Presentation on telecom industry in india

TELECOM INDUSTRY IN INDIA

Tanay Bhowal Amit Kumar Animesh Ukil Ashish Trivedi Kishalay Samanta Koushik Singha Raju Singh Sourav Tibrewal Amit Kumar Agarwal

INDIAN TELECOM HISTORY

“This presentation covers long journey of Indian Telecom. We have tried our best to include major changes occurred, reforms made and important dates.”BEGINNING1851: The sprawling Posts and Telegraphs Department, for instance, occupied a small corner of the public works department, in.1854 :A regular, separate department was opened, when telegraph facilities were thrown open to the public.

Historical Changes

1854-57: The Telegraph Department comprised a Superintendent of Telegraphs.Three Deputy Superintendents at Bombay , Madras and Pegu in

Burma, Inspectors at Indore, Agra, Kanpur and Banaras and an operating and maintenance staff .

15th February, 1888 :merged with the Director-General of the Indian Telegraph Department.

1st April, 1950: In 1950 the number of Telephone Exchanges absorbed from princely states was 196. • The installed capacity of these 196 exchanges was 13,362 lines with 11,296 working connections. • Improve their technical efficiency by replacing obsolete and unserviceable equipment and lending well-qualified and experienced staff

P&TÆ DoT

31st December, 1984: postal, telegraph and telephone

services were managed by the Posts and Telegraphs

Department till this date.• January 1985:two separate Departments for

the Posts and the Telecommunications were created.

• The accounts of the department, initially, were maintained by the Accountant General of the

P&T

DoT

• The Telecommunication Board consisted of the Secretary Telecommunications, who was the Chairman with Member(Finance), Member (Operations), Member (Development), Member (Personnel) and Member (Technology).• 1989: The Telecom Commission was constitutedThe Commission has the DoT Secretary as its Chairman with Member (Services), Member(Technology) and Member (Finance) as its full time members.• The Secretary (Finance), Secretary (DoE), Secretary (Industries) and Secretary (Planning Commission) are part time members of the Commission.

Telecom Regulatory Authority of India(IS/ISO 9001-2008 Certified Organisation)

History The entry of private service providers brought with it the inevitable need for

independent regulation. The Telecom Regulatory Authority of India (TRAI) was, thus, established with effect from 20th February 1997 by an Act of Parliament, called the Telecom Regulatory Authority of India Act, 1997, to regulate telecom services, including fixation/revision of tariffs for telecom services which were earlier vested in the Central Government.TRAI's mission is to create and nurture conditions for growth of telecommunications in the country in a manner and at a pace which will enable India to play a leading role in emerging global information society. One of the main objectives of TRAI is to provide a fair and transparent policy environment which promotes a level playing field and facilitates fair competition. 

In pursuance of above objective TRAI has issued from time to time a large number of regulations, orders and directives to deal with issues coming before it and provided the required direction to the evolution of Indian telecom market from a Government owned monopoly to a multi operator multi service open competitive market.  The directions, orders and regulations issued cover a wide range of subjects including tariff, interconnection and quality of service as well as governance of the Authority.

The TRAI Act was amended by an ordinance, effective from 24 January 2000, establishing a Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT) to take over the adjudicatory and disputes functions from TRAI. TDSAT was set up to adjudicate any dispute between a licensor and a licensee, between two or more service providers, between a service provider and a group of consumers, and to hear and dispose of appeals against any direction, decision or order of TRAI.

Government Regulations in Indian Telecom Industry

Indian telecom Industry is growing at a great pace and India is expected to become a manufacturing hub for telecom equipment. Indian telecommunication with 621 million connections (as on march 2010) is the third largest in the world . This sector is growing at a rate of 45 percent during recent Years. The rapid pace in the telecom sector is facilitated by liberal policies of the government that provide easy market access for telecom equipment and a fair regulatory framework for offering telecom services to the Indian Consumers at affordable prices.

