Shri Kuldeep Goyal CMD

8/18/2019 Shri Kuldeep Goyal CMD

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L

ByKuldeep Goyal

Chairman & Managing DirectorBharat Sanchar Nigam Limited

INDIAOn 3th Au u!t #$

O%'%I( O) *+ *LCOM

SCNA'IO IN INDIA


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IND,

Indian Economy Overview

Indian Telecom Market

Telecom Tarif & Revenues

Regulatory Regime.

Opportunities & New revenue streams

Value dded !ervices & "uture Tec#nologies

Mo$ile Num$er %orta$ility


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IND, 'ontd..(

Internet & )road$and !ervices

Telecom *rowt# + t#e way a#ead

'#allenges

)roadcasting & 'a$le !ervices

'onclusion


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.

O%'%I(

*,% growing - / p.a.

!econd largest emerging economy in t#e

world.

Industry growt# at 0.1/ & !ervices !ector

growt# at 23.0/.

!ervice !ector contri$uting 11/ to *,%.


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INDIAN *LCOM MA'K*

ppro4. 556.01 Million Telep#one 'ustomers7s on 52.38.9330:

Teledensity is less t#an 53/.

!econd ;argest Mo$ile 'ountry.

"astest *rowing Telecom Nation in t#e world +growing - 0


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//

Contd/

Rising Mo$ility? ,eclining @4ed line.

V! emerging as maAor Revenue Earner.

*rowing popularity o= Internet and )road$and.

ppro4. 88.20 million internet customers son 52.35.9330(

ppro4. 5.08 million )road$and 'ustomers

s on 52.35.9330(.


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ro0 ng*eleden!ity

Teledensity #as increased =rom 2.18 in

Marc#? 28 to 9.30 in Buly 9330

Rural Teledensity is still muc# less t#anCr$an Teledensity.

s o= Marc# 9330? Cr$an Teledensity is >1./ and Rural Teledensity .92/.


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Gro0ing *eleden!ity

-ear1nd o2 March

'4'AL 4'BAN *O*AL

2 3.19 >.6 9.59

9333 3.>0 0.5> 9.0>

9332 3.5 23.58 5.10

9339 2.92 29.9 6.9

9335 2.6 26.59 1.22

9336 2.18 93.86 8.399331 2.85 9>.00 0.1

933> 2.0> 5.61 29.86

9338 1.00 60.19 20.52

9330 .92 >1. 9>.2


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4'BAN


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INDIAN *LCOM MA'K*Si6e & Opportunitie!

Updated upto 31.07.2008

%opulation < ppro4. 2.21 )illion

TeledensityOverall < 9.30/Internet < >.09 / Cpto

52.35.9330(

)road$and < 3.58/

7pected Ba!e 8y #95 Telep#one 'onnections < 133 Million

)road$and 'onnections < 93 Million

nnual Revenue < D61 )illion


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9::; National Telecom %olicy + 26announced

9::< =Aug> olkata $ecame t#e @rst

metro to #ave a cellular network9::? Telecom Regulatory ut#ority o=

India was setup

9::: Tarif re$alancing e4ercises getsinitiated

9::: =Mar> National Telecom %olicy + announced

G'O(*+ O) *LCOM ININDIA


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9::: =Aug> ;icense =ee 7revenue s#are: reduced =romprovisional 21/ to 29/? 23/ & 0/ on

'ircle wise $asis 7 type? ) type & ' type circles:

# TRI ct amended & separate tri$unal

proposed#9 =@an> T,!T started =unctioning

#9 =@an> %olicy announced =or additional licenses in

)asic and Mo$ile !ervices

#9 =@an> ;imited mo$ility allowed to )asic !ervices

7',M spectrum allotted to )asic !ervice Operators:

Gro0th o2 *elecom in India1Contd//


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## =Oct> )!N; entered in to *!M cellularoperation w.e.= 2t# Octo$er? 9339. Madeincoming call =ree & initiated tarif eFualiGation

process Tarif =or *!M cellular mo$ilesreduced.

#3 =No> Cni@ed ccess 7)asic & 'ellular: !ervice ;icense 7C!;: introduced as a @rst step

towards Cni@ed ;icense Regime.

Tec#nology neutral and allows provisioning

any kind o= service.

#; =Apr> ;icense =ee reduced $y 9/ acrosst#e $oard =or all t#e access licenses.

Growth of Telecom in India [Contd...]


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#; =Oct> nnouncement o= )road$and %olicy toprovide #ig# speed always on internetservice.

#< =No> ",I limit increased =rom 6/ to 86/in Telecom !ector.

#< =Dec> I;, & N;, nnual ;icense =eesreduced =rom 21/ to >/.

#? =Oct> ,ual tec#nology allowed.

#$ =)e8> 293 new C!; licenses granted $y ,OT.

Growth of Telecom in India [Contd..]


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#$ =Aug> Issue o= 5* guidelines =orspectrum allocation t#roug#auction. "oreign players

allowed to $id.

