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Industry note on Telecom Sector in India
By Group 15:
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Mukesh Kumar Yadav (031/02)
R Vishal (038/02)
Tejinder Ammla (055/02)
Yogesh Taak (065/02)
Regulation and Government Policy
LIRNEasia's Telecommunications Regulatory Environment (TRE) index, which summarises stakeholders' perception on certain TRE
dimensions, provides insight into how conducive the environment is for further development and progress. The most recent survey wasconducted in July 2008 in eight Asian countries, including Bangladesh, India, Indonesia, Sri Lanka, Maldives, Pakistan, Thailand, and the
Philippines. The tool measured seven dimensions:
i) market entry
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ii) access to scarce resourcesiii) interconnectioniv) tariff regulationv) anti-competitive practicesvi) universal servicesvii) quality of service, for the fixed, mobile and broadband sectors
The results for India, point out to the fact that the stakeholders perceive the TRE to be most conducive for the mobile sector followed by
fixed and then broadband. Other than for Access to Scarce Resources the fixed sector lags behind the mobile sector. The fixed and mobile
sectors have the highest scores for Tariff Regulation. Market entry also scores well for the mobile sector as competition is well
entrenched with most of the circles with 45 mobile service providers. The broadband sector has the lowest score in the aggregate. The
low penetration of broadband of mere 3.87 against the policy objective of 9 million at the end of 2007 clearly indicates that the
regulatory environment is not very conducive.
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Evolution
1851
First operational land lines were laid by the government near Calcutta
1881
Telephone services introduced in India
1883
Merger with postal system
1923
Formation of Indian radio Telegraph Company
1932 Merger of ETC and IRT into Indian Radio and Cable Communication Company
1947
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Nationalization of all foreign telecommunication companies to form the posts, telephone and telegraph, a monopoly run by thegovernments ministry ofcommunications
1985
Department of telecommunication established, an exclusive provider of domestic and long-distance services that would beits own regulator
1986
Conversion of dot into two wholly government owned companies the VSNL for internationaltelecommunication and MTNL for services in metropolitan areas
1997
Telecom regulatory authority created
Telecommunication in India
In August 1995, Chief Minister of West Bengal, Shri Jyoti Basu ushered in the cell phone revolution in India by making the first call to
Union Telecom Minister Sukhram. Sixteen years later 4th generation services were launched in Kolkata.
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With a subscriber base of more than 929 million, the Mobile telecommunications system in India is the second largest in the world and it
was thrown open to private players in the 1990s. GSM was comfortably maintaining its position as the dominant mobile technology with
80% of the mobile subscriber market, but CDMA seemed to have stabilised its market share at 20% for the time being. By May 2012 the
country had 929 million mobile subscribers, up from 350 million just 40 months earlier. The mobile market was continuing to expand at
an annual rate in excess of 40% coming into 2010.
The country is divided into multiple zones, called circles (roughly along state boundaries). Government and several private players run
local and long distance telephone services. Competition has caused prices to drop and calls across India are one of the cheapest in the
world. The rates are supposed to go down further with new measures to be taken by the Information Ministry. In September 2004, the
number of mobile phone connections crossed the number of fixed-line connections and presently dwarfs the wire line segment by a
ratio of around 20:1. The mobile subscriber base has grown by a factor of over a hundred and thirty, from 5 million subscribers in 2001
to over 929 million subscribers as of May 2012. India primarily follows the GSM mobile system, in the 900 MHz band. Recent operators
also operate in the 1800 MHz band. The dominant players are Airtel, Reliance Infocomm, Vodafone, Idea cellular and BSNL/MTNL. There
are many smaller players, with operations in only a few states.
International roaming agreements exist between most operators and many foreign carriers. The government allowed Mobile number
portability (MNP) which enables mobile telephone users to retain their mobile telephone numbers when changing from one mobile
network operator to another. India is divided into 22 telecom circles.
