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Shri kuldeep goyal,cmd

Jul 08, 2015

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Business

  • ByKuldeep GoyalChairman & Managing DirectorBharat Sanchar Nigam LimitedINDIAOn 30th August, 2008

    OVERVIEW OF THE TELECOM SCENARIO IN INDIA

  • INDEX Indian Economy Overview Indian Telecom Market Telecom Tariff & Revenues Regulatory Regime. Opportunities & New revenue streams Value Added Services & Future Technologies Mobile Number Portability

  • INDEX [Contd..] Internet & Broadband Services Telecom Growth the way ahead Challenges Broadcasting & Cable Services Conclusion

  • INDIAN ECONOMY- OVERVIEW GDP growing @ 9% p.a.

    Second largest emerging economy in the world.

    Industry growth at 8.5% & Services Sector growth at 10.8%.

    Service Sector contributing 55% to GDP.

  • INDIAN TELECOM MARKET Approx. 334.85 Million Telephone Customers (As on 31.07.2008)

    Teledensity is less than 30%.

    Second Largest Mobile Country.

    Fastest Growing Telecom Nation in the world growing @ 8-9 million connections per month.

    Compounded customer growth of around 40.68% p.a. for the last 5 years

  • INDIAN TELECOM MARKET.. Contd. Rising Mobility, Declining fixed line. VAS emerging as major Revenue Earner. Growing popularity of Internet and Broadband. Approx. 77.18 million internet customers [As on 31.03.2008] Approx. 3.87 million Broadband Customers [As on 31.03.2008].

  • Growing Teledensity

    Teledensity has increased from 1.57 in March, 1997 to 29.08 in July 2008

    Rural Teledensity is still much less than Urban Teledensity.

    As of March 2008, Urban Teledensity is 65.9 % and Rural Teledensity 9.21%.

  • Growing Teledensity

    Year[End of March]RURALURBANTOTAL

    19990.526.942.3220000.688.362.8620010.9310.373.5820021.2112.24.2920031.4914.325.1120041.5720.747.0220051.7326.888.9520061.8639.4512.7420075.8848.5218.3120089.2165.926.19

  • TELEDENSITY : RURAL & URBAN

    Chart7

    0.526.942.32

    0.688.362.86

    0.9310.373.58

    1.2112.24.29

    1.4914.325.11

    1.5720.747.02

    1.7326.888.95

    1.8639.4512.74

    5.8848.5218.31

    9.2165.926.19

    RURAL

    URBAN

    TOTAL

    YEAR AS ON 31ST MARCH

    GROWTH

    TELEDENSITY

    Sheet1

    YEARWIRELINEWIRELESSTOTAL

    199921.611.222.81

    200026.651.8828.53

    200132.713.5836.29

    200238.296.6844.97

    200341.3313.354.63

    200440.9235.6176.53

    200541.4256.9598.37

    200640.22101.85142.07

    200748.78157.96206.74

    200843.95256.2300.15

    2008 JUNE43.49281.94325.43

    Sheet1

    000

    000

    000

    000

    000

    000

    000

    000

    000

    000

    000

    WIRELINE

    WIRELESS

    TOTAL

    Year as on 31st March

    No. of Connections [In Millions]

    Growth of Telephone Connection

    Sheet2

    Fixed LineWire LessTotal

    March, 200714.540.3414.88

    March, 200797.722.28

    97.72%2.28%

    Sheet2

    00

    00

    March - 2007

    Sheet3

    Fixed LineWire LessTotal

    March, 200743.49281.94325.43

    March, 200713.3686.64

    13.36%86.64%

    Sheet3

    00

    00

    JUNE - 2008

    281.94, 86.64%

    43.49, 13.96%

    Sheet4

    RURALURBANTOTAL

    19990.526.942.32

    20000.688.362.86

    20010.9310.373.58

    20021.2112.24.29

    20031.4914.325.11

    20041.5720.747.02

    20051.7326.888.95

    20061.8639.4512.74

    20075.8848.5218.31

    20089.2165.926.19

    Sheet4

    000

    000

    000

    000

    000

    000

    000

    000

    000

    000

    RURAL

    URBAN

    TOTAL

    YEAR AS ON 31ST MARCH

    GROWTH

    TELEDENSITY

  • INDIAN TELECOM MARKETSize & OpportunitiesUpdated upto 31.07.2008Population - Approx. 1.15 BillionTeledensityOverall- 29.08%Internet -6.82 % [Upto 31.03.2008]Broadband-0.397%Expected Base by 2010:Telephone Connections- 500 MillionBroadband Connections - 20 MillionAnnual Revenue - $45 Billion

  • 1994National Telecom Policy 1994 announced1995 (Aug) Kolkata became the first metro to have a cellular network1997Telecom Regulatory Authority of India was setup1999Tariff rebalancing exercises gets initiated1999 (Mar) National Telecom Policy 99 announcedGROWTH OF TELECOM IN INDIA

  • 1999 (Aug) License fee (revenue share) reduced from provisional 15% to 12%, 10% & 8% on Circle wise basis (A type, B type & C type circles)2000TRAI Act amended & separate tribunal proposed2001 (Jan) TDSAT started functioning2001 (Jan) Policy announced for additional licenses in Basic and Mobile Services2001 (Jan) Limited mobility allowed to Basic Services (CDMA spectrum allotted to Basic Service Operators)Growth of Telecom in India [Contd..]

