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Telecom Market Analysis 201

2

REPORT ON

TELECOM MARKET

ANALYSIS

Submitted To: Submitted By:

Dr. Renita Dubey Rahul Aggarwal

Manish Kumar(MBA CI & SM)

DECLARATION1 | Amity University


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We hereby declare that the project

Report on

TELECOM MARKET ANALYSIS

Submitted is our original work and the same has not been submitted for any other

fellowship or similar title or prizes. However certain references have been made

through books articles, journals, magazines, websites, perception of author,

practitioners in the relevant field.

Rahul Aggarwal

Manish Kumar

2 | Amity University


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CERTIFICATE

This project report entitled TELECOM MARKET ANALYSIS is being

submitted by us to Amity Institute of Competitive Intelligence and Strategic

Management, Amity University, for the degree of Master of Business

Administration. This work has been carried out under the supervision and guidance

of Dr. Renita Dubey.

I hereby declare that to the best of my knowledge, the work included in this project

has not been submitted either in part or in full, to this or any other university for

the award of any degree or diploma.

Dr. Renita Dubey

(Faculty AICISM)



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ACKNOWLEDGEMENT

The present work is an effort to throw some light on

TELECOM MARKET ANALYSIS

The work would not have been possible to come to the present shape without the

able guidance, supervision and help to us by number of people.

With deep sense of gratitude we acknowledge the encouragement and guidance

received by our institutional guide Dr. Renita Dubey and our group.

We convey our affection to all those people who helped and supported me during

the course, for completion of my project report.

Rahul Aggarwal

Manish Kumar



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TABLE OF CONTENTS

Table of Contents ........................................................................................................ 5

1. INTRODUCTION .................................................................................... 7

2. EXECUTIVE SUMMARY ............................................................................................. 9

3. OVER ALL MARKET SCENARIO ............................................................................... 10

4. TECHNOLOGICAL SERVICES ................................................................................... 18

4.1SERVICES IN WIRELESS TECHNOLOGY ............................................................... 18

4.1.1 LTE/4G SERVICES: ...................................................................................... 18

4.1.2 3G SERVICES: ............................................................................................. 21

4.1.3 2G SERVICES: ............................................................................................. 25

4.2 Services In Wireline Technologies ..................................................................... 28

................................................................................................................................. 31

................................................................................................................................. 32

................................................................................................................................. 32

................................................................................................................................. 33

................................................................................................................................. 33

................................................................................................................................. 34

................................................................................................................................. 34

................................................................................................................................. 35

................................................................................................................................. 35

................................................................................................................................. 36

4.3 DATA CENTRE SERVICE: ................................................................................... 45

5. ALL COMMON STATISTICS ...................................................................................... 52

6. NEW Services In Wireless And Wireline ..................................................................57



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7. GROWTH PATTERNS .............................................................................................. 63

7.1 GLOBAL ANALYSIS: ........................................................................................... 64

7.2 INDIAN SCENARIO: ........................................................................................... 72

................................................................................................................................. 78

8. MACRO environment, GOVERNMENT POLICIES, TECHNOLOGY RELATED TO INDIA . 79

9. CONCLUSION AND ANALYSIS: ................................................................................ 84

BIBLIOGRAPHY .......................................................................................................... 91



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1. INTRODUCTION

Indian Telecom sector has emerged as a major sector of growth in India during the last decade.

Wireless telephones are increasing at faster rate. Indian telecom sector has achieved exponential growth

with teledensity from 18.22% to 73.97% (as on 30.06.11). However, this is marked by disparities with

rural areas exhibiting teledensity of about 35.64 as against urban tele-density of 162.74 during the same.

The industry has witnessed exponential growth especially in the wireless segment in the last few years.

The plethora of telecom services evolved over the years, ranging from basic telephony to voice, video and

data services, Wimax, WLAN and VPN, and bandwidth on demand to virtual private networks have

catalyzed revolutionary changes in the business operations for the service sector, i.e., IT, BPO and also

the manufacturing sectors etc, besides providing millions of people access to new technology

Internet is slowly emerging as an integral component of service delivery in number of sectors.

ICT infrastructure and services are becoming all pervasive. This scenario offers a unique opportunity to

leverage upon this strength of the country in all facets of ICT in next five years.

Indian telecom sector need to make substantial progress in terms of broadband penetration. There is a

positive corelation between the teledensity as well as broadband penetration and the GDP of a

Country. The growth in the telecommunication services acts as a force multiplier and has a significant

impact in the growth of other sectors of the economy.



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The Indian telecommunication industry is at the brink of entering a fresh round of growth, to be

stimulated by the launch of wireless data services. The policy makers and the private players have

successfully come together with various initiatives to ensure that the industry continues to remain a

shining star for India.



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2. EXECUTIVE SUMMARY

Ranked amongst some of the fastest growing economies of the world, India has registered steady growth

over the last few years, especially in comparison other similar emerging economies. The strengthening

domestic market and enhanced domestic consumption helped India to successfully weather the global

economic turmoil. The Indian telecom sector particularly, witnessed aggressive growth during the last

two years, emerging as a global benchmark for other developed countries as well. All major international

operators are exploring opportunities to make inroads into the Indian telecommunication sector, both for

the vast customer base as well as to leverage on the low cost outsourcing model which India has been

successful in pioneering.

The recently concluded 3G and BWA auctions are likely to be the catalyst that furthers the governments

agenda of providing broadband connectivity to the remotest parts of India. The governments as well as

other telecom stakeholders believe that these wireless technologies will help overcome the barriers of

expensive wireline infrastructure, especially in the low revenue generating zones.

This report comprises of the various telecom services running in India in wireline and wireless

technologies and the operators overview on 2G, 3G, and LTE services in India.



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This report also includes growth pattern in different telecom services in and the newer developments

adopted by operators in their services in India to increase the subscriber base.

Overall analysis and conclusions will help in understanding the business environment of Indian telecom

industry on a global scale and the forthcoming scenario of Indian telecom industry for achieving

sustainable growth and to meet benchmarking standards.

3. OVER ALL MARKET SCENARIO



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Item

Position at the Endof

March'07 March'08 March'09 March'10 March'11 June'11

Total 2058.68 3004.92 4297.25 6212.80 8463.28 8859.97

Wireline 407.74 394.13 379.65 369.57 347.30 342.93

Phones

Wireless 1650.94 2610.79 3917.61 5843.23 8115.98 8517.04

Public 713.91 795.49 895.46 1058.71 1260.02 1274.02(In Lakh)

Private 1344.77 2209.44 3401.79 5154.09 7203.26 7585.95

Rural 471.00 765.00 1235.13 2007.73 2822.89 2980.99

Urban 1587.68 2239.93 3062.12 4205.07 5640.39 5878.98

Overall 18.22 26.22 36.98 52.74 70.89 73.97

TelePublic 6.32 6.94 7.71 8.99 10.55 10.64

Private 11.90 19.28 29.27 43.75 60.34 63.34Density(%)

Rural 5.89 9.46 15.11 24.31 33.83 35.64

Urban 48.10 66.39 90.76 119.45 156.94 162.74

Public 34.68 26.47 20.84 17.04 14.89 14.38

% share of Private 65.32 73.53 79.16 82.96 85.11 85.62Rural 22.88 25.46 28.74 32.32 33.35 33.65

Urban 77.12 74.54 71.26 67.68 66.65 66.35

SwitchingCapacity(In Public 888.17 959.76 1103.68 1242.49 1376.75 1380.72

Lakh)

Village



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Public

Telephones Public 564610 532281 549294 565960 575663 575996

[VPTs]

PCOs (InPublic 23.65 22.91 20.89 18.58 15.71 15.03

Lakh)

OFC RoutePublic 519155 564166 609223 658548 698557 700852

Kms

Foreign DirectInvestment

478 1261 2558 2554 1665 1212(FDI) (in millionUS$)

Table 3.1 Overall telecom market statistics

This table describes current Indian telecom statistics with number of telephone phones continuously rising

especially in urban areas with person having more than one phone and with more usage & teledensity ascompared to rural areas.In rural areas public telephones are still important modes of communication so 2G is here to stay in spiteof declining ARPU it can still generate significant revenue in rural areas.With focus on OFC & increasing number of OFC route managing OFC will be huge business prospect.Foreign investors are keen to invest in Indian telecom industry but with 2G scam and uncertainty in thenew policies they are not so positive about investment in India.

Fig:3.1 Number of phones in different domains



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Fig: 3.2: Teledensity in different sectors

Fig 3.3: percentage share under different sectors



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Fig 3.4: Switching capacity in public sector

Fig 3.5: village public telephones



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Fig 3.6: Number of PCOs in public sector

Fig 3.7: OFC route in public sector 2007-2011



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Fig 3.8: FDI in Indian telecom sector from 2007 to 2011.

Fig 3.9: subscriber base of Indian telecom in wireless and wireline from 2007 to 2011



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Fig 3.10: subscriber base trend of rural sector from 2007-2011.



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4. TECHNOLOGICAL SERVICES

4.1SERVICES IN WIRELESS TECHNOLOGY

4.1.1 LTE/4G SERVICES:

An acronym forLong Term Evolution, LTE is a 4G wireless communications standard developed by the

3rd Generation Partnership Project (3GPP).