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Number of Subscribers
India has the fastest growing telecom network in the world with its high population and development
potential. Airtel, Idea, Reliance, Tata Docomo, BSNL, Aircel, Tata Indicom, Vodafone, MTNL, and Loop Mobile are other major operators
in India. However, rural India still lacks strong infrastructure. India's public sector telecom company BSNL is the 7th largest telecom
company in world.
Telephony introduced in India in 1882. The total number of telephones in the country stands at 960.9 million, while the
overall teledensity has increased to 79.28% as of May 31st, 2012 and the total numbers of mobile phone subscribers have reached929.37 million as of May 2012. The mobile tele-density has increased to 76.68 % in May 2012. In the wireless segment, 8.35 million
subscribers were added in May 2012. The wire line segment subscriber base stood at 31.53 million.
Indian telecom operators added a staggering 227.27 million wireless subscribers in the 12 months between Mar 2010 and Mar
2011 averaging at 18.94 million subscribers every month. To put this into perspective, China which currently possesses the world's
largest telecommunications network added 119.2 million wireless subscribers during the same period (March 2010 - March 2011) -
averaging 9.93 million subscribers every month (a little over half the number India was adding every month).
So, while India might currently be second to China in the TOTAL number of mobile subscribers, India has been adding nearly twice as
many subscribers EVERY month until March 2011. Mobile teledensity increased by almost 18.4 percentage points from Mar 2010 and
Mar 2011 (49.60% to 67.98%) while wire line subscriber numbers fell by a modest 2.2 million. This frenetic pace of monthly subscriber
additions means that the Indian mobile subscriber base has shown a year on year growth of 43.23%. According to recent reports, India
was purported to overtake China to become the world's largest mobile telecommunications market by the year 2013. It was also
predicted that by 2013, the teledensity will shoot up to 75% and the total mobile subscriber base would be a colossal 1.159 billion.
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Telecom Circle Wireless Subscriber base in mm (May 12)
Delhi 42.95
Gujarat & Daman & Diu 54.32
Haryana 23.00
Himachal Pradesh 7.41
Jammu and Kashmir 6.57
Karnataka 56.63
Kerala & Lakshadweep 34.51
Kolkata 25.25
Madhya Pradesh & Chhattisgarh 53.30
Maharashtra & Goa (excluding Mumbai ) 71.00
Mumbai 35.93
North East 8.76
Orissa 26.27Punjab 31.17
Rajasthan 49.52
Tamil Nadu(including Chennai) 78.96
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Uttar Pradesh(East) 77.74
Uttar Pradesh(West) & Uttarakhand 55.12
West Bengal (Excluding Kolkata) 46.79
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Market Share of Players
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Services Offered
With the growth of telecom services, telecom equipment and accessoriesmanufacturing has also grown in a big way. Indian Telecom
sector, like any other industrial sector in the country, has gone through many phases of growth and diversification. Starting from
telegraphic and telephonic systems in the 19th century, the field of telephonic communication has now expanded to make use of
advanced technologies like GSM, CDMA, and WLL to the great 3G Technology in mobile phones. 4G was recently launched in Kolkata byAirtel. Day by day, both the public players and the private players are putting in their resources and efforts to improve the
telecommunication technology so as to give the maximum to their customers.
Company analysis and strengths of companies
Here is an analysis of the top Indian companies in the telecom sector
Bharti Airtel
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Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The
BhartiGroup has a diverse business portfolio and has created global brands in thetelecommunication sector. Airtel comes from Bharti Ai
rtel Limited, Indias largestintegrated and the first private telecom services provider with a footprint in all the 22 telecom circles. Bharti
Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its
world class products and services.
The businesses at Bharti Airtel have been structured into three individual strategic business units (SBUs) - Mobile Services, Airtel Tele
media Services& Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across 22
telecom circles while the Airtel Tele media Services business offers broadband & telephone services in 95 cities and has recently
launched India's best Direct-to-Home (DTH) service, Airtel digital TV. The Enterprise services provide end-to-end telecom solutions to
corporate customers and national & international long distance services to carriers. All these services are provided under the Airtel
brand.
