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Page 1: final PPT
Page 2: final PPT

Presentation Plan

1

5

Telecom Industry Overview

Emerging Trends in Telecom Market

3 Regulatory Framework and Its Impact

4

Telecom – Investment Attracting Sector2

Major Players in Telecom Sector

6 Growth Avenues

Page 3: final PPT

Presentation Plan

1

5

Telecom Industry Overview

Emerging Trends in Telecom Market

3 Regulatory Framework and Its Impact

4

Telecom – Investment Attracting Sector2

Major Players in Telecom Sector

6 Growth Avenues

Page 4: final PPT

History

1851 Introduction of Telegraph services

1947 Foreign Telecom Companies nationalized to form PTT

1980’s: The Beginning Tele-density in 1980-81: 0.3% Introduction of public pay phones Private Sector allowed DoT, MTNL and VSNL formed

Early to Mid 90’s: A Messy Affair Telecom policy 1994 - Basic telephony service to private operators - 49% FDI - 8 licensees began operations in Aug 1995

Introduction to Indian Telecom Industry

Page 5: final PPT

Late 90’s Birth of a regulator: TRAI NTP 1999 (New Telecom Policy)

2000+ CAGR of around 85% since 1999 FDI: 74% (2005)

2007-2009 having the world's lowest call rates the fastest growth in the number of subscribers (45 million in 4 months), the fastest sale of million mobile phones (in a week), the world's cheapest mobile handset the world's most affordable colour phone

Introduction to Indian Telecom Industry

Page 6: final PPT

• The Indian Telecom sector is third largest network in the world.• Subscriber numbers already crossed 250 million.• Average growth rate of over 40% in respect of subscribers.• Monthly additions of above 7 million phones.• Growth impetus from wireless segment with 84% wireless and

16% wired.• National teledensity at 26%.• Rural teledensity stands at 7%, while the urban at 57%.• Further access is provided by 54 lakh PCOs and 5 lakh VPTs.• 9 million Internet and 2.5 million broadband subscribers.• More than a thousand cities have been provided with

broadband connectivity out a total of five thousand cities

Introduction to Indian Telecom Industry

Page 7: final PPT

Indian Telecom Industry – A Lucrative Option

In recent years, the Indian telecom industry has witnessed phenomenal growth. A conducive business environment,

favourable demographic outlook and the political stability enjoyed by the country have contributed to the growth of

the industry. India achieved the distinction of having the world's lowest call rates (2–3 US cents), the fastest sale of

million mobile phones (1 week), the world's cheapest mobile handset (USD 19) and the world's most affordable colour

phone (USD 31).

Indian Telecom Industry

One of the fastest growing cellular

markets in the world in terms of number

of subscriber additions – 261.07 million

(March 2008)

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 – 42 percent (2007–08)

More GSM subscribers than fixed-line

subscribers

Indian Telecom Industry – Facts

Total telecom subscribers – 300.49

million (March 2008 Cellular + Fixed Line )

Tele density – 26.22 percent (March 2008)

Number of new mobile subscribers added

last quarter – 27.62 million (March 2008)

ARPU for GSM – USD 5.28* (USD./sub/

month)

Telecom equipment market – USD 34,100

million (2007–08)

Handset market – USD 7,250 million

(2007–08)

*USD=50 • Data Source TRAI 2008 Report

Page 8: final PPT

Revenues of Indian Telecom Industry: 2002–08 (USD billion)

Telecom Services – India

Internet

Mobile ServicesBasic

Services

PMRTS

VSATsGMPCS

Radio

Paging

The Indian 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 much higher as

compared to other services, such as basic services and radio paging services which are nominal in terms

of numbers.

The Indian telecom market generated revenues of approximately USD 32 billion in 2007–08. It registered a CAGR of

approximately 32 percent from 2002–03 to 2007–08. The CAGR from 2008–08 to 2011–12 is expected to stabilise at 21

percent. Apart from mobile telephony services, other value-added services are also gaining importance.

Telephony services (mobile and basic) and Internet services dominate the Indian telecom services

Page 9: final PPT

GMPCS services were launched in

India in 1999. These services allow a

subscriber to communicate from any

point on earth through a handheld

terminal. Moreover, the telephone

number remains unchanged,

irrespective of the subscriber’s

location.

Various other services emerged by leveraging the telecom services industry

Public Mobile Radio Trunked Services

PMRTS have not grown to their expected

potential in India. The high licence fee leaves a

very thin margin for services providers;

thereby, inhibiting its growth. About 31,000

subscribers are currently availing this service

in India from 12 different operators.

