TELECOM INDUSTRY

GROUP MEMBERS
AKSHITA . AMIT . JAMAL . REETU . SARTHAK .
SHIVENDU . SONAL BHUPTA

CONTENTS
Size of the industry

Dynamics of the industry

Structure of the Industry

Critical success factors

Growth rate over the past 3-5

Regulations that affect the

Expected Growth Rate in the

years

future

Key Growth Drivers

Segmental Analysis
Key performance parameters for

the industry

industry

Imports and Exports

Recent events : New entrants,

new products, M&As,

Bankruptcies, exits etc

Analysis of Costs and profitability

Future Outlook

SIZE AND STRUCTURE OF THE

TELECOM INDUSTRY

HISTORY (POST LIBERALIZATION PERIOD)

Historically telecom network in India was owned and

managed by Government as it is considered as a

strategic service. At that time the Telecom industry was
monopoly in nature.

EVOLUTION

1851

1854
Telegraph
services opened
for public

1882

1930
Radio
broadcasting
was initiated in
India

EVOLUTION
VSNL
introduced
internet in
India
1965

1985
DoT formed

1995

1997
TRAI was
created

PRIVATISATION OF INDIAN TELECOM

INDUSTRY
Privatisation of telecom industry started in 1981 under

Indira Gandhi.

First contract signed with Alcatel CIT of France to

merge it with Indian Telephone Industries (ITI).

Initial goal of setting up 5,000,000 phone lines every

year.

Policy let down due to political opposition.

SECOND ATTEMPT
Attempts to liberalise started again by Rajiv Gandhi

government.

Sam Pitroda was called in

as a consultant.
Centre for Development of

Telematics(C-DOT) was founded.

EVOLUTION OF TELECOM INDUSTRY

PRESENT SCENARIO
India is 4th largest market in Asia after China, Japan and

South Korea.

India is the 5 th largest in the world

2 nd largest among emerging economies of Asia.
Contribution of telecom sector in terms of revenue is 2.1

% of GDP as compared to 2.8% in developed

economies.

Lowest tariff charges in the world.

INDIAN TELECOM INDUSTRY FACTS

One of the fastest growing cellular markets in the world in terms of

number of subscriber additions 19.35 million in 3 months (April to June

2007)

Expected to reach total subscriber base of about 500 million by 2010

(i.e., more than one phone for every household)

Annual growth rate of the telecom subscribers 47 percent (200607)

More GSM subscribers than fixed-line subscribers

Total telecom subscribers 225.21 million (June 2007)

Tele density 19.86 percent (June 2007)
Number of new mobile subscribers added every month 7.34 million

(June 2007)

Handset market USD 4,750 million (200607)

STRUCTURE OF THE INDUSTRY

Telecom services can be divided
predominantly into basic, mobile and
Internet services.
It also comprises smaller segments, such
as radio paging services, Very Small
Aperture Terminals (VSATs), Public Mobile
Radio Trunked Services (PMRTS) and
Global Mobile Personal Communications
by Satellite (GMPCS).
The growth witnessed in the mobile
services and Internet services segments
was higher as compared to other
services, such as basic services and radio
paging services

NETWORK STATUS OF THE CURRENT FINANCIAL

YEAR (2012-13 )
The total number of telephones increased from 951 to

965 million during the period of April to June 2012

The number of the telephones declined

December 2012.

to 865 in

The decline was mainly because of the removal of

inactive mobile connections by the services providers

There was a increase of 330.33 to 343 million

THE CHART SHOWING THE NUMBER OF CONNECTIONS

TELE-DENSITY
Shows the number of telephones per 100 population.
Important indicator for the telecom penetration of the

country.

Tele-density was 78.66% at the end of march 2012 and

declined up to 73.35% at the end of December 2012

AMONGST THE SERVICES AREAS (2013 )

karnataka , 96

kerla , 100

tamil nadu , 109

himachal , 102

punjab , 101

AMONGST THE METROS (2013)

,0

kolkatta , 155

mumbai, 159

delhi , 220

COMPARISON BETWEEN RURAL AND URBAN

COMPOSITION OF TELECOM SECTOR

Wireless

The wireless subscriber was 919.7 million in the financial year

2012.

In the year 2011 it was 811.67 wireless subscribers

The overall growth 13.26%

Out of 919.7 million there were 88% GSM subscribers and 12

% CDMA

WIRELESS SUBSCRIBERS

WIRE LINE SUBSCRIBERS

The subscriber base of the wire line subscribers in the

year 2012 was 33.66 when compared to 2011 it was 31.44

million.

Registering a decrease of 2.20 million.

WIRELINE SUBSCRIBERS

BROADBAND AND INDUSTRY SUBSCRIBERS

The internet subscribe in the 2012 was 22.67 when

compared to 19.66 in the year 2011

There was a increase of 3.10 million subscribers.

Annual growth rate of 16.19%

STRUCTURE OF INDIAN TELECOM INDUSTRY

Indian
telecom
industry

Public
sector

mtnl

Private
sector

bsnl

Indian
companies

Foreign
investment
companies

MAJOR PLAYERS

MARKET SHARE OF WIRELESS SERVICE

PROVIDERS

MARKET SHARE OF GSM PROVIDERS

MARKET SHARE OF CDMA PROVIDERS

MARKET SHARE OF WIRELINE SUBSCRIBERS

GROWTH IN THE INDUSTRY

GROWTH IN TELECOM INDUSTRY

India has the fastest growing telecom network in the world.
Indian telecom network is second largest in the world after China.
Liberalization of the sector has not only led to rapid growth but also helped a great

deal towards maximization of consumer benefits, evident from a huge fall in tariffs.

The total number of telephones in the country stands at 904.56 million

Overall teledensity has increased to 73.32% as of 31 October 2013.

The total numbers of mobile phone subscribers have reached 875.48 million as of

October 2013.

The mobile tele-density had increased to 70.96% in October 2013.

In the wireless segment, 4.90 million subscribers were added in October 2013.

The wire line segment subscriber base stood at 29.08 million

NETWORK STATUS DURING CURRENT

FINANCIAL YEAR (2012-13)
The total number of telephones continued to increase till June 2012 and increased

from 951.35 million to 965.52 million during the period April to June 2012. Thereafter,
number of telephone connections declined to 895.51 million by the end of
December 2012.

The decline in telecom user base after June 2012 has been primarily due to the

removal of inactive mobile telephone connections by the service providers

The rural telephones have increased from 330.83 million to 343.88 million during the

period April to June 2012 and declined thereafter to 338.59 million by the end of
December 2012.

