telecom industry final

8/8/2019 Telecom Industry Final

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Name Enrollment No.

Sandeep Taparia 08BS0002937

Srinath R 08BS0002474

Ritu Panwar 08BS0002652

Ravi Kumar 08BS0002633

Shivangi Kadam 08BS0002836

Rajan Sehgal 08BS0002533

Richa 08BS0002658

Yashodhan Mundra 08BS0003864


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Intr ducti n

Brief Hi t ry

arket Structure

aj r Firm & Share

Pricing P licy

Trend in Inve tment

Exp rt

arket Strategy

Perf rmance (Financial Analy i )

Future Analy i

C nclu i n

Rajan

Richa

Richa

Ritu

Ritu

a h dhan

a h dhan

Ravi

Srinath

Sandeep

Shivangi

-

-

-

-

-

-

-

-


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Indian Telec m had g ne thr ugh pha e f gr wth anddiver ificati n. Telegraphic and teleph nic y tem in the 19th century U e f advanced techn l gie like:

o GS ,

o CD A,o WLL &o 3G Techn l gy.

B th Public and Private Player . Give maximum facilitie t the cu t mer . The Telec m ect r c ntribute 2.83 % t the t tal GDP in

2006-07 a again t 2.71 % in 2005-06.


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Telec mmunicati n Indu try include :

o Telec m ervice :- Teleph ne Service :

Fixed Line Teleph ny.

bile Teleph ny.

- Internet Service .- Br adband Service .- Netw rk Infra tructure.

- Telec m Equipment :- Ph ne In trument .- Semic nduct r .


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India Fa te t gr wing market in W rld 190 mn ub criber

4th large t m bile market gr wing at 6 mn Sub/m nth

4th large t internet market, 3rd large t by 2007

V ice Revenue dr pping;

PCO - 4.5 mn @ CQGR f 7.22%

Paying highe t taxe and regulat ry charge ; Variable Licen e fee.


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Ministry of Communication & Information Technology

Regulator

Licensor

Judiciary

Telecom Regulatory

Authority of India

Telecom Dispute

Settlement Appellate

Tribunal

Dept of Telecom Unified License Operators

Fixed Line Operators

GSM

900 &

1800

Wireless Operators

National Long Distance Operators

International Long Distance OperatorsCDMA

1800Mhz


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Company PresenceSubscribers Jul 06 (mn) Share (%)

Fixed Mobile Fixed Mobile

BSNL Government owned. Has ramped up GSM services.

National presence (except Mumbai and Delhi)

37.4 17.7 74.7% 19.6%

MTNLGovernment owned. Operates in Delhi and

Mumbai.3.8 2.0 7.7% 2.3%

Bharti Integrated operator, with presence in all sectors.Largest mobile services provider. 1.4 19.6 2.7% 21.7%

Reliance

Integrated operator. Plans expansion of GSM

network apart from being the largest private

CDMA operators.

3.0 17.3 6.0% 19.2%

Hutch Pure play GSM operator in 11 circles. 15.4 17.0%

IDEA Pure play GSM operator in 6 circles 7.4 8.2%

Tata

Teleservices

Integrated operator (along with VSNL) with

presence in all segments. Provides CDMA servicesin 20 circles

4.0 4.9 8.0% 5.4%

AircelOperates in 2 circles. Announced Plans to expand

GSM footprint in North and North east2.6 2.9%

Spice Pure play GSM player in 2 circles 1.9 2.1%

Others 0.4 1.4

Total 50 90


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Internati nal Bandwidth U age

The ab ve figure i f r u age f bandwidth China ha m re than 10 time f higher bandwidth u age a c mpari n t India

2000 2001 2002 2003 2004 2005 2006 2007

Australia 9 21 27 33 54 93 157 250

China 16 34 56 93 178 352 602 954

India 2 4 5 8 16 33 61 101

Indonesia 1 1 2 3 5 9 16 25

Japan 39 70 87 179 283 443 733 1176

Singapore 7 12 19 37 57 97 159 256

Taiwan 8 18 30 45 88 196 311 508

Thailand 1 2 3 5 6 10 16 26

Gbps

*S urce : Telege graphy


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22%

19%

15%

9%

20%

3%

3%

2% 2%

5%

0%0%

% Share Sept 2005

Bharti BSNL Hutch Idea Reliance Tata

Aircel TNL Spice BPL HFCL Shyam

September 2005

Players % Share

Bharti 20.89

BSNL 18.30

Hutc

13.54

Idea 6.59

Reliance 20.06

Tata 9.56

Aircel 2.93

MTNL 1.87

Spice 1.69

BPL 0.80

HFCL 0.11

S

yam 0.05


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21%

19%

14%7%

21%

10%

3% 2%

2% 1%

0% 0%

% Share Sept 2006



September 2006

Players % Share

Bharti 22.

0

BSNL 17.90

tch 16.10Idea 8.60

Reliance 20.

0

Tata 7.01

Aircel 3.21

MTNL 1.69

Spice 1.61

BPL 0.66

FCL 0.

6

Shyam 0.21


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22%

18%

16%

9%

20%

7%

3% 2%

2%1%0% 0%

% Share Feb 2007



February 2007

Players % Share

Bharti 20.30

BSNL 18.