In 1995, radio paging services emerged as

a promising segment in India. However,

this segment could not compete with

cellular services in general and SMS

technology in particular, and is currently

shrinking. At present, only four radio

paging service providers are present in

the Indian market.

Very Small Aperture Terminals (VSAT)

The market for VSAT services increased by

5.73 percent during the quarter ending in

December 2006, and the segment had a

total subscriber base of 55,070. HCL

Comnet is the largest of the eight players

functioning in the market.

GMPCS*

Radio Paging

Other Telecom Services

* Global Mobile Personal Communication by Satellite

Page 10: final PPT

Basic Services

Market Share* of Basic Service Operators in India (2007–08)

Basic services include fixed

wireline and wireless in local loop

(WLL-fixed). In 2007–08, basic

services subscribers exceeded

60 million.

Fixed wireline services hold a

major market share of 83 percent

in basic services.

BSNL and MTNL are market

leaders in this segment.

Although the government-owned

BSNL dominates the segment in

terms of subscriber base and

market share, private players

have registered a notable growth.

WLL (F)17%

Fixed83%

Market Share* of Basic Services Segments in India (2007–08)

* In terms of Subscriber Base

Private players account for highest subscriber base growth in the basic telephony services segment (Fixed Lines)

Page 11: final PPT

838

461

303

88Russia

China

India

USA

Minutes of Usage per Month – Mobile Services

The declining ARPU implies that India Inc. is

tapping a large market at the bottom of the

pyramid by reducing tariffs; thereby, enhancing

affordability.

ARPU* in India – Mobile Services

Mobile services have led to a spectacular growth in the Indian telecom industry. Currently, 12 players are active in this segment.

The total number of wireless subscribers escalated to 261.07 million at the end of March 2008, with a monthly addition of more

than 6 million wireless subscribers. Despite the decreasing ARPU*, the minutes of usage is on a rise, which provides impetus to

the mobile services growth in India.

Despite a low teledensity of approximately 19

percent, India has the second highest minutes of

usage per month. This offers huge growth

opportunity to telecom companies.

* Average Revenues per User

Mobile telecom services provide an unprecedented growth opportunity for companies

• Data Source TRAI 2008 Report

Page 12: final PPT

The telecom subscriber base has

witnessed an explosive growth; the

additions in the current year registered a

growth of approximately 47 percent over

the previous year.

The subscriber base registered a CAGR of

40.4 percent for 2002–03 to 2007–08.

Telecom Subscriber Base and Teledensity in India

Market Share* of Wireless** Operators (As of March 2008)

The state-owned BSNL was the second largest service

provider after Bharti Airtel (23 percent) in the Indian wireless

telecom market with a market share of approximately 19

percent for the year ending March 2008.

** Includes GSM, CDMA and WLL-F services

* In terms of Subscriber Base

225.21206

140.398.4

7653

19.9

5.17.0

9.112.8

18.3

0

50

100

150

200

250

2002–03 2003–04 2004–05 2005–06 2006–07 2007–08(As of June

2007)

Sub

scrib

ers

(in m

illion

)

0

4

8

12

16

20

24

Tel

eden

sity

(in

per

cent

)

Telecom Subscriber Base Teledensity

Number of mobile subscriber will propel the total subscriber base to 500 million by 2010

Page 13: final PPT

Market Share* of Wireless Operators (as of quarter ending March 2008)

CDMA, 27%GSM, 73%

Reliance Communications and TTSL

dominates the Indian CDMA mobile

services segment.

Bharti Airtel dominates the GSM segment

with a market share of approximately 32

percent for the year ending March 2008,

followed by Vodafone with a share of

approximately 23 percent subscribers.

* In terms of Subscriber Base

GSM surpasses CDMA segment by a large

margin in terms of subscriber numbers.

