Indian Telecom Industry

Overview to the Indian Telecom Industry

• Total Consumer base = 510 mn

• Estimated revenue (FY 09-10) = $43 bn
• Estimated contribution in GDP = 15 % by 2014
• Growing at a CAGR of 21 %
• Total Tele-density is 44.87
Telecom Industry

services equipment
Overview to the Indian Telecom Industry
 What is Telecommunication
Technical: “Telecom in the real sense
means transfer of information between two
distant points in space.”

Managerial: “Telecom is a huge and varied

bastion of technologies, companies, services
and politics that is truly global in nature.”
Market Structure for Wireless Service (GSM)
• Divided into 22 circles
– 4 metros
– 19 circles Jammu & Kashmir

• Further divided into A, B and C category

Himachal Pradesh
based on economic parameters and
Punjab
revenue potential North Eastern
Uttar
States
• Each circle has a licenses
Haryana Pradesh
W
– Four operators per circle are allowed DELHI
Rajasthan Uttar Pradesh E
– Licenses are saleable
Bihar
West Bengal
Gujarat Madhya Pradesh

Orissa KOLKATA
Maharashtra

MUMBAI

Andhra Pradesh

Karnataka
METRO Circles

CHENNAI
A Circles
Tamil Nadu
B Circles
Kerala

C Circles

Source :COAI & TRAI

Major Players
 Government Policies
Telecom Regulatory Authority of India (TRAI).

Telecom Dispute Settlement and Appellate Tribunal (TDSAT).

Spectrum.

Unified Licensing Policy(ULP).

Private OFC Networks (PSU).

Vested interests of policy makers in promoting various

communication forms.

Class of PGDM 2008-10

 Spectrum
Spectrum has become one of the scarcest resource today.

Players buying spectrum so that they can sell it later at higher

prices.

Limited spectrum unlimited demand (same spectrum, multiple

technologies).

Bureaucratic delay in release of defence allocated spectrum.

Current technologies not spectrum efficient.

 Technological
Availability of inexpensive mobile handsets.

Data Communication, smart phones, multi-technology

handsets.

CDMA and GSM.

Wireless and emerging technologies. (GPS, DTH,

IPTV, mobile TV).

Mobile Banking and Credit Services.

GSM (global system for mobile communication)

• The most popular standard for mobile phones in the

world.
• Its promoter, the GSM association, estimates that
82% of the global mobile market uses this standard.
• GSM is used by over 2 billion people across more
than 212 countries
• Is considered a second generation (2g) mobile phone
system.
2.CDMA (code division multiple access )
• 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
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
3. Wireless local loop (WLL)

• A term for the use of a wireless communications

link as the connection for delivering plain old
telephone service (pots) and/or broadband internet
to telecommunications customers
3g technology
• The technology intended for smartphones- multimedia
cellphones
• IT PROVIDE 3mbps SPEED FOR DOWNLOADING WHICH IS VERY
HIGH AS COMPARED TO THAT OF 2G TECHNOLOGY
• It provide intrenet surfing, downloading,audio video
conferencing, fax service and many other broad band
applications
• 3g technology was implemented in japan for the first time in the
world
• Today the tech. Is serving 25 countries over more than 60
networks in asia, europe and u.S.
• Bsnl india has launched 3g tech from dec.2008 in india
• Direct to Home:
• DTH is another technology that could be used
for providing broadband services. At present,
it is being used for TV transmission only;
however, it can be utilized as the downlink
path for providing broadband connections.
 Environmental Concerns
Radiation hazards.

Laying cables causing damage to environment.

Health hazards due to overuse of mobile phones.

E-wastes.

Ecological imbalance
 Stock Market
Listed telecom players getting good valuation, attracting lot of
investors.

Ready availability of funds by share liquidation.

Global PE and venture capitalists interested in Indian telecom

growth story (Warburg Pincus).

Emerging telecom players have opportunities to list overseas stock

exchanges like London Stock Exchange.

Unlocking share holders value by listing tower businesses

(Reliance Infratel)
 Entry of New Players
MNCs trying to get in to the Indian market with industry
incoherent domestic players.

Similar to aviation sector, irrational competition leading to

bloodbath.

Companies with dubious origins can hamper the telecom growth

story (Swan and Cheetah).

Buy today sell tomorrow.