4G technologies are designed to provide IP-based voice, data and multimedia streaming at speeds of at

least 100 Mbit per second and up to as fast as 1 GBit per second.

Table4.1: Indian 4G operators & vendors circle wise and their Game plan

Players 4G License Areas Progress on Roll out

Reliance

Infotel

Pan India 22 Circles Proposed roll out in 2012 but delayed couple of times. Have

adopted LTE-TDD. Most probably partner with Network 18 for

content.

Bharti

Airtel

Kolkata, Karnataka,

Maharashtra, Punjab

Has launched services in Kolkata and Bangalore (Karnataka). Has

adopted LTE-TDD. Eying on Qualcomms Mumbai and Delhi

licenses. Partnered with ZTE for Kolkata, Huawei for Karnataka

and Ericsson for Punjab and Nokia Siemens for Maharashtra.

Aircel AP, TN, W. Bengal,

Bihar,Orissa, Assam, N.E., J&K

Intends to start services in 2012. No specific plans disclosed yet.

Qualcomm Mumbai, Delhi, Kerala,

Haryana

Settled the dispute over licenses in March 2012. No

specific plans disclosed yet.

Augere Madhya Pradesh Claims to be the first company to launch 4G in India on LTE-TDD.

Has partnered with Ericsson.

http://www.webopedia.com/TERM/4/4G.htmlhttp://www.webopedia.com/TERM/I/IP.htmlhttp://www.webopedia.com/TERM/4/4G.htmlhttp://www.webopedia.com/TERM/I/IP.html


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Tikona Gujarat, UP (E), UP (W),

Rajasthan, HP

It already offers fixed broadband to households and

corporate using WiFi technology. 4G roll out is in progress.

BSNL 20 Circles All India

except Mumbai and Delhi

Intends to surrender its BWA spectrum in some all the

20 circles.

MTNL Mumbai and Delhi No specific plans disclosed yet.

Reliance with Pan India 4G licenses(22 circles) with 95% stake in Infotel broadband services is all set to

make a move in 4G with an investment of 22000 crore in broadband business whereas BSNL intending to

outsource all 4G services.

AIRTEL SERVICES:

Airtels 4G-LTE is expected to be launched over a range of devices, which are inclusive of the

airtel 4G-LTE USB modem(huaweiE392) and Airtels indoor wireless gateway (huawei B593).

Airtel has already launched4G enabled Mi-Fi devices (which can be connected to PC and

mobile both) for consumers not having 4G on their mobile phones and its main target areconsidered to be tablets.

Airtel will promote its premium services like Airtel movies, Airtel games and broadband TV. Its

a win-win situation for Airtel customers, there are a lot of Indians out there who are willing to

pay for the premium Internet broadband services

RELIANCE SERVICES:

RIL has also initiated talks with media and entertainment firms, including Walt Disney's Indianventure UTV Software, to acquire content for its wireless broadband offerings. It will enable thecompany to offer games and applications for the younger customers

http://trak.in/tags/business/2012/04/16/airtel-4g-mifi-device-indian-consumers/http://trak.in/tags/business/2012/04/16/airtel-4g-mifi-device-indian-consumers/http://trak.in/tags/business/2012/04/16/airtel-4g-mifi-device-indian-consumers/


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The strategy of enticing customers with low prices is similar to the strategy followed in 2003,

when it took mobile telephony to the masses with its "Monsoon Hungama" handsets at Rs 501,helping it win 1 million customers in just 10 days.

RIL focusing on value chain comprises of devices, relevant local content, customer support andnetwork.

Globally, many operators have focused primarily on the creation of the broadband network.However, Reliance will focus on making available all the components of the entire digital valuechain.

OTHER OPERATORS STARTEGIES IN 4G/LTE SERVICES

MTNL which owns BWA spectrum in most lucrative Delhi and Mumbai circles, hired global

consultancy firm PricewaterhouseCoopers (PwC) for framing the expression of interest (EoI) for

renting out BWA-LTE spectrum to a franchisee.

Tikona roped in consulting firm Deloitte Touche Tohmatsu to define its go-to-market strategy,

channel strategy and related executions for the enterprise segment in LTE.

SOME VENDORS STRATEGY:

ZTE has taken a clear lead in successfully developing a wide variety of LTE devices, ranging

from USB dongles to Smartphones and tablets.

Alcatel Lucent is banking upon an end-to-end LTE solution, which the company believes is

helping them address the explosion in the mobile data traffic with innovations like Light Radio

and High Leverage Network to meet end-to-end demands.

All vendors have set up or re-located their manufacturing facilities to China to take the best

advantage of the cost arbitrage. So the initial advantage enjoyed by Huawei and ZTE purely in

terms of equipment cost may no longer be very significant.

Considering the fact that there are no 4G phones available in country Huawei have launched

huawei USB modems for penetrating into the market.



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CONCLUSION:

Operators will have difficulty in defining the Unique Selling Proposition of 4G. Both 3G and 4G have

speed as their differentiating factor. Besides, as the 3G penetration figures show, subscribers have not

lapped up 3G on speed alone. This effectively means that operators need to think of some other killer

proposition to sell 4G services.

4.1.2 3G SERVICES:

3G is a generation of standards formobile phones and mobile telecommunication services fulfilling

the International Mobile Telecommunications-2000 (IMT-2000) specifications by the Union.

Application services include wide-area wireless voice telephone,mobile Internet access, video and mobile

TV, all in a mobile environment.

Operators 3G CirclesWon

Number of 3G Circles Awarded To

Ericsson NSN Huawei ZTE

Airtel 13 7 3 3

RComm 13 5 8

Vodafone

Essar

9 3 (Mum, ND,

Kol)

6 (TN, GJ,

MH)

0

Aircel 13 6 (TN) 3 (Punjab,Kol)

3 1

TTSL 9 4 5

Idea 11 5 4 2

Total 68 21 20 18 9

Abbreviations: Mum=>Mumbai, ND=> New Delhi, Kol=>Kolkata, TN:TamilNadu, GJ=>Gujarat, MH=>Maharashtra

http://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Mobile_telecommunicationhttp://en.wikipedia.org/wiki/Telephonehttp://en.wikipedia.org/wiki/Mobile_Internethttp://en.wikipedia.org/wiki/Multimedia_Broadcast_Multicast_Servicehttp://en.wikipedia.org/wiki/Multimedia_Broadcast_Multicast_Servicehttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Mobile_telecommunicationhttp://en.wikipedia.org/wiki/Telephonehttp://en.wikipedia.org/wiki/Mobile_Internethttp://en.wikipedia.org/wiki/Multimedia_Broadcast_Multicast_Servicehttp://en.wikipedia.org/wiki/Multimedia_Broadcast_Multicast_Service


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Only S-tel (3 circles) has not disclosed/decided its vendor

Table 4.2: 3G circle wise operators & vendors

Indias only pan India 3G service provider Bharat sanchar nigam limited(BSNL) is voted as Best 3G

service provider year 2011 3G users as per polls conducted by www.telecomnewsindia.com website

during year 2011.

Fig 4.1: customer feedback in 3G services

New services in 3G include various menu based services, mobile TV, streaming, M-commerce,Mobile-banking and mobile ticketing.

BSNL SERVICES:

Affordable prices.

No hidden charges, transparent billing, correct bandwidth and most important PAN Indiacoverage for 3G users

BSNL is an 3G service provider, providing 3G servie throughout the country except in new delhiand mumbai under the brand name of BSNL 3G and with largets 3G network in india.

BSNL alone held more then 60% of Broadband market share in india.BSNL 3G services usuallycovering the adjoining suburbs and rural areas as well.

BHARTI AIRTEL SERVICES:

http://www.telecomnewsindia.com/http://www.telecomnewsindia.com/


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Airtel started offering services only in January 2011 and has gone on to become the largest

private 3G operator with two million customers in the first week of April 2011 through their

brand name and reach ability and quality.

Airtel have slashed 3G mobile broadband rates for non pack users from 10 paisa per 10m kb to

3paise per 10 kb and company planning to offer 'Smart bytes', an additional usage pack, for 3G

post-paid users who exhaust their monthly limit of high speed internet usage

Services in entertainment, utility, commerce and health, all this is available on the customers

mobile phone.

VODAFONE SERVICES:

Under the agreement between Ericsson and Vodafone, Ericsson will supply the RAN system,

network rollout services along with the 3G common core platform and transmission over the

coming months.

The radio access network will include the latest multi-standard radio base station RBS 6000 and

mobile soft-switching technology, which will boost the capacity of the network and evolve it into

an IP network.With such solutions, Ericsson will also help Vodafone to achieve their energy saving goals.

Vodafone are exploring opportunities to provide 3G services in other circles as well; its likely

that it is referring to roaming agreements with other telcos.

TATA DOCOMO SERVICES:



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Tata Docomo is at the fourth place with 1.5 million customers. Docomo, Tata's Japanese partner,which is credited with the first 3G network in the world, also became the first private operator in

India to launch the service.