GSM surpasses CDMA in number of additions to subscriber base

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• Divided into 22 circles

– 4 metros

– 19 circles

• Further divided into A, B and C category based on economic parameters and revenue potential

• Each circle has a licenses

– Four operators per circle are allowed

– Licenses are saleable

North Eastern States

METRO Circles

Gujarat

Rajasthan

Maharashtra Orissa

Andhra Pradesh

Karnataka

Tamil Nadu

Kerala

Madhya Pradesh

Uttar Pradesh E

Bihar

West Bengal

Punjab

Himachal Pradesh

Haryana

Jammu & Kashmir

Uttar Pradesh

W

CHENNAI

MUMBAI

DELHI

KOLKATA

C Circles

B Circles

A Circles

Source :COAI & TRAI

Market Structure for Wireless Service (GSM)

Page 15: final PPT

GSM

GSM Subscriber Growth (in mn) The number of subscribers for the GSM

services now stands at 172.23 million subscribers for the quarter ended December 2007 as against 153.99 million subscribers for the quarter ended September, 2007. The growth rate of the number of subscribers over the quarter has been at 11.85%

Page 16: final PPT

Compostion of revenue- GSM

Page 17: final PPT

CDMA Subscriber Growth

CDMA

Page 18: final PPT

The number of subscribers for the CDMA services now stands at 61.39 million subscribers for the quarter ended December 2007 as against 55.08 million subscribers for the quarter ended September, 2007. The growth rate of the number of subscribers over the quarter has been at 11.46%.

Page 19: final PPT

Compostion of revenue- CDMA

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The emergence of private players and new technologies have provided a

strong impetus to the growth of Internet and broadband services. The

quality and penetration of these services have undergone changes, with

significant improvement in the telecom infrastructure. The Internet

subscriber base registered a CAGR of 60 percent for the period 1997–98 to

2007–08.

Internet Subscribers: 1998–2008

BSNL and MTNL caters to more than two-thirds of Internet subscribers in

India.

Private players are catching up fast due to increased penetration of

Internet and broadband services in India.

The telecom market will experience high penetration of Internet services

with the support from government policies and introduction of novel

technologies in India.

Broadband services to drive Internet penetration in India

The total no. of Broadband Subscribers of these 13 Service Providers

have increased from 3.1 million to 3.82 million by adding 0.72 million

(23.35%) subscribers in the quarter ending March, 2008.

Page 21: final PPT

Presentation Plan

1

5

Telecom Industry Overview

Emerging Trends in Telecom Market

3 Regulatory Framework and Its Impact

4

Telecom – Investment Attracting Sector2

Major Players in Telecom Sector

6 Growth Avenues

Telecom Handset Market

Page 22: final PPT

Indian telecom handset market booming along with mobile services industry

1,6101,966

3,231

4,750

0

1,000

2,000

3,000

4,000

5,000

2003–04 2004–05 2005–06 2006–07

US

D M

illion

Mobile Handsets Market in India: 2004–07 The Indian handset market grew at a phenomenal rate in

2006 with the sale of approximately 30–35 million

handsets. It is estimated that by 2011, sales of mobile

handsets will reach 150 million units.

Competitive pricing has triggered the growth of coloured

handsets, which accounted for 75 percent of the market in

2006; whereas, the share of monochrome handsets has

declined to 25 percent.

Mobile phones are available at prices as low as USD 19–

31.

Camera phones currently occupy 15 percent of the sales

volume.

ZTE4%

Nokia 53%

Motorola 11%

LG11%

Sony Ericsson 6%

Huaw ei1%Haier

1%

Samsung 6%

Others7%

The CDMA category is growing faster than the GSM

category. It captured 25 percent of the market

volume in 2005–06 as against a 20.5 percent share

in the previous year.Market Share of GSM and CDMA Handset Manufacturers: 2006–07

Overall, Nokia has a market share of 53 percent; it

dominates the GSM mobile handsets with a market

share of approximately 73 percent.

LG dominates in the CDMA handsets market with

a market share of 60 percent.

Page 23: final PPT

Presentation Plan

1

5

Telecom Industry Overview

Emerging Trends in Telecom Market

3 Regulatory Framework and Its Impact

4

Telecom – Investment Attracting Sector2

Major Players in Telecom Sector

6 Growth Avenues

Page 24: final PPT
Page 25: final PPT

The telecom subscriber base has witnessed an explosive growth; the additions in year 200-08 registered a growth

of approximately 52 percent over the previous year.

The subscriber base witnessed a CAGR of 42 percent during 2002–03 to 2007–08.

The impressive growth in the subscriber base has resulted in a significant increase in teledensity. In 2007–08,

India has a teledensity of 26.22 percent, as compared to year 2006-07 figure of 18.23 percent, signifying a growth

of percent.

Increasing mobile subscriber numbers and low level of teledensity offers large opportunities to Indian companies

Even though the Indian telecom industry has

exceeded a subscriber base of 200 million, its

teledensity is only 18 percent. Thus, the Indian market

provides telecom service providers with a large

untapped potential due to the country’s increasing

population and its low teledensity. The government

has plans to raise teledensity to 40–45 percent by

2010; thereby, offering greater growth opportunities

for service providers.