New Telecom Policy: - The most important milestone and instrument of telecom reforms in India is the New Telecom Policy 1999 (NTP 99). The New Telecom Policy, 1999 (NTP-99) was approved on 26th March 1999, to become effective from 1st April 1999. NTP-99 laid down a clear roadmap for future reforms, thinking the opening up of all the segments of the telecom sector for private sector participation.

Key features of NTP 99 include: Strengthening of Regulator National long distance services opened to private

operators. International Long Distance Services opened to private

sectors. Private telecom operators licensed on a revenue

sharing basis, plus a one-time entry fee. Resolution of problems of existing operators

envisaged. Direct interconnectivity and sharing of network with

other telecom operators within the service area was permitted Department of Telecommunication Services (DTS)

corporatized in 2000. Spectrum Management made transparent and more

efficient.

Regulatory Bodies in India

Under the Indian Telegraph Act, 1885 (ITA), the Central Government has exclusive right to establish & maintain telecommunication and to grant license to operators.

1. The Department of Telecommunications, Ministry of Communications and Information Technology, Government of India (DOT)

2. Wireless Planning & Coordination (WPC) wing of the DOT3. The Telecom Regulatory Authority of India (TRAI)4. Telecom Dispute Settlement Appellate Tribunal (TDSAT)India has adopted the WTO Basic Telecommunications Agreement, through the General Agreement on Trade and Services (GATS) in April, 1997 and India has made specific commitments to liberalize telecom services within India. India has been granted certain exemption under GATS with regard to the

telecommunications services. Such exemptions are available for measures which relate to the application of different accounting rates for: different operators/ countries covered by International Telecommunication Services Agreement between Videsh Sanchar Nigam Limited

(VSNL) and various foreign operators and different neighboring countries covered by

Telecommunication Agreements and between the Government of India and the government of neighboring counties (Pakistan, Bangladesh, Nepal and Bhutan). This exemption is created on account of bilateral agreements between VSNL and

various foreign operators dealing with various aspects of cooperation, and between the

Government of India and government of neighboring countries.

Privatization of Telecom Industry

Prior to the National Telecom Policy 1994 (NTP94), telecom operators were owned by the Government of India and there were only two government owned telecom operators namely, Bharat Sanchar Nigam Ltd. & Mahanagar Telephone Nigam Ltd.

With NTP94, the Government of India aimed to increase the availability of telephone on demand, world class services at reasonable price, ensuring India’s emergence as major manufacturing/ export base of telecom equipment etc. The Government of India also recognized that the required resources for achieving these targets would not be available only out of government sources and allowed private investment and private sector participation in the telecom sector. The DOT invited private sector participation for providing telecom services and awarded licenses to government operators and private operators in different states of India.

Regulation for foreign Investment in Communication Companies

The foreign direct investment policy of India provides that foreign investment in telecommunications sector and for ISP with gateways is allowed up to 74% with prior approval of the Foreign Investment Promotion Board (FIPB).

Foreign investment ceiling are applicable for basic services, CMTS, UAS, national/international long distance, V-SAT, public mobile radio trunked services and other value added services.

For ISP without gateway, foreign investment is allowed to 100%. 100% foreign investment in the said services are subject to the condition that the companies (having foreign investment and providing internet service without gateway shall divest 26% of their equity in favor of Indian public in five years.

Regulations for maintaining call interception (wiretap) capabilities

As per the “Security Conditions” laid down under the ILD and NLD license Agreements, operators are required to make available on demand to the agencies authorized by the Government of India, full access to the gateways, switching centers, transmission centers, servers and routers for technical scrutiny and for inspection which can be visual

inspection or an operational inspection.The operator is required to make arrangements for monitoring

simultaneous communication traffic (at least 210 channels) by Government security agencies at a location individually desired by the Central Government and the State Government/Union Territory.

The requisite infrastructure in terms of hardware/software required for monitoring of all telecommunication traffic shall be engineered, provided, installed and maintained by the operator at its own cost.

Regulations for Mobile Number Portability

Mobile number portability is a service which enables users to change the service provider without changing their mobile number. This service is very useful because users are independent to choose operators while preserving their existing number.