Tata Docomo's success can be attributed to its convenient tariff plans that include unlimited data

usage options, along with some of the best value added services in the industry. Its VAS services

have been very successful

RCOM SERVICES:

RCom is one of the biggest losers in the mobile number portability game, the early launch of 3G

and rapid expansion to reach more than 150 towns and cities have helped it to attract a large

number of subscribers fast.

Google and Reliance have partnered to offer 1GB free data to Indian 3G Android users as an

introductory offer.

Reliance 3G Tabs has hit the sweet spot with a terrific combination of a fully loaded Tablet and a

seamless IP enabled 3G network leading to an unmatched customer experience.

OTHER OPERATORS SERVICES:

Idea is now offering the next level of mobile experience with high speed data, gaming and

infotainment services to its over 70 lakh subscribers in the Kerala circle and working on same set

of plans to cover other regions.

CONCLUSION:

http://www.themobileindian.com/glossary/VAShttp://www.themobileindian.com/glossary/VAS


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Indian mobile operators already generate significant revenues from non-SMS data services and3G will

see new, exciting data services available to the Indian public. Its worth noting that India already has

a dynamic mobile content industry. In the enterprise, e-mail may be a major driver for this market.As far as retail is concerned, video streaming could be a driver. This depends upon the pricing

of video clips and the download speeds that 3G can guarantee. 3G services are at a nascent

phase with only state owned companies offering 3G services in limited pocketsso real price

cuts cannot be seen.

MVAS will be a key component of the 3G value proposition(expected to touch Rs.48000 crore in 3G

ready Indian telecom industry), heavy usage and revenues are also expected to result from big-screen

usage (laptops and PCs) with 3G dongles

4.1.3 2G SERVICES:

2G is short for second-generation wireless telephonetechnology. Second generation 2G cellular telecom

networks were commercially launched on the GSM . Three primary benefits of 2G networks over their

predecessors were that phone conversations were digitally encrypted; 2G systems were significantly more

efficient on the spectrum allowing for far greater mobile phone penetration levels; and 2G introduced data

services for mobile, starting with SMS text messages.

In India GSM still strengthening its position as the dominant mobile technology with 85% ofthe mobile subscriber market, as CDMA slipped further behind.

The number of broadband Internet subscribers is finally on the increase, reaching 13.3 million

for a penetration of 1.1% by population by end-2011.

The share of Urban Subscriber has marginally decreased from 65.41 % to 65.20% where as share of RuralSubscribers has marginally increased from 34.59% to 34.80%.Private operators hold 88.64% of the wireless market share where as BSNL and MTNL, two PSUoperators hold only 11.36% market share.

http://en.wikipedia.org/wiki/Wirelesshttp://en.wikipedia.org/wiki/Telephonehttp://en.wikipedia.org/wiki/Technologyhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/SMShttp://en.wikipedia.org/wiki/Wirelesshttp://en.wikipedia.org/wiki/Telephonehttp://en.wikipedia.org/wiki/Technologyhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/SMS


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Fig 4.2: Operator wise 2G market share

Idea and Uninor added the maximum number of subscribers. Even after the 2G saga licensescancellation case Uninor managed to add 2.2 million odd subscribers and had a 4.52% market share in theIndian telecom sector.

According to market share Bharti leads with 19.62% market share in India. With roughly 1/5 of the Indianmarket share.

Mobile subscribers net addition in a year (2010-11), source: buddy.com

Fig 4.3: Mobile subscriber net addition in a year (2010-2011)



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SOME OPERATORS SERVICES STRATEGY IN 2G:

AIRTEL SERVICES:

After changing a corporate identity, Airtel is trying to get re-position in market by targeting on youthmarket. The new campaign is focusing on Har Eak Friend Zaroori Hai in order to take strongposition in youth market

Airtel has released so many various kind of campaign like Curious Friend, chipku friend, proxy friend,LOL friend, Facebook friend, Sharing friend, etc. Overall, Airtel has lost its position from market in termsof brand equity, market share after changing logo.

VODAFONE SERVICES:

Vodafone is getting good success and built up strong brand image in market. The Zoo zoo campaign wasgetting huge positive feedback and on that base Vodafone got good image. Still, the Zoo Zoo concept isrunning and already released various VAS services campaign as well as 3G service campaigns. Vodafoneis much strong rival of Airtel and Vodafone has also covered good market share with growth.

UNINOR SERVICES:

Uninor brand is a joint venture between Telenor Norway & Unitech which entered late in India and now

Uninor have already taken good brand position in Indian market.

Strategy: - Uninor brand adopted Pricing Strategy since launching period. However, pricing strategyalready been used by other service provider but no one brand come yet like Uninor pricing strategy . Aswell, it is coming with various kinds of unique ideas & concept on pricing part

MORE FINDINGS ON 2G:

In India, mobile subscribers have access to predominantly 2G services and feature phones. Mobile

subscribers are predominantly prepaid, typically consuming voice and SMS bundles. For GSM, which

comprise nearly 87 percent of all subscribers, and CDMA services, the percentage of prepaid subscribers

was 96.9 percent and 93.8 percent, respectively, in September 2011.15 Mobile subscribers in India choose

prepaid because they like to pay-as-they-go, are price-sensitive, and enjoy the freedom to switch carriers.

The growth in multi-SIM card phones has been phenomenal.

In 2011, 57 percent of the total shipments of phone handsets were capable of holding multi-SIM cards:

GSM +GSM or GSM +CDMA



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With the evolution of technologies voice and SMS services by 2G has been updated to WAP (wireless

application protocol), MMS for internet communication and improved data communication with 2.5G and

EDGE.

Multi-SIM card phones to facilitate switching from one carrier to another, in combination with prepaid

and unlocked service, lead to low ARPU and low barriers to exit for subscribers

Thus, it is clear that the 2G and 3G are clearly identifiable different services working in differentfrequency bands. A 2G unified access service (UAS) licensee is not automatically allowed to provide the3G services without allotment of 3G spectrum.

CONCLUSION:

Telecom operators have been facing issues of declining ARPU and MPU on voice services in 2G which

has bought call charges to as low as half a paisa per minute and even lower questioning sustainability ofthese players. VAS has bettered the viability of this sector but as far as percentage is concerned 2G is hereto stay as there are huge chunk of market share in rural areas which is yet to be exploited and reluctanceof Indian customers to switch to newer technology.

4.2 SERVICES IN WIRELINE TECHNOLOGIES

Vodafone Business Services offers a range of products/services such as Machine to Machine(M2M) Solutions, Leased Lines (Internet Leased Lines, NPLC and IPLC), MPLS VPN, OfficeWireline Voice (E1-DID), Toll Free Service, Audio Conferencing, Mobilisation of EnterpriseApplications, Email & Connectivity and 3G Solutions for business', to help enterprises (big andsmall) to enhance their productivity and efficiency.

Its customer experience center (CEC) for enterprises will kick off operations in Mumbai fromJune 2012.

At the CEC, customers will see interactive presentations, innovative live demos and discussions,to identify their communication needs.

CEC will offer customized solutions for their business needs.



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Vodafone India leads wireline telephony market in net additions inFebruary 2012

Fig 4.4: Service provider share in net addtion during february 2012

TRAI said wireline subscriber base declined from 32.39 million at the end of January 2012 to32.33 million at the end of February 2012.

The share of urban Subscribers has increased from 76.32 percent to 76.43 percent where as shareof rural subscribers has declined from 23.68 percent to 23.57 percent.

The overall wireline teledensity in India has remained, more or less, stable at 2.68 with urban andrural teledensity being 6.76 and 0.90 respectively. BSNL and MTNL, two PSU operators, hold80.76 percent of the wireline market share.

Broadband subscription reached to 13.54 million in February 2012 from 13.42 million in January2012.The number of telephone subscribers in India increased to 943.49 million at the end ofFebruary, 2012 from 936.12 million at the end of January 2012, registering a growth rate of 0.79percent.

The share of urban subscribers has declined to 65.59 percent from 65.79 percent whereas share ofrural subscribers has increased to 34.41 percent in the month of February 2012. With this, theoverall Tele-density in India reaches to 78.10 at the end of February, 2012 from 77.57 of theprevious month.

Subscription in urban areas grew from 615.83 million in January, 2012 to 618.82 million at theend of February, 2012.

Subscription in rural areas increased from 320.29 million to 324.68 million during the sameperiod.

The growth of urban and rural subscription is 0.49 percent and 1.37 percent respectively.

The overall urban teledensity has increased from 168.84 to 169.37 and rural teledensity increasedfrom 38.04 to 38.53.



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Fig 4.5: Service provider wise market share or wireline till feb 2012

Fig -4.6 : circle wise teledensity of wireline industry



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The share of urban subscribers has declined to 65.23% from 65.59% whereas share of Rural Subscribershas increased to 34.77% in the month of March 2012. With this, the overall Tele-density in India reachesto 78.66 at the end of March, 2012. Private operators hold 88.65% of the wireless market share where asBSNL and MTNL, two PSU operators hold only 11.35% market share.