Large number of additions in telecom subscribers

Low teledensity (depicting large untapped potential)

TelecomAdvantage

• Data Source TRAI 2008 Report

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Presentation Plan

1

5

Telecom Industry Overview

Emerging Trends in Telecom Market

3 Regulatory Framework and its Impact

4

Telecom – Investment Attracting Sector2

Major Players in Telecom Sector

6 Growth Avenues

Page 27: final PPT

Indian Telecom Industry FrameworkIndian Telecom Industry Framework

Indian Government Bodies Independent Bodies

Wireless Planning and Coordination (WPC)

Department of Telecommunications

Telecom Commission

Group on Telecom and IT (GoT-IT)

Telecom Regulatory Authority of India (TRAI)

Telecom Disputes Settlement and Appellate Tribunal (TDSAT)

Handles spectrum allocation and management

DoT – Licensee and frequency management for telecom

Exclusive policy making body of DoT

Handles ad hoc issues of the telecom industry

Independent regulatory body

Telecom disputes settlement body

Regulatory Framework provides level playing field for all operators

They formulate various policies and pass laws to regulate the telecom industry in India.

They undertake various research activities and monitor the quality of service provided in the Indian telecom industry. They also provide various recommendations to improve the status of telecom operations in India.

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.

Page 28: final PPT

0

4

8

12

16

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Cellu

lar

Tariff (

INR

per

min

ute

)

0

30

60

90

120

150

Num

ber

of S

ubscribers

(millio

ns)

Cellular Tariff Total Cellular Subscribers

NTP 99

Telecom Tariff Order

WLL

UASL, CPP

Lowering of ADC

Important regulations and their impact on the Indian telecom industry

Access Deficit Charges (ADC)

ADC makes it mandatory for a service provider at the

caller’s end to share a percent of the revenue earned

with the service provider at the receiver’s end in long-

distance telephony. This subsidises the infrastructure

costs of the service provider enabling access at

receiver’s end, especially because rental for fixed-line

services is low. Revision in the ADC regime is expected

to be followed by further tariff reduction in telecom

services. In a move to bring down telecom tariffs

drastically, TRAI has phased out access deficit charges

from this year.

Unified Access Service License Regime (UASL)

Unified licensing marked the end of the license regime in the Indian telecom industry. It helped in aligning convergent

technologies and services. The establishment of the Unified Access Licensing Regime (2003) eliminated the need for

different licenses for different services. Players are now allowed to offer both mobile and fixed-line services under a

single license after paying an additional entry fee. This does not take into account national and international long-

distance services and Internet access services.

Universal Service Obligation (USO)

The USO policy was laid along with NTP ’99 to widen the reach of telephony services in rural India. All telecom operators

are bound to contribute 5 percent of their revenues to this fund. This system was put in place to bridge the wide gap

between urban and rural teledensity, bringing it down from the current 31 percent. Initially, only basic service providers

were under the purview of USO. Later, its scope was expanded to include mobile services also. Although it increases the

cost burden for the telecom companies, USO helps in building the telecommunication infrastructure in the rural areas.

Page 29: final PPT

Presentation Plan

1

5

Telecom Industry Overview

Emerging Trends in Telecom Market

3 Regulatory Framework and Its Impact

4

Telecom – Investment Attracting Sector2

Major Players in Telecom Sector

6 Growth Avenues

Page 30: final PPT

Vodafone purchased stake in Hutch from Hong Kong's Hutchison Telecom International for USD 11.08 billion.

Telekom Malaysia acquired a 49 percent stake in Spice Communications for USD 179 million.

Maxis Communications acquired a 74 percent stake in Aircel for USD 1.08 billion.

Ericsson to design, plan, deploy and manage Bharti Airtel network and facilitate their expansion in the rural areas, under a USD 2 billion contract.

Recent Deals in Telecom Sector

FDI in Telecom Sector

The Indian telecom industry has always attracted foreign

investors. In fact, the cumulative FDI inflow, during the

August 1991 to March 2007 period, in the telecommunication

sector amounted to USD 3,892 million. It is the third largest

sector to attract FDI in India in the post-liberalisation era.

FDI calculation takes into account radio paging, cellular

mobile and basic telephone services in the

telecommunication sector.

FDI and other M&A activities increasing in number

Reliance Communications Limited has sold a five percent equity share capital of its subsidiary Reliance Telecom Infrastructure Limited to international investors across the US, Europe and Asia. The deal was worth USD 337.5 million.