Increased competition tending towards perfect competition thus,

Second Telecom Revolution in the making.
Economic Benefits of Mobile Services in India

• Employment
• Government Revenues
• GDP
• Rural Development
 Market SWOT Analysis
Strengths Weaknesses
• Lowest call tariffs in the world
• Huge wireless subscriber potential • Market strongly regulated by Govrenment body –
• Fastest growing mobile market in the world Governing both ISP and Telecom sectors
• Consumers are ready to pay for cutting edge • Too many authorities ruling the sector
services • Huge potential for low end and cheap handsets
• Wide scale Consumer churn in Telecom and ISP
• Government proposes to hike FDI limit in Telecom
• Wide spread VAS deployment is restricted due to language
to 74%
and literacy problems
• Unified license regime • Primarily a voice based market

Opportunities Threats
• To offer value added services on GSM, CDMA and IP • Low cost service providers – no possibility of breaking
• Language independent services even in short term
• Mobile Marketing concepts • Weak IPR protection
• Content influenced by local culture and Global success • Software and digital content Piracy
stories • Political instability
• M-Commerce • Regulatory interference
• Unified messaging platforms
• Foreign investment in form of equity or technology
Revenues from SMS

Expected to grow in the next 2 years due

to
• Falling prices.
• Increasing mobile penetration.
• Widening user demographic.
• Increasing number of SMS based services.
Mobile technologies for data services in various segments in India
Sl. No. Industry Segment details
segment
1 Government executive, legislative and general
government, justice, public
order and safety, public finance,
taxation, monetary policy,
administration of HR,
environmental
quality, housing, economic programs,
national security and international
affairs, and all other
Central, international and local
government.
2 Agriculture Harvesting, Marketing, pest control,
crop rotation
3 Health Care Hospitals, clinics, doctors, nursing,
dentists, medical and dental
laboratories,
And other health services.
Access / Information requirement
Enable mobility to e-Governance
(National e-Governance plan)
Online advice, transactions,
information retrieval
Data sharing, Expert advice,
registration for public health
service, appointment, alerts,
notification
Applicability for Mobile Internet
Update status, alerts, notification
via SMS based on which users
can get into the e-Governance
portal for more details
Alerts, Advice, transactions can
be handled by SMS based
applications or via thin client
mobile browser based
interfaces
SMS based applications for
information/alerts and
transactions based on
Wi Fi / GPRS connectivity at home
and hospitals for real time
heavy data uploads /
downloads
Mobile technologies for data services in various segments in India
Sl. No. Industry Segment details Access / Information Applicability for Mobile
segment requirement Internet

4 Financial Banking, securities, Mobile Banking, Financial SMS / WAP based

Services insurance (other than transactions, Micro applications. Thin client
health) and health finance, Micro mobile browser based
Insurance (the payer). Insurance interfaces. J2ME based
Information retrieval thick client apps for
(account, loan inquiry, providing online/offline
status check), Banking information access
transactions, payments,
requests (DD, Cheque
book etc)

5 Retail Trade, General retailers, Interactive communication SMS / WAP based

Trading specialty retailers, / Financial applications. Thin client
grocery, restaurants transactions / M- mobile browser based
and hotels. commerce interfaces. J2ME based
Online store can leverage thick client apps for
the mobile channel to providing online/offline
deliver instant information access
information to users,
assisting them to make
informed buying
decisions, while helping
the retailers to
understand and
evaluate consumers'
preferences.
Auctions is another
attractive application
area
Mobile technologies for data services in various segments in India

Sl. No. Industry Segment details Access / Information Applicability for Mobile
segment requirement Internet
6 Utilities Electric, gas, oil, nuclear Real time Meter reading SMS based applications
power and sanitary updates WiFi / GPRS for heavy
services Bill payments data uploads
Real time info sharing
7 Communications Wire line, Wireless, Mobile Content Delivery SMS based applications,
Cable, Television, News, Alerts, Content Streaming with GPRS /
Radio broadcasting (Music, Video clips), 3G / 4G network
Gaming services (XoIP, IPTV
etc)
8 Manufacturing automotive, industrial, Mobile Field Force , real SMS based applications as
electrical and time updates, low cost well thick client based
commercial supply chain models for storing
equipment, management – info information for offline
medical equipment and access access. Real time data
supplies, computer updates with WiFi and
and high-technology, GPRS networks.
electronics,
transportation
Equipment and all other
discrete
manufacturing.
9 Transportation water, rail and air Fleet Management (real SMS based applications
transportation, urban time updates), M for updates, m
passenger transit, Ticketing, Schedule ticketing, schedule
motor freight updates updates, status check
Transit, pipelines,
warehousing,
couriers, and
transportation
support services.
Mobile technologies for data services in various segments in India

Sl. No. Industry Segment details Access / Information Applicability for

segment requirement Mobile Internet

10 Services IT service providers, Real time data SMS based

software access, mobile applications,
publishers, Content delivery, Streaming with
professional, m-trading, m- GPRS / 3G / 4G
scientific and bookings network services
technical services, (XoIP, IPTV etc)
real estate, and
business and
consumer
services.
 Global Scenario
Developed markets stagnant growth, so next move towards 3rd
world countries.

Old technologies being dumped into developing markets.

New technologies being researched and implemented (3G and

B3G)

ITU, unification and compatibility of all technologies.

Global alliances to lay inter-continental submerged cables.

From Kashmir to Kanyakumari…
Empowering and Integrating

The Indian Telecommunication