telecom management india telecom .pptx

8/13/2019 Telecom Management India Telecom .pptx

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19_2Telecom Mngmt ver1

Telecom ManagementEC482,

8thSem ECE Management Elective

Topic:

India Telecom Perspectives

9thFeb 2012 class

Prof. Satish Manocha, ASE,

Bengaluru


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India Telecom Perspectives

Framework

India Telecom Market

Telecom Related Organizations

Telecom regulations

National Broadband Plan

What Needs to be Done


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Framework

IndiaA Country of Immense Potential

Well Trained Population (Selected Segments)

Use of Advanced Technologies and Knowledge Base (SelectedSegments)

Extensive wireless voice urban network

Fast Industrial Growth Rate

Diversity, Free Thinking*

Challenges

Infrastructure, Infrastructure, Infrastructure

Closing the Urban and Rural Gap

Productivity, Communications, Education

Application of Global Technology and Processes to LocalEnvironment and Needs

Developing a Regulatory / Competitive Balance Timely and Fast Decision Making

Affordability Creation and Distribution

Telecom / Communications

A Key Enabler for Progress

Living in all centuries at the same time*

:The Argumentative Indian by Dr. Amartya Sen


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India Telecom Market - 1

Higher subscriber volumes, lower tariffs and falling handsetprices

Mobile penetration of around 65% in early 2011

750 million mobile subscribers (including both GSM andCDMA services) coming into 2011

GSM technology continued to dominate the mobile marketin India; while CDMA still clings to a market share of around

15%

ARPU has been steadily declining as competing operatorsoffer cheaper tariffs the usage levels have remainedreasonably high thus slowing the decline in revenues.

Major push in recent years to take mobile services into the

poorer and rural areas of the country

2010 the long-awaited 3G auctions finally took place.

2011 the 3G networks were rolled out and services deliveredto customers.


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India Telecom Market - 2

Rationalizing the number of operators

By early 2011 there were just over 13 million broadband

subscribersa lowly penetration (by population) of slightlymore than 1%. Wireless broadband technologies

Attempts to free up blocks held by other ministries

160 operational Internet ServiceProviders(ISP) in the country

10% of the ISPs have 90% of the subscribers. state-owned BSNL and MTNL with Tatas continue to

dominate the market, holding first and second place interms of Internet subscribers and a massive 70% of the totalsubscriber base


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India Market share


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GSM Operators


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CDMA Operators


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Wireline Market Share


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India Broadband Market Share


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ISP Market Share


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India Broadband Connections


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Internet Usage Purpose


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India National Broadband Plan

Nation-wide Broadband network to Reach Education,Healthcare, Banking and Other Services to all the Villages

Telemedicine, e-commerce, e-banking and e-Governmentavailable through a high-speed Internet connection

2004 Defined Broadband as 256 Kbps Download

2010 recommendation to increase to 2 Mbps

Broadband 20 million Target connections by the end of year2010 in India (TRAI 2004). Actual 10 million achieved by 2010.

10 % Point Increase in Broadband Penetration AcceleratesEconomic Growth by 2.5 percentage Points

Broadband Connections:

China: 120 M, USA 85 M, India 10 M

3G and Broadband Wireless Access (BWA) Auctioned

0.2 to 0.3 M in Contrast to 18 million mobile VoiceConnections per Month

(TRAI Dec 2010)


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India Regulatory Environment

Regulatory Bodies by Govt of India

Telecom Commission

Administrative, Financial, Spectrum, Validation

Department of Telecommunications (DOT)

International Forums, Administration of Laws

Telecom Regulatory Authority of India (TRAI)

Customer Interests, Policy Recommendations

Telecom Dispute Settlement and Appellate Tribunal (TDSAT)

Adjucate on Disputes, Appellate Authority


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Telecom Commission

Administrative and financial powers

Policy formulation,

Licensing

Wireless spectrum management

Administrative monitoring of public sector units (PSUs)

Research and Development

Standardization and validation of equipment


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Communications with such as InternationalTelecommunication Union (ITU),

International Telecommunication Satellite Organization,International

Mobile Satellite Organization and

Asia Pacific Telecommunity(IPT).

Promotion of standardization, and research and developmentin telecommunications

Promotion of private investment in telecommunications

Financial assistance for research and study intelecommunications technology to adequately train manpower

Administration of laws


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Telecom Regulatory Authority of India (TRAI)

Recommendations on various aspects related to thefunctioning of telecom service providers

Monitor the quality of services provided by the serviceproviders & publish

Protect consumers interest

Recommend the provision of Universal Service Obligation(USO) to connect the Unconnected.

