Indian Telecom Sector

Snapshot March 2009

Population Geographical area Wireless Sub. Wireline Sub. Internet Sub. Wireless Internet Sub Broadband Sub. PC Base Urban Tele-density Rural Tele-density Overall Tele-density Cable TV Homes English literate Persons Optical Fibre
TRAI 2009

1137 million 3,287,000 Sq. Kms. 392 Million 38 Million. 12.85 Million (Dec. 08) 101.10 Million 6.22 Million 35 Million 80.97 12.80 36.98 ~71 Million. ~110 Million ~7.7 Lakh

7/17/2012

Metro circles (major cities*): Mumbai New Delhi Kolkata A circles (regions that include other large cities): Andhra Pradesh Gujarat Karnataka Maharashtra Tamil Nadu*

B circles (regions with smaller urban areas and towns): Haryana Punjab Rajasthan Uttar Pradesh (East) Uttar Pradesh (West) West Bengal C circles (rural areas): Assam Bihar Himachal Pradesh Jammu & Kashmir Northeast Orissa Kerala Madhya Pradesh

( Chennai, in the southeast, was previously a separate Metro circle, but as of March 31, 2008, it was integrated into the Tamil Nadu A circle as a single entity.)

M A R K E T

H I G H

Airtel Reliance Vodafone

I TATA

BSNL IDEA cellular Tata Indiacom AIRCEL

S H A R E
I N %

L O W

HIGH

LOW

RELATIVE MARKET SHARE

Telecom Circle

In January 2008, five new entrants - Loop Mobile , Datacom Solutions, Swan Telecom, S-Tel, UniTech -- were awarded UAS licenses and existing players, Tata Teleservices, Shyam Telelink, Spice Telecom , and IDEA Cellular Ltd. , added to their existing circles, bringing the total number of licenses issued to 281, distributed as follows: Basic license holders: 2 Cellular Mobile Telephony Service (CMTS) license holders: 39 Universal Access Service (UAS) license holders: 240

About 70 percent of India's near 1.2 billion inhabitants live in rural communities rural teledensity was a mere 12.6 percent Rural wireline connections totalled 10.68 million at the end of December, down by 2.46 percent from 10.95 million at the end of September 2008 The rural wireless subscriber base hit 93.15 million at the end of the year, up 2.38 percent from 90.98 million at the end of September Department of Telecom and BSNL have signed an agreement to provide 861,000 connections to individual users and government institutions through rural and remote exchanges by 2014 To promote rural rollout by the private operators, the Indian government imposed Universal Service Obligations (USO) on the country's operators to build a fund that can finance the rollout of services in areas where there isn't an obvious or pressing business case to do so

TRAI Setup in 1997 Protection of Consumer Interest Nurture Conditions for Growth of Telecom in India Major Activities Reduced levies on Operators. Reduced upper limit in tariff (Local, STD & ISD) and other Inter-operators tariffs. Directives on number of network access service providers. Policy guidelines on new services like 3G, WiMAX, Internet Telephony, Radio Paging, VSAT, etc. Regular monitoring of Quality of Service parameters

TDSAT

An integrated & comprehensive dispute settlement mechanism. Set up on 29th May 2000 & started hearing w.e.f. Jan 2001 83% cases disposed off from 2001 till 2007

TRAI & TDSAT provided healthy atmosphere for healthy growth of Telecom sector (Teledensity from 1.57 in 1997 to 24 in December 2007)

Code Division Multiple Access is a channel access method utilized by various radio communication technologies. One of the basic concepts in data communication is the idea of allowing several transmitters to send information simultaneously over a single communication channel. This allows several users to share a bandwidth of different frequencies. This concept is called multiplexing. CDMA employs spread-spectrum technology and a special coding scheme (where each transmitter is assigned a code) to allow multiple users to be multiplexed over the same physical channel. By contrast, time division multiple access (TDMA) divides access by time, while frequency-division multiple access (FDMA) divides it by frequency. CDMA is a form of "spread-spectrum" signaling, since the modulated coded signal has a much higher data bandwidth than the data being communicated.

GSM (Global System for Mobile Communication). Estimates that 80% of the global mobile market uses the standard. It adds General Packet Radio Service(GPRS). It also adds Enhanced Data Rates for GSM Evolution (EDGE). Another advantage is that the standard includes one worldwide Emergency Telephone Number, 112. There are five different types of cell sizes in a GSM network- Micro, Macro, Pico, Femto & Umbrella cells.

Founded in 1985. Key Person: Sunil Bharti Mittal (Chairman & CEO). Revenue $6 Billion. Total number of subscribers in India is over 100 Million. Airtel has market share of 31.65% of total GSM customers. Airtel has its presence in 23 circles except North-East provision of the country. Company also provides telephone services and internet access over DSL in 14 circles. Sing Tel owns over 30% of the Bharti Telecom. Bharti Infratel owns 42% of Indus Towers Limited.