WIRELINE SUBSCRIBERS BASE

LANDLINE SUBSCRIBERS OF BSNL:-

Fig 4.7: Regionwise landline subscriber of BSNL

LANDLINE SUBSCRIBERS OF MTNL :-



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Fig 4.8: Regionwise landline subscriber of MTNL

LANDLINE SUBSCRIBERS OF BHARTI :-

Fig 4.9: Regionwise landline subscriber of Bharti



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LANDLINE SUBSCRIBERS OF RELIANCE :-

Fig 4.10: Regionwise landline subscriber of Reliance

LANDLINE SUBSCRIBERS OF TATA :-

Fig 4.11: Regionwise landline subscriber of TATA

LANDLINE SUBSCRIBERS OF HFCL :-



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Fig 4.12: Regionwise landline subscriber of HFCL

LANDLINE SUBSCRIBERS OF SISTEMA :-

Fig 4.13: Regionwise landline subscriber of SISTEMA

LANDLINE SUBSCRIBERS OF VODAFONE :-



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Fig 4.14: Regionwise landline subscriber of Vodafone

TOTAL CIRCLE-WISE SUBSCRIBERS :-

Fig 4.15: circle wise total landline subscriber

COMPARATIVE ANALYSIS OF ALL OPERATORS :-



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Fig 4.16: Comparative analysis of all operators

This data defines the wireline subscriber base of 2012 in India . This data is circle wise and operator wise

which determines that each operator in particular circle consists of no. of subscribers which helps in

analyse that which operator can increase or should improve its subscriber base in a circle. As it is already

mentioned in graphs given above that overall public operators (MTNL and BSNL) is leading as number

of subscribers in wireline business and following them Bharti Airtel is having second largest no. of

subscribers in this business and so on.

But if we talk about circlewise except all other circles Sistema and HFCL has Rajasthan and Punjab circle

in which they are on 2nd position in case on no. of subscribers after public Operators.

So this database of subscriber can help operators as well as vendors to focus on the weak points of other

competitiors in particular circle.



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WIRELINE SUBSCRIBER BASE



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Table 4.3: circle wise total wireline subscriber base



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STATUS OF TELEPHONE EXCHANGES AND DIRECT EXCHANGE LINES :-

BSNL:-

No. of telephone exchanges in India:-

Fig 4.17: Regionwise telephone exchange in India

DIRECT EXCHANGE LINES:-

Fig 4.18: Regionwise direct exchange lines



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This data defines the status of number of exchanges and direct exchange lines of BSNL in different circles in 2010 withthese graphs shown above its easy to conclude no. of exchanges BSNL had at the start of the particular year but as thesegraphs shows at the end of the year there are decline in no. of exchanges and that to in direct exchange lines as per datathe main and major decline affected circles are U.P (West) and Uttaranchal.

Except all these declines there are few circles where no. of exchanges and direct exchange lines got a massive incline andone out of those is U.P (East).

So as per this data it is easy to conclude that which are the circles where Public operator needs improvement and losing itsbusiness whereas this will help other private operators to understand the areas where to attack on the subscriber of publicoperators to grab business.



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STATUS OF TELEPHONE EXCHANGES AND DIRECT EXCHANGE LINESAS ON DECEMBER 31, 2010 & MARCH

31, 2010

S. Circles No. of Telephone Direct Exchange Lines

No. Exchanges as on (Fixed+WLL+CMTS) as on

31.12.2010 31.3.2010 31.12.2010 31.3.2010

1 Andaman & Nicobar 46 47 203,459 144,162

2 Andhra Pradesh 4,267 4,213 8,328,246 6,623,545

3 Assam 604 605 1,623,735 1,449,647

4 Bihar 1,214 1,238 5,059,300 4,393,360

5 Chhattisgarh 580 613 1,438,845 1,312,914

6 Gujarat 3,113 3,220 5,543,638 5,128,392

7 Haryana 1,354 1,343 3,645,018 3,360,608

8 Himachal Pradesh 1,186 1,189 1,956,817 1,629,323

9 Jammu & Kashmir 368 366 982,934 1,206,500

10 Jharkhand 489 506 1,883,297 1,721,506

11 Karnataka 2,789 2,777 7,117,589 6,043,318

12 Kerala 1,245 1,243 8,990,135 7,507,638

13 Madhya Pradesh 2,416 2,560 4,529,645 4,106,731

14 Maharashtra 4,923 4,939 8,579,517 7,690,988

15 North East - 1 366 363 737,346 699,099

16 North East - 2 222 225 871,033 699,76417 Orissa 1,174 1,169 4,140,844 3,111,765

18 Punjab 1,519 1,526 5,566,542 4,946,226

19 Rajasthan 2,308 2,330 6,757,903 5,909,457

20 Tamilnadu 2,022 2,031 8,478,781 6,642,879



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21 Uttar Pradesh (East) 2,185 459 11,152,124 1,363,623

22 Uttar Pradesh (West) 1044 2189 3,474,512 9,608,722

23 Uttaranchal 481 1069 1,541,215 3,435,103

24 West Bengal 1,380 1,384 3,640,395 3,137,479

25 Kolkata 523 532 3,644,295 3,109,242

26 Chennai 323 325 2,471,365 2,298,581

BSNL TOTAL 38,141 38,461 112,358,530 97,280,572Table 4.4: status of direct exchange line and telephone exchange in India

STATUS AND %AGE OF RURAL TELEPHONE CONNECTIONS AS ON DECEMBER 31,

2010 & MARCH 31, 2010:-

2010-11 (as on December 31, 2010) :-

Fig 4.19: status of rural telephone connections 2010-11

2009-10 (as on March 31, 2010):-



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Fig 4.20: status of rural telephone connections 2009-10

As per the given data and above graph related to percentage of Rural telephone connections in year 2010 it is easy toconclude that at the start of the year and at the end of the year there is a great change in percentage in most of the circlesthe rural telephone connections were declining . It has already been explained that the wireline market in India isdeclining in which still public operators are leading with no. of subscribers because of its massive infrastructure inwireline also its base in rural areas.This data is showing that out of total subscriber base in India almost 24% of subscribers are from rural areas.So this helps in operators to attack on the particular circles where there is higher subscriber base in rural areas.Also if it is seen through the vendors point of view one can suggest operators different manage services which will help inreduce OPEX specially in case of public operators which are losing its subscribers at massive rate as compare to private

operators which are still gaining some revenue and subscribers as well.In this data as it is shown that Kolkata is the only circle where there is no rural area is covered.

STATUS AND %AGE OF RURAL TELEPHONE CONNECTIONSAS ON DECEMBER 31, 2010 & MARCH 31, 2010

S.

No.Circles

2010-11 (as on

December 31, 2010)

2009-10 (as on

March 31, 2010)

Rural Total %age of Rural Total %age

Rural

1 A & N 91,913 203,459 45.18 66,479 144,162 46.11

2 A.P 4,063,461 8,328,246 48.79 2,977,585 6,623,545 44.95

3 Assam 551,016 1,623,735 33.94 481,092 1,449,647 33.19

4 Bihar 1,914,557 5,059,300 37.84 1,685,704 4,393,360 38.37

5 Chhattisgarh 500,384 1,438,845 34.78 429,861 1,312,914 32.74

6 Gujarat 1,883,861 5,543,638 33.98 1,757,234 5,128,392 34.26



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7 Haryana 2,198,395 3,645,018 60.31 1,993,384 3,360,608 59.32

8 H.P 1,271,913 1,956,817 65.00 1,095,005 1,629,323 67.21

9 J & K 153,512 982,934 15.62 181 ,652 1,206,500 15.06

10 Jharkhand 559,448 1,883,297 29.71 511,072 1,721,506 29.69

11 Karnataka 1,440,102 7,117,589 20.23 1,365,195 6,043,318 22.59

12 Kerala 4,849,556 8,990,135 53.94 4,298,039 7,507,638 57.25

13 M. P 1,686,185 4,529,645 37.23 1,602,228 4,106,731 39.01

14 Maharashtra 3,036,428 8,579,517 35.39 2,917,366 7,690,988 37.93

15 N. E- 1 260,363 737,346 35.31 251,036 699,099 35.91

16 N. E- 2 331,729 871,033 38.08 261,593 699,764 37.3817 Orissa 1,805,627 4,140,844 43.61 1,422,670 3,111,765 45.72

18 Punjab 2,169,290 5,566,542 38.97 2,162,279 4,946,226 43.72

19 Rajasthan 2 ,366,703 6,757 ,903 35.02 2,210,131 5,909,457 37.40

20 Tamilnadu 1,664,351 8,478,781 19.63 1,522,716 6,642,879 22.92

22 U. P(East) 3,341,366 11,152,124 29.96 2,709,114 1,363,623 198.67

23 U. P(West) 813,146 3,474,512 23.40 846 ,408 9,608,722 8.81

24 Uttaranchal 666,318 1,541,215 43.23 553,750 3,435,103 16.12

25 West Bengal 1,891,598 3,640,395 51.96 1,600,280 3,137,479 51.01

26 Kolkata 0 3,644,295 - 0 3,109,242 -

26 Chennai 118,969 2,471,365 4.81 120,952 2,298,581 5.26

TOTAL BSNL 39,630,191 112,358,530 35.27 35,022,825 97,280,572 36.00

Table 4.5: STATUS AND %AGE OF RURAL TELEPHONE CONNECTIONSAS ON DECEMBER 31, 2010 & MARCH 31, 2010

India wireline telecom subscriber base touched 34.40 million at the end of May 2011

Indian landline telecom market ends May 2011 with subscriber base of 34.40 million.