Fix tariffs for various telecom services

Advise the government on

Need and timing for introduction of new service providers

Terms and conditions of the license


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Telecom Dispute Settlement and Appellate Tribunal (TDSAT)

Adjudicate on disputes

Between licensor and licensee

Between two or more service providers

Between service provider and group of consumers

Act as the appellate authority in respect of any directions,decisions or orders of TRAI

Any appeal beyond TDSAT is only to the Supreme court


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Telecom in India - Issues

Affordability

Estimate Typically Consumers willingness to pay 2.5% of

Disposable Income on Telecom Services Broadband Continues to Lag Behind

Introduction of Smartphones and Android Based and i-Phone Handsets

Launch of 3G/ Mobile Broadband services, next 4G

Indigenous Telecom Manufacturing guidelines

New Restrictions on Telecom Equipment on non-IndianManufacturers

Knowhow Transfer

Source Code Collateral

Adverse Effect on Indian Operators and Telecom Growth inIndia

International Best Practices?


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India Telecom Trends

Tariff Wars

High value per Rupee

Fast Growth in Mobile Voice

Consolidation in the Countrys Crowded Telecom Market

Shift of Focus from Urban to Rural

Rural Voice Teledensity:25%

Urban teledensity:100%,

Voice to Video and Data Applications

Financial Services on Mobiles

Mobile Number Portability (MNP)since 2011


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India Technology Focus Areas

Timely Introduction of Broadband Access Very Important for Growth

Business, Education, Entertainment

Affordable Cost (Few Hundred Rs/month) Clustered Approach

Leveraging Relevant Technologies for Broadband Access

Limited DSL for Existing Copper Connections

Difficult Coax/Cable Facilities for Residential Applications

Difficult Fiber Penetration for Broadband Access For Broadband Mobility, 3G WCDMA/HSPA Key Option

WiFi for Selected and Limited Hot Spots

WiMAX for Metropolitan Coverage

LTE Longer Range Option

Fiber and WiMAX for Backhaul Packet Transport

Smart User Equipment - Multimedia Capable

Mobile E-Servicesan Imperative


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DOT

Policy formulation, licensing and coordination of matters relatedto telegraphs, telephones, wireless, data, facsimile and

telematic services and other like forms of communications Granting licenses to operators for providing fixed and Value

Added Services (VAS) in various cities in accordance with thepolicy of government

Implementing treaties and agreements with other countries

International relations in matters connected withtelecommunications, including matters relating to allinternational bodies dealing with telecom


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India Population Pyramid: Age-wise


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Indias Telecom Growth


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India Internet Usage


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India Services Expenditure


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India Telecom Trends - 1

Tariff WarsHigh value per Indian Rupee

Fast Growth in Mobile Voice

Broadband Continues to Lag Behind

Rural Penetration Still a Challenge

Introduction of Smartphones and Android Based and i-Phonehandsets

Auction and allocation of 3G and Broadband spectrum andlaunch of services.

Consolidation in the countrys crowded telecoms market

Shift of Focus from Urban to Rural: With rural teledensity atabout 25% as compared to urban teledensity of 100%,

Broadband will get a boost with the launch of the NationalBroadband Plan

Indigenous Telecom Manufacturing


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Voice to Video and Data Applications

Financial Services on Mobiles

launch of 3G/ Mobile Broadband services

Web browsing is expected to be the most used serviceamong mobile broadband users in India.

Music and video related services are likely to be nextmost popular services.

Data will be segmented and the plans will be tailor-madefor different segments of the population.

Price will be the most important determinant of take up of3G services, followed by content.

The tariff plans are expected to be competitive andinnovative.

Initially, take up of 3G services will be concentrated moreamong urban subscribers.


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Mobile Number Portability (MNP)

greater focus on quality and service to retain subscribers

Mobile Banking:

Shift Towards smart handsets:


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Telecom in India - Issues

New restrictions on telecom equipment that is manufacturedand sold by non-Indian manufacturers to telecom serviceproviders located in India

transfer the underlying technology to the Indian purchaserof the telecom equipment within three years

Issue of Intellectual Property

deposit the source code of telecom-related software in an

escrow account that is controlled by the Indian government Maintenance entirely by Indian Engineers within two years

Adverse on Indian Operators and Telecom Growth in India

International Best Practices?


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Telecom in IndiaWhats Needed

Recognition of Telecom as a critical part of National Growth

Uniformity and Consistency of Policies

New National Telecom Policy 2012

Micro-regulation should give way to a market based approach

Applications for end customer good

Banking, Education, health, Government Services

Steady , adequate and predictable availability of spectrum.


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Key Focus Areas

Provision of High Speed Data Access as Compared toContinued Emphasis on Proliferation of Voice Networks

Technology Path Consistent with Availability of Current andUpcoming Technologies

Alignment with Global Environment with Local Execution

Services and Applications Consistent with Indias Needs

Technology and Knowledge Development

Open and Distance Education Study roles & functions of ITU, APT, DoT, TRAI, TDSAT, WPC,

TEC, TEMA from their websites

Roles of COAI, AUSPAI, WiMAX Forum


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Challenges

Closing Urban/Rural Gap

Access (Affordability & Distribution)

Focus on Tier2 and Rural Customers Delayed Deployment of Mobile Broadband


Delay in Spectrum Allocation:

FCFS(First Come First Served) or Auction

Becoming a Technology Leader

Business Model

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