98.41 9.11 2008 50.18 90.14 140.32 12.8 2009 48.87 157.96 206.83 18.46 2010 43.3 226 269.3 24.04

23. Increase in Mobile Subscribers Source :http://www.dot.gov.in/annualreport/annualreport.htm Year Monthly Mobile Subscribers ( in million) 2002 0.28 2003 0.64 2004 1.58 2005 1.76 2006 4.69 2007 6.81 2008 8.77 2009 15.41 2010 19.90 2011 18.99

24. Comparison of Production and Export There is a significant telecom equipment-manufacturing base in the country and there has been steady growth of the manufacturing sector during the past few years. The figures for production and export of telecom equipment are shown in table Source :http://www.dot.gov.in/annualreport/annualreport.htm Year Production Export 2002-03 14400 402 2003-04 14000 250 2004-05 16090 400 2005-06 17833 1500 2006-07 23656 1898 2007-08 41270 8131 2008-09 48800 11000 2009-10 50000 13500

34. Examples of Foreign Investors Ownership of Indian Telecom Companies Source : Wikipedia Bharti Airtel Limited Tata Docomo Uninor Aircel Group Bharti Enterprises (63.45%) Tata Teleservices (74%) Telenor Group (67.25%) Maxis Communications (74%) Singtel (32.15%) NTT Docomo (26%) Unitech Group (32.75%) Apollo Hospital (26%) Vodafone (4.4%)

36. Evolution of Regulatory Authorities Source: Press Search, KPMG Analysis

41. The Indian Telecommunication sector has seen remarkable growth and is designated as one of the fastest growing markets in the world. It is also the second largest wireless network across the globe, after China. The aggressive growth has resulted in saturation of the urban markets and the Indian telecommunication authorities are looking to introduce new technologies to sustain the market growth rate Legal Aspects

42. The government recently concluded the 3G and BWA auctions in June, 2010. The auctions were initially estimated to raise INR 350 billion and help the government contain the fiscal deficit. However, the government received approximately INR 1,060 billion as spectrum fees for 3G and BWA, cumulatively. 3G technology has been highly anticipated over the past few years and is expected to drive the next round of sustainable growth for the Indian telecom market through convergence of entertainment, infotainment and voice communications into one single device. 3G Spectrum Laws

51. Timeline of Communication tools