#$ =Aug> *uidelines =or auction &allotment o= spectrum =or)H services issued

#$ =Aug> *uidelines =or Mo$ile Num$er%orta$ility !ervice

;icense issued

Growth of Telecom in India [Contd..]


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"rom 26.0 million in Marc# 28? ,E;s grewto 556.01 million in Buly 9330.

!u$stantial c#ange in Hireless Vs Hirelineand %u$lic


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Million!>

-ear 1ndo2 March

)i7ed lineincluding(LL=)>

Mo8ile=GSM(LL=M

>*otal

AnnualGrowth (%)

9::? 26.16 3.56 26.00 --

9::$ 28.03 3.00 20.>0 25.54

9::: 92.>2 2.93 99.02 22.11# 9>.>1 2. 90.11 25.16

#9 59.82 5.10 5>.9 27.11

## 50.55 >.16 66.08 23.64

#3 62.60 25 16.60 21.42

#; 69.06 55.> 8>.15 40.47

#< 6>.2 19.99 0.62 28.59

# 13.20 3.26 263.59 42.59

#? 60.08 218.> 93>.05 47.40

#$ 65.1 91>.9 533.21 45.12 @uly.$ 65.51 92.13 556.01 --


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7ponential Gro0th

o e er ce 5 ue n

g e


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o e er ce 5 ue ng eGro0th

Total telephone connection as on March 1997: 14.88 Million

Fixed

Mobile

Mobile

Fixed

@uly . #$


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Mo$ile connections are provided on *!Mand ',M tec#nology

*!M 'onnections increased =rom 29.>0Million in Marc# 9338 to 92.98 Million in

Buly 9330.

',M connections rose =rom 3.52 Million

in Marc# 9335 to 8> Million in Buly 9330.

Ratio o= *!M and ',M su$scri$ers is 52

Mo8ile Serice!


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Gro0ing Share o2 riate Sector

!#are o= private sector in total'onnections #as steadily increased =rom93./ in 9335 to 81.9/ in Buly

9330.

%rivate !ector is mainly active inHireless !egment.

%rivate !ectorJs contri$ution inHireline !egment is Aust 22.>/.


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Growing Share (%) of Private Sector


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T#ere are 95 ;icensed !ervice reas.

29 !ervice %roviders are providing p#one

services in t#ese areas.

Two %u$lic !ector Operators are MTN; and )!N;.

MTN; providing service in ,el#i K Mum$ai only.

)!N; providing service in 92 out o= 95 ;!s

e4cluding ,el#i and Mum$ai.

T#ere are si4 maAor Telecom players i.e. )!N;?irtel? Reliance? Vodap#one? Tata Tele & Idea.

*LCOM S'%IC 'O%ID'S


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'CN*AG MA'K* S+A' O)MA@O' *LCOM LA-'S IN INDIA


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MA@O' LA-'SE DA*A

BSNL

AI'*L'LIANC

IDA

Cu!tomer

Ba!e7in

millions:

89.0 82.0 12.6 98.9

Annual'eenue!

7in C! D$n:

23 >. 5.81 2.2

Annual

[Updated upto 30.06.2008]

o e ar ! n n a one o e


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o e ar ! n n a one o eLo0e!t

.!"

.!!

.#$

.#%

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.$

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.(

."

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0

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0.1

0.15

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) e l g i u m

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+ ,

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P h i l i / / i n e 0

T a i w a n

A r g e n t i n a

1 a l a * a 0 i a

2 o n g

, o n g

T h a i l a n d

P a 3 i 0 t a n

C h i n a

I n d i a

U S D

[Tariff per minute]


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Telecom Tarifs #ave =allen to very lowlevel during past @ve years.

;ocal call tarif =rom mo$ile calls #as seensteady decline =rom Rs. 2> per minute toRs. 3.13 per minute

%u$lic !ector #as played crucial role in$ringing down mo$ile tarif.

*LCOM *A'I)) & '%N4S


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,espite low tarifs? telecom sector #ass#own positive @nancial results.

*ross revenues =or t#e sector #avegrown at compound annual rate o=a$out 92/ and stands at C! D 9> )illion

+ 56/ contri$ution o= %u$lic !ector and>>/ o= %rivate !ector.

*LCOM *A'I)) & '%N4S


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Tarif under =or$earance e4cept =or @4edrural line services? National roaming inmo$ile service and ;eased 'ircuits.

Operators to report tarif plans to TRI wit#in

8 days =rom t#e date o= implementation. Tarif once ofered can not $e #iked =orminimum period o= > mont#s

;i=etime unlimited tarif plans to $e

availa$le to su$scri$ers during t#e period o=current renewed license.

No c#argea$le Value dded !ervices to $eprovided to a customer wit#out e4plicit consent.

'G4LA*O'- 'GIM'G4LA*O'- 'GIM


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%u$licationadvertisement o= tarif =orconsumer in=ormation s#all contain minimumessential in=ormation.