 Prepaid

Mobile connection. Postpaid Mobile Connection. Fixed Line. Broadband. DTH. Airtel Live! (for Ringtones, Wallpapers, Animation games etc.) Easy Pay. Recharge Prepaid. Blackberry. Apple iPhone.

STRENGTHS Over 100 mn customer base. Largest cellular service provider in India. Strategic alliance with Sony-Ericsson, Nokia and Sing Tel. Presence in all 23 circles in India.

WEAKNESSES: Dont have their own towers which is the strong point of Vodafone-Essar. Pulling off a deal with South Africas MTN could signal the lack of any real emerging market opportunities for the business once the Indian market has become mature.

OPPORTUNITIES: Tie-up with Google for the customized version of Google search engine. Strategic partnership with Blackberry and Apple. Embarking on another JV with Vodafone Essar and Idea Cellular to create a new tower company called INDUS TOWERS.

THREATS: Earlier a 5.6% partner is a rival (Vodafone). Quickly changing pace of the global telecommunication industry could tempt Airtel to go along the acquisition trail. Presence of DOCOMO and Virgin can make an impact because of low cost.

 Airtel

Connection at MTV. Super Singer Junior2 at Vijay TV. Champions league title sponsor with ESPN. Kya Aap Paanchavi Pass Se tez Hain?

vodafone

 Vodafone

is the worlds largest mobile telecommunications community, employing over 65,000 staff and with over 130 million customers. The business operates in 26 countries worldwide. In India Vodafone-Essar has market share of 23%. They are the main threat for Airtel.

 Prepaid

Mobile Connection. Postpaid Mobile Connection. VAS (Value Added Services).

Caller tunes and Downloads. Entertainment ( Amar Chitrakatha, Movies etc). Devotional (Bible, Gurbani, Pope, etc). Busy Message. Sports. News & Updates. Call Management Services (Call Conference, Call filter etc). Astrology. Finance (Portfolio Tracker, Stocks etc). Travel (Train Schedule, Railway Bookings). Mail Messaging & more(Voice SMS, BlackBerry). Dial in Services (Cricket Commentary, Dil say). Bill Information.

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest Telecommunications Company. Range of Telecom services: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Today, it has about 47.3 million line basic telephone capacity, 4 million WLL capacity, 48.11 Million GSM Capacity, more than 37382 fixed exchanges, 44966 BTS, 3140 Node B ( 3G BTS), 287 Satellite Stations, 480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602 Districts, 7330 cities/towns and 5.5 Lakhs villages.

BSNL provides almost every telecom service in India. Following are the main telecom services provided by BSNL: Universal Telecom Services : Fixed wire line services & Wireless in Local loop (WLL) using CDMA Technology called bfone and Tarang respectively. As of December 31, 2008, BSNL has 73% market share of fixed lines. Cellular Mobile Telephone Services: BSNL is major provider of Cellular Mobile Telephone services using GSM platform under the brand name BSNL Mobile. As of March 31, 2008 BSNL has 19% share of mobile telephony in the country.

 Internet:

BSNL provides internet services through dial-up connection (Sancharnet) as Prepaid, (NetOne) as Postpaid and ADSL broadband (BSNL Broadband). BSNL has around 50% market share in broadband in India. BSNL has planned aggressive rollout in broadband for current financial year. Network (IN): BSNL provides IN services like tele-voting, toll free calling, premium calling etc.

Intelligent

BSNL LANDLINE PHONE PLUS SERVICE NEW TELEPHONE CONNECTION PERMANENT CONNECTION CONCESSION IN RENTALS SHIFT OF TELEPHONE TRANSFER OF TELEPHONE TELEPHONE TARIFF BSNL MOBILE POSTPAID PREPAID UNIFIED MESSAGING GPRS/WAP/MMS DEMOs TARIFF SMS & BULK SMS I NET OVERVIEW SERVICES ON I NET USING ON I NET I NET CONNECTIONS TARIFF

BSNL WLL INTERNET SERVICES NETWORK BROADBAND TYPES OF ACCESS WI-FI CO-LOCATION SERVICE BSNL WEB HOSTING INTERNET TARIFF DIAL UP INTERNET SMS& BULK SMS BSNL BROADBAND REGISTER ONLINE TARIFF USO FUNDED RURAL BROADBAND FAQ CHECK USAGE BSNL MANAGED NETWORK SERVICES BSNL MPLS-VPN ISDN TARIFF