Due to cord-cutting trend about 0.15 million users disconnected their wireline connections resulting into negativemonthly growth rate of -0.44%.

Overall wireline teledensity stands at 2.88% (Urban: 7.19%, Rural: 1.02%).

Urban to rural subscriber ratio is 75.19% to 24.81%.

Going forward, wireline telephony is unlikely to witness any positive momentum mainly driven by increasingadoption of mobile phones among Indian consumers.

Landline market is most likely to restrict in corporate & government offices and affluent households.



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As far as the limited growth in mobile telephony is concerned, it has been attributed to higher competitive mobilemarket, delay in capacity augmentation resulting in congestion and poor quality of services, and lack of marketingactivities and poor visibility of products.

While distribution network is weak, particularly in rural areas, the uptime of mobile towers has been adverselyaffected due to indifferent attitude of IP vendors, which impacted the performance of the public firms.

Even in wireline segment, private operators have added more subscribers whereas in the case of public operators,there is a decline in the user base.

Broadband Subscribers in India

Total Broadband subscriber base has increased from 13.30 million at the end of December 2011 to 13.42 millionat the end of January 2012, there by showing a monthly growth of 0.90%. Yearly growth in broadband subscribers

is 19.74% during the last one year (Jan. 2011 to Jan. 2012). As on 31st Jan. 2012, there are 155 Internet Service Providers (ISPs) which are providing broadband services in

the country. Top three ISPs in terms of market share are: BSNL with 8.68 million subscribers, Bharti Airtel with1.36 million and MTNL with 1.03 million subscribers.

Month on Month increase in the number of Telecom subscribers:

Fig 4.24: Broadband market share 2011\

4.3 DATA CENTRE SERVICE: Data in India usually comes from Telcos, financial services, and banks, call centers and the new source now being

added in is social media. These organizations require customer/supplier interaction over the organizational network.



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Types of Data Centers:

Co-Location Data Centers-For an organization with a small IT team, hosting at an external Internet Data Center (IDC) ismore viable. All the data and applications are owned by the organization. Only the hosting services are hired.

In-house data centers-In the case of large organizations, it is always best to use the organization's own data center tohave the best performance, management, security, and accessibility

Indian data center services market is projected to grow at a 23-percent CAGR till 2012 to touch Rs. 11,800 crore.

Indian data center capacity is poised to touch 6.6 million square feet by 2016, with service providers drivingmajority of the growth.

The data center co-location and hosting market in India is estimated to reach US$609 million this year and $1.3

billion in 2016.

Third Party Data Centre Vertical Mix

Fig 4.25:Third Party Data Centre Vertical Mix

Currently there are 46 co-location data centers from 13 areas in India (India)



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Ahmedabad (1) (2.2 % Market)

1. NESSA TECHNOLOGIES (Gujarat's First tier III data centre to offer co-location and

business applications on SaaS platform

Bangalore (6) (13.3 % Market)

1. SPECTRANET (Spectranet started rather modestly with first Tier III Internet data center

at its headquarters in New Delhi, in 2000. Combining the unparalleled experience and

technical capabilities, the company now collaborates with most of Fortune 500

companies around the world to meet their data centre demands.)

2. RELIANCE DATA CENTRE (Secure and scalable hosting space with services like

colocation, managed hosting and range of managed services.)

3. BHARTI AIRTEL LTD. (Airtel Datacenters in India. NCR, Pune, Bangalore, Chennai, TierIII facilities, Carrier neutral)

4. NET4INDIA (Net4's fully managed, state-of-the-art Cisco-powered, ISO 27001 Data

Centers offers redundant, secure facility with multiple bandwidth options, and offer

services that you need - security, storage, recovery, consulting, and people to help

manage and optimize your data and its performance)

5. NETMAGIC SOLUTIONS (State-of-the-art Internet Datacenter with Managed IT Services

Support in Vikhroli, Mumbai)

6. SAVVIS INC. (Savvis, a Century Link company, is a global leader in cloud, managedhosting, and co-location solutions for enterprises.)

Chennai (5)(11.1 % Market)

1. RELIANCE DATA CENTRE (Largest individual third party data center in Chennai

Customised hosting space available from 1U space to full rack to data center space.

Over 100 dedicated data center professional working round the clock to ensure

availability and security.)

2. BHARTI AIRTEL LTD.

3. NET4INDIA

4. NETMAGIC SOLUTIONS

5. SPECTRANET

Cochin (3) (6.7% Market)

http://www.datacentermap.com/india/ahmedabad/http://www.datacentermap.com/india/bangalore/http://www.datacentermap.com/india/chennai/http://www.datacentermap.com/india/chennai/http://www.datacentermap.com/india/cochin/http://www.datacentermap.com/india/ahmedabad/http://www.datacentermap.com/india/bangalore/http://www.datacentermap.com/india/chennai/http://www.datacentermap.com/india/cochin/


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1. SPECTRUM SOFTTECH SOLUTIONS (P) LTD. (Spectrum provides world class data center

to co-locate your servers for your own applications, web services, and corporate mai

services on high-speed redundant backbones.)

2. ARIDE OCEAN (Dedicated Servers, Colocation, VPS, Email Apps Colocation, VPS, Emai

Apps, ERP Hosting, shared Hosting, FTP Service, DNS Hosting, Load Balancers)

3. TECHMAP IT SOLUTION PVT. LTD. (Data zone provides data center colocation, virtua

private server, hosting services and other customized networking services that enable

our customers to focus on their core businesses while Data zone focuses on their IT

infrastructure.)

Coimbatore (2) (4.4% Market)

1. ABTINFO.NET DATA CENTRE (ABTInfo.net, Internet Data Center is a part of the $1.2billion USD ABT Group of companies)

2. AKASHIQ DATA CENTRE INDIA PVT. LTD. (Outsourced Data Center and Cloud Services

optimized to Small & Medium Enterprises)

Hyderabad (6)(13.3% Market)

1. CTRLS DATACENTERS LTD (India's first Tier IV & Truly Carrier Neutral Datacenteroffering Custom-Built Infra, Co-location, Managed Services, DR & BCP, Dedicated

Hosting. 100% uptime since inception, Datacenter in Hyderabad, Datacenter in

Mumbai, Datacenter in India)

2. KEDIA TECHNOLOGIES LIMITED (Largest data center at Hyderabad. ample hosting

space and over 100 dedicated data center professional providing Co-location

Managed Hosting, Storage & Backup, Managed Security, and range of managed

services.)

3. T-REX NETWORKS PVT. LTD. (Provides Affordable Dedicated servers from this facility

which is custom built to hold bulk Tower machines)

4. NET4INDIA

5. RELIANCE DATA CENTRE

6. SPECTRANET

http://www.datacentermap.com/india/coimbatore/http://www.datacentermap.com/india/hyderabad/http://www.datacentermap.com/india/hyderabad/http://www.datacentermap.com/company/ctrls-datacenters-ltd.htmlhttp://www.datacentermap.com/india/coimbatore/http://www.datacentermap.com/india/hyderabad/http://www.datacentermap.com/company/ctrls-datacenters-ltd.html


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Jaipur (2) (4.4% Market)

1. NEESA TECHNOLOGIES

2. HOSTRIGHTNOW TECHNOLOGIES (Reliable, secure and cost effective data center &

Digester Recovery Site in India.)

Kolkata (1) (2.2% Market)

1. NET4INDIA

Mumbai (6)(13.3% Market)

1. WEB WERKS INDIA PVT. LTD. (Web Werks is a 13 year old company and our data

center is 5 years old. 100% Network Availability Guaranteed. 99.999% Up Time. 24 x

7 Support. Experts Everywhere)

2. HONESTY NET SOLUTIONS (INDIA) PVT. LTD. (24/7 Access, security, remote hands

N+N redundant power cooling, uplinks, Carrier Neutral Tier-3 Datacenter, Multiple

transit providers with multiple OC3/STM1 capacities from each provider, BGP4

Redundant Network, Core network based on Juniper)

3. NET4INDIA

4. NETMAGIC SOLUTIONS (2 centers)

5. CTRLS DATACENTRES LTD.

Nashik (1)(2.2% Market)

1. ESDS SOFTWARE SOLUTIONS PVT. LTD. (ESDS - Data Center is a Fully Managed Tier II

Data Center Facility based in India)

Navi Mumbai (2)(4.4% Market)

1. CYQUATOR TECHNOLOGIES (The IDC has a built up space of 20,000 sq ft out of which

13,000 sq ft is raised floor space.)