He$sites o= t#e service provider to contain

complete details o= t#e tarif plans as well as@nancial implications =or various usage sla$s.

'ustomers to $e in=ormed in writing? wit#in a

week o= activation o= service? t#ecomplete details o= #is tarif plan.

uality o= !ervice !tandard $enc# marks to$e ensured $y Operators.

'G4LA*O'- 'GIM'G4LA*O'- 'GIM

ppor un e! e0 reenue


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ppor un e! e0 reenue!tream!

)%O & %O $usiness is growing =ast Telecom can ride on it.

s glo$aliGation is increasing? morepercentage o= glo$al $usiness =or Indiantelecom.

Tec#nologies like N*N? 5*? Hi


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G

!ervice %er=ormance *uaranteeI% services wit# o!? and support concurrently 5

types o= o! =or one su$scri$er.

'lass o= service !upport =or diferent types o=data delivery services w#ic# are


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%i!ion. any0here" anytime" anyplace

2ome u0ine00

WirelessBroadband

at the heart ofor strate!"

4i5-i hot0/ot0

4irele00 road6and i0 a6out ta3ing road6and 1o6ile

4irele00 citie0

Wi#$%

Wi&i

'SD($

3)

N( OO'*4NI*IS %AS


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N( OO'*4NI*IS . %AS

Value added services like M


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It will c#ange t#e market dynamics.

T#e perception o= owners#ip o=customer will #ave a paradigm s#i=t.

New innovations will $e needed =or

keeping customer attac#ed to service

Enterprise $usiness will $e t#e keytarget and will =ace intense competition

MN H OO'*4NI*- a! 0ell a!*+'A* 2or Operator!


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Internet & Broad8andSerice!

No. o= )road$and 'onnections #ave grown=rom 3.39 Million in Marc# 9336 to 6.18Million in Buly 9330.

)!N; is t#e largest )road$and Internet!ervice %rovider wit# 15 / Market !#are.

10 ,istrict Frs.? 9>0 )lock Frs.? 59>2'ities & 53296 Villages #ave $een covered $y

)road$and.

In IN,I? I!%s are providing )road$and!ervice on ,!;? 'a$le Modem? Et#ernet ;N?"i$re? Radio? ;eased ;ine etc.


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Net0or e7pan!ion

913 million $y 9338 < lready ac#ieved

>33 million $y 9329

'ural connectiity

233 million $y 9323933 million $y 9329

Broad8and

93 million $road$and connections and 63million internet connections to provide $y9323

)road$and connections to provide on

demand across t#e country $y 9329.

*elecom Gro0th. the 0ay ahead*elecom Gro0th. the 0ay ahead

a enge! n e ecom


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a enge! n e ecomSector

No. o= operators are increasing per circle.

R%Cs are going down.

'ost 'ustomer is very #ig# in rural areas.

!pectrum + a scare commodity.

In=rastructure readiness in rural.

%' prices are very #ig#.

vaila$ility o= 'ontents in local language. International )andwidt# is costly.


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;ike Telecom !ector? )roadcasting & 'a$le!ervices #ave $een opened =or %rivateparticipation.

)roadcast & 'a$le services $eing provided

t#roug# ll India Radio? "M '#annels?'ommunity Radio !tations? 'a$le TV?!atellite TV '#annels? ,T & I%TV.

Multi !ystem Operators 7M!Os: across t#e

country providing 'a$le TV services.

M!Os are carrying ma4imum 255 "ree


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'! 7'onditional ccess !ystem: implemented incertain noti@ed areas o= ,el#i? Mum$ai? olkata &'#ennai >.30 ;ak#s !et


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I%TV !ervice #as $een recently so=t launc#edin *urgaon? "arida$ad & Noida $y )!N;.

)!N; plans to launc# I%TV !ervice in 233 'ities$y Marc# 933.

'ADIO S'%IC5

"M Radio !ervices are $eing provided $y "MRadio !tations o= ll India Radio and 931%rivate "M Radio '#annels.

6 ;icences #ave $een issued to operate'ommunity Radio !tations 7'R!s: out o= w#ic#51 'R!s are working.

Broadca!ting & Ca8le Serice!Broadca!ting & Ca8le Serice!


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India is second largest emerging economy o=t#e world.

*,% growt# / & !ervices !ector growt#23.0/.

"astest growing Telecom Market in t#e Horld.

Teledensity is still less t#an 53/ wit# ruralteledensity Aust around 23/.

Hireless tec#nologies to play crucial role inproviding connectivity in rural? remote & =arQung areas.

CONCL4SION


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Mo$ile Num$er %orta$ility to c#ange Market,ynamics & ensure improved standards o=service.

Hit# launc# o= VOI% telep#ony? ;ong,istance call c#arges slated to =all =urt#er.

I%TV & ,T are providing digital e4perienceto users.

ig# *rowt# in Mo$ile? Internet &)road$and =oreseen till 9329.

CONCL4SION


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Shri Kuldeep Goyal CMD

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