Communication

Revolution
What we know about
communication is not enough…
LETS SEE THE DRASTIC
CHANGES IN THE FIELD
OF COMMUNICATION
IN SOME DIFFERENT
WAY…
WORLD of
COMMUNICA
TION
Old Age Ways Of Communication
Telephone
Mobile Revolution
Internet Revolution
 • Communication is the process of
attempting to impart information
from a sender to a receiver with the
use of a medium.
• Communication is defined as a
What is process by which we assign and
‘COMMUNICATIO convey meaning in an attempt to
N? create shared understanding.
History
• 1851- introduction of telegraph
services.
• 1880-81 –telephone service
introduced in India
• 1902- first wireless telegraph
station established
• 1907- first central battery of
telephones introduced in
Kanpur.
• 1913-1914 – first Automatic
exchange installed in Shimla.
• 1923- Formation of Indian Radio
telegraph company.
• 1947- nationalization of all foreign
telecommunication companies to
form PTT.
• 1979 – 1st Optical fibre system
• 1980- 1st Satellite earth station
established
• 1985- Dept. of telecommunication
established as a regulator
• 1986- conversion of DoT into 2
companies
1. VSNL and 2. MTNL
• 1997 – Telecom Regulatory Authority
of India introduced – regulatory
framework

• 2000- BSNL introduced

• 2007-2009-
 Fastest growth in no. of subscribers
 Fastest sale of millions of mobile
phones
 Most cheapest handset introduced and
most affordable colour phone
BHARAT
SANCHAR
NIGAM LTD.
 • Born on 1st October 2000 after
the Corporatisation of
DoT(Department of Telecom).
• State-owned enterprise
BSNL:
• HQ- New Delhi
COMPANY • CMD- S.C.Mishra
PROFILE • Employees- more than 3 lakhs
• Customers- more than 84 million
subscribers
• Connects length and breadth of
INDIA except Delhi & Mumbai.
 • BSNL is an Integrated telecom service
provider which provides all types of
telecom services.
 Wireline services
 Wireless local loop (WLL) services
 GSM mobile services
BSNL Services  Broadband-Internet services
 National long distance services
Offered:  Inter-national long distance services
 IN-services viz prepaid calling cards
  World’s 7th largest
telecommunication Co.
 Enjoys 25% mkt share in cellular
mobile services and 60% mkt share
in ISP services.
BSNL  Largest 3G network in India.
ACHIEVEME
NTS:
Mahanagar Telephone Nigam
Ltd. (MTNL)
• MTNL was set up on 1st April 1986, by
the Government of India; to offer basic
services in Delhi & Mumbai

• Over the years MTNL has emerged as

India’s leading & one of Asia’s largest
telecom operating companies

• MTNL has a market share of about 12

% in the Indian basic telecom services
with a customer base of over 4.7 Mn.
lines
• On November 7th, 2001, MTNL was
listed at the New York Stock Exchange
Organizational structure

1854:A regular, separate department was opened, when telegraph

facilities were thrown open to the public.
Dr. O'Shaughnessy was the first Superintendent of Electric
Telegraphs in India and later became the first Director General then
A.Raja, and now Kapil Sibbal.
1914: World War I, Postal Department and the Telegraph
Department were amalgamated under a single Director-General.
1st April, 1950: In 1950 the number of Telephone Exchanges
absorbed from princely states was 196.
The installed capacity of these 196 exchanges was 13,362 lines
with 11,296 working connections.
Organizational change

• 1981:Prime Minister Indira Gandhi signed contracts with of France

to merge with the state owned Telecom Company (ITI), in an effort
to set up 5,000,000 lines per year.
• January 1985: two separate Departments for the Posts and the
Telecommunications were created.
• 1986 : Mahanagar Telephone Nigam Ltd. (MTNL) was created.
• 1989:The Telecom Commission was constituted.
• January 1997: Telecom Regulatory Authority of India (TRAI) was
formed.
• 1st October 2000:Department created BSNL, a new entity to operate
services in different parts of the country as a public sector unit.
 • 1997 commitment made with WTO

• Licensing to new local cellular

service

Regulatory • Encouragement to competition

framework • Tax concession & flexibility on

external commercial borrowing
Problems &
Solutions
 Solution:
Extra service,
Problem 1:
Promotion(VAS
ARPU are going down
,entertainment)
Different offers etc
Problem 2:
HR challenges in recruitment

Solution:
Adapt globalization,
Provide motivation,
Attract highly talented people
Problem 3:
Slow reform process

Solution:
Speed up in decision making
Problem 4:
Network problem

Solution:
Increase no of towers,
Reduce distance between two towers
Use latest technology for this
Problem 5:
No of operators are increasing

Solution:
Provide user-friendly services
Increase customer satisfation
Problem 6:
Lack of infrastructure in semi-rural and rural
areas

Solution:
Innovation in product/service
Rural services enhancement
Problem 7:
Limited spectrum availability and
interconnection charges between the pvt and
state operator

Solution:
Increase the amount of spectrum
Radio wave
Electromagnetic bandwidth
Problem 8:
Attrition and retention

Solution:
Offer best salary package at enrty level
Incentives
 VSNL was incorporated on April 1st 1986
under the Indian companies act 1956.

