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Telecom industry has the maximum potential to grow in recent times. The impact on the
telecom sector is less severe than the other sectors of economy which are affected by the
recent economic recession. If organizations decide to reduce their costs & expenditure, it
might lead to growth in some parts of the telecom industry. There are many ways like µwork
from home¶, video conferencing, etc. which can help booster the telecom industry. All these
leads to a need for reliable communication which is provided by upgrading the existing IP
networks, more penetration of fibre in the access network & rapid development &
deployment of other associated technologies. So, considering the above factors we classify
the emerging trends in the telecom industry into Customers (who buy the services), Operators
(who sell those services) & Equipment Vendors (who make those services technically
feasible & available).

Customers always look for high quality, value for money & a variety of choices at their
disposal at minimum cost. Important areas to focus are:
yp 0uality: High quality of services for voice, data should be offered to customer for
better communication at all times.
yp 0uantity: Variety of different services like data, voice, video & mobility should be
made available at all times from the same device & at high data speeds.
yp Cost: Customers have got used to the declining rates of telecom services and expect
the trend to continue in future as well.

Important areas as opportunities for operators are:

yp Customer care ± Provide a pleasant customer experience and ample of choices in

technologies and product packages.
yp Outsourcing: Outsource Network and IT functions to focus on core aspects of their
business and strategic initiatives.
yp Inside building coverage ± Ensure good coverage inside buildings even if it means
sharing network resources with competitors as nearly 70% of the voice & data calls
are expected to originate inside the buildings in the coming years.
yp Coverage/Penetration in Rural areas ± Adapt technology to make communication in
rural areas profitable.
yp ÿuel bill reduction ± ÿuel & Power contribute about 25% of operator¶s expenses.
Operators have great interest in technologies which reduce this expense as it improves
their bottom line as well as earns approval from environmental considerations.





Technology advancements are driven by the applications which customers find appealing and
solve the operational issues faced by operators. Some of the key ones which can be described
as emerging technologies & growth avenues for the Telecom sector are shown in the below

yp   (Third eneration Mobile Services)

Customers want to use the triple play services (Voice, Data and Video) all the time
and everywhere ± indoor or outdoor. Multi-billion dollars are being invested in
development and enhancement of mobile technologies like   & WiMAX.
It offers voice capacity that is four to five times higher than that of 2 services.
Therefore, it is an ideal platform for low-cost cellular services. It can fulfill the need
of fast developing mobile penetration in rural areas. It can meet the demand for high-
Speed data and content rich services in the urban landscape. It can be a way forward
to achieve the overnment¶s broadband objectives. In addition, it will be a good
solution for education, telemedicine, etc.

yp WiMAX (Worldwide Interoperability for Microwave Access)

WiMAX has been one of the most significant developments in wireless
communication in the recent past. Since this mode of communication provides
network access in inaccessible terrains at a speed of more than 4 Mbps, it is
expected to be a major f actor telecom services in India, especially the wireless
services. Thus, it will lead to the increased use of telecom services, internet, value
added services and enterprise services. India needs an easier mechanism to provide
internet connectivity to its masses. WiMAX seems an economically feasible option
in this scenario since it does not require significant resource requirement. Installing
WiMAX will facilitate broadband accessibility within a radius of 25 kilometers. It
has several potential areas of growth. The IT industry can expand to other cities as
well. It can support the nation-wide literacy program with videoconferencing
playing a vital role in the education of rural students. Voice over Internet Protocol
(VoIP) will make it possible to telecast entertainment programs in remote areas.
Improved communication could integrate remote villages with the world economy.

yp Infrastructure Sharing
In order to curtail their network deployment costs, many service providers are
considering infrastructure sharing. Infrastructure sharing promises several advantages:
‡ Significant reduction in initial set up costs.
‡ Increased environmental aesthetics.
‡ Lower operating costs for service providers.
‡ Improved service quality.
‡ Increased affordability for customers.
‡ ÿaster roll out of services in rural and remote areas.

yp Virtual Private Network (VPN)

Virtual Private Network is a private data network that provides connectivity within
closed user groups via public telecommunication infrastructure. It is similar to
leasing/owning lines and yet getting exclusive access. Sharing of public infrastructure
makes it a less expensive option and it is also known as Closed User roup (CU ).
In the light of the developing telecom market, various CU tariff plans have been
launched in the voice telephony segment, which primarily target groups comprising
of a large family, friends or colleagues.

yp Rural Telephony
The rural market holds great potential for telecom companies. Rural telephony will
require major investments in the near future as the overnment is planning to
increase rural teledensity from the current level of 4-6 per cent. This segment will
boost the demand for telecom services, equipment, internet services and other value
added services, thereby offering a great market opportunity for telecom p layers.
The government has a target to achieve 40% rural teledensity by 2012 & reduce
urban-rural digital divide from present 25:1 to 5:1 by 2010.



India is the fastest growing free market democracy in the world. It has a mature and
dynamic private sector, which accounts for 75 per cent of India¶s DP, and a market with
enormous potential due to its large size and diversity. The most important reasons for the
growth of private industries in India are stable economic outlook, large market potential
which varies according to size, income, consumption, etc. & overnment regulations which
facilitate industrial growth.

The Union overnment has taken various steps in line with strategy to spur Telecom Sector
rowth. These are as follows:
yp Opening up of its telecom sector to foreign investors up to 100 percent holding in
manufacturing of telecom equipment, internet services, and infrastructure providers
(e-mail and voice mail), 74 percent in radio-paging services, internet (international
gateways) and 49 percent in national long distance, basic telephone, cellular mobile,
and other value added service.
yp Decision of not capping on the number of access providers in any service area. 122
new UAS licenses were granted in 2008 to 17 companies in 22 service areas for
benefit of consumers by increased competition.
yp Permission of dual technology spectrum.
yp Decision to introduce Mobile Number Portability (MNP), that will alow susbscribers
to retain their existing numbers while switching over from one service provider to
yp Conclusion of Auction of   /BWA Spectrum in 22 circles for Telecom Service
Providers. Rollouts expected by the end of 2010.

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Combining these efforts made by the government & the economic stability prevalent in the
country, there have been estimates of prosperous growth for Indian Telecom sector till 201 .
The future estimates are as follows:

yp The Telecom sector revenues would touch $ 0 billion by 201  registering a
compound annual growth rate (CA R) of 12.5 percent from 2009-201 .
yp The Telecom subscriber base is also expected to grow at a CA R of 12.5 percent and
would cross 770 million by 201 .
yp Mobile market penetration is projected to increase to 6 .5 percent in 201  from  8.7
percent in 2009.
yp Thechurn rate ± the rate at which a subscriber switches their operator ± would cross
59 percent in 201  from 5  percent currently.
yp The number of people with prepaid connections accounting for 9  percent of the
subscriber base in 2008 will continue to swell to exceed 96 percent by 201 j
surpassing 740 million
yp The revenues from data services will significantly contribute to mobile services in
India, with a CA R of 16.8% from 2009 to 201 .
yp rowth will also be triggered by increased adoption of value-added services, which
are relevant to both rural and urban markets.