INTELLIGENT NETWORK
FREE PHONE SERVICE PREMIUM RATE SERVICE INDIA TELEPHONE CARD VIRTUAL PRIVATE NETWORK (VPN) VOICE VPN UNIVERSAL NUMBER UNIVERSAL PERSONAL NUMBER TELE VOTING

TELEX/ TELEGRAPH
TELEX/ TELEGRAPH TARIFF

EPABX
EPABX FREE EPABX TARIFF CENTREX CENTREX TARIFF

VIDEO CONFERENCING
OVERVIEW TARIFF FAQ

INMARSAT KU-BAND TRANSPONDER

AUDIO CONFERENCING
OVERVIEW TARIFF FAQ

WiMAX: Tender Invited for 1000 BTS at Rural Block HQs covering 25000 village community centres IPTV

Launched in Three Cities viz. Bangalore, Pune & Kolkata Agreement signed with Franchisees for another 50 Cities
VOIP EOI under Issue

STRENGTHS Pan India Reach. Experienced telecom service provider. Huge resources. Most trusted brand. Huge optical fibre network and associated bandwidth.

WEAKNESSES Non-optimization of network capabilities. Poor marketing strategies. Legacy of poor service image. Huge aged manpower. Lack of strategic alliance. Procedural delays.

OPPORTUNITIES Tremendous market growth around 20 lac per month. Untapped broadband services. Diversification of business to turn-key projects. fuller utilization of slack resources.

THREATS Tough competition. Entry of international players. Decreasing ARPU. Populist policies of government like One India plan.

Reliance Communication

 Earlier

it is known as Reliance Infocom. It is the dream of Late Dhirubhai Ambani of digital India. Now it is present in around 18 circles. It is providing its services in both GSM as well as CDMA technology. RCOM is number 1 in Indian telecom industry among CDMA mobile technology service provider.

 Prepaid. Postpaid. R

Services. R World :> GSM & CDMA. BlackBerry. Broad net Netconnect Reliance Landline. Broadband Leasedline

 Virtual

Private Network (VPN) Wireless data WDVPN. Video conferencing. Internet Data Center (IDC). Reliance Global Call. Reliance Big TV. Reliance IPTV. Reliance PCO. IPLC. Audio Conferencing.

 RCom

targets rural customers with new services & sachet pricing for mobile internet pricing. Reliance mobile plans unique contest based on ICC champions Trophy. Reliance Mobile introduces Antakshari service on GSM and CDMA networks. RCOM signs strategic tie-up with kodiak networks for Nationwide Roll-out of Mobile conferencing service.

Reliance CDMA provides their own mobile phones. Reliance GSM provided their SIM cards at Rs.25. and free talk time of Rs 10 for 3 months that is a good strategy to enter into the market. On the 30th December 2008, Reliance became the first telecom company in India to operate in both CDMA as well as GSM technologies

What An Idea Sirji..

It initially started in 1995 as a joint venture among the Tata's, Aditya Birla Group and AT&T by merging "'Wings Cellular'" operating in Madhya Pradesh, Uttar Pradesh (UP) West, Rajasthan. Initially the Birlas, the Tata's and AT&T Wireless each held one-third equity in the company. But following AT&T Wireless' merger with Cingular Wireless in 2004, Cingular decided to sell its 32.9% stake in Idea. This stake was bought by both the Tatas and Birlas at 16.45% each.

Idea for You

Prepaid Plans Postpaid Plans Idea Net Setter New ISD rates

Idea Fresh
Activate Dialer Tones Download Latest Games Personalize Your Phone With Themes Cool Animations Free Downloads

Idea for Your Business

Voice Services Business Applications GPRS Applications Customized Solutions Corporate Connection Punjab

Introduction of Zac as a Mascot for !dea. Entry in Orissa and Tamilnadu. Idea partners IIFA for 10th Anniversary Awards. Idea wins prestigious Golden peacock Award 2008 for My Gang. Bidding, Biking mania, Chhappar Phad ke etc contests organized by Idea Cellular.

 TTSL is

a part of TATA Group of companies. 26% equity stake of TTSL is acquired by NTT DCOMO Japanese Telecom Giant. They are providing CDMA mobile services targeted towards the youths , in association with Virgin Group on a franchisee model basis. TTSLs enterprise value is $10.8 billion. They are present in 20 circles. They have a subscriber base of over 40 million in over 5000 cities.