They also offer an integrated suite of telecom solutions to their enterprise customers, in addition to providing long distance connectivity
both nationally and internationally. They have recently forayed into media by launching their DTH and IPTV Services. All these servicesare rendered under a unified brand "Airtel". The company also deploys, owns and manages passive infrastructure pertaining totelecom
operations under its subsidiary Bharti Infratel Limited. Bharti Infratel owns 42%of Indus Towers Limited. Bharti Infratel and Indus
Towers are the two top providers of passive infrastructure services in India.
Company shares are listed on The Stock Exchange, Mumbai (BSE) and The National Stock Exchange of India Limited (NSE).
It is the largest cellular service provider in India, with over 187.30 million subscribers at the end of June 2012.
!dea
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In 2000, Tata Cellular was a company providing mobile services in Andhra Pradesh. When Birla-AT&T brought Maharashtra and Gujarat
to the table, the merger of these two entities was a reality. Thus Birla-Tata-AT&T, popularly known as Batata, was born and was later
rebranded as IDEA.
Then Idea set sights on RPGs operations in Madhya Pradesh which was successfully acquired, helping Batata have a million subscribers,
and the licence to be the fourth operator in Delhi was clinched.
In 2004, Idea (the company had by then been rechristened) bought over the Escorts groups Escotel gaining Haryana, Uttar Pradesh
(West) and Kerala and licences for three more UP (East), Rajasthan and Himachal Pradesh. By the end of that year, four million
Indians were on the companys network.
In 2005, AT&T sold its investment in Idea, and the year after Tatas also bid good bye to pursue an independent telecom business. And
Idea was left only with one promoter, the AV Birla group. Modis joint venture partner, Telekom Malaysia, invested Rs 7,000 crore for a14.99% stake in Idea. Just around then, Ideas subsidiary, Aditya Birla Telecom sold a 20% stake to US-based Providence Equity Partners
for over Rs 2,0000 crore.
Idea's subscriber base as at the end of August 2011 according to the statistics, is totalling to 98,441,714 or 16.09% (approx.) of the
total mobile connections in India.
Idea leads all other telecom operators in India in the MNP race, with a net gain of 1,031,380 subscribers as on 31 August 2011.
Idea also leads all other competitors in having the most active subscriber base, scoring highly on the VLR statistics. Visitor Location
Register (VLR) is basically a temporary database of the subscribers who have roamed into the particular area, which it serves. Each base
station in the network is served by exactly one VLR; hence a subscriber cannot be present in more than one VLR at a time.
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BSNL
Bharat Sanchar Nigam Limited is a state-owned telecommunications company headquartered in New Delhi, India. It is the largest
provider of fixed telephony and fourth largest mobile telephony provider in India, and is also a provider of broadband services.However, in recent years the company's revenue and market share plunged into heavy losses due to intense competition in Indian
telecommunications sector.
BSNL is India's oldest and largest communication service provider (CSP). It had a customer base of 95 million as of June 2011. It has
footprints throughout India except for the metropolitan cities of Mumbai and New Delhi, which are managed by Mahanagar Telephone
Nigam (MTNL).
Subscriber Growth
The following table illustrates the gradual increase in mobile subscriber additions (in millions) in India since January 2002.