The DOT has issued guidelines/ instructions for provisioning of mobile number portability (MNP) service. Under the instructions, MNP service shall be ‘build, operate and owned by neutral third parties who have been issued a separate license for MNP service.

The DOT has granted license to two telecom operators namely, MNP Interconnection Telecom Solutions India Pvt. Ltd. and Syniverse Technologies (India) Pvt. Ltd.

The TRAI has issued a consultation paper on determination of port transaction charge, dipping charge and porting charge for MNP. Thereafter, the TRAI has also issued a draft of regulation for MNP.

TRAI SMS capping Regulations

TRAI introduced a new regulation in November 2011 in which they restrict the number of SMS sent from a mobile number is 200 per day to control bulk SMS.

TRAI has also blocked the SMS services of all online SMS service providers such as 160by2.com and way2sms.com from 9:00 PM to 9:00 AM.

Any promotional messages by any organizations cannot be sent on the numbers on which Do Not Disturb (DND) service is activated.

Telecom Sector

The Telecom sector continued to register an impressive growth during the year. The number of telephone subscriptions increased from 846.32 million to 951.34 million, registering a growth of 12.41 %. The wireless subscriber base increased by 107.58 million and the wire line subscriber base recorded a decline of 2.56 million. The wireless segment continued to dominate with a total base of 919.17 million connections. The overall teledensity in the country increased to 78.66 from 70.89. The rural teledensity increased to 39.22 from 33.79. The urban teledensity increased to 169.55 from 157.32.

The growth in subscriber base resulted in an increase in the gross revenue of telecom services from Rs.1,71,719 crore to Rs.1,95,442 croreduring the year, a growth of 13.82%. At the same time, the minutes of usage (MOU) per subscriber per month for GSM and CDMA full mobility service registered a decline from 349 and 263 at the end of March 2011to 346 and 229 at the end of March 2012, respectively.

The average outgo per outgoing minute decreased from Rs.0.51 to Rs.0.49 (a fall of3.08 %) for GSM full mobility service and the average outgo per outgoing minute remained at Rs.0.47 for CDMA full mobility service during the period.

WIRELESS

The wireless subscriber base was 919.17 million as on 31st March 2012 in comparison to the subscriber base of 811.59 million as on 31st March 2011. It added 107.58 million subscribers in the financial year 2011-12 registering an annual growth rate of about 13.26%. The total subscriber base of wireless services has grown from 165.11 million in March, 2007 to 919.17 million in March, 2012 as depicted in

Figure 1 below:

Annual Report 2011-12Wireless Subscriber (in million)

0

100

200

300

400

500

600

700

800

900

1000

165.11

261.07

391.76

584.32

811.59

919.170000000001

Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12

WIRELINE

The subscriber base of wire line subscribers as on 31st

March 2012 was32.17 million as compared to 34.73million subscribers on 31st March, 2011registering a decrease of 2.56 million

subscribers during the year 2011-12.Out of the 32.17 million wire line subscribers, 24.62 million are Urban wire line Subscribers and the remaining7.55 million are Rural Subscribers. The status of the wire line subscribers during the last

six years are depicted in

Annual Report 2011-12 Wireline Subscriber (in million)

0

5

10

15

20

25

30

35

40

4540.79 39.42

37.36 36.9634.73

32.17

Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12

TELEDENSITY

The tele -density at the end of March , 2012 reached the mark of 78.66 as compared to 70.89 at the end of previous year recording an increase of nearly 7.77. The trend of growth of teledensity since March 2007 is depicted in

Growth of Teledensity

0

10

20

30

40

50

60

70

80

18.23

26.22

36.98

52.74

70.89

Internet Subscriber

The Internet Subscriber base consistingof narrowband (<256 Kbps) andbroadband (> 256 Kbps) for the last sixyears is depicted in Figure 3

Internet Subscriber (in million)