The urban telephones increased from 620.52 million to 621.65 million during the

period April to June 2012 and then declined to 556.92 million by the end of
December 2012.

TELE-DENSITY

BROADBAND
Increase in broadband activity is seen as an integral driver of improved socio

economic performance

INTERNET SUBSCRIBER BASE

Driven by growth in Internet usage through mobile phones, total net

subscriber base in India increased by 20.38% to reach 198.39 million till

April-2013

Internet usage through mobile phones dominated the total subscriber

base with about 89% share. Total number of subscribers who accessed
Internet by mobile devices stood at 176.5 million during the quarter
ended June 2013.

The number of Internet subscribers, except through access by mobile

devices, increased from 21.61 million at the end of March to 21.89

million at the end of June, up 1.3%.

EXPECTED GROWTH OF THE

TELECOM INDUSTRY

EXPECTED GROWTH
India is the worlds second-largest telecommunications market.
The telecom infrastructure in India is expected to increase at a

compound annual growth rate (CAGR) of 20 per cent during the

period 20082015 to reach 571,000 towers in 2015.

The mobile phone industry in India is likely to contribute US$ 400

billion to the countrys gross domestic product (GDP)

It has the potential to generate about 4.1 million additional jobs by

2020

The mobile ecosystem generated approximately 5.3 per cent of

the GDP for India and directly supported 730,000 jobs in 2012.

 The Indian mobile advertising market is estimated to reach Rs 2,800

crore (US$ 457.52 million) by 2016 from the current Rs 180 crore (US$
29.41 million).

Increasing demand for smart phones and availability of high speed

networks, such as 3G and 4G services, has resulted in the rapid growth

of the Indian market

Indian Mobile Gaming Market Forecast to 2017 estimated the market

to reach Rs 18.5 billion (US$ 302.28 million) in 2017 and grow at a CAGR
of
nearly
24
per
cent
during
the
period
20132017.

FUTURE - RELYING ON 3-G

For future growth, the industry is banking on high value 3G and

data services that fetch higher revenues per user and are more
profitable.

Though 3G services were launched by the major carriers in 2011,

customer conversions have

because of higher costs.

been

slower

than

anticipated

However, the rising popularity of smart-phones and intensive

marketing has led to increased demand for these services.

FUTURE PROSPECTS
As the fastest growing telecommunications market in the world,
India is projected to have 1billion telephones by 2015 and is estimated

to become world's largest mobile phone market by subscriptions by

2013.

With a large population yet to have access to telecommunication and

teledensity still being 76.86 % and rural tele-density at 37.48 %, there is

significant growth opportunity for the sector, especially in rural areas
and 3G and BWA yet to make significant inroads.

FACTORS CONTRIBUTING TO ENLARGED

OPPORTUNITIES FOR GROWTH
An expanding Indian economy with increased focus on

the services sector

Population mix moving favourably towards a younger

age profile

Urbanization with increasing incomes

KEY GROWTH DRIVERS OF THE

TELECOM INDUSTRY

GROWTH DRIVERS IN INDIAN TELECOM MARKET

Liberalisation:
Increasing Affordability of Handsets
Prepaid Cards Bring in More Subscribers
Introduction of Calling Party Pays (CPP)

Changing Demographic Profile

Increased Competition & Declining Tariffs
Outlook

LIBERALIZATION
The relaxation of telecom regulations has played a major

role in the development of the Indian telecom industry.

The liberalisation policies of 1991 and the consequent

influx of private players have led the industry on a high

growth trajectory and have increased the level of
competition.

Post-liberalisation, the telecom industry has received

more investments
technology.

and

has

implemented

higher

INCREASING AFFORDABILITY OF HANDSETS

The phenomenal growth in the Indian telecom industry

was predominantly aided by the meteoric rise in wireless

subscribers, which encouraged mobile handset
manufacturers to enter the market and to cater to the
growing demand.

Further,

the manufacturers introduced lower-priced

handsets with add-on facilities to cater to the increasing
number of subscribers from different strata of the society.

INTRODUCTION OF CALLING PARTY PAYS (CPP)

The CPP regime was introduced in India in 2003 and

under this regime, the calling party who initiated the call
was to bear the entire cost of the call.

This regime came to be applicable for mobile to mobile

calls as well as fixed line to mobile calls.

So far India had followed the Receiving Party Pays (RPP)

system where the subscriber used to pay for incoming

calls from both mobile as well as fixed line networks.

Shifting to the CPP system has greatly fuelled the

subscriber growth in the sector.

PREPAID CARDS BRING IN MORE SUBSCRIBERS

In the late nineties, India was introduced to prepaid cards,

which was yet another milestone for the wireless sector.

Prepaid cards lured more subscribers into the industry besides

lowering the credit risk of service providers due to its upfront

payment concept.

Prepaid cards were quite a phenomenon among first-time

users who wanted to control their bills and students who had
limited resources but greater need to be connected.

Pre-paid cards greatly helped the cellular market to grow

rapidly and cater to the untapped market.

CHANGING DEMOGRAPHIC PROFILE

The changing demographic profile of India has also

played an important role in subscriber growth.

The changed profile is characterised by a large young

population, a burgeoning middle class with growing

disposable income, urbanisation, increasing literacy
levels and higher adaptability to technology.

These new features have multiplied the need to be

connected always and to own a wireless phone and

therefore, in present times mobiles are perceived as a
utility rather than a luxury.

INCREASED COMPETITION & DECLINING TARIFFS

Liberalisation of the telecom industry has fuelled intense competition,

especially in the cellular segment.

The ever-increasing competition has led to high growth of subscribers

and has put pressure on tariffs, which have seen a sharp drop over the
years.

When the cellular phones were introduced, call rates were at a peak of

Rs 16 per minute and there were charges for incoming calls too.

Today, however, incoming calls are no longer charged and outgoing

calls are charged at less than a rupee per minute.

Apart from these major growth drivers, an improved network coverage,

entry of CDMA players, growth of value-added services (VAS),

advancement in technology, and growing data services have also
driven the growth of the industry.

OUTLOOK
The

telecom industry in India has experienced

exponential growth over the past few years and has
been an important contributor to economic growth;
however, the cut-throat competition and intense tariff
wars have had a negative impact on the revenue of
players.

Despite the challenges, the Indian telecom industry will

thrive because of the immense potential in terms of new

users. India is one of the most-attractive telecom markets
because it is still one of the lowest penetrated markets.