2. RELIANCE DATA CENTRE

http://www.datacentermap.com/india/jaipur/http://www.datacentermap.com/india/kolkata/http://www.datacentermap.com/india/mumbai/http://www.datacentermap.com/india/mumbai/http://www.datacentermap.com/india/nashik/http://www.datacentermap.com/india/nashik/http://www.datacentermap.com/india/navi-mumbai/http://www.datacentermap.com/india/navi-mumbai/http://www.datacentermap.com/company/cyquator-technologies.htmlhttp://www.datacentermap.com/india/jaipur/http://www.datacentermap.com/india/kolkata/http://www.datacentermap.com/india/mumbai/http://www.datacentermap.com/india/nashik/http://www.datacentermap.com/india/navi-mumbai/http://www.datacentermap.com/company/cyquator-technologies.html


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New Delhi (8)(15.6% Market)

1. BHARTI AIRTEL LTD. ( 2 CENTERS)

2. NET4INDIA

3. GO4HOSTING

4. SPECTRANET (2 CENTRES)

5. MICROHOSTING (Presently serving around 64900 customers all over India. Client list

includes many government, semi government offices and corporate.)

6. TULIP

Pune (3) (6.7% Market)

1. BHARTI AIRTEL LTD.

2. NET4INDIA

3. DATAGALAXY

http://www.datacentermap.com/india/new-delhi/http://www.datacentermap.com/india/new-delhi/http://www.datacentermap.com/india/pune/http://www.datacentermap.com/india/new-delhi/http://www.datacentermap.com/india/pune/


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Fig 4.26: Data centres regionwise

Target Audience

1. Third party data center service providers like Reliance Communications, Tata Communications, SifyBharti Airtel, Netmagic, Wipro, Cyquator, Tulip, Net4, 3i, etc.

2. Technology providers like Sun, EMC, Cisco, Juniper, Intel, Dell, etc.3. Power conditioning equipment vendors like APC, Emerson, etc.4. Cooling equipment vendors like Blue Star, Hitachi, etc.



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5. ALL COMMON STATISTICS



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India: Key telecom parameters 2009 - 2012

Fixed-line services: (in millions)2009 (in millions)2010 (in millions)2011 (in millions)2012(e*)

Total No. of subscribers 37.1 35.1 32.7 32

Annual growth -2% -5% -7% -3%

Fixed-line penetration

(population)3% 3.30% 2.7% 2.6%

Fixed-line penetration

(household) 18% 18% 18% 18%

Broadband:

Total No. of subscribers 8 11 13.3 16

Annual growth 44% 41% 21% 20%

Broadband subscriber

penetration (population)0.70% 0.9% 1.1% 1.3%

Broadband subscriber

penetration (households)

3.50% 4.7% 5% 6%

Mobile services:

Total No. of subscribers 525 752 894 1050

Annual growth 51% 43% 19% 17%

Mobile penetration

(population)45% 63% 73% 85%

e means expected figures.

Source: BuddeComm

Table 5.1: Indian telecom industrys key telecom parameters.

Indian telecom industry is fast changing from voice based to data based services. Fixed line subscribers are decliningwhereas broadband subscribers are continuously growing with an average growth rate of 35.33% in last three years.



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Ranking Operator Number of lines (millions) March 2011 Mobile market share

1 Bharti Airtel 162.2 19.99%

2 Reliance Communications 135.7 16.72%

3 Vodafone Essar 134.6 16.58%

4 BSNL 91.8 11.32%

5 Idea Cellular 89.5 11.03%

6 Tata Teleservices 89.1 10.98%

7 Aircel 54.8 6.76%

8 Uninor 22.8 2.81%

9 Sistema Shyam (MTS India) 10.1 1.24%

10 Videocon 7.1 0.88%

11 MTNL 5.5 0.67%12 Loop Mobile 3.1 0.38%

13 S Tel 2.8 0.35%

14 HFCL 1.5 0.18%

15 Etisalat DB 0.9 0.12%



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Total 811.6 100%

Source: TRAI

Table 5.2: India's Mobile Operators, March 2011

Fig 5.1: operator wise number of lines as on march 2011



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Fig 5.2: operator mobile market share, 2011



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6. NEW SERVICES IN WIRELESS AND

WIRELINE

WIRELESS.

ENTERPRISE DATA MARKET:

Indias enterprise data service market is estimated to be Rs. 7,535 crore and the contribution is expected to rise to 36% atRs. 16,779 crore by 2014.

The upcoming enterprise data services market will include:



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1. International private leased circuits(IPLC)2. Domestic private leased circuits (DLC)3. Multi protocol label switching (MPLS)/ Internet virtual private network (IPVPN)

4. ATM/Frame relay5. VSAT6. Internet services

IPLC accounts for nearly 10% (approximately Rs. 748 crore ) of the total enterprise data market in India.

It is anticipates that growth in enterprise data market will be mainly from the Ethernet & MPLS segments-which are estimated to be fastest growing markets with CAGR of 64.5% and 34.2% respectively andMPLS/VPN are expected to constitute about 58% of overall enterprise data service market (approx. Rs.16,799 crore) by 2014.

DLC offers a point to point private line which can be used by enterprise to communicate between offices thatare geographically dispersed throughout the country. A DLC can be used for internet access, businessexchange, video exchange and any other form of telecommunication and it accounts for 16% (Approx. Rs1216 crore) of total enterprise data market in India.

VSATs are commonly used to transmit narrow band data (point of sales transaction such as credit card,polling or RFID data etc.) or broadband data (for provision of satellite internet access to remote locationVOIP or video) and it forms approximately 6% of total enterprise data market in India.

IPTV AND DTH:



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Internet protocol television (IPTV) also referred as triple play offers internet, television and telephone services on asingle platform. IPTV provides the telecom service providers an opportunity to widen the gamut of existing services andis likely to be beneficial for large players in the telecom sector and thus DTH market is a huge business prospect.

Fig 6.1: Estimated DTH market FROM 2010-14

NOTE:All are estimated figures

WiMAX could be used as an alternative to cable and DSL for providing broadband access in rural areas which iseconomically feasible option in rural areas and hence could be a major factor driving the growth of Indian telecomservices, it is likely to facilitate the propagation of the e-governance services such as telemedicine, e-learning throughbroadband, particularly in the rural areas.

Investing in technologies such as NGN, 3G, WiMAX, is likely to open up new frontiers of business

Bharti Airtel chooses Alcatel Lucent to set up next generation IP Network across the country

Alcatel lucent looking for more operators in similar sort of deals and also operators are now focusing on IP-based access

network for reasons of both cost and performance and for bandwidth hungry applications like high speed data browsing,social network-based applications, online gaming, video conferencing and online collaboration on mobile

RailTel Corporation of India has selected Juniper Networks M-series multiservice edge routing platform to helptransform RailTel's nationwide TDM-based railway network into a next generation IP/MPLS network.

RailTel operates a vast Optical Fiber Cable (OFC) network featuring comprehensive national coverage. The network iscurrently comprised of 25,000 kilometers of cabling, and RailTel plans to grow this infrastructure to 40,000 kilometers inthe next three to four years. RailTel points of presence (POPs) will be available at every railway station (totaling



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approximately 4,000 POPs by 2008), providing secure Internet connections to railway customers so OFC will be the nextbig thing in Indian telecommunication. BSNL has taken up a project that is expected to cost them Rs 200 billion. Underthis project, National Optical Fiber Network (NOFN) will be created to provide Internet and telecommunications

connectivity in all the rural areas by 2014.

PROVIDING VOICE SERVICES IN LTE:

Voice services in LTE networks are the billion-dollar question facing mobile operators who are deploying LTE. Several

solutions have been proposed, some by 3GPP and others by industry consortia and as per the emphasis on network

convergence voice over LTE could be the major inflection point in telecom convergence. The table below summarizes the

different proposals.

Fig 6.2: voice options over LTE



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WIRELINE

In wireline business as Fixed wireline phone is saturated so that will decline more in future so the services which canprovide revenue on this fixed wireline phone services are:

1. IPTV

2. VPN

3. VOIP

4. IHS

5. LMDS/WiMax

Except of these the market will move from the copper wireline phones to the Optical fiber cable network and microwave

network. As per the network structure the connectivity of all the exchanges will be with the help of Optical fiber cablesthat is MSC, BSC, and BTS will also be connected with the help of Optical fiber cables.



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DATA CENTRE

BSNL ties up with NTT Group to roll out data centre services1. Dimension data firm of Japans NTT group is in the nature of a revenue-share model, would host services

such as video-as-a-service for enterprises and offer other cloud services such as infrastructure on demand.2. The current data centre market in Rs 2,400 crore and is expected to grow at a 21 per cent CAGR

(compound annual growth rate).3. NTTs plan is not to sell space as most of other do, as this is a price war business, they will sell only

services.4. Already received business of Rs 100 crore.

PC-maker HP unveils its first net-zero energy data centre

1. Net-zero energy data centre that reduce data centre power costs and energy requirements.

2. Use of solar and alternative renewable energy sources.3. Paying 2-3 times the total cost for electricity.4. Less Carbon Emission because use of local renewable resources.5. The data centre at HP Labs headquarters in Palo Alto in California, which uses solar and other local

renewable sources.6. The zero-net energy centers also introduce a first-of-its-kind demand-management approach that allows

the scheduling of IT workloads based on resource availability and requirements.