2007 2008 2009 2010 2011 20120

5

10

15

20

25

6.93 7.23 7.32 7.41 7.789.05

2.343.87

6.22

8.77

11.8913.81

9.2711.1

13.54

16.18

19.67

22.86

NarrowbandBrodbandTotal

Subscriber base of wireless Operators (in million) as on 31st March 2012

2007-March

2008-March

2009-March

2010-March

2011-March

2012-March

0

100

200

300

400

500

600

700

800

900

1000

161.11261.07

391.76

584.32

811.59

919.170000000001

120.47192.7

297.26

478.68

638.37

814.06

44.64 68.37 94.5 105.64 113.22 105.11

TotalCDMAGSM

FINANCIAL PERFORMANCE OF THETELECOM SECTOR

The Total Revenue of the Telecom Service Sector went up from Rs. 1,71,719 crore in 2010-11 to Rs.1,95,442 crore in 2011-12 indicating a growth of 13.82%. The corresponding figures of Revenue after adjustment of intra operator interconnection charges, come to Rs. 1,66,752 crore in 2010-11 and Rs. 1,79,914 crore in 2011-12, showing a growth of 7.89% over the previous year.

The revenue contribution from the public sector telecom companies in the 2011-12 was 17.77% (previous year 20.37%) and from private sector companies was 82.23% (previous year 79.63%). Table 2 indicates the revenue contributions of the public and private sectors during 2010-11 and 2011-12. Figure 5 indicates the revenue earnings of different telecom companies for 2010-11 and 2011-12.

Revenue of major access telecom service providers 2010-11 and 2011-12

Airc

el

Bhar

ti

BSNL

!DEA

MTN

L

Relia

nce

TATA

Voda

fone

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

8264

41138

29688

15389

3992

15002

11508

30123

7196

45359

27934

19322

3624

1450712621

32021

2010-112011-12

Quarter ending June 2011

Quarter ending sep 2011

Quarter ending Dec 2011

Quarter ending Mar2012

Telecom Subscribers (Wireless + Wireline) in Millions

Total Telephone Subscribers 885.99 906.93 926.53 951.34

Urban Subscribers 587.94 601.42 611.19 620.52

Rural Subscribers 298.05 305.51 315.33 330.82

Wireless Subscribers 851.70 873.61 893.84 919.17

Wireline Subscribers 34.29 33.31 32.69 32.17

Teledensity

Total Teledensity 73.97 75.48 76.86 78.66

Urban Teledensity 163.13 166.01 167.85 169.55

Rural Teledensity 35.60 36.40 37.48 39.22

Internet & Broadband Subscribers (in Million)

Total Internet Subscribers 20.33 20.99 22.39 22.86

Broadband Subscribers 12.35 12.83 13.35 13.81

Telecom Financial Data (Rs. Crores)

Gross Revenue during the quarter 46,891.61

49,942.25

49,365.18

49,242.99

Adjusted Gross Revenue (AGR) 32,589.93

33,460.52

34,081.35

34,457.07

CURRENT MANAGEMENT TRENDS

CompetitionThe basis for competition within the Telecom industry has

always been about Expanding into new markets Battling intensely for market share Telecom operators find themselves squeezed into a

commodity position, as cheaper competitors from Asia move into emerging markets and even mature markets.

Coopetition (cooperation + competition) from “partner” industries

Telecom operators’ costly infrastructures are indirectly but increasingly subsidized by the media/content industry. So-called “free” content still requires people to be connected in order to access it.

TechnologyIf we assume that 4G or LTE will break the UMTS speed barrier by

a factor of 10 to 20, there are high chances that as soon as this new carrier bit-pipe will be available, it will be clogged by a number of existing and new services.

Social-Local-Mobile-Commercial or SoLoMoCo are the new buzzwords that will ask for their part of the traffic increase. For example, pushing relevant promotions or services to customers based on their social profiles, events, or physical proximity to the offer are a good example of that.

Augmented Media Experience As TV has become a home Multi Media Centre with a 2nd screen

tablet computer or bigger smartphone companion, viewers can access further information about what they are watching.

My Media everywhere, anywherePersonal and shared media - photos, videos, music and

documents – will not only sit on PCs or Home media centres.

Mobile Money: Shifting your business model or bring value differently

As money and financial transactions are increasingly going mobile, Telco’s have an opportunity to join the value chain and to offer more than just a VOIP bit-pipe for others to manage their home banking transactions.