SEGMENTAL ANALYSIS OF THE

TELECOM INDUSTRY

MARKET SEGMENTATION IN TELECOM

INDUSTRY
Market segmentation is a concept and a process well

known and largely used worldwide, in most business

environments.

It is basically a process of grouping customers into

homogenous groups in order to optimize the use of

resources and increase efficiency, be it in terms of
product adoption, communication and branding,
distribution or pricing.

SEGMENTS IN THE TELECOMMUNICATION

INDUSTRY
Telecommunication services in India can be divided into

two broad segments, wireline services and wireless

services.

The

Indian telecom industry has made significant

progress; however, the source of emergence of this
growth in terms of wireless and wire line segments has
undergone substantial change in the past few years

 Other telecommunication services such as internet services,

broadband services, VSAT, also have evolved gradually and

have become an integral part of the Indian telecom industry.

Thus, broadly the Indian telecommunication industry can be

classified into the following segments

Wire line services

Wireless service: GSM and CDMA
Internet services
Public Mobile Radio Trunked Services
Global Mobile Personal Communication by Satellite (GMPCS)
Very Small Aperture Terminals (VSAT)
Mobile Value Added Service

CONNECTED INDIA: TELECOM MISSION 2020 SHOULD AIM

TO ACHIEVE THE FOLLOWING OBJECTIVES
To recognize and treat telecom infrastructure as critical
infrastructure to accelerate the pace of growth of the sector and
increase its contribution to the Indian economy

To connect the unconnected at affordable prices to ensure 100%

telecom coverage of the country; achieve rural penetration of 100%
and reach overall wireless penetration of 110%
To strengthen broadband penetration to reduce the digital divide;
achieve total broadband connections of 150 million
To earn revenues of around US$60 billion

KEY PERFORMANCE PARAMETERS OF

TELECOM INDUSTRY

KEY PERFORMANCE PARAMETERS

A performance indicator or key performance indicator (KPI)

is a type of performance measurement.

An organization may use KPIs to evaluate its success, or to
evaluate the success of a particular activity in which it is
engaged.
Sometimes success is defined in terms of making progress
toward strategic goals, but often success is simply the
repeated, periodic achievement of some level of
operational goal (e.g. zero defects, 10/10 customer
satisfaction, etc.).
Accordingly, choosing the right KPIs relies upon a good
understanding of what is important to the organization.

KEY PERFORMANCE PARAMETERS

'What is important' often depends on the department

measuring the performance - e.g. the KPIs useful to finance

will be quite different from the KPIs assigned to sales.
Since there is a need to understand well what is important (to
an organization), various techniques to assess the present
state of the business, and its key activities, are associated
with the selection of performance indicators.
These assessments often lead to the identification of potential
improvements, so performance indicators are routinely
associated with 'performance improvement' initiatives.
A very common way to choose KPIs is to apply a
management framework such as the balanced scorecard.

KEY PERFORMANCE PARAMETERS

KPI

tells the performance of a network on a

daily/weekly/monthly basis, helps to improve the
network, so that operator & customer both enjoy the
service

There are various Key Performance Parameters of the

telecom industry which help us in gauging the extent to

which the network provider is successful and
appreciated among the customers

1. SYSTEMS AND NETWORK PERFORMANCE

ANALYSIS / CAPACITY PLANNING
Availability

Cost of support systems

Grade of service

Cost of operational systems

Service life of equipment

Average call length

Bit error ratio (data, bits &

Analysis of ASR routes

elements transfer)

Bit rate (data, bits and

elements transfer)

Downtime / Time out of

service

Call completion ratio

Network traffic, congestion

Idle time on network
Dropped calls

2. QUALITY / USAGE (AIRTIME): ANALYSIS

OF THE VOLUME OF SUCCESSFUL CALLS

Mean Opinion Score
Service

Duration of calls
Billed amount on each call

3. COVERAGE
% of land covered with services
% of population covered with services
Average land unavailable to services
Average population unavailable to services

Access to customer service

4. FAULTS AND COMPLAINS (TROUBLE TICKETS

ANALYSIS)
% of open and level of escalation priority required
% closed
Mean time to resolved
Work in progress

Customer service level statistics

5. CUSTOMER ANALYSIS
Customer segmentation
Analysis of subscriptions
Top N customers
Churn (No. of Subscriber who stopped using Services or

left particular network)

SOME OTHER PARAMETERS

ASR (Answer Seizure Ratio) - Number of successfully answered calls divided

by the total number of calls attempted (seizures) multiplied by 100

(Answer / Seizure) * 100 = Answer Seizure Ratio.

Standard Value = 40% - 45%
MOU (Minutes of Usage) per Subscriber It calculates the Total Minutes used

in a Network divided by the number of subscribers

CCR (Call Completion Ratio) - Total no of calls completed / Total no of calls

attempted * 100%

Higher the ratio is better

Standard Value > 98%

 LUSR (Location Update Success Rate) - Its a ratio of no. of times mobiles

update its location successfully to the no. of times mobiles request

network for Location update
LUSR = (Location Update Success / Location Update Request)*100
Standard Value >= 98%.
PSR (Paging Success Rate) - Its a ratio of no. of times network successfully

find the mobiles to the no. of times network tries to locate the mobiles
within its area
PSR = (No. of Network Paging Response / No. of Network Paging

Attempts)*100
Standard Value >= 92%

SUMMARY OF GSM OPERATORS KEY PERFORMANCE

INDICATORS (AUG-SEP 2013)

CSSR CALL SET-UP SUCCESS RATE

CDR CALL DROP RATE
TCH TRAFFIC CHANNEL

SDCCH STAND ALONE DEDICATED CONTROL CHANNEL

SUMMARY OF CDMA OPERATORS KEY

PERFORMANCE INDICATORS (AUG-SEP 2013)

CSSR CALL SET-UP SUCCESS RATE

CDR CALL DROP RATE
TCH TRAFFIC CHANNEL

SDCCH STAND ALONE DEDICATED CONTROL CHANNEL

DYNAMICS OF THE INDUSTRY

OLIGOPOLY
An oligopoly is a market form in which a market or industry is

dominated by a small number of sellers.

In India, the telecom sector is dominated by the following

companies:

DEPARTMENT OF TELECOM

Separated from Indian Post and Telecommunication

Department in 1985

Responsible for telecom services in entire country until

1986.

MTNL and VSNL carved out of DoT.

1990S
Pressure on the government to open up telecom

industry under the LPG policies.