  • 2002 (Oct)BSNL entered in to GSM cellular operation w.e.f 19th October, 2002. Made incoming call free & initiated tariff equalization process Tariff for GSM cellular mobiles reduced.2003 (Nov)Unified Access (Basic & Cellular) Service License (USAL) introduced as a first steptowards Unified License Regime.Technology neutral and allows provisioning any kind of service.2004 (Apr) License fee reduced by 2% across the board for all the access licenses.Growth of Telecom in India [Contd...]

  • 2004 (Oct)Announcement of Broadband Policy to provide high speed always on internet service.

    2005 (Nov) FDI limit increased from 49% to 74% in Telecom Sector.

    2005 (Dec)ILD & NLD Annual License fees reduced from 15% to 6%.2007 (Oct) Dual technology allowed.

    2008 (Feb) 120 new UASL licenses granted by DOT.Growth of Telecom in India [Contd..]

  • 2008 (Aug) Issue of 3G guidelines for spectrum allocation through auction. Foreign players allowed to bid.

    2008 (Aug) Guidelines for auction & allotment of spectrum for BWA services issued

    2008 (Aug) Guidelines for Mobile Number Portability Service License issuedGrowth of Telecom in India [Contd..]

  • From 14.8 million in March 1997, DELs grew to 334.85 million in July 2008.

    Substantial change in Wireless Vs Wireline and Public-Private participation.

    Mobile subscribers seven times more than wireline subscribers. Growth of DELs in India

  • Subscribers (in Millions)

    Year [End of March]Fixed line including WLL(F)Mobile (GSM+WLL(M)TotalAnnual Growth (%)199714.540.3414.88--199817.800.8818.6825.54199921.611.2022.8122.11200026.651.928.5525.16200132.713.5836.2927.11200238.336.5444.8723.64200341.481354.4821.42200442.8433.6976.5340.47200546.1952.2298.4128.59200650.1890.14140.3242.59200748.87157.96206.8347.40200843.95256.2300.1545.12July-0843.35291.50334.85--

  • Exponential Growth

    Chart4

    14.540.3414.88

    17.80.8818.68

    21.611.222.81

    26.651.8828.53

    32.713.5836.29

    38.336.5444.87

    41.4813.354.78

    42.8433.6976.53

    46.1952.2298.41

    50.1890.14140.32

    48.87157.96206.83

    43.95256.2300.15

    43.49281.94325.43

    WIRELINE

    WIRELESS

    TOTAL

    Year (as on 31st March)

    Connections (In Millions)

    Growth of Telephone Connections

    Sheet1

    YEARWIRELINEWIRELESSTOTAL

    199714.540.3414.88

    199817.800.8818.68

    199921.611.2022.81

    200026.651.8828.53

    200132.713.5836.29

    200238.336.5444.87

    200341.4813.3054.78

    200442.8433.6976.53

    200546.1952.2298.41

    200650.1890.14140.32

    200748.87157.96206.83

    200843.95256.20300.15

    2008 JUNE43.49281.94325.43

    Sheet1

    000

    000

    000

    000

    000

    000

    000

    000

    000

    000

    000

    000

    000

    WIRELINE

    WIRELESS

    TOTAL

    Year (as on 31st March)

    Connections (In Millions)

    Growth of Telephone Connections

    Sheet2

    Fixed LineWire LessTotal

    March, 200714.540.3414.88

    March, 200797.722.28

    97.72%2.28%

    Sheet2

    00

    00

    March - 1997

    Sheet3

    Fixed LineWire LessTotal

    March, 200743.49281.94325.43

    March, 200713.3686.64

    13.36%86.64%

    Sheet3

    00

    00

    JUNE - 2008

    281.94 Million, 86.64%

    43.49 Million,13.36%

    Sheet6

    Year [End of March]Fixed line including WLL(F)Mobile (GSM+WLL(M)TotalAnnual Growth (%)

    199714.540.3414.88

    199817.800.8818.6825.54

    199921.611.2022.8122.11

    200026.651.928.5525.16

    200132.713.5836.2927.11

    200238.336.5444.8723.64

    200341.481354.4821.42

    200442.8433.6976.5340.47

    200546.1952.2298.4128.59

    200650.1890.14140.3242.59

    200748.87157.96206.8347.40

    200843.95256.2300.1545.12

    Jun-0843.49281.94325.43

    Sheet5

    BSNLAIRTELRELIANCEIDEA

    Customer Base (in millions)72.871.851.427.2

    Annual Revenues (in US $ bn)106.93.751.1

    Annual Profit (in US $ bn)1.91.71.30.1

    Sheet4

    YearRURALURBANTOTAL

    March, 19990.526.942.32

    March, 20000.688.362.86

    March, 20010.9310.373.58

    March, 20021.2112.24.29

    March, 20031.4914.325.11

    March, 20041.5720.747.02

    March, 20051.7326.888.95

    March, 20061.8639.4512.74

    March, 20075.8848.5218.31

    March, 20089.2165.926.19

    Sheet4

    000

    000

    000

    000

    000

    000

    000

    000

    000

    000

    RURAL

    URBAN

    TOTAL

    YEAR AS ON 31ST MARCH

    GROWTH

    TELEDENSITY

  • Mobile Service : Fuelling the GrowthTotal telephone connection as on March 1997: 14.88 Million, July 2008: 334.85 Million.FixedMobileMobileFixedJuly - 2008

    Chart8

    14.540.9772

    0.340.0228

    March - 1997

    0.34 Million, 2.28%

    14.54 Million,97.72%

    Sheet1

    YEARWIRELINEWIRELESSTOTAL

    199921.611.222.81

    200026.651.8828.53

    2