Innovation: Make, buy, or partner?Technology companies need to prioritize their technological

investment or make them in common (ie at group level). One thing is for sure, the rhythm of innovation that was once counted in years in the telecom industry will have to join the internet speed counted in days or even hours.

CustomersTelecom managers and employees may have a technical mindset.

But your customers do not see you as a technology. They see you as a means of connectivity, or as a convenience. They expect everything on demand, mobile, for free and will only pay for clear convenience of usage.

Connect to peopleYears ago the likes of IBM, Ericsson, Oracle or HP predicted a future

where people would be in constant contact with family, friends, business contacts and even strangers around the world.

Connect to servicesOperators with innovative and entrepreneurial mindsets will partner

with other consumer services to enable just-in-time services for consumers to improve their lives – e.g. proposing deals based on the customer’s location, or profile.

Connect to contentInformation is real-time, sourced from the network, for example

traffic info that is gathered from connected drivers reports the traffic conditions up to the minute and down to the meter.

Connect “distributed” friends, relatives and colleagues

Changing family structures, dual-career families, study abroad, international career postings and emigration, all create need for intense communication orally (Phone), visually (Skype, Facetime ) or in writing (SMS, E-Mail and messaging). Family members want and need to communicate, when they are on the road or living far apart.

EmployeesAs a result of the above pressures, the people in the telecom industry are

facing the necessity of major change in their way of working. But in an industry with a tradition of hierarchy, silos, and doing things a certain way, how do you change? How do you act nimbly, spark innovation, strike up partnerships, merge with other companies, and become customer-focused?

Start from a clear, differentiated customer value propositionUse this to drive activity in the company. If people at all levels have a

clear idea of the value proposition, some strategic goals and the understanding that the industry is constantly moving, there is much less need for top-down directives and controls.

Leadership to manage changeEven so, many people will be threatened by change, or will not have the

capabilities that the change requires. It will require very strong leadership attention. It requires the top leadership team agreeing on the direction, and setting the example for managers and employees throughout the company.

A management talent poolIt also requires a highly-skilled, engaged management talent pool.

Technical skills have been king in the telecom industry, and these are obviously important.

Customer Sagmentation

The division of a market into different homogeneous groups of consumers is known as market

segmentation. Rather than offer the same marketing mix (product, price, place, and promotion) to

vastly different customers, market segmentation makes it possible for firms to tailor the marketing

mix for specific target markets, thus better satisfying customer needs. Not all elements of the

marketing mix are necessarily changed from one segment to the next. For example, in some cases

only the promotional campaigns would differ.

Most small businesses cannot afford to market to the general, mass-market customer resources are

just too limited. Instead, it must focus it efforts, communications, and resources on those segments

of the market that offer the most promise for the business and that have been neglected by larger

competitors. The niche strategy aims at making its successful practitioners immune to competition

and unlikely to be challenged. Successful practitioners of market segmenting take the cash and let

the credit go. They wallow in their anonymity

A market segment should be: Measurable Accessible by communication and

distribution channels Different in its response to a marketing

mix Durable and not changing too quickly Substantial enough to be profitable

There are four primary bases on which to segment a consumer market:

Geographic Segmentation, Demographic Segmentation, Psychographic Segmentation, and Behavioural Segmentation.

Geographic Segmentation

Region (international, national, regional, state, county, city…)

Climate, Population density (rural, urban, suburban), and Population growth rates. An example: The targeted market segment for

Reynold’s Bakery resides primarily in the suburban

neighbourhoods of northern Hamilton county located in Indiana.