Value Added Services (VAS) and cellular telecom

sector were opened up for competition from private

investments.

Narsimha Rao - led government introduced the

National Telecommunications policy (NTP) in 1994.

Foreign firms were eligible to 49% of the total stake.

1990S
In 1997,

the government set up TRAI (Telecom

Regulatory Authority of India).

The government corporatized the operations wing of

DoT on 1 October 2000 and named it as Department

of Telecommunication Services (DTS) which was later
named as Bharat Sanchar Nigam Limited (BSNL).

In April 2002, TATA took 25% stake in VSNL.

MAJOR PLAYERS & MARKET SHARE

WIRELESS SEGMENT

WIRE-LINE SEGMENT

BROADBAND

PRICE & NON PRICE

COMPETITION STRATEGIES IN
TELECOM INDUSTRY

WHAT
IS
PRICE
COMPETITION?
Price competition is commercial competition characterized by
repeated cutting of prices below those of competitors.

the

In the short term, price wars are good for consumers, who can take

advantage of lower prices.

Often they are not good for the companies involved because the lower

prices reduce profit margins and can threaten their survival.

WHAT IS NON PRICE COMPETITION?

Non-price competition is a marketing strategy in which one firm tries to distinguish

its product or service from competing products on the basis of attributes like design,
quality of service or any other sustainable competitive advantage than price.

Non Price competition typically involves promotional expenditures, marketing

research, new product development, and brand management costs.

Firms engage in non-price competition, in spite of the additional costs involved,

because it is usually more profitable than selling for a lower price, and avoids the risk
of a price war.

Although any company can use a non-price competition strategy, it is most

common among oligopolies and monopolistic competition, because firms can be

extremely competitive.

VS

PRICE COMPETITION IN INDIAN

TELECOM INDUSTRY
Tata Docomo entered the Indian market with a new concept of charging

the customer per second. It literally revolutionized the Indian telecom

industry.

Indian mobile telephone companies have come a long way and no longer

perceive lowering prices and increasing subscribers as tools for survival.

To ensure their sustenance, telecom players in India are slowly hiking call

rates and doing away with promotional offers.

"The reason behind increasing call rates is that none of the players has a

serious incentive to lower prices. The intensity of competition has come

down after many players left the Indian market following cancellation of
some licences after 2G scam," Mahesh Uppal, director, Com First telecom
consultancy, told IANS.

 With the changing dynamics in the market and the primary objective of

increasing the data penetration amongst customers, Tata DOCOMO

slashed its 2G and 3G data volume based charging (VBC) tariffs by 90
percent.

Earlier, Vodafone and Airtel went for a whopping reduction in the 2G data

charges by 80% and 90% respectively. Following the suit Idea lowered the
2G data tariff by 90% in 8 circles.

NON - PRICE COMPETITION IN

INDIAN TELECOM INDUSTRY
Rather than cutting call charges which was the theme about two years

ago at the height of the price war companies are trying to woo users with
offers of freebies on recharge vouchers. More than 95% of Indias mobile
phone users are on pre-paid schemes that use such vouchers.

The offers vary across schemes, but mostly they either give the same

amount of talk time for a lower price, or more talk time for the same price.

Attraction of customers by using *celebrity* fan fare is

another non price strategy that telecom agencies
employ.

Sponsoring of various events is also one of the non pricing

strategies that the telecom companies employ to grab the
attention of customers.

OTHER COMPETITVE EDGES

Direct Handset Sales

Ecosystem wars
Duopoly Fear
Near Field

communication

Embedded Software

sim

CRITICAL SUCCESS FACTORS

 The Telecommunications industry today is a key enabler of

productivity across economies and societies.

Not only a significant contributor towards the economic

activities of countries, but also towards the growth of other

industries.

In

recent times, developing nations have witnessed

significant transformation within this sector due to the
impact it has had on their economies.

The booming and emerging economies of China and India

have been impacted the most by the rapid growth of the

Telecom industry in the past decade.

 It has a significant social, cultural and economic impact on

the modern society. In 2008, estimates placed the industry's

revenue at $3.85 trillion or just under 3 percent of the gross
world
product.

India has become the most competitive and one of the

fastest growing telecom markets with an expected growth

rate of over 26% and generated employment opportunities
for about 10 million people (PTI, 2007).

The number of subscribers are growing at a rapid pace,

which is adding to the growth and importance of the

industry. This makes the telecom one of the most lucrative
sectors today.

 In emerging markets, like that of India, factors such as

customer service, regulations and policies are some of the

main
factors
that
are
shaping
the
industry

The methodology used to benchmark the performances of

service providers in order to create a loyal customer base as

well as to retain it, and customer service is one of the factors
that influences the revenue growth of the telecom industry

The Government of India aims to develop the nation as a

global telecommunication hub and provides regulatory

support to the industry to achieve the goal and to propose
infrastructure status to telecom (IBEF, 2011)

ROLE OF NUMBER OF SUBSCRIBERS IN

THE TELECOM INDUSTRY

 From an industrial point of view, an increased number of

subscribers also stimulates the development of its related

industries such as demand for both hardware and software
products.

According to Porters Five Forces theory, the growth of

subscriber numbers can be related to the strength required

to compete with existing competitors.

 Another potential benefit that results from the steady growth

of number of subscribers in the telecom industry is that, it

gathers crucial customer related information.

Operators maintain databases with personal information

and choice, which is collected during the registration and

cancellation processes.

Customers

are normally obliged to provide personal

information as well as personal opinions on the product or
service and this information is valuable for the company and
the industry to understand better their customers behaviors,
preferences, and segmentations, which provides necessary
statistics in order to improve the efficiency in marketing
analysis.

REASONS FOR INCREASED NUMBER OF

SUBSCRIBERS The dramatic increase in number of subscribers in Indian

telecom industries is due to a combination of factors.

The

most significant factor

technology innovation factor.

among

these

is

the

For example, with the emergence of smart phones and

high speed networks , consumers are more and more

attracted towards mobile devices and at the same time
moving away from personal computers.

 Other

factors contributing towards the increase in

subscribers are - increasing affordability of mobile handsets
and services that has lowered the entry level, and also the
changing demographic profile in developing economy,
which has diversified the market population.

TECHNOLOGICAL INNOVATION
Over

the last decade, technology innovation has

enabled the expansion of telecom infrastructure from
metropolis to rural areas where the majority of Indian
population is located.