They Acquired Hughes Telecom in 2002. Strategic alliance with Motorola, Ericsson, Lucent, and ECI Telecom for 3G infrastructure establishment The company joined hands with Tata Chemicals, Tata Kisaan Sansar network, disseminating information through these centres and using them as local distributors. The company's retail business has around 3,000 outlets nationally, comprising 600 TTSL owned stores and around 2,500 stores in the Franchisee format. Tata Indicom already covers the top 700 towns in India in terms of population through Tata Indicom Exclusive Stores. Tata Indicom also maintains an online portal for its customers ichoose where the customers can buy Tata Indicom post-paid connections and prepaid recharge vouchers with an upfront commitment of activation and delivery of the handset within 72 hours

 Wireless

phones. Landline Phones. Internet & Broadband. Net Telephony. Calling Card. Mobile Phone: Prepaid Mobile Phones. Postpaid Mobile Phones.

High Tariffs

Airtel
Narrow Network Coverage

Reliance
Wide Network Coverage

Vodafone

Idea

BSNL

Low Tariffs

 Mobile

value-added services (m-VAS) is the ability for cellular operators and service providers to charge a premium price for the services (beyond voice conversation) they offer to their subscribers (mobile users). E.g., SMS MMS CRBT(Call ring back tone) Video Streaming. Mobile Advertisement. mCommerce, etc.

Internet Access Report

Source: pluggd.in

Role of Mobile in TV Contests

Source: pluggd.in

 Mobile

VAS accounts to 10-12% of the total telecom revenues. Out of which 8-10% of the total mobile subscribers are expected to be GPRS (General Packet Radio Services) subscribers as well. mobile VAS revenue growth contributing to telecommunication industry is expected to grow to 30% in next 5-7 years Many experts are predicting mobile VAS in India to be 1 billion USD market by 2010.

Parameters
Subscribers Base Local pricing STD pricing Ease of Payment Network coverage VAS Problem solving Brand loyalty Technology issues Dealership network Corporate image Ease of getting new connection Ads & Promotion Availability of VIP No.

Airtel

Vodafone
8.03

BSNL
6.59 7.04 6.26 6.78 7.19 6.78 6.04 7.08 6.59 6.11 6.67 8.22

RCOM
6.56 6.53 6.83 6.44 6.53 6.71 5.56 6.39 6.97 6.94 8.07

MTNL
5.95 6.35 5.62 5.82 4.28 4.48 4.55 4.68 4.28 5.42 6.25 7.21

Idea
6.94 7.22 6.94 6.22 6.08 5.79 6.01 5.72 5.72 7.51 8.07 8.15

Tata Indicom
5.83 5.89 5.65 5.86 5.47 5.83 5.39 6.03 5.83 6.18 7.46 7.35

Total Mean

8.42
7.39

53.47 54.32 52.38 52.71 50.34 48.60 48.15 52.03 48.59 53.84 60.08 62.99

7.75
7.41 7.91 7.98

7.53 8.03 8.15

7.39

7.46
7.46

7.50
7.84 7.51 7.99

7.91 7.53 8.03

8.06 8.34

8.15
8.33

8.35

8.17 6.88

8.17
6.84

5.96 5.59

7.33 6.09

4.62 5.42

7.44 6.46

6.15 5.47

53.99 48.31

Source: 4Ps B&M and ICMR

Ranking 1.

Telecom Company Airtel

Mean 147.95

2.
3. 4. 5. 6. 7.

Vodafone
Idea RCOM BSNL TATA MTNL

147.24
125.89 125.82 123.63 115.22 101.75

Source: 4Ps B&M and ICMR survey on Indias Best service Companies

Rural tele-density is less than 10%. Overall tele-density is only 24%. Broadband penetration is just 0.25%, hence vast scope. BPO business is growing fast: Telecom can ride on it. Value added services like M-Commerce, MMarketing, Special Information, Ring tones, etc. offer venues of additional revenue. As globalization is increasing, more percentage of global business for Indian telecom. Technologies like NGN, 3G, WiMAX, will open up new frontier of business.

 No.

of operators are increasing per circle: hence more competition ARPUs are going down Cost/ Customer is very high in rural areas Spectrum a scare commodity Infrastructure readiness in rural PC prices are very high Availability of Contents in local language Availability of Contents for Rural Population International Bandwidth is costly Telecom Manufacturing in India.

Growth- the way ahead

Network expansion
250 million by 2007 - Already achieved 600 million by 2012

Rural connectivity
100 million by 2010 200 million by 2012

Broadband
20 million broadband connections and 40 million internet connections to provide by 2010 Broadband connections to provide on demand across the country by 2012

Company
Idea Cellular

Subscriber Base
4230479 (July, 2009)

Airtel Vodafone
Tata Teleservices Reliance Communication BSNL

4467184 (July, 2009) 8761853 (July, 2009)

NA NA 2477137 (July, 2009)

Tele-density of the state is around 45% against the national tele-density of 35%. Gujarat has total 2.5 Crore subscribers.

Source: COAI (Cellular Operator Association of India)