Tulip Telecom income up 15% to Rs 2705 crore in FY2012:

1. Tulip launched world's third largest data center in Bangalore with an investment of Rs 900 crores in FY11 and registered leading names such as, NTT, IBM and HP as some of its major customers.

2. Tulip has revived its business strategy by adopting a vertical approach, streamlining its business lineslike enterprise services business, managed services business and government business. (EMC announcedthat Tulip Telecom will provide managed on-demand storage services and Backup-as-a-Service (BaaS)using EMC unified storage and backup and recovery technologies from the Tulip data center inBangalore.) .can sees for this service too.

MACH unveils Data Optimization solution for telecos:

MACH, a provider of cloud-based managed communication services, has introduced its new DataOptimization solution, which the company claims lowers the cost of delivering data roaming anddomestic services to subscribers for mobile network operators and MVNOs.

"By reducing roaming data costs, operators can improve bottom-line profitability, or pass on savings tocustomers, thereby increasing competitiveness and end-user satisfaction and lowering the risk of 'BilShock' scenarios.

Its new solution uses downlink data optimization technology which enables reductions of up to 70 percenton downstream data usage of Smartphone.

The reduction in downstream data usage minimizes the wholesale cost of providing data roaming foroperators and for MVNOs who have to purchase their wholesale data from host mobile networkoperators, and tackles bandwidth issues.



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Furthermore, other techniques such as data off-loading, data optimization allow network operators toreduce costs and meet bandwidth challenges.

7. GROWTH PATTERNS



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7.1 GLOBAL ANALYSIS:At the end of 2011, there were 6 billion mobile subscriptions (The International Telecommunication Union (2011).) Thais equivalent to 87 percent of the world population. And is a huge increase from 5.4 billion in 2010 and 4.7 billion mobile

subscriptions in 2009.

Mobile subscribers in the developed world has reached saturation point with at least one cell phone subscription perperson.

China and India, the world's most populous nations collectively added 300 million new mobile subscriptions in2010 thats more than the total mobile subscribers in the US.

At the end of 2011 there were 4.5 billion mobile subscriptions in the developing world (76 percent of globalsubscriptions). Mobile penetration in the developing world now is 79 percent, with Africa being the lowest regionworldwide at 53 percent.

Key Global Telecom Indicators for the World Telecommunication Service Sector in 2011(all figures are estimates)

Global

Developed Developing

Africa

ArabAsia &

Pacific CIS Europe

The

Americasnations nations States

Mobile cellular subscriptions

5,981 1,461 4,520 433 349 2,897 399 741 969(millions)

Per 100 people 86.70% 117.80% 78.80% 53.00% 96.70% 73.90% 143.00% 119.50% 103.30%

Fixed telephone lines

1,159 494 665 12 35 511 74 242 268(millions)

Per 100 people 16.60% 39.80% 11.60% 1.40% 9.70% 13.00% 26.30% 39.10% 28.50%

Active mobile broadband

subscriptions

1,186 701 484 31 48 421 42 336 286(millions)

Per 100 people 17.00% 56.50% 8.50% 3.80% 13.30% 10.70% 14.90% 54.10% 30.50%

Fixed broadband subscriptions 591 319 272 1 8 243 27 160 145

http://www.itu.int/ITU-D/ict/facts/2011/material/ICTFactsFigures2011.pdfhttp://www.itu.int/ITU-D/ict/facts/2011/material/ICTFactsFigures2011.pdf


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(millions)

per 100 people 8.50% 25.70% 4.80% 0.20% 2.20% 6.20% 9.60% 25.80% 15.50%

Source: International Telecommunication Union (November 2011) via: mobiThinking

Table 7.1: Key Global Telecom Indicators for the World Telecommunication Service Sector in 2011

Fig 7.1: Key Global Telecom Indicators for the World Telecommunication Service Sector in 2011

Mobile subscriptions outnumber fixed lines 5:1 (more so in developing nations); Mobile broadband outnumbers fixedbroadband 2:1.

CONCLUSION:

With stats like this, it is easy to predict that mobile Web usage will overtake PC-based Web usage. This will happen morequickly in developing nations (if it isnt happening already) where fixed Web penetration remains low. In developednations, this will happen more slowly. Regardless of the timescale, this inevitability makes mobile Web strategy moreimportant than your PC Web strategy in the long term.

http://www.itu.int/ITU-D/ict/statistics/at_glance/KeyTelecom.htmlhttp://c/Documents%20and%20Settings/User/Desktop/internship%20huawei/mgd%20servce/GLOBAL%20ANALYSIS_files/GLOBAL%20ANALYSIS.htmhttp://www.itu.int/ITU-D/ict/statistics/at_glance/KeyTelecom.htmlhttp://c/Documents%20and%20Settings/User/Desktop/internship%20huawei/mgd%20servce/GLOBAL%20ANALYSIS_files/GLOBAL%20ANALYSIS.htm


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30 percent of the worlds mobile users live in India and China. Subscribers in each country are rapidlyapproaching 1 billion both dwarf the number of subscribers in third place USA.

China: 963 million subscribers (71 percent of population) in November 2011 (see table for breakdown), 118million of these are 3G users.

India: 884 million subscribers (73 percent of population) in November 2011, up 154 million from November2010. (TRAI, Jan 2012). 66 percent of mobile subscribers are urban dwellers.

USA: 322.9 million subscribers (102.4 percent of population) in June 2011 (CTIA).

The top five mobile network operators worldwide: by number of subscribers, revenues, monthly average revenue peruser (ARPU), monthly churn (i.e. loyalist customer base) and data as a percentage of total revenues, according to PortioResearch:

Top five operators by different KPIs worldwide

Rank Subscribers

Total

revenues

Monthly

ARPU

Monthly

churn

Proportion of revenues

derived from data

1

China

Mobile China Mobile 3 UK

NTTDOCOMO

Japan Smart Philippines

2China

Unicom AT&T USBouygues

FranceKDDIJapan Globe Philippines

3Bharti

Airtel India Verizon USVodafone

IrelandSingTel

Singapore SoftBank Japan

4 AT&T US

NTTDOCOMO

Japan O2 IrelandChunghwa

Taiwan NTT DOCOMO Japan

5 Verizon US Sprint US

Orange

Switzerland

T-Mobile

Germany KDDI Japan

Source: Portio Research (June 2009)via mobithinking

Table 7.2: Top five operators by different KPIs worldwide

http://www.trai.gov.in/WriteReadData/trai/upload/PressReleases/859/Press_Release_Nov-11.pdfhttp://www.ctia.org/advocacy/research/index.cfm/AID/10323http://www.portioresearch.com/Ranking09.htmlhttp://www.portioresearch.com/Ranking09.htmlhttp://www.portioresearch.com/Ranking09.htmlhttp://www.portioresearch.com/Ranking09.htmlhttp://www.trai.gov.in/WriteReadData/trai/upload/PressReleases/859/Press_Release_Nov-11.pdfhttp://www.ctia.org/advocacy/research/index.cfm/AID/10323http://www.portioresearch.com/Ranking09.htmlhttp://www.portioresearch.com/Ranking09.htmlhttp://www.portioresearch.com/Ranking09.html


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CONCLUSION:

The most interesting thing is the predominance of Asian mobile operators coming top in both the customer loyalty anddata revenues sections. Perhaps this represents different and longer-term priorities than the European networks that cometop in average revenue per user. (Note: the analysis in this report is based on 2009 revenues).

MOBILE WEB:

There are almost 1.2 billion mobile web users in the world.According to estimate by the ITU (2011), there are 1.2 billion active mobile broadband subscription in the world. That is17% of the global population.

Mobile broadband subscriptions have grown 45% annually over the last four years.

Mobile broadband subscription out number fixed broadband subscriptions 2:1.

In developed countries mobile broadband users often also have a fixed broadband connections, but in developing

countries mobile broadband is often the only access method available to people.

Source: International Telecommunication Union (November 2011) via mobithinking

http://www.itu.int/ITU-D/ict/statistics/at_glance/KeyTelecom.htmlhttp://www.itu.int/ITU-D/ict/statistics/at_glance/KeyTelecom.html


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Fig 7.2: Active mobile broadband subscriptions by region in 2010 and 2011(2011 figures are estimates)

The percentage of people regularly accessing the mobile Web in Japan and urban China is more than double theUSaccording to surveys by Forrester(June 2011)

Source: Forrester(June 2011) via: mobiThinkingFig 7.3: Percentage of mobile subscribers accessing mobile Web at least monthly

http://blogs.forrester.com/reineke_reitsma/11-06-17-the_data_digest_urban_chinas_mobile_internet_use_is_double_that_of_the_ushttp://blogs.forrester.com/reineke_reitsma/11-06-17-the_data_digest_urban_chinas_mobile_internet_use_is_double_that_of_the_ushttp://c/Documents%20and%20Settings/User/Desktop/internship%20huawei/mgd%20servce/GLOBAL%20ANALYSIS_files/GLOBAL%20ANALYSIS.htmhttp://blogs.forrester.com/reineke_reitsma/11-06-17-the_data_digest_urban_chinas_mobile_internet_use_is_double_that_of_the_ushttp://blogs.forrester.com/reineke_reitsma/11-06-17-the_data_digest_urban_chinas_mobile_internet_use_is_double_that_of_the_ushttp://c/Documents%20and%20Settings/User/Desktop/internship%20huawei/mgd%20servce/GLOBAL%20ANALYSIS_files/GLOBAL%20ANALYSIS.htm


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Many mobile Web users are mobile-only, i.e. they do not, or very rarely also use a desktop, laptop or tablet to access the

Web, according to On Device Research:

In many developing nations, the majority of mobile Web users are mobile-only, highest include Egypt at 70 percent andIndia at 59 percent. In developed nations, including the US at 25 percent, a large minority of mobile Web users are mobile-only. In developed nations, in the US particularly, many mobile-only are older people and many come from lower incomehouseholds.