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Year Annual Addition (in millions)
2002 5.23
2003 17.49
2004 19.492005 27.86
2006 64.14
2007 85.27
2008 113.26
2009 178.25
2010 227.12
2011 148.32
Reference
1. www.wikipedia.org2. www.trai.gov.in
http://www.wikipedia.org/http://www.wikipedia.org/http://www.trai.gov.in/http://www.trai.gov.in/http://www.trai.gov.in/http://www.wikipedia.org/7/29/2019 Industry Note on Telecom Sector in India
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Mobile phone user distribution by Metro and by Circles
Latest State Wise Mobile Users in India -2012 (Figures till 2012) are as follows (Source : Cellular Operators Association of India)
City/Circle OperatorsNo. of Mobile UsersTill January 2012
Metros Delhi Bharti Airtel 8,589,731
Vodafone Essar 8,340,459
MTNL 2,698,690
IDEA 4,585,267
Aircel Ltd 2,364,118
Etisalat DB Telecom 759,210Delhi 27337475
Mumbai Loop Mobile 3240766
Vodafone Essar 6,002,506
MTNL 2,793,532
Bharti Airtel 3,714,218
IDEA 2,818,843
Aircel Limited 1,202,151
Etisalat DB Telecom 469,909
Videocon 980,278
Uninor 1,424,832Mumbai 22,647,035
Chennai Aircel Cellular Ltd 4,400,664
Bharti Airtel 3,248,707
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Vodafone Essar 2,213,517
BSNL 1625378
Chennai 11,488,266
Kolkata Bharti Airtel 3,801,989
Vodafone Essar 4,445,740BSNL 2364543
Aircel Cellular Ltd 1,776,039
IDEA 1,210,597
Uninor 1,698,321
Loop Mobile 2,348
Videocon 2,966
Kolkata 15,302,543
All Metros 76,775,319
A Circle Maharashtra Vodafone Essar 12,659,140IDEA 14,972,162
Bharti Airtel 9449972
BSNL 5805799
Aircel Limited 1,205,671
Etisalat DB Telecom 35,051
Uninor 4,080,333
Loop Mobile 357
Videocon 13,681
48,222,166
Gujarat Vodafone Essar 15,761,617IDEA 7,713,978
Bharti Airtel 6814699
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BSNL 3,881,473
Etisalat DB Telecom 32,712
Videocon 1,234,333
Uninor 3,052,199
Aircel Limited 591428Loop Mobile 73
39,082,512
A.P. IDEA 9,623,900
Bharti Airtel 17,900,408
Vodafone Essar 6784329
BSNL 8,739,849
Aircel Limited 1,957,801
Uninor 3,142,932
Etisalat DB Telecom 34868
Videocon 10,93448,195,021
Karnatka Bharti Airtel 15,278,989
IDEA (Spice Comm.) 5,528,696
Vodafone Essar 6614514
BSNL 6,291,725
Aircel Limited 1,731,093
Uninor 1,823,105
Etisalat DB Telecom 29,712
Videocon 11,987
Loop Mobile 61837,310,439
T.N. Vodafone Essar 10,021,991
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Aircel Limited 17467670
BSNL 7,481,418
Bharti Airtel 10,017,951
IDEA 2,018,098
Uninor 1,677,247Etisalat DB Telecom 31,915
Videocon 1,179,228
49,895,518
A Circle 222,705,656
B Circle Kerala IDEA 7,402,840
Vodafone Essar 5,825,894
Bharti Airtel 3501206
BSNL 6,572,750
Aircel Limited 2,415,121Uninor 722,923
Etisalat DB Telecom 12,907
Videocon 238,083
26,691,724
Punjab IDEA (Spice Comm.) 5,194,458
Bharti Airtel 6926186
BSNL 4684810
Vodafone Essar 4,454,905
Etisalat DB Telecom 18,440
Aircel Limited 873,883Loop Mobile 147
Uninor 319
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22,153,148
Haryana IDEA 3,431,364
Vodafone Essar 4,343,430
Bharti Airtel 2275808
BSNL 2968127Etisalat DB Telecom 15,171
Videocon 852,165
Aircel Limited 583,521
Loop Mobile 93
Uninor 205
14,469,884
U.P.(W) IDEA 9,995,876
Bharti Airtel 6,625,502
BSNL 4564944
Vodafone Essar 9,464,037Aircel Limited 2,038,307
Uninor 4,560,885
Etisalat DB Telecom 47,133
Loop Mobile 8
Videocon 8827
37,305,519
U.P.(E) Vodafone Essar 14559374
BSNL 9739987
Bharti Airtel 14,019,449
IDEA 7,054,244Aircel Limited 2,365,414
Uninor 7,054,485
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Etisalat DB Telecom 50,246
Videocon 16,722