0

tch 1

.90

Idea 10.20

Reliance 21.10

Tata 1.60

ircel 3.

0

MTNL 1.30

Spice 3.30

BPL

.

0

FCL 0.00

Shyam 0.00


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Internati nal Pricing P licy


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Players Countries Services Subscribers Partners

Bharti

Telecom

Seychelles

MTNL

United Telecom

(Since 2002)

Reliance

IndiaCallservices

(Since 2005)

Emtel of Mauritius,

(Since 1998)private

investorsand the Gov of

Seychelles

State of Jersey 2G and 3G, ILD Services from

Oct 2006

Seychelles Fixed, FWP, cellular34000 (March

2006)

MTML(Since 2005) Mauritius CDMA-based WLL

services

20000 (March

2006)

NepalCDMA-based WLL

services

45,032 (March

2006)

TCIL VSNL, and NVPL

Wholly

Jersey Telenet

Transnet/ Transtel,

Eskom, Nexus, Two,

CommuniTel

VSNL (acquired

license in 2005)

South Africa

Fixed (Services to

commence in Aug-Sep

2006)

owned subsidiary

US, UK and

Canada

ILD services toIndia,

Australia,Canada,France,Germany,

Malaysia, NZ, Singapore,

and UK

500,000 + -


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BSNL

Netw rk in n n-lucrative area e p. in rural area

Acce Deficit Charge (ADC)

Uni-brand trategy

bile TV f rGS u er

Wi-max in rural regi n

Reduce fare n fixed line


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Bharati Cellular Ltd

Airtel c ncentrate n VAS (Value Added Service )

Impr ving n brand image

Br adband - cla e in tead f the ma e t drive the pr fit

Vodafone-Essar Ltd

updated new n a wide range f ubject

Brand image with trademark ad


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Semic nduct r indu try

C ncentrating n chip de igning

18 f the t p 25 indu trie had et up chip de ign center in India

In trument

tly imp rted fr m China by n n-Indian player N kia, Ci c , etc

re m del in l w egment

re ch ice n feature in y uth egment

Re tricted up gradati n in executive egment


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Netw rk Infra tructure

Segregating the t wer bu ine

Bharati, V daf ne-E ar & Idea merged their t wer bu ineIndu T wer

Reliance ptic fiber

BSNL rural netw rk


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Telec m S ftware Exp rt fr m India:

Size f S ftware Exp rt R 4100 Cr (Exp rt & D me tic).

Size f Telec m S ftware market wa R 66 Cr. 1.6% f t tal Indu try

Sale .


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2003(Cr.) 2004 (Cr.) 2005 (Cr.) 2006 (Cr.)

Bharti 2,08

.00 3,261.00

,

36.00 7,928.00

tch 1,73

.00 2,701.00

,36

.00 6,837.00

Reliance 683.00 2,

71.00

,089.00 6,673.00

BSNL 90.00 1,98

.00 3,9

6.00 6,

7

.00

Idea 1,080.00 1,313.00 2,262.00 2,966.00

TataIndicom 6.00 2

3.00

23.00 1,878.00

Spice 0.00

20.00 706.00 8

.00

ircel 230.00 37

.00

61.00 880.00

MTNL 1

.00 227.00 338.00

99.00

FCL 11.00 12.00 10.00 22.00ShyamTelelink 10.00 11.00 6.00 12.00

Escotel 322.00 3

0.00* *

BPL 963.00 1,030.00* *


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Revenue Projections CSP

0

2000

4000

6000

8000

10000

12000

14000

2003 2004 2005 2006 2007 2008

Year

CroreRs.

Bharti

Hutch

Reliance

BSNLIdea

ata Indicom

Spice

Aircel

M NL

HFCL

Shyam elelink


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THREATS:

L w c t ervice pr vider n p ibility f breaking even in h rt term.

Weak IPR (Intellectual Pr perty Right ) pr tecti n.---c py right

S ftware and digital c ntent Piracy.--duplicate

P litical in tability.un tablene ,unreliable

Regulat ry interference.legal b die wt l t f new rule


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CHALLENGES

Regulat ry P licie Lack f level playing field

Penetrati n LevelAcr the w rld and within India Seamle R aming

Infra tructure Pr gram anufacture telec m equipment in India Pa ive Infra tructure Sharing

V IP v ice ver internet pr t c l

Value Added Service Unutilized ftware capability

Digital Divide

N n Availability f techn l gy, equipment, netw rk acce f rmilli n f p r.


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Emerging arket Driving V lume Gr wth L w Tariff (ARPU )

Devel ped arket L w Sub criber Ba e

Techn l gical Advancement

Indian Telecom depends on the global telecom industry for technology platforms& network management

While Indian market size attracts telecom giants


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WEAKNESSES:

L we t call tariff in the w rld.

arket tr ngly regulated by G vernment b dy G verning b th ISP and

Telec m ect r .

T many auth ritie ruling the ect r.

Huge p tential f r l w end and cheap hand et .

Primarily a v ice ba ed market.

High c t f ervice pr vi i n.

L w inc me c untry like India cann t aff rd t replicate expen ive telec m

infra tructure.


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Thank You

telecom industry final

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