 VSNL internet service limited provides

integrated Tele com and information
technology solution to corporate ,
enterprises , offices, and home in India .

 It’s services includes high speed

internet , access, voice over internet
protocol, internet bandwidth, networking,
managed data network.
 Minority Sale in 1991-92

 It was the case of Public Monopoly

 WTO Stipulations and loss of Monopoly

 Need for a Strategic Partner

 Strategic sale considered better than

minority sale
 Bidding Process Starts

 The companies which are interested in

participating in bid were required to
have a net worth of Rs. 2500 crores .

 Tata bid Rs 1439 crores, Reliance bid

Rs 1347 crores.

 After takeover, Tatas - 45%, Govt. - 26%

Positive Side

 Strong Financial Condition

 Efficiency in management

 Recognized as Tata Group

Conclusion
 Strong Privatization of VSNL provided higher return on
government’s asset formation.

 Better quality communications for the

citizens.

 Strategic sale is good as it leads to less

confusion among the governments roles as a
policy formulator and a service provider.
INDIAN TELECOM
INDUSTRY
• There are three types of players in telecom industry:
1) State owned companies
2) Private indian owned companies
3) Foreign invested companies
 • BSNL (Bharat Sanchar Nigam
Limited)
• MTNL (Mahanagar Telephone
STATE Nigam Limited)
OWNED • VSNL (Videsh Sanchar Nigam
Limited)
COMPANIES
 PRIVATE INDIAN OWNED
COMPANIES
• Reliance Communication
• Tata Teleservices
• Bharti Airtel
 Vodafone Essar
FOREIGN Idea Cellular
INVESTED BPL Mobile
Spice Communication
COMPANIES
 Growth & Future
Prospects

Telecom Sector in India

Growth in the Country
• 500 million subscribers, with more than 120 million added in
last 8 months.
• Strong regulatory support
• Increasing productivity
• Expected strong rural flavour
New Frontiers for Growth
1. 3G Technology
• The much awaited 3G spectrum policy was
unveiled by the DoT
• Spectrum block reserved for state run operators
• Rich data services to the customers
2. Telecom Infrastructure Services
• Pilot shared towers were rolled out at different locations.
• Benefits:
 Lower capital and operating expenses
 Access to rural area without capex
 Tower asset as an easier route of raising fund
3. Managed services
• On account of the rapidly growing subscriber base,
service providers find it difficult to manage their
infrastructure and network management operations.
• In such cases, they completely or partially outsource their
infrastructure or network management operations.
4. WiMAX
• One of the most significant developments in wireless communication.
• This mode of communication provides network access in inaccessible
locations at a speed of more than 4 Mbps, it is expected to be a major factor
in driving telecom services in India, especially wireless services.
• Thus, it will lead to the increased use of telecom services, Internet, value-
added services and enterprise services.
• It is estimated that India will have 13 million WiMAX subscribers by 2012.
• Aircel is the pioneer in WiMAX technology in India.
• The state-owned player, BSNL, aims to connect 74,000 villages through
WiMAX.
 1. Subscribers additions
2. Increasing consumer demands
Growth 3. Declining mobile tariffs
4. Reduction in handset cost
Drivers 5. Growing rural market
6. Medium of advertising
7. Launch of 3G technology
 “The regulatory & policy environment
has played a key role in the
development of Indian Telecom
Sector &, with the initiatives like
the 3G spectrum auctions, will be
an important contributor to future
KPMG reports growth”
states
Company wise Future prospect
1. BSNL
• BSNL plans to expand its customer base from present 47
millions lines to 125 million lines and infrastructure
investment plan to the tune of Rs. 733 crores in the next three
years.
2. MTNL
• MTNL is also making its entry in the field of M-commerce ,
which will enable the customers to transact business with the
help of his mobile phone or similar hand held devices.
• MTNL is adding nearly 450 more Base Transceiver Stations
(BTS) in Delhi and Mumbai.
3. VSNL
• VSNL is adding its capacity to meet the overwhelming
demand for connectivity to India in the wholesale voice
services domain.
• The company is also offering flexible agreements and
charging methods to meet the growing demands of the
wholesale voice market
4. BHARTI
• Bharti Airtel company is planning to set up 3000 more towers
as part of enhancing their rural coverage and will now focus
on rural and semi-urban areas.
5. RELIANCE COMMUNICATION
• The company plans to concentrate on mobile content services
other than voice.
• It also plans to spend Rs 5 billion every year for the next three
years. This CAPEX will be used for network expansion of its
CDMA business to over 4,500 towns from the present 2,000
towns and expansion of its GSM operations.
• The company also plans to launch international data roaming
facility in Canada, followed by Latin America and then to
Asian countries like Japan, South Korea, China and other
countries.
6. TATA TELESERVICES
• The company is also expanding its footprint, and has paid Rs.
4.17 billion to DoT for 11 new licenses under the IUC
(interconnect usage charges) regime.
7. Vodafone
• Vodafone Essar is expecting to touch over 35 million
customers across 400,000 shops and thousand of own
employees along with employees of its business associates.
8. IDEA
• Idea also plans to enter rural and neglected circles as a strategy
to gain subscribers.
• Other advancements in the telecom industry will help it cut
costs - use of e-mail to send bills to customers; sharing cell
sites; smaller base transmission stations that will mean lesser
infrastructure requirements and expenses and independent
tower operators.
• Along with its plan to go for a national long distance license, it
will also look at international long distance in the near future.
 • Played major role in development
of the economy
• Newer market of rural area
• Services:
1. Voice service – key driver for
development
CONCLUSION
2. Broadband – open for newer market
3. Mobile VAS – benefits to all
section
• Positive upcoming regulations by
govt.
Growth & Future
Prospects

