MOS Presentation Final

8/2/2019 MOS Presentation Final

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A PRESENTATIONONTHE GROWTH

OF TELECOM SECTORIN INDIAAND

CHALLENGES

Presented To: Presented By:

Dr. Vipin Sir Garima Singh

Harshada Abhyankar

Neha Agrawal

MBA(FT) SEC A


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HISTORY

Telecom in the real sense means the transfer

of information between two distant points in

space.

The popular meaning of telecom alwaysinvolves electrical signals and as a result,

people often exclude postal or any other

raw telecommunication methods from itsmeaning.

The history of Indian telecom can be started

with the introduction of telegraph.


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CONTINUEDThe Republic of India possesses a

diversified communications system that

links all parts of the country by Internet,

telephone, telegraph, radio, and television.

India had 851.70 million mobile phone

subscribers at the end of June 2011. The

country has third highest number of

Internet users as of December 2010.


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CONTINUED

Telecommunication industry is the world'ssecond-largest in terms of number of

subscribers, and the world's fastest growing

market in terms of number of newsubscribers


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DEVELOPMENT IN TELECOM

INDUSTRY

Pre-1902 - Cable telegraph

1902 - First wireless telegraph station

established between Sagar Islands and Sand

heads.

1907 - First Central Battery of telephones

introduced in Kanpur.1913-1914 - First Automatic Exchange

installed in Shimla.


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CONTINUED1933 - Radiotelephone system inaugurated

between the UK and India.

1960 - First subscriber trunk dialing route

commissioned between Lucknow and Kanpur.1976 - First digital microwave junction

introduced.

1979 - First optical fiber system for local

junction commissioned at Pune.


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CONTINUED1980 - First satellite earth station for

domestic communications established

at Sikandarabad, U.P

1995 - First mobile telephone service

started on non-commercial basis on15 August 1995 in Delhi.


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CONTINUED1995 - Internet Introduced in India starting

with Delhi, Bombay, Calcutta, Chennai and

Pune on 15 August 1995.

While all the major cities and towns in the

country were linked with telephones during

the British period, the total number oftelephones in 1948 numbered only around

80,000.


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CONTINUEDPost independence, growth remained slow

because the telephone was seen more as a

status symbol rather than being an

instrument of utility. The number oftelephones grew leisurely to 980,000 in

1971, 2.15 million in 1981 and 5.07

million in 1991, the year economicreforms were initiated in the country.


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CONTINUEDThe primary regulator of communications

in India is the Telecom Regulatory

Authority of India.

As the fastest growing telecommunications

market in the world, India is projected to

have 1.159 billion mobile subscribers by2013.


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CONTINUED Several leading global consultancies

estimate that India will become the world'slargest mobile phone market bysubscriptions by 2013.

The industry is expected to reach a sizeof 344,921 crore (US$76.92 billion) by2012 at a growth rate of over 26 per cent,

and generate employment opportunities forabout 10 million people during the sameperiod


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CONTINUED In 2008-09 the overall telecom equipments

revenue in India , stoodat 136,833 crore (US$30.51 billion) during

the fiscal, as

against 115,382 crore (US$25.73 billion) a

year before.


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MODERN GROWTH

A large population, low telephony

penetration levels, and a rise in consumerspending power has helped make India the

fastest-growing telecom market in the

world. The market's first operator was thestate-owned Bharat Sanchar Nigam

Limited (BSNL), created by

corporatization of the Indian

Telecommunication Service.


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CONTINUED Services. Subsequently, after the

telecommunication policies were revisedto allow private operators, companies

such as Bharti Airtel, Reliance

Communications, Tata Teleservices, IdeaCellular, Aircel and Loop Mobile have

entered the market.

Bharti Airtel currently being the largest

telecom company in India.


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CONTINUEDThe total number of telephones in the

country stands at 885.99 million, whilethe overall tele-density has increased to

73.97% as of June 30, 2011. Mobile

telephony experiences growths at rates

such as 11.41 million subscribers a

month, which were added in June 2011.


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PRIVITIZATION OF

TELECOMMUNICATIONS

The Indian government was composed of

many factions (parties) which had different

ideologies. Some of them were willing to

throw open the market to foreign players

(the centrists) and others wanted the

government to regulate infrastructure andrestrict the involvement of foreign players.


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CONTINUEDLiberalization started in 1981 when Prime

Minister Indira Gandhi signed contractswith Alcatel CIT of France to merge with

the state owned Telecom Company (ITI),

in an effort to set up 5,000,000 lines peryear. But soon the policy was let down

because of political opposition.


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CONTINUED

After 1995 the government set up TRAI(Telecom Regulatory Authority of

India) which reduced the interference of

Government in deciding tariffs and policymaking.


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ROLEOFPRIVATESECTORINTHEEARLY

YEARS

17.44

20.51

23.57

30.19

35.35

37.29

40.23

36.02

28.39

22.79

18.68

14.88

5.53.58

1.881.20.88

0.34

14.54

17.8

21.59

26.51

32.44

34.73

0

5

10

15

20

25

30

35

40

45

1997 1998 1999 2000 2001 Dec-01

Demand Total GSM Mobile Wireline


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TELEPHONE SUBSCRIBERS

(WIRELESSAND LANDLINE):

885.99 million (June 2011)

Land Lines: 34.29 million (June 2011)

Cell phones: 851.70 million (June 2011)Monthly Cell phone Addition: 11.41

million (June 2011)

Teledensity: 73.97 % (June 2011)Projected Teledensity: 1 billion, 84% of

population by 2012.


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MOBILE

With a subscriber base of more than 851

million, the Mobile telecommunicationssystem in India is the second largest in the

world and it was thrown open to private

players in the 1990s.