The Indian telecom industry has a 74 percent FDI limit in the

telecom services segment.

The GoI has permitted 100 percent FDI in manufacturing of

telecom equipment in India.

Major trends in the telecom sector is increasing M&A activity, de-regulation of telecom policies and growing interest of international investors.

116 129

680

521

100

300

500

700

2003–04 2004–05 2005–06 2006–07

FD

I (U

SD

milli

on)

Page 31: final PPT

Recent Deals in Telecom Sector

FDI and other M&A activities increasing in number

Telenor-Unitech Deal

Norwegian Telecom major Telenor is in the process of acquiring controlling stake of 67.25% in Unitech wireless via equity infusion. The enterprise valuation of Unitech Wirelsss is about Rs 10,900 crore. As per the deal, Telenor will infuse cash in four stages and at each phase, by increasing its stake in Unitech Wireless. In the first phase, they got 33.5% ownership in Unitech Wireless. In the second phase they completed the acquisition for a 49 per cent stake in Unitech Wireless by paying Rs 1,130 crore for a further 15.5 per cent stake in the company. The acquisition is expected to be completed by end of this quarte

TTSL – DoCoMo Deal.

Japanese carrier NTT DoCoMo acquired 26 per cent stake in Tata Teleservices (TTSL). The Tata DoCoMo-branded GSM service has already started in Southern India and gradually will be expanded nationwide. DoCoMo’s international expansion plans have not always proven successful, with the firm historically preferring to take small stakes in firms and then try to influence their strategy. It has been less prepared to take majority stakes and impose its will, as other leading carriers have chosen to do. The difficulties faced by the firm in spreading its domestically successful i-mode service internationally typify the obstacles it has faced overseas. With Tata, DoCoMo had said “participating proactively in TTSL’s management by providing human resources and technical assistance to help realise improved network quality and the possible introduction of leading-edge, value-added services.”

Page 32: final PPT

Presentation Plan

1

5

Telecom Industry Overview

Emerging Trends in Telecom Market

3 Regulatory Framework and Its Impact

4

Telecom – Investment Attracting Sector2

Major Players in Telecom Sector

6 Growth Avenues

Page 33: final PPT

Basic Services Operators

BSNL

MTNL

Major Players in different segments of Indian telecom industry

Reliance

TTSL

GSM Services Operators

Airtel

Vodafone

Idea

Reliance

TTSL

BSNL

CDMA Services Operators

Reliance

Internet Services Operators

BSNL

MTNL

Reliance

TTSL

BSNL

Airtel

TTSL – Tata Teleservices Ltd.

MOBILE SERVICES

BSNL – Bharat Sanchar Nigam Ltd.

MTNL – Mahanagar Telecom Nigam Ltd.

Tata docomo

Page 34: final PPT

Presentation Plan

1

5

Telecom Industry Overview

Emerging Trends in Telecom Market

3 Regulatory Framework and its Impact

4

Telecom – Investment Attracting Sector2

Major Players in Telecom Sector

6 Growth Avenues

Page 35: final PPT

India presents a host of opportunities for telecom companies

To reduce their network deployment costs, many service

providers are considering infrastructure sharing offers the

following advantages: Improved service quality Increased affordability for customers Faster roll out of services in rural and remote areas Significant reduction in initial set up costs Increased environmental aesthetics Lower operating costs for service providers

Managed services is another segment that is attracting telecom

companies. 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.

Virtual Private Network is a private data

network that provides connectivity within

closed user groups via public

telecommunication infrastructure.

Competition is likely to heat up in the VPN

segment as DoT has relaxed the norms for

private players.Enterprise Telecom Services includes key

services, such as voice over Internet

protocol (VoIP), dedicated telecom

communication systems, IT infrastructure

enabled unified communication services,

etc. Telecom service providers are

increasingly targeting enterprises by

providing dedicated services and is

expected to witness major developments in

near future.

Virtual Private Network

Value-Added Services Growth

AvenuesGrowth

Avenues

Infrastructure Sharing Managed

Services

Enterprise Telecom Services3G

WiMax

Rural Telephony

Page 36: final PPT

Emerging technologies – 3G and WiMax to assist in penetration of telecom services in India

WiMAX has been one of the most significant developments in wireless

communication in the recent past. Since this mode of communication provides

network access in inaccessible 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. WiMAX is expected to

accelerate economic growth and assist in providing better education,

healthcare and entertainment 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. Bharti, Reliance and VSNL have acquired licenses in the 3.3GHz range to utilise

the opportunities offered by this domain.