Your turn: Describe your market with regard to geography

Demographic Segmentation

Age, Gender, Ethnicity, Occupation, Income, and Family-status. An example: The targeted market segment for Reynold’s

Bakery is primarily white-collar executives between the ages of 35 and 55 years of age with an annual

household income range between $60,000 - $100,000. Your turn: Describe your market with regard to

demographics…

Psychographic Segmentation

Values, Attitudes, and Lifestyles. An example: The targeted market segment for

Reynolds’s Bakery is primarily those upper achievers

and “experiences” who are looking for a “third place” between work and home and value healthy,

up-scale fast-food such as Starbucks or Panera Bread. Your turn: Describe your market with regard to

psychographics…

Behavioural Segmentation

Usage rate, Price sensitivity Brand loyalty, and Benefits sought. An example: The targeted market segments for

Reynold’s Bakery are fast order take-out customers, leisure-stay customers, and offsite-event customers. Case: Entrepreneurial market segmentation calls for

insight into the people in the target market’s behaviour rather than settling for the same old

segments everyone else uses. So here’s your challenge.

telecommunications needs

Order capturers: these firms marketed heavily in the media to attract interest in their

offerings, then used incoming telecommunications to take orders.

Customer seekers: these firms made heavy outbound telemarketing calls requiring

efficient dialing and database integration. Sales force leveragers: these firms used the phone

to coordinate the activities of their sales force across many points of sale requiring

heavy two-way communications.

Once the market segment profiles were created, it became apparent that a telecommunications

Package designed to serve one segment would not meet the requirements of the other two. At the

Same time, a package designed to meet the essential needs of all three segments would have to

Incorporate many potentially expensive and neutral features. What’s more because this way of

Segmenting on the basis of behaviour was not initially obvious, the company gained a significant edge

on the competition by developing a unique and perfectly aligned marketing mix for each segment of

the market. Your turn: Describe your market with regard to behaviour…

Industry Developments

- Key Developments & Investments Viom Networks Ltd has won a contract to provide Wi-Fi and other

Internet-related services at the Chennai International Airport. The deal is expected to be in the range of Rs 20– Rs 30 crore (US$ 3.06- US$ 4.59 million)

Tata Consultancy Services (TCS) has been selected to deploy a new rating and billing system for Macau's telecom service provider, CTM. The solution will allow CTM's customers to receive faster response to enquiries and enable them to better manage their services and bills, according to the company's press statement

Reliance Communications (RCom) and Tata Teleservices Ltd (TTSL) have joined hands under a 2G intra-circle roaming arrangement. Under the agreement, RCom will use 5,000 towers of TTSL across 14 GSM circles while the latter will gain access to an equal number of towers in RCom's CDMA network to improve its reach

Aegis, the global outsourcing and technology services firm under Essar Group, has won a human resource outsourcing contract from Saudi Telecom Co, further extending its existing relation with the company. The deal is estimated to be in the range of US$ 50- US$ 60 million

Videocon Mobile Services plans to invest Rs 800 crore (US$ 122.61 million) in Gujarat for opening over 500 towers and 150 exclusive outlets in 2013-14

Government Initiatative The telecom tower provider industry has been granted the 'infrastructure' status, a

move that will make tower providers eligible for viability gap funding, higher limit on external commercial borrowings (ECBs), lower import duties and exemptions on excise duty on telecom infrastructure equipment.

The Government of India's decision to allow 100 per cent foreign direct investment (FDI) in telecommunication sector will enable foreign telecommunication companies to buy out their Indian partners. At present, India permits up to 74 per cent FDI in the sector - 49 per cent through the automatic route and the rest after Foreign Investment Promotion Board (FIPB) approval.

The Government intends to make India a teleport hub, enabling it to become an up-linking/down-linking centre. The initiative is expected to facilitate foreign investments, better technology and sustainable employment opportunities in the country. The Government has recently given its nod to 74 per cent of FDI in DTH, IPTV, and mobile TV

Reliance Jio Infocomm (RJIL) has received an approval from the Department of Telecommunications (DoT) to test the messaging feature on the fourth-generation long-term evolution (4G LTE) platform

The new guidelines issued by the DoT according to which foreign entities can participate in the upcoming 2G auctions directly and obtain a licence. The initiative is expected to make the upcoming auctions more attractive to certain foreign players such as Telenor, which wanted to bid directly without an Indian partner in the auctions. There will be a lock-in period of three years

News

Aircel conducting trials for 4G services in Andhra circle Mobile network operator Aircel is currently conducting

trials of Long-Term Evolution (4G) services in Andhra Pradesh but it will take a while before they are commercially launched.