In Africa the 85 percent of the mobile-only Web users access the Web with a feature phone. Many mobile-only Web users do not have a bank account, in India this is 57 percent of the mobile-only

http://ondeviceresearch.com/bloghttp://ondeviceresearch.com/blog


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Source: morganstanley(april 2010) via mobithinking

Fig 7.4:Top regions for penetration of 3G handsetsaccording to Ovum

Source: morganstanley(april 2010) via mobithinking

Fig 7.5: Top 10 countries for penetration of 3G handsetsaccording to Informa



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Morgan Stanley states that "3G is key to success of mobile Internet", however while Japan (king of the mobile Web)appears to be testimony to this conclusion, China claims to have the highest mobile Internet usage in the world despitelow 3G handset penetration.

Mobile operators in developed countries could run out of profit in the next two to four years if they do not change theirbusiness models, according to research by Tellabs/Analysis Mason (February 2011). This assumes current trends indemand for data, revenues and costs associated with investing in high speed data networks.

Long-term growth in m-commerce will come from developing nations where mobile is virtually the only way to accessthe Internet.

Asia will be the key market for MFS(mobile financial services), driven by initiatives to bank the unbanked and moneytransfers: Berg Insight: More than half of global MFS customers will be in Asia Pacific Middle East and Africa is also expectedto be important market as mobile operators drive initiatives to bank the unbanked GIA: Asia-Pacific will emerge as the predominant MFS market in terms of customer base. In Middle East and Africathe need to provide financial services to remote areas will be central to the growth of m-banking

http://www.tellabs.com/news/2011/index.cfm/nr/142.cfmhttp://www.berginsight.com/News.aspx?m_m=6&s_m=1http://www.prweb.com/releases/2010/02/prweb3553494.htmhttp://www.tellabs.com/news/2011/index.cfm/nr/142.cfmhttp://www.berginsight.com/News.aspx?m_m=6&s_m=1http://www.prweb.com/releases/2010/02/prweb3553494.htm


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7.2 INDIAN SCENARIO:

With 525 million mobile subscriptions and rising India is the worlds second largest mobile market after China. Cellphone penetration dwarfs both landlines and PCs, making the mobile channel the obvious channel for meeting thegrowing digital information and entertainment needs of this vast market.

In India mobile phones now outnumber landlines 14:1 and are used by about 45 percent of the population. The sparsenessof landlines, particularly in rural areas, coupled with the expense of PCs, has kept Internet use very low, with less than 6percent of Indians (age 12 or above) accessing the Internet once a month.

Fig 7.6: Proportion Of VLR



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Fig 7.7: Proportion Of VLR With Effective Rate

Particulars Wireless(millions) Wireline(millions) Total(millions)

Total subscribers 911.17 32.33 943.5

Total Net addition 7.44 -0.07 7.37

% of monthly growth 0.82% -0.21% 0.79%

Urban subscribers 594.11 24.71 618.82

Rural subscribers 317.06 7.62 324.68Tele density 75.42% 2.68% 78.10%

Urban teledensity 162.61% 6.76% 169.37%

Rural teledensity 37.62% 0.90% 38.53%

Share of Urbansubscriber

65.20% 76.43% 65.59%

Share of Ruralsubscriber

34.80% 23.57% 34.41%

Source: http://www.indiatelecomonline.com/india-telecom-subscriber-statistics-february-2012/

Table 7.3: INDIA-Telecom subscriber market-Feb. 2012

http://www.indiatelecomonline.com/india-telecom-subscriber-statistics-february-2012/http://www.indiatelecomonline.com/india-telecom-subscriber-statistics-february-2012/


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Fig 7.8: Trend In Rural And Urban Teledensity

SOME ADDITIONAL FACTS AND FIGURES OF INDIAN TELECOM INDUSTRY:

In urban areas mobile penetration is almost at saturation point with 270 million mobile subscribers, so growth (3-4 percent per month) is predominantly from rural areas.

When choosing a mobile-phone package the two most critical factors are: a) unlimited Internet access and b) more SMS-based value-added services.

The most popular SMS-based services are jokes (accessed by 52 percent of mobile users); astrology (48 percent), newsupdates (44 percent), jobs (43 percent) and sports updates (42 percent).

Yahoo Messenger is the most used IM application. Of mobile IM users, 18.3 percent use Yahoo and 17.8 percent useGoogle Talk.



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DATA CENTER SERVICES MARKET DIFFERS GLOBALLY:

Third Party data centers are moving from co-location services, which presently contribute more than 55 percent ofrevenue, to managed services and cloud based services like Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS).

Growth is driven by enterprises that are looking to reduce IT infrastructure costs (CAPEX Costs) and reducemanagement focus on IT and focus on core processes.

Other pressures like increasing productivity, requirement of highly skilled technical consultants, hugemaintenance costs are also forcing the enterprises to depend on third party data centers.

NORTH AMERICA:



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Data center outsourcing (DCO) in North America was $33 billion in 2011, while Web hosting and colocation were $23billion. This market has the highest cloud adoption rate, with 60 percent of public cloud services worldwide, and the U.S

hosting market has continued to accelerate the pace of innovation and transformation. The North American DCO/IUSmarket has grown both organically and through new offerings, such as storage as a service. Traditional DCO servicesgrowth continues at a slower pace than previously, due to IUS solutions and lower-price IT outsourcing (ITO)industrialized models.

EUROPE:

DCO in Europe was $38 billion in 2011, while Web hosting and co-location were $8.6 billion and public cloud servicesadoption 22.9 percent. The European market used to be a fragmented puzzle of different and relatively small countrymarkets, but since 2005 leading outsourcers have implemented low-cost remote control centers and then starteddeveloping IUS offerings to benefit from significant traction with infrastructure utility for SAP, particularly since 2008and during the economic crisis.

ASIA/PACIFIC:

DCS in the region was $10 billion in 2011, while Web hosting and co-location were $2.5 billion, and public cloudservices penetration was 9.8 percent in Japan and 3 percent elsewhere. Japan and South Korea are the most vibrant Webhosting markets for local content, while Singapore and Hong Kong are important regional hubs for multinationals. Otherdeveloped markets include Australia, New Zealand and Taiwan. A few large infrastructure vendors dominate the DCO

market in the region, while regional and local providers operate in each country. A plethora of players, such as IT servicesproviders, hosters and cloud specialists (from the U.S.) have recently joined the race, with more expecting to fill themarketplace in the next 12 months.



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Fig 7.9: Data Center Services Globally

CURRENTLY IN ASIA THERE ARE 109 CO-LOCATION DATA CENTERS FROM 12

COUNTRIES:

1. Azerbaijan (1)(0.9% Market)

2. Cambodia (1) (0.9% Market)

3. China (9) (8.3% Market)

4. Hong Kong (21)(19.3% Market)

5. India (45) (41.3% Market)

6. Japan (12) (11% Market)

7. Nepal (1) (0.9% Market)

8. Singapore (8)(7.3% Market)

9. South Korea (1) (0.9% Market)

10.Taiwan (2) (1.8% Market)

11.Thailand (4)(3.7% Market)

12.Vietnam (4) (3.7% Market)

http://www.datacentermap.com/azerbaijan/http://www.datacentermap.com/cambodia/http://www.datacentermap.com/china/http://www.datacentermap.com/hong-kong/http://www.datacentermap.com/hong-kong/http://www.datacentermap.com/india/http://www.datacentermap.com/nepal/http://www.datacentermap.com/singapore/http://www.datacentermap.com/singapore/http://www.datacentermap.com/south-korea/http://www.datacentermap.com/taiwan/http://www.datacentermap.com/thailand/http://www.datacentermap.com/thailand/http://www.datacentermap.com/vietnam/http://www.datacentermap.com/azerbaijan/http://www.datacentermap.com/cambodia/http://www.datacentermap.com/china/http://www.datacentermap.com/hong-kong/http://www.datacentermap.com/india/http://www.datacentermap.com/nepal/http://www.datacentermap.com/singapore/http://www.datacentermap.com/south-korea/http://www.datacentermap.com/taiwan/http://www.datacentermap.com/thailand/http://www.datacentermap.com/vietnam/


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Fig 7.10: Asia Data Center Market



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8. MACRO ENVIRONMENT ,

GOVERNMENT POLICIES,

TECHNOLOGY RELATED TO INDIA

79 | Amity U