The Indian government had auctioned the spectrum for 3G services by

inviting bids from domestic as well as foreign players, and creating a

competitive environment that offers better services to consumers in

January 2008. Therefore, the 3G spectrum is among the major

investment opportunities and growth drivers of the telecom industry. The immense potential for 3G is reflected by the 30–40 percent annual

growth in Value-Added Services. Cell phone manufacturers are striving to develop USD 100 priced 3G

handsets for the Indian market. India expects to replicate its 2G growth in 3G services. MTNL has soft launched its 3G service and calls it MTNL 3G Jadoo.

Page 37: final PPT

3G WiMax Result

Spectrum price To be auctioned Dot has recommended 25% of reserve price of 3Gspectrum

Advantage WiMax

Spectrum allocation Simultaneous simultaneous Neutral

For voice service Best technology Evolving technology Advantage 3G

Equipment/ standard Evolved over the years

New technology Advantage 3G

Data download speed(fixed)

15 mbps 70 Mbps Advantage WiMax

Data download speed(wireless)

15 mbps 20 Mbps Advantage WiMax

3G V/S WiMax

Page 38: final PPT

Value-Added Services and Rural Telephony holds large market potential in India

Others (MMS etc.), 3%

Game & Data, 7%Person to

Application & Application to Person SMS,

15%

Ringtone Dow nload, 35%

Person to Person SMS, 40%

Value-Added Services in India (2007–08)

0

10

20

30

40

50

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007At Year Ending March

Tele

dens

ity (%

)Urban Total Rural

Urban Rural Teledensity in India

The VAS industry was worth USD 632

million in 2007–08. The industry is

estimated to grow by 60 percent in 2008–

09 and become an USD 1,011 million

opportunity.

As the government targets to increase

rural teledensity from the current 2

percent to 25 percent by 2012, rural

telephony will require major investments.

This segment will boost the demand for

telecom services, equipment, Internet

services and other value-added services;

thereby, offering great market

opportunities for telecom players.

The VAS industry is currently focussing on the entertainment sector,

such as the Indian film industry and cricket; however, there is scope

for growth in other avenues as utility-based services, such as location

information and mobile transactions.

Rural Telephony

Page 39: final PPT

•Currently the penetration of GPRS enabled handsets are close to 26% in India as against 99% in South Korea and 76% in Japan. Of the total mobile subscribers in India 65 million possess GPRS-enabled handsets. Of all those who posses GPRS enabled handsets only 20-25% of them have got the GPRS activated and only about 15% use it. Even in case of developed nations like South Korea and Japan not more than 50% of the subscribers owning GPRS enabled handsets use it.

•This clearly indicates that the consumer today engage more in text based services than the web based applications. Therefore for MVAS to grow to its full potential the handset manufacturers will have to look at ways to manufacture GPRS enabled phones which are affordable and user friendly. Moreover they would also need to increase its awareness and educate the consumers on how to use GPRS.

GPRS Handsets

Page 40: final PPT
Page 41: final PPT

One of the most frequent definitions that prevail in the telecom circles for number portability is: "Number portability is a circuit-switch telecommunications network feature that enables end users to retain their telephone numbers when changing service providers, service types, and or locations."

Why mobile number portability (MNP)? •When fully implemented nationwide by both wireline and wireless providers, portability will remove one of the most significant deterrents to changing service, providing unprecedented convenience for consumers and encouraging unrestrained competition in the telecommunications industry. In short, this is the best method to increase the efficiency of the service provider by increasing the competition, thereby ensuring better services in all respects.

•Singapore was the 1st country to implement MNP in 1997 followed by Hong Kong in 1999 and Australia in 2001

Mobile Number portability (MNP)

Page 42: final PPT

Composition Of Net Service Revenues

Page 43: final PPT

Expected to grow in the next 2 years due to

• Falling prices.• Increasing mobile penetration.• Widening user demographic.• Increasing number of SMS based services.

Revenues from SMS

Page 44: final PPT

The Indian Telecom Service provider industry is gearing for a revolution. The customer is driving this revolution and will see more unique and sophisticated offerings coming his way. The 3G which will pave the way for 3.5G, 3.75G and the next big thing-4G and the VAS services will keep the customer asking for more. The rural areas which have remained untapped will see an insurgence of services. Also the easing of the regulations by TRAI ,the ease of spectrum licensing, the FDI influx will make the telecom space in India a must watch in the

coming years.

conclusion