Hence,

telecommunication services become easily

accessible and cover large portion of the countrys
population that eventually resulted in the increase of
subscribers

 India witnessed tremendous increase at the end of 2010 from

63% to 67.6%(TRAI, 2010). Furthermore, launch of the Internet

market also drove growth in the telecom subscriber base.

According to TRAI (2010), the total wireless subscriber base in

the industry crossed the 500-mn-mark and reached 509.03

million by the end of September 2009, which took India to
the second position in terms of wireless network in the world,
next only to China.

INCREASING AFFORDABILITY
Intense competition has lowered the prices of hardware and

services in the telecom industry.

This helped in lowering the entry barrier into the market and
thus made it affordable to a large percentage of the
population.
At the same time, competition among multiple operators
also reduced tariffs, particularly in the Indian telecom
industry, which is characterized by intense competition, has
witnessed continuous price wars.
The expansion of wireless networks and growth in subscriber
base, both in urban and rural areas has led to a boost in the
sale of mobile handsets across India (IBEF, 2010)

DEMOGRAPHIC PROFILE CHANGE

The changing demographic profile of India has also

contributed to the growth of number of subscribers.

A large young population, a burgeoning middle class,

with growing disposable incomes, and also urbanization,

which is increasing literacy levels and higher adaptability
to technology, characterizes the changed profile

The urbanization rate in India was 41%, with an increase

of 17.25 million in urban population (Ministry of Statistics

of India, 2012).

TECHNOLOGICAL INNOVATIONS

TECHNOLOGY AS A GROWTH FACTOR

Today telecommunications is a highly technical industry,

which is constantly evolving, and inventing technologies

to improve the cost, coverage and quality of
communication.

It is one of the most R&D intensive-industries, with leading

multinational corporations (MNCs) spending on average

between 10 and 20% of their revenues in R&D

TECHNOLOGY INVESTMENTS AND ITS BENEFITS

Indian

companies
in
the
telecom-equipment
manufacturing segment are yet to feature in the global
telecom landscape.

Though a few Indian mobile operators have a significant

presence globally, manufacturers in India face

challenges such as high logistics costs, an unreliable
power supply, inadequate tax benefits and competition
from low-cost Chinese equipment (Ernst and Young,
FICCI, 2011). Initially, Indian core telecom equipment
companies operated as resellers for foreign companies.

 Global players, with an intention to enter the fast growing

Indian telecom market partnered with local companies

such as Fibcom, Anda Telecom, GOIP Global Services,
Tirumala Seven Hills, Savitri Telecom, etc. have all acted as
Indian subsidiaries or local partners to these players
(Knowledge Faber, 2009).

THE FUTURE OF TECHNOLOGY AND ITS CONTRIBUTION TO

THE GROWTH OF THE
INDUSTRY
Technological innovations in 3G mobile technology is

capable of delivering broadband content that includes

rich multimedia services such as video calling, video on
demand, location based services and remote access/
VPN applications.

Also next generation technologies such as LTE (Long

Term Evolution), Mobile WiMAX or 4G networks are

expected to drive the wireless services in the future.

Applications such as IPTV and Mobile TV will be the

beneficiaries of such technological innovations.

 Investments in Broadband by the telecom companies are

growing rapidly in India. The Department of Telecom in the

Indian government has formulated the Broadband Policy
2004, which envisions the creation of a framework through
various access technologies such as optical fiber, digital
subscriber lines (DSL) on copper loop, cable television
networks, satellite media, terrestrial wireless and future
technologies(Ernst and Young, FICCI, 2011)

GOVERNMENT REGULATIONS AND

POLICIES

REGULATIONS AND POLICIES AS A FACTOR

All industries, irrespective of the product or service,

depend heavily on the support they receive from the

government to survive in the market.

The role of the government is seen as an essential

supporter of the industry, employing a host of policies to

contribute directly to the competitive performance of
strategic or target industries (Porter, 1990).

POLICY MAKERS AND THEIR INPUTS

In 1999, the Indian Government established the National

Telecom Policy 1999, which played a key role in shaping

the sector and later in 2000 introduced the
Communications Convergence Bill that setup the
autonomous commission called the Communications
Commission of India (CCI) that acts as the
super/regulatory body to regulate telecommunications,
Internet and Broadcasting sectors.

 The Planning Commission of India in its eleventh five-year

plan for the period 2007 till 2012 stated that the
approach would be towards achieving faster, broader
and inclusive growth, with special attention to enhance
the rural connectivity (Planning Commission, 2008)

KEY REGULATIONS FOR THE

TELECOMINDUSTRY

KEY REGULATIONS
According to the report released by Ernst and Young,

and FICCI (2011), The Telecom Regulatory Authority of

India (TRAI) established as an independent statutory
regulatory authority is one of the key powers that advise
the government in matters related to the development
of telecommunication technology and the telecom
industry in general. The key feature of Indias regulatory
regime is transparency in industry information, an open
approach and encouragement of consultation with
stakeholders.

LICENSING
The Government of India in 2003 introduced the Unified

Access Service (UAS) licensing regulation, which allows the

service provider to offer both mobile and/or fixed services
within the same license, using any technology.
This regulation ensured that licenses were issued without any
restriction on the number of entrants in a circle and
applications were to be processed within 30 days of
submission.
Also, allocation of spectrum and grants for wireless licenses
was subject to availability and, in case UASL was not
allocated spectrum due to non-availability, the licensee had
to ensure to rollout services using fixed line technology (Ernst
and Young, FICCI, 2011)

TELEDENSITY
The Universal Service Obligation Fund (USOF), which came

into effect in 2002, was introduced to provide access to

telegraph services to people in rural and remote areas of
India at affordable prices.

The USOF was estimated to hold around $ 3.6 billion at the

end of FY10 (IANS, 2010).

However, rural teledensity was at 28.4%, whereas urban

teledensity was about 137.3%, resulting in a huge digital

divide (Ernst and Young, FICCI, 2011).

The USOF has a long way to go to improve the rural

telephony connectivity.

IMPLICATIONS OF POLICIES AND REGULATIONS ON

THE GROWTH OF TELECOM SECTOR
Every new policy or regulation set by the government

and its relevant authority has a direct or indirect effect

on the growth of the sector.

Be

it in supporting new entrants, Foreign Direct

Investment, helping the rural and remote areas to be
connected or changing the tax structure of the industry
and the consumers.

All of them have diversified effect on the growth.

The political environment in the country plays a vital role

in the implementation of these policies and regulations.

 In India, though telecommunications has grown rapidly, it

needs to achieve more in terms of teledensity as compared

to other countries.