Telecom Sector in India

Growth in the Country
• 500 million subscribers, with more than 120
million added in last 8 months.
• Strong regulatory support
• Increasing productivity
• Expected strong rural flavour
New Frontiers for Growth

1. 3G Technology
• The much awaited 3G spectrum
policy was unveiled by the DoT
• Spectrum block reserved for state
run operators
• Rich data services to the
customers
2. Telecom Infrastructure Services
• Pilot shared towers were rolled out at different locations.
• Benefits:
 Lower capital and operating expenses
 Access to rural area without capex
 Tower asset as an easier route of raising fund
3. Managed services
• On account of the rapidly growing
subscriber base, service providers
find it difficult to manage their
infrastructure and network
management operations.
• In such cases, they completely or
partially outsource their
infrastructure or network
management operations.
4. WiMAX
• One of the most significant developments in wireless communication.
• This mode of communication provides network access in inaccessible
locations at a speed of more than 4 Mbps, it is expected to be a major factor
in driving telecom services in India, especially wireless services.
• Thus, it will lead to the increased use of telecom services, Internet, value-
added services and enterprise services.
• It is estimated that India will have 13 million WiMAX subscribers by 2012.
• Aircel is the pioneer in WiMAX technology in India.
• The state-owned player, BSNL, aims to connect 74,000 villages through
WiMAX.
 1. Subscribers additions
2. Increasing consumer demands
3. Declining mobile tariffs
Growth 4. Reduction in handset cost
Drivers 5. Growing rural market
6. Medium of advertising
7. Launch of 3G technology
 “The regulatory & policy environment
has played a key role in the
development of Indian Telecom
Sector &, with the initiatives like
the 3G spectrum auctions, will be
an important contributor to future
KPMG reports growth”
states
Company wise Future prospect
1. BSNL
• BSNL plans to expand its customer base from present 47
millions lines to 125 million lines and infrastructure
investment plan to the tune of Rs. 733 crores in the next three
years.
2. MTNL
• MTNL is also making its entry in the field of M-commerce ,
which will enable the customers to transact business with the
help of his mobile phone or similar hand held devices.
• MTNL is adding nearly 450 more Base Transceiver Stations
(BTS) in Delhi and Mumbai.
3. VSNL
• VSNL is adding its capacity to meet the overwhelming
demand for connectivity to India in the wholesale voice
services domain.
• The company is also offering flexible agreements and
charging methods to meet the growing demands of the
wholesale voice market
4. BHARTI
• Bharti Airtel company is planning to set up 3000 more towers
as part of enhancing their rural coverage and will now focus
on rural and semi-urban areas.
5. RELIANCE COMMUNICATION
• The company plans to concentrate on mobile content services
other than voice.
• It also plans to spend Rs 5 billion every year for the next three
years. This CAPEX will be used for network expansion of its
CDMA business to over 4,500 towns from the present 2,000
towns and expansion of its GSM operations.
• The company also plans to launch international data roaming
facility in Canada, followed by Latin America and then to
Asian countries like Japan, South Korea, China and other
countries.
6. TATA TELESERVICES
• The company is also expanding its footprint, and has paid Rs.
4.17 billion to DoT for 11 new licenses under the IUC
(interconnect usage charges) regime.
7. Vodafone
• Vodafone Essar is expecting to touch over 35 million
customers across 400,000 shops and thousand of own
employees along with employees of its business associates.
8. IDEA
• Idea also plans to enter rural and neglected circles as a strategy
to gain subscribers.
• Other advancements in the telecom industry will help it cut
costs - use of e-mail to send bills to customers; sharing cell
sites; smaller base transmission stations that will mean lesser
infrastructure requirements and expenses and independent
tower operators.
• Along with its plan to go for a national long distance license, it
will also look at international long distance in the near future.
 • Played major role in development
of the economy
• Newer market of rural area
• Services:
1. Voice service – key driver for
development
CONCLUSION
2. Broadband – open for newer market
3. Mobile VAS – benefits to all
section
• Positive upcoming regulations by
govt.
 From Kashmir to Kanyakumari…
Empowering and Integrating

The Indian Telecommunication Industry…

Thank You