"The trials are currently on but we don't have the required ecosystem, including the 4G-enabled mobile handsets, to launch the services commercially," Deepinder Tiwana, AP Circle Business Head of Aircel, said on Friday.

Aircel is only the second cellular service provider after Reliance to bag 4G licence for AP Circle.

Data services are growing exponentially in Andhra Pradesh. About 44 per cent of our 1.85 million subscribers in AP use data services, including 12 per cent for 3G. This has enabled us to double our revenues in 2013 compared to the previous year," he said.

Accordingly, Aircel is coming up with new data plans as also voice plans to give more value for money to the customers, Tiwana said. "We have identified the priority segments and are accordingly drawing up our strategies to drive future growth."

The private mobile phone operator, that was making a loss of about Rs 250 crore per annum till last year, is on the turnaround path.

"We will start making full-year profit from next year," Tiwana said, but did not disclose figures.

For more news from Business Today, follow us on Twitter @bt_india and on Facebook atfacebook.com/BusinessToday

Business In IndustrySL. NO. Category Service Area Access Service

Provider

1. Metros Delhi Bharti

Vodafone

MTNL

Idea Cellular Ltd.

Aircel Ltd.

2. Mumbai Loop Telecom Pvt Ltd.

Vodafone

MTNL

Bharti

Aircel Ltd.

3. Chennai Aircel Cellular Ltd.

BSNL

Vodafone

Reliance Infocomm

SL. NO. Category Service Area Access Service Provider

Tata Teleservices

4. Kolkata Bharti

Vodafone

BSNL

Reliance Telecom

Dishnet Wireless Ltd.

5. A Circle Maharashtra Vodafone

Idea Cellular Ltd.

BSNL

Bharti

Aircel Ltd.

6. Gujarat Vodafone

Idea Cellular Ltd.

SL. NO. Category Service Area Access Service Provider

BSNL

Bharti

Aircel Ltd.

7. Andhra Pradesh Idea Cellular Ltd.

Bharti

BSNL

Vodafone

Aircel Ltd.

8. Karnataka Bharti

Spice

BSNL

Vodafone

Aircel Ltd

9. Tamil Nadu Vodafone

Aircel Ltd.

SL. NO. Category Service Area Access Service Provider

BSNL

Reliance Infocomm

Tata Teleservices

10. B Circle Kerala Idea Cellular Ltd.

Vodafone

BSNL

Bharti

Dishnet Wireless Ltd.

11. Punjab Spice

Bharti

BSNL

Vodafone

Dishnet Wireless Ltd.

12. Haryana Idea Cellular Ltd.

Vodafone

SL. NO. Category Service Area Access Service Provider

BSNL

Bharti

Dishnet Wireless Ltd.

13. Uttar Pradesh-W Idea Cellular Ltd.

Bharti

BSNL

Vodafone

Dishnet Wireles Ltd.

14. Uttar Pradesh -E Vodafone

BSNL

Bharti

Idea Cellular Ltd.

Dishnet Wireless Ltd.

15. Rajasthan Vodafone

SL. NO. Category Service Area Access Service Provider

Hexacom(Bharti)

BSNL

Idea Cellular Ltd.

Dishnet Wireless Ltd.

16. Madhya Pradesh Idea Cellular Ltd.

Reliance Telecom

BSNL

Bharti

Dishnet Wireless Ltd.

17. WB & A&N Reliance Telecom

BSNL

Bharti

Vodafone

Dishnet Wireless Ltd.

SL. NO. Category Service Area Access Service Provider

18. C Circle Himachal Pradesh

Bharti

Reliance Telecom

BSNL

Idea cellular Ltd.

Dishnet Wireless Ltd.

19. Bihar Reliance Telecom

BSNL

Bharti

Dishnet Wireless Ltd.

Vodafone

20. Orissa Reliance Telecom

BSNL

Bharti

Dishnet Wireless Ltd.