For example, in The Tenth Plan of the planning commission

had envisaged a teledensity of 9.91% by March 2007, but fell

short of about 65.0 million connections (Planning
Commission, 2008)

 Though the policies of the Indian Government are meant to

improve the growth of the sector, the effectiveness of the

implementation falls short in many aspects.

Thus, the co-relation between the Government policies and

regulations with respect

companies is weak.

to

the

growth

of

telecom

 With plenty of strong potential, the sector requires much

more attention and a robust policy framework to address

the challenges that exist and help to capture the
opportunities that the sector holds for the country.

India needs to improve its Critical Infrastructure Status

along with uniform policy and single window clearance.

Theres also a need to address civic issues such as zoning

regulation, single window clearance, preferential treatment

for sharing and incentives in a timely manner (Ernst and
Young, FICCI, 2011).

IMPORTS & EXPORTS

GLOBAL TELECOM EQUIPMENT SCENARIO

A $290 Bn industry- one of the high tech industry
Driven by innovation, system design expertise and manufacturing

Infrastructure Equipment(40%)
Wireless(Driving Growth)
Wireline(enabling broadband infrastructure)

Handsets/CPE(60%)
2G, 3G, Smartphones, CPE

Dominated by few large players

Top 5 players contribute 70% of the revenue

Emerging Markets are driving growth

APAC (37%), EMEA (28%), North America (30%), Others (5%)
Indian demand is around 6-7% of the global

INDIA EQUIPMENT POTENTIAL

India consumed nearly Rs 54,000 cr of equipment last FY.
Majority of network infrastructure equipment is imported.
Telecom Equipment is the 2nd largest item of trade deficit.
Handset production has ramped up in the last few years
Production of >Rs 15,000 Cr; a majority of components are still
imported

TRAI has set a target to have 80% of demand met by

local production by 2020

India can become a large exported of telecom products

by 2020

INDIA TELECOM EQUIPMENT DEMAND

INVESTMENTS

PUBLIC SECTOR VERSUS PRIVATE SECTOR

PUBLIC SECTOR VERSUS PRIVATE SECTOR

The capital employed has shown growth of 94 per cent over

the last six years.

The

capital employed by public and private sector

companies has shown a decrease of 16 per cent and growth
of 275 per cent, respectively over the last six years.

The Gross Block has shown growth of 134 per cent over the

last six years.

The Gross Block of public and private sector companies has

shown an increase of 56 per cent and 270 percent,

respectively over the last six years.

FOREIGN DIRECT INVESTMENT

Initially domestic companies were encouraged to tie up with

foreign ones so as to bring in more capital and improved

technology.

However, with disastrous financial results, foreign firms

wanted to exit by late 1990s.

The policymaker changed the rules and most of the foreign

companies were bought out by domestic companies.

FDI was limited to 74 per cent.

Desai, A.V. (2006), Indias Telecommunication Industry: History, Analysis, Diagnosis,

Sage Publications India, New Delhi.

CURRENT POLICY
FDI is fully open for manufacturing and infrastructure

sectors.

For services, FDI is increased to 100 per cent, with

automatic approval up to 49 per cent.

Beyond that, it would require the approval of Foreign

Investment Promotion Board (FIPB).

Source: Department of Telecommunications

INWARD FDI
FDI in the telecom sector has grown at a Compound Annual

Growth Rate (CAGR) of 24.8 per cent between 200001 and

201112 (AprilFebruary, 201112).
However, this hides significant variations over the decade.
Growth rate peaked in 200102, 200506 and 2007-08.
The 200810 numbers signal that the worldwide slowdown
probably resulted in increased FDI inflow to India and the
telecommunications sector benefited from that.
However, the continued uncertainty in worldwide economic
conditions coupled with domestic factors such as inflation,
and infrastructure implementation bottlenecks have
probably contributed to reducing FDI in 201011.

FDI IN TELECOM SECTOR(RS CRORE) AND

GROWTH RATE OF FDI IN TELECOM

 There is no significant correlation between inward FDI and the number of wireless

subscribers.

FDI has gone up and down with the number of subscribers steadily increasing.

 The relationship between Inward FDI in the telecommunications sector and

Average Revenue Per User (ARPU) for the years 200001 through 201112.

There does not seem to be any correlation between the two.

 Since 200506 there are indications of positive correlation between FDI and

telecom exports.

However, imports are much higher than both exports and FDI indicating that most

of the Indian domestic needs are being met by imports.

OUTWARD FDI

Indian companies have reached overseas destinations to tap new markets and have acquired
technologies.

The market has witnessed investment in the form of greenfield projects, and the majority of this
capital value has been used to acquire companies.

The Indian telecom sector has actively been a part of the global M&A activity, leading to the
emergence of telecom giants from India.

MERGERS & ACQUISITIONS

Rationale behind Mergers in Telecom sector.
Acquisition of licenses or geographical territories
Acquisition of spectrum
Acquisition of telecom infrastructure and network
Acquisition of customer base to achieve an economic base
Acquisition of brand value
Higher operating profit (EBITDA) margin
Acquisition of Customer Base

GOVERNMENT POLICY ON M&A

At present, intra-circle M&A is allowed subject to the

following conditions:

The total number of operators in a circle should not fall below four
Market share and revenues of the merged entity should be less than

40% in each circle

A three-year lock-in for owners equity in the new operators that have
been given licenses recently (no lock-in if fresh equity)
Maximum spectrum of the merged entity will be capped at 15MHz for
Metros and A circle and 12.4MHz for B circle and C circle
No one entity can hold equity stake of 10% or more in more than one
licensee company in the same circle

IMPORTANT M&A IN INDIAN TELECOM SECTOR

Acquisition of 41% of stakes of Orange services in Mumbai by

Hutchison from Max for USD 560 million in 1998.

Acquisition of Command Cellular Services in Kolkata by
Hutchison from Usha Martin in 2000.
Acquisition of 79.24% stakes of Aircel, Chennai by Sterling
group from RPG group for Rs. 210 Crores in 2003.
Acquisition of 48% stakes in Idea cellular by Aditya Birla group
from the Tata group in 2005.
Acquisition of Hutch services in India by Vodafone in 2006.
Acquisition of Broadband Wireless Access division of
Qualcomm India by Bharti Airtel for USD 165 million in 2012.
Acquisition of 5% stake in Bharti Airtel by Qatar Foundation
Endowment for USD 1.26 Bn in 2013.