54859921
Rajasthan Vodafone Essar 9,409,930
Bharti Airtel 13768431BSNL 5,526,435
IDEA 3,762,139
Etisalat DB Telecom 35,987
Aircel Limited 1,405,751
Loop Mobile 400
Videocon 10,570
Uninor 383
33,920,026
M.P. IDEA 13,315,056
Bharti Airtel 9,602,627BSNL 4,355,040
Vodafone Essar 3,790,520
Etisalat DB Telecom 78190
Aircel Limited 834,563
Videocon 1,158,819
Loop Mobile 270
Uninor 883
33,135,968
W.B. & A & N BSNL 3,481,079
Bharti Airtel 9,034,631Vodafone Essar 11,618,854
Dishnet Wireless 3,062,163
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IDEA 1,975,171
Uninor 3,640,447
Videocon 20,152
32,832,497
B Circle 255368687
C Circle H.P. Bharti Airtel 1777668
BSNL 1,677,735
IDEA 429,235
Dishnet Wireless 693,185
Vodafone Essar 422,962
STel 454924
Videocon 79,015
Uninor 61
5,534,785Bihar BSNL 5,638,904
Bharti Airtel 16,816,652
Dishnet Wireless 5,082,942
ABTL (IDEA) 5,476,438
Vodafone Essar 5,799,023
STel 2,029,624
Uninor 4,571,564
Etisalat DB Telecom 41,222
Videocon 20299
Loop Mobile 36445477032
Orissa BSNL 4,177,445
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Bharti Airtel 6,003,168
Dishnet Wireless 2,759,507
Vodafone Essar 2,514,974
IDEA 976,758
STel 833,665Uninor 1347034
Loop Mobile 966
Videocon 10,670
18624187
Assam BSNL 1,499,315
Bharti Airtel 3,565,349
Dishnet Wireless 3,704,649
Vodafone Essar 1,951,967
IDEA 287,682
STel 79,992Loop Mobile 325
Uninor 127
11,089,406
N.E. Bharti Airtel 2,194,615
BSNL 1,410,938
Dishnet Wireless 2,371,230
Vodafone Essar 916493
IDEA 191,918
STel 32,083
Loop Mobile 41Uninor 51
7,117,369
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J & K BSNL 938,529
Bharti Airtel 2,026,209
Dishnet Wireless 1,575,250
Vodafone Essar 685,929
IDEA 162,560Uninor 40
5,388,517
C Circle 93231296
January 2012
All India 648080958
Additions inJanuary
8443849
telecom regulations and the 2G scam.. loopholes
Milestones in the sector over the last decade bsnl
4G and future of telecom and value added services
Spectrum allocation and pricing
Define terms specific to this sector
Revenue for companies segment and state wise, margins
Problems faced by industry players
Marketing strategies of companies
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Future regulation and tax impications of Vodafone case.. entry of foreign players in the industry
Technical parttower business
Bandwidth, frequenxy how calls are made. Technical stuff..
Network and services. Huawei, siemesnt, cisco etc
After this, we have 3g, voip etc
After this Airtel and other companies.. market share and players at each level..
How did each company start.. bsnl, reliance, bharti etc
Industry analysis .. porters etc
Compare companies.. all data..
1.Bahrti Airtel Performance at a glance2.Reliance Communications Performance at a glanceVodafone India Performance at a glance
3. Segmentation of Wireless Services (as on 31st March 2011)Concentration of Telecom Sector
4.Market Share of Wireless Subscribers (as on 31st March 2011)
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5.Market share of Wireline Service Providers (as on 31st March 2011)6.Market Share of Rural Wireless Subscribers (as on 31st March 2011)Market share of Rural Wireline Service Providers (as on 31st March 2011)
Subscriber Base of Wireless (GSM and CDMA) Services from 31st March 2006 to 31st March 2011
http://www.telecomindiaonline.com/indian-telecom-market-report-2011-12.html
http://www.telecomindiaonline.com/indian-telecom-market-report-2011-12.htmlhttp://www.telecomindiaonline.com/indian-telecom-market-report-2011-12.htmlhttp://www.telecomindiaonline.com/indian-telecom-market-report-2011-12.html