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Telecom sector in india
1. PREPARED BY:
AKASH RANGARI (14810005)
AMIT GANGWAR (14810006)
AMIT KUMAR (14810007)
ANKIT GUPTA (14810008)
2. INTRODUCTION
India is the second most populous country in the world with
the Overall GDP of $2.047 trillion (nominal, Oct. 2014) (10th
overall)
World’s largest democracy system with multi party model at its
core.
Indian telecom is the second largest in the world (behind
china) on the basis of telephone users.
The Industry grew over 30 times from 37 million users in 2001
to 962.63 million (Both fixed and wireless) in Sep’ 2014.
The total number of telephones in the country stands at
957.61 million
3. Total mobile phone active were at 930.20 million as of
September 2014.
Total Wireless Teledensity were at 76.75% as of 30 September
2014.
Total monthly additions were at 8.74 million by September
2014. (Both fixed and wireless lines).
Fixed line rural density is at 33 % as of May 2012
Projected Wireless Teledensity is at 84%.
The Industry in India is rapidly transforming into Next Gen
Network through various telephone exchange, mobile switching
centers and media gateways using optical fiber or microwave
radios.
4. History
Well Postal means of communication was the only mean
communication until the year 1850. In 1850 experimental electric
telegraph started for first time in India between Calcutta
(Kolkata) and Diamond Harbor (southern suburbs of Kolkata, on
the banks of the Hooghly River).
In 1851, it was opened for the use of the British East India
Company. Subsequently construction of telegraph started
through out India. A separate department was opened to the
public in 1854. Dr.William O’Shaughnessy, who pioneered the
telegraph and telephone in India.
5. ESTABLISHMENT
1851
First operational landlines were laid by government near
Calcutta
1881
Telephone services introduced into India.
1883
Merger with postal system.
1923
Indian radio telegraph company formed.
1932
Merger of ETC and IRT Indian radio and cable communication
company
6. 1947
Nationalization of foreign telecom companies to form posts,
telephone & telegraph.
1985
Department of telecommunication established.
1986
Conversion of DOT into two wholly state owned companies
VSNL for international telecommunications & MTNL for service
& metropolitan areas.
1994
National telecom policy created with a motto
“telecommunication for all & telecommunication within reach
of all”.
7. 1995
Entry of GSM in india triggering telecom revolution. BPL
mobile services launched.
1997
Telecom regulatory authority of india formed in January.
1999
NTP-99. national telecom policy with reformed goals set.
2000
1st October BSNL created.
8. 2005
ILD & NLD annual license fees reduced from 15% to 6%.
2008
3G guidelines issued, spectrum allocation through
auction, foreign players allowed to bid.
2009
TRAI announces rules & regulations to be followed for
mobile number portability.
2010
BSNL 1st one to launch WIMAX service.
9. •India's telecommunication network is the second largest in
the world based on the total number of telephone users.
•The Indian telecom sector’s revenue grew by 11% to touch
US$ 70 billion.
•100% FDI in telecom sector.
•Telephone subscribers (Sept 2014) 957.61 million in which
Land lines is 27.41 million and Cell phones is 930.20 million
Some Facts
10. • Huge Customer potential
• High Growth Rate
• High return on Investment
• Liberalization efforts by Govt.
• Lower capital expenditure
Strength
11. Weakness
• Poor Telecommunication Infrastructure
• Late adopters of New Technology
• Most competitive market
• A market strongly regulated by Government.
• Difficult to enter because of requirement of huge financial
resources.
12. Opportunity
• 3G Telecom services and 4G services
• More Quality Service
• Value added Services (VAS)
• Boost to Telecom Manufacturing Companies
• Telecom Equipment Exports
14. Recent Growth
•Bharti has planned to take over the telecom towers of Vodafone
and Idea cellular(US$ 785.82 million).
•Reliance Jio Infocomm to launch the 4G services.
•Ericsson has won US$ 9.42 million 3 years operation support
system deal from Reliance Jio.
•Spectrum auction bids topped RS 94000 core.
15. Dynamics of Indian Telecom Market
• Indian Telecom Sector has been masterpiece of liberalization
becoming world’s highest monthly addition, second largest base in
world, lowest tariff, largest number of operators, new innovative ways
of doing business, world’s smallest recharge, world’s lowest cost
handset etc
• Wireless, Internet has dramatically changed the living style,
economics, social engineering
• 22 Telecom Circles, 277 Licenses issued
1. 188 Licenses to only GSM Network.
2. 30 Licenses to only CDMA Network.
3. 59 Licenses issued to both GSM and CDMA network.
4. And 92 Licenses are modified for 3G network.
• Indian Telecom sector now known for world’s largest controversies,
ambiguities
23. GOVERNMENT POLICY
•Government of India asked telecom firm to implement
full mobile number portability by May 2015.
•DoT(Department of Telecommunication) planned to
frame separate exit policy for countries telecom sector to
leave the business without loosing out the value of asset.
•India will emerge as a leading player in virtual world by
having 700 million internet user of 4.7 billion global user
by 2025.
24. •Public Wi-Fi as a bigger phenomenon: India will see a significant
spurt in Wi-Fi hotspots driven by both the government ‘smart
cities’ and ‘digital India’ as well as private sector initiatives. wired
broadband to remain work-in-progress.
The government recently set up an expert committee on the
National Optic Fibre Network (NOFN) to suggest ways to fast-
track the project and the best technology options.
25. At present 74% to 100% FDI is permitted for various telecom
services.
For Basic and cellular, Unified Access Services, National /
International Long Distance and other value added telecom
services - FDI up to 74% permitted.
Telecom received the maximum FDI of $2.67 billion at the
end of Dec 2014.
FDI