KEY CHALLENGES FACING INDIAN TELECOM

SECTOR
Policies relating to Foreign Direct

Availability of affordable Customer

Policies relating to Service Tax

Availability of adequate power for

Investment(FDI)

Policies relating to import of Telecom

equipment

Evolution and expansion of emerging

telecom technologies like NGN , LTE ,

Cloud computing etc.

Convergence of Telecom services

and networks.

Effective security system for

Protection of Telecom Infrastructure

Need for evolving uniform policy for

addressing Right Of Way(ROW) issues

Premises Equipment(CPE)
Telecom infrastructure

Addressing various issues related to

EMF radiation

Need of encouragement for

development of content/application
as per the regional requirement for
wider and faster penetration of
Broadband.

Availability of adequate spectrum

Need for promoting R & D, Product

Development and indigenous

manufacturing

TELECOM SPECTRUM ALLOCATION IN INDIA

What is Spectrum?
The word spectrum refers to a collection of various types of electromagnetic radiations of

different wavelengths.
Spectrum or airwaves are the radio frequencies on which all communication signals travel.
In India the radio frequencies are being used for different types of services like space
communication, mobile communication, broadcasting, radio navigation, mobile satellite
service, aeronautical satellite services, defense communication etc.

Agencies allocating spectrum

The International Telecommunication Union (ITU) at the World Radio Communication

Conferences allocates spectrum frequencies for the use of various countries.

Since the mobile communication technologies provide international roaming facilities, it is
essential to allocate spectrum in the common bands which are being used the world over.
The Wireless Planning and Coordination (WPC) Wing of the Ministry of Communications,
created in 1952, is the National Radio Regulatory Authority responsible for Frequency
Spectrum Management, including licensing and caters for the needs of all wireless users in
the country.
WPC is divided into major sections like

Licensing and Regulation (LR),

New Technology Group (NTG) and Standing Advisory Committee on Radio Frequency Allocation (SACFA).

SACFA makes the recommendations on major frequency allocation issues, formulation of the frequency allocation
plan, making recommendations on the various issues related to International Telecom Union (ITU), to sort out
problems referred to the committee by various wireless users.

INDIAS NATIONAL FREQUENCY ALLOCATION PLAN

The National Frequency Allocation Plan (NFAP) forms the basis for development and

manufacturing of wireless equipment and spectrum utilization in the country.

Frequency bands allocated to various types of radio services in India are as follows.
0-87.5 MHz is used for marine and aeronautical navigation, short and medium wave

radio, amateur (ham) radio and cordless phones.

87.5-108 MHz is used for FM radio broadcasts
109- 173 Used for Satellite communication, aeronautical navigation and outdoor
broadcast vans
174-230 MHz not allocated.
230450 Used for Satellite communication, aeronautical navigation and outdoor
broadcast vans
585-698 Used for TV broadcast
806-960 Used by GSM and CDMA mobile services
960-1710 Aeronautical and space communication
1710- 1930 Used for GSM mobile services
1930-2010 Used by defense forces
2025-2110 Satellite and space communications
2170-2300 Satellite and space communications
2400- 2483.5 Used for Wi-Fi and Bluetooth short range services
2483.5-3300 Space communications
3600-10000 Space research, radio navigation
10000 used for satellite downlink for broadcast and DTH services

TELECOM SPECTRUM POLICY IN INDIA

In India GSM technology works in the frequency bands of 900 and 1800

MHz and CDMA technology works in the 800 MHz band.

Presently, 100 MHz spectrum is ear marked for GSM services and 20 MHz is

earmarked for CDMA.

Out of this 65 MHz of GSM band is still with Defense forces. The minimum

amount of spectrum required for launching GSM services is 4.4 MHz.

In 2002, the government introduced a subscriber linked spectrum

allocation process, which provided for a maximum allotment of 12.5 MHz

of spectrum per operator in each service area.

However due to the deluge of over 570 UAS license applications, in Dec

2007, DoT delinked spectrum from the telecom license and implemented
a policy of first come first served basis for spectrum allocation.

It depended entirely on submission of license fees to DoTs WPC wing for a

spectrum license.

In 2008 DoT revised the criteria for additional spectrum allocation.

According to this, the subscriber base required for additional spectrum

allocation was hiked two to six times for different circles.

INDIAN TELECOM SPECTRUM AUCTION

In India, the Department of Telecommunications (DoT)

conducts auctions of licenses for electromagnetic spectrum.

India was among the early adopters of spectrum auctions
beginning auctions in 1991.
Despite the early start, services were slow to roll out caused by
unforeseen problems with the design and rules of the auction.
Potential service providers were required to seek foreign
partners, as the DoT felt that no Indian company alone had
the financial means to enter the industry.
Bidding for all licenses required a two stage screening
process.

2010 SPECTRUM AUCTION

In 2010, 3G and 4G telecom spectrum were auctioned in a

highly competitive bidding.

The winners were awarded spectrum in September, and Tata Docomo

was the first private operator to launch 3G services in India.

The Government earned INR677.19 billion (US$11 billion) from the 3G
spectrum auction.
The broadband wireless spectrum auction generated a revenue of INR385
billion (US$6.2 billion).
The Government earned a total revenue of over INR1062.19 billion (US$17
billion) from both auctions.
Participants
Airtel, Aircel, Idea, Reliance Communications, S Tel, Tata Teleservices, Vodafone Essar (
Now Vodafone India)

BSNL and MTNL were also awarded spectrum without participating in the

bidding process.
Condition that each would pay an amount which would be equivalent to
the highest bid in the respective service areas as and when the 3G
auctions took place

2012 SPECTRUM AUCTION

DoT auctioned 2G spectrum in both GSM and CDMA bands.
The government put on sale 271.25 MHz of spectrum.
Eleven blocks having 1.25 MHz each in the 1800 MHz frequency band were auctioned,

except in Mumbai and Delhi where only eight blocks were available.

Three of the eleven blocks, in each circle, were reserved or new telecom
Initially, only Videocon Telecommunications Limited and Tata Teleservices (Tata DoCoMo

CDMA) had applied to participate in the auction for spectrum in 800 MHz band (CDMA).

Both companies withdrew their applications before 5 November, the last date for

withdrawal of applications.

The withdrawals meant that there were no bidders left and the CDMA spectrum auction

was subsequently cancelled.

The final list of bidders was announced on 6 November. This was followed by a mock

auction on 7 and 8 November and the e-auction of 1,800 MHz band began on 12
November.