The dominant players are Airtel, Reliance

,Vodafone, Idea cellular and BSNL/MTNL.


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CONTINUEDIn September 2004, the number of mobile phone

connections crossed the number of fixed-lineconnections and presently dwarfs the wireline

segment by a ratio of around 20:1.] The mobile

subscriber base has grown by a factor of over ahundred and thirty, from 5 million subscribers in

2001 to over 851 million subscribers as of June

2011 (a period of 10 years) . India primarilyfollows the GSM mobile system, in the

900 MHz band. Recent operators also operate in

the 1800 MHz band.


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2001: MOBILEREVOLUTIONTRIGGERED

3.58

0.05

4.8

0.08

6.43

0.1

8.53

0.15

10.53

0.23

0

2

4

6

8

10

12

Mar

'01

Sep

'01

Mar

'02

Sep

'02

Dec

'02

GSM Mobile WLL(M)


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MOBILE TARIFFSIN INDIAONEOFTHE

LOWEST

0.23

0.22

0.19

0.17

0.16

0.11 0.11 0.11

0.09

0.05 0.05

0.04

0.030.02

0

0.05

0.1

0.15

0.2

0.25

Belgium

Italy

UK

France

Brazil

Philippines

Taiwan

Argentina

Malayasia

HongKong

Thailand

Pakistan

China

India

USD

INCREASED COMPETITION LEADS TO


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INCREASEDCOMPETITIONLEADSTO

TARIFFREDUCTIONANDAFFORDABLE

SERVICES

0

10

20

30

40

50

60

70

80

90

Pre 1999 1999-00 Oct-00 Jul-02 Mar-03 Current

NLD ILD

0

2

4

6

8

10

12

14

16

Pre 1999 1999-00 Oct-00 May-01 Jul-02 May-03

Fixed Line GSM Mobile


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2003: MOBILEBOOMHASBEGUN

0

0.5

1

1.5

2

2.5

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2002 2003


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YEAR 2003 : YEAR OF MOBILE

BOOM

The Year 2003 brought in the mobile boom.This mobile boom has been triggered by the

following growth drivers.
http://en.wikipedia.org/wiki/File:BSNL_Microwave_Tower_Mangalore_0210.JPG


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CONTINUEDUpper middle class that spends 6% of its

income on telecom services.

India lags behind other Asian economies

(approx. 10 years) - therefore India is

poised for growth.


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LANDLINE

Until the New Telecom Policy was

announced in 1999, only the Government-

owned BSNL and MTNL were allowed to

provide landline phone services through

copper wire in India with MTNL operating

in Delhi and Mumbai and BSNL servicing

all other areas of the country.


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CONTINUED

Due to the rapid growth of the cellularphone industry in India, landlines arefacing stiff competition from cellularoperators.

This has forced landline service providersto become more efficient and improve

their quality of service. Landlineconnections are now also available ondemand, even in high density urban areas.


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INTERNET & BROADBAND

India has the world's third largest Internetusers with over 100 million users (of whom

40 million use the Internet via mobile

phones) as of December 2010.

India has one of the lowest penetrations ofbroadband connectivity in the world.

CONTINUED


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CONTINUEDThe growth in number of broadband

connections in India has accelerated since2006. As of June 2011, total broadbandInternet connections in India had reached

12.32 million constituting 0.9% of thepopulation.

A number of private Internet ServiceProviders (ISPs) offer services in India,many with their own local loop and gatewayinfrastructures.


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REVENUE

The total revenue in the telecom service

sector was 86,720 crore (US$19.3 billion)in 2005-06 as against 71,674 crore (US$16

billion) in 2004-2005, registering a growth

of 21%.estimted revenue of FY'2011 isRs.835 crore (US$ 19 Bn Approx).

CONTINUED


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CONTINUEDThe total investment in the telecom services

sector reached 200,660 crore (US$44.7billion) in 2005-06, up from 178,831crore (US$39.9 billion) in the previousfiscal.

Telecommunication is the lifeline of therapidly growing Information Technologyindustry. Internet subscriber base has risento more than a 100 million in 2010. Out ofthis 11.47 million were broadbandconnections.


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OPPORTUNITIES & CHALLENGESINYEARSTOCOME


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OPPORTUNITIESOverall tele-density is only 24%.

Broadband penetration is just 0.25%, hencevast scope.

BPO business is growing fast: Telecom canride on it.

As globalization is increasing, morepercentage of global business for Indian

telecom.

C


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CONTINUEDRural tele-density is less than 10%.

Value added services like M-Commerce,M-Marketing, Special Information, Ring

tones, etc. offer venues of additionalrevenue.

Technologies like NGN, 3G, WiMAX, willopen up new frontier of business.

CHALLENGES


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CHALLENGES

No. of operators are increasing per circle:

hence more competition

Cost/ Customer is very high in rural areas

Spectruma scare commodity

Infrastructure readiness in rural


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CONTINUEDAvailability of Contents in local language

International Bandwidth is costly

Telecom Manufacturing in India.


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Network expansion

250 million by 2007 - Already

achieved

600 million by 2012

Rural connectivity

100 million by 2010

200 million by 2012

Growth- the way ahead

CONTINUED


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CONTINUEDBroadband

20 million broadband connections and

40 million internet connections toprovide by 2010.

Broadband connections to provide ondemand across the country by 2012

R C S / C S


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REFERENCES / CREDITS:

Indian Telecommunications Statistics,

2002

ICICI Securities Report, 2002

JM Morgan Stanley Report, 2003TRAI Reports

Www.google.Com.

Wikipedia


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Thank You.
http://en.wikipedia.org/wiki/File:BSNL_Microwave_Tower_Mangalore_0210.JPG

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