SL. NO. Category Service Area Access Service Provider

Vodafone

21. Assam Reliance Telecom

BSNL

Bharti

Dishnet Wireless Ltd.

Vodafone

22. NE Reliance Telecom

BSNL

Bharti

Dishnet Wireless Ltd.

Vodafone

23. J&K BSNL

Bharti

Dishnet Wireless Ltd.

Vodafone

Videocon Telecommunications Ltd.

Where Are They Located

SL. NO. Service Provider Area Of Operation

Subscriber Base

1. BSNL All India Except Delhi & Mumbai

2,24,67,732

2. MTNL Delhi & Mumbai 34,57,729

3. Bharti Airtel Ltd. & Bharti Hexacom Ltd.

Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Kolkata, Madhya Pradesh, Maharashtra, Mumbai, Punjab,Rajasthan, Tamilnadu (included Chennai),UP(East), UP(West).

32,69,949

4. Quadrant Televentures Ltd. (formerly HFCL)

Punjab 2,00,432

5. Sistema Shyam Teleservices Ltd.

Rajasthan 46,659

SL. NO. Service Provider Area Of Operation

Subscriber Base

6. Tata Teleservices Ltd. & Tata Teleservices (Maharashtra)Ltd.

AP, Assam, Bihar, Delhi, Gujarat, Haryana, HP, J&K, MH & Mumbai, Karnataka, Kerala, Kolkata, MP, NE, Orissa, Punjab, Rajasthan, TN, UP, WB

14,41,370

7. Reliance Communications Ltd.

AP, Bihar, Chennai, Delhi, Gujarat, Haryana, HP, J&K, Karnataka, Kerala, Kolkata, MP, MH, Mumbai, Orissa, Punjab, Rajasthan, TN, UP & WB

12,69,750

8. Vodafone AP, Chennai, Delhi, Gujarat, Karnataka, Kol, MP, MH, MUM, Orissa, Punjab & Raj

17,850

Grand Total 3,21,71,471

Current Market ShareSL. NO.

Wireless Group

Total Wireless Subscribers( in millions)

Rural Subscribers(in millions)

Market Share Of Rural Subscribers

March-12

March-11

March-12

March-11

March-12

March-11

1 Bharti 181.28

162.20 75.83 65.73 23.46 24.03

2 Reliance 153.05

135.72 34.02 29.47 10.52 10.77

3 Vodafone 150.47

134.57 62.84 51.62 19.44 18.87

4 Idea/Spice 112.72

89.50 60.51 46.05 18.72 16.83

5 BSNL 98.51 91.83 34.53 32.77 10.68 11.98

6 Tata 81.75 89.14 16.70 18.46 5.17 6.75

7 Aircel 62.57 54.84 22.54 19.43 6.97 7.10

8 Unitech 42.43 22.79 12.11 6.86 3.75 2.51

9 Sistema 15.80 10.06 2.61 2.35 0.81 0.86

10 Videocon 5.95 7.11 0.00 0.00 0.00 0.00

11 MTNL 5.83 5.47 0.00 0.00 0.00 0.00

12 S Tel 3.43 2.82 1.58 0.80 0.49 0.29

13 Loop 3.27 3.09 0.00 0.00 0.00 0.00

14 HFCL 1.33 1.47 0.00 0.001 0.00 0.00

15 Etisalat 0.782 0.968 0.00 0.00 0.00 0.00

Total 919.17

811.59 323.27

273.54 100.00 100.00

Market Share Of Service Providers Of Rural Wireless Subscriber Base

Market Share Of Wireless Service

Providers

Market Share (%)

of GSM Operators

Market Share (%)

Of CDMA

Operators

Market Strategies

Cellular Providers developed its sales and marketing strategy by analyzing its own internal strengths and then analyzing current market conditions.

The overall marketing plan for Cellular Providers' service is based on the following fundamentals:

The segment of the market(s) planned to reach. Distribution channels planned to be used to reach

market segments: retail outlets, sales representatives, and telemarketing.

Share of the market expected to capture over a fixed period of time.

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