Participants

Airtel, Idea, Vodafone, Videocon, Telewings Communications

2013 SPECTRUM AUCTION

The DoT auctioned 2G spectrum in GSM (1800 MHz) and CDMA (800 MHz) bands.

The Government decided to sell airwaves in Delhi, Mumbai, Karnataka and Rajasthan for
1800 MHz band, and pan India for the 800 MHz band.

The Government also announced that it would auction the unsold spectrum in the 1800

MHz band from the 2012 spectrum auction.

The government reduced the reserve price for 1800 MHz by 30% and for 800 MHz by 50%

from the 2012 spectrum auction.

The Government had planned to auction airwaves in Delhi, Mumbai and Kolkata for 900

MHz band simultaneously with the 1800 MHz band.

The Government failed to finalize the auction for the 900 MHz band as incumbent

operators had moved the Delhi High Court, to stop the auction of the 900 MHz
bandwidth,

Plea to court after they failed to get a response from the DoT on their plea for renewal of

licenses for the 900 MHz spectrum band which they had bought in November 1994.

2013 SPECTRUM AUCTION

DoT issued notice inviting applications for spectrum auction

on 30 January 2013, and the last date for submitting an

application was 25 February 2013.

The auction for all three bands was planned to begin on 11

March 2013.

No bidders expressed interest in the 1800 MHz and 900 MHz

bands and as a result, the auction for those bands was

postponed indefinitely.

The auction for spectrum in 800 MHz band proceeded as

planned on 11 March

Only Bidder was MTS India for 800 MHz band.

Circle

Price per block

Delhi

4504.9 million (US$72 million)

Gujarat

1461.5 million (US$23 million)

Karnataka

2145.8 million (US$34 million)

Kerala

424.5 million (US$6.8 million)

Kolkata

739.2 million (US$12 million)

Maharashtra & Goa

No bid

Mumbai

No bid

Tamil Nadu
Uttar Pradesh (East)

1989.6 million (US$32 million)

No bid

Uttar Pradesh (West)

698.2 million (US$11 million)

West Bengal

167.9 million (US$2.7 million)

COST ANALYSIS OF INDIAN

TELECOM INDUSTRY

COST STRUCTURE OF INDIAN TELECOM

INDUSTRY
The telecom sector is characterised by very large

investment costs

High fixed cost Industry suffers from high fixed cost

which prove an entry barrier for new entrants

High Sunk Costs These Include - Infrastructure tenancy

costs, Customer Switching Costs, Falling ARPU etc.

Wage shares are at about 1/3 of the total operating

costs

MAJOR COSTS INVOLVED

Infrastructure costs
Spectrum costs
Government Licences
Joint Ventures, mergers and acquisitions

Cost for sharing of infrastructure resources

Operating costs
Sunk Costs

SUNK COSTS
A notable part of the investments are what economists refer

to as sunk costs. These are long term investments which

can be used only for specific economic activities.

An example is a fixed access network providing subscribers

access to the local exchange.

This investment only has value for the supply of telecom

services in this particular local area.

Once the investment is made the operator can only exit this

particular market at 103 considerable costs.

Other investments have a shorter time horizon and/or can

more easily be applied for other activities.

INFRASTRUCTURE COSTS
Investments in telecom networks can be divided into the
following functional elements:
Terminal equipment
Access Network
Switching
Transmission/Long line
Other (buildings etc.)

ANNUAL SPECTRUM COSTS

The license fee and the spectrum charges given by the Telecom
Service Providers during the last three years is given in the following
Table:

COST BREAKUP
AIRTEL
Access charges
23%

29%

15%

License fee and spectrum

charges
Cost of goods sold
Employee benefits expenses
Power and fuel

17%
11%

0%
5%

Rent

COST BREAKUP
MTNL
Employee Benefits

13%

Revenue Sharing
Licence Fees

16%

9%

Administrative, Operative And

Other Expenses
Depreciation & Amortisation

3%

Finance Cost

54%

5%

COST BREAKUP
BSNL
6%

Employees remuneration and

benefits
Financial expenses

39%

30%

Depreciation and
amortisation
Administrative, operating and
other expenses
Licence and Spectrum fee
24%

1%

GROSS REVENUES OF OPERATORS

PAT MARGINS OF OPERATORS

INDIAN TELECOM INVESTMENT OPPORTUNITIES

Second largest telecom penetration, worlds highest

monthly additions

Indian Telecom sector to witness huge investments

Telecom Subscribers to cross 1.5 billion by 2015 and 5 billion

by 2020

INDIAN TELECOM INVESTMENT OPPORTUNITIES(2)

About 25 per cent ( Appx. 300 million) would be 3G/4G

subscribers

About $ 70 Bn. is estimated to be invested in rolling out

green field 2G, 3G/4G

The total investment in the pan-India broadband rollout is

expected to be $ 20 Bn

Regulatory Framework provides level playing field for all operators

The Department of telecommunications (Government of India) is the main governing body for the
industry.
Telephone Regulatory Authority of India (TRAI) assists the Government of India (GoI) to take timely
decisions and introduce new technologies in the country.

Indian Telecom Industry Framework

Independent Bodies

Indian Government Bodies

Wireless Planning and

Coordination (WPC)

Handles spectrum allocation and

management

Department of
Telecommunications

DoT Licensee and frequency

management for telecom

Telecom Commission

Exclusive policy making body of DoT

Group on Telecom and IT

(GoT-IT)

Handles ad hoc issues of the telecom

industry

Telecom Regulatory Authority of

India (TRAI)
Telecom Disputes Settlement and
Appellate Tribunal (TDSAT)

Independent regulatory body

Telecom disputes settlement body

177

FUTURE OF TELECOM INDUSTRY

VALUE ADDED SERVICES

FUTURE GROWTH DRIVERS

Burgeoning Middle
Class
Booming Knowledge
Sector
major global hub for IT
enabled services.

MNs add every year

Large Young
Population
60% population below age of
35

GROWTH
High GDP Growth
8% -9% p.a. in next coming
years.

Competition
Innovation leads to growth

Rising Income Levels

4th largest economy.

TECHNICAL OPPORTUNITIES
Mobile TV Mobisodes
M- Commerce

M wallet
and Mobile Banking.

entertainment video clips.

Video on Demand
Entertainment, news, sports
etc.
GROWTH

Mobile Gaming
Positive shift of
consumers behavior.

Data Cards
LBS
Market place navigation,
emergency etc.

need to connect anywhere

and anytime.

THANK YOU!