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INDIAN TELECOM INDUSTRY

BY FAKHRUDDIN

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1. Introduction

2. Economic Contribution

3. Major Players

4. Govt. Rules & Regulations

5. SWOT Analysis

6. Suggestions & Conclusions

CONTENTS

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INTRODUCTION

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•Well Postal means of communication was the only mean communication until the year 1850.

• In 1850 experimental electric telegraph started for first time in India between Calcutta (Kolkata) and Diamond Harbor (southern suburbs of Kolkata, on the banks of the Hooghly River).

•In 1851, it was opened for the use of the British East India Company. Subsequently construction of telegraph started through out India. A separate department was opened to the public in 1854.

Post men running with postal articles 1850's picturecalled “dawk wallah”

O'Shaughnessy's Indian "Reverser" or Transmitter 1851

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•Dr.William O’Shaughnessy, who pioneered the telegraph and telephone in India,

•In early1881, Oriental Telephone Company Limited of England opened telephone exchanges at Calcutta (Kolkata), Bombay (Mumbai), Madras (Chennai) and Ahmedabad.

•On the 28th January 1882 the first formal telephone service was established with a total of 93 subscribers.

•From the year 1902 India drastically changes from cable telegraph to wireless telegraph, radio telegraph, radio telephone, trunk dialing.

Dr. Williams O’shaughnessy

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136 years since the first telephone call 136 years since the first telephone call

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ECONOMIC CONTRIBUTION

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•Driven by wireless revolution, the Indian telecommunications industry is one of the fastest growing in the world.

•According to TRAI's report 'Telecom Sector in India: A Decadal Profile', the tele-density has increased from 4.3 in March 2002 to 78.1 in February 2012.

•The share of telecommunication services (excluding postal and miscellaneous services), as per cent of the total gross domestic product (GDP), has increased from 0.96 in 2000-01 to 3.78 in 2009 -10.

•Wherein the rural areas registered an increase from 1.2 in March 2002 to 38.5 in February 2012.

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•According to the same report, international comparisons (among 222 countries) show that India has the second largest number of telephone subscribers in the world accounting for 12 per cent of the world's total telephone subscribers.

•India is today one of the largest telecom markets in the world, with an addition of more than 18 million subscribers every month.

• Telecom sector has continued to emerge as the prime engine of economic growth, contributing to nearly 2% of the Indian GDP.

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MAJOR PLAYERS & MARKET SHARE

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GSM Services Operators

TTSL

Reliance

BSNL

TTSL – Tata Teleservices Ltd.MTNL – Mahanagar Telecom Nigam Ltd.

BSNL

MTNL

RELIANCE COMM.

TTSL

BHARTIAIRTEL

IDEA

VODAFONE

UNINOR

MTS

TATA DOCOMO

AIRCEL

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MARKET COVER (wire line)

MARKET COVER (wireless)

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GOVERNMENT

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•The Government of India is focusing on improving rural tele-density and broadband connectivity, effective expansion of the networks with efficient utilization of scarce spectrum and ensuring equal sharing of highly capital intensive infrastructure.

•TRAI, the telecom sector regulator, intends to create standards to ensure quality of service for mobile phone companies which deliver mobile data services to the users.

•TRAI has created nine parameters benchmarks including service activation clause (that the service would be activated within three hours with a 95 per cent success rate), drop rate (or the network's inability to upload or download, should be below 2 per cent) etc.

•Considering the fact that roll out of 3G and 4G high-speed data access services across the country will lead to quantum jump in the number of mobile internet users.

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SWOT ANALYSIS

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STRENGTH1. Huge Customer potential2. High Growth Rate:-3. Allowed FDI limit ranging from 74% to 100:-4. High return on Investment5. Liberalization efforts by Govt.6. Lower capital expenditure7. Fastest growing telecom market8. Forward looking approach of the government9. Fast adaption of technology development i.e MNP, NGN,

3G,Broadband Wireless Access(BWA) & IPv6etc.10. Establishment of decentralize unit of DoT like , Controller

of Communication Account (CCA) and telecom Enforcement, Resource and Monitoring (TERM) Units etc.

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WEAKNESS1. Poor Telecommunication Infrastructure Result : Large number of call drops2. Late adopters of New Technology3. Most competitive market4. A market strongly regulated by Government5. Difficult to enter because of requirement of huge

financial resources.6. High cost of data hosting in India 7. Low profitability of telecom PSU’s8. Low broadband penetration in the country9. Comparatively slower growth of telecom services in

rural /remote areas.10.Non availabilty of adequate spectrum

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OPPORTUNITY1. The industry is expected to reach a size of

344,921 Crore (US$ 68.81 billion) by 2012 at a growth rate of over 26 per cent, and generate employment opportunities for about 10 million people during the same period.

2. For developing a new comprehensive Telecom Policy.

3. For accelerating the growth of Tele-density in the country.

4. For creation of telecom infrastructure in rural and remote areas by utilization of the USO funds.

5. For huge broadband potential in the country.6. For R&D, product development and

indigenous telecom manufacturing.

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1. Non availability of adequate spectrum for telecom services.

2. Dependence on foreign telecom equipments supplier.

3. Cyber threats on ICT networks, leading to security concerns.

4. Obsolesce of existing network elements due to fast changing telecom technologies.

Source : www.dot.gov.in

THREATS

THREATS:

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LATEST SCENERIO 2012•The telecom tower industry has been granted infrastructure status by the Government of India, say news reports.

•According to TRAI, he telecom subscriber base in the country increased from 951.34 million in March, 2012 to 965.52 million in June, 2012. Subscriber additions from rural areas constituted a large portion of this growth. Between March and June 2012, the rural areas contributed to about 91.30 per cent of the total additions to the country’s subscriber base.

As per TRAI data the gross revenue and adjusted gross revenue of the telecom sector increased fromRs 35.49 billion in previous quarter to Rs 52.51 billion for the quarter ended June, 2012.

Aircel has entered a strategic partnership with NEC for software as a service (SaaS). Aircel and NEC will be providing cloud services solutions to customers under the brand name Business Unplugged.

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•Bharti Airtel has made an investment of $150 million in its African operations, say news reports. • 6th National Telecom Awards 2012: Best Broadband & Fixed Line Operator Bharat Sanchar Nigam Ltd.•Best  Quality Mobile Network Services Provider Bharti Airtel Ltd.

Ranking as per their total customer across the country.

1. bharti airtel -256 million customers.2. reliance -150 million customers3. idea cellular- 117 millions customer

Contd.

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Finding and suggestionsFINDINGS

1.Reducing the product and service price.

2.New advertisement campaign.

3.Pressurizing the government to make the policy tough for new competitors.

4.New offer for current customer in terms of price and service.

SUGGESTIONS

1. Since tele-density is still around 21% therefore telecom companies have to try to those market which is still untapped by the other telecom companies.

2. Keep their technology up to date so that they should always offer something new to their existing customer and also new customer.

3. Should provide better customer service through better customer relation so that old customer doesn't left.

Source : www.ibef.org

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References:1. http://www.telecomindiaonline.com/cmai-association-of-india-announced-the-presti

gious-6th-national-telecom-awards-2012.html2. www.Ibef.org3. www.trai.gov.in/