telecom report april2010
TRANSCRIPT
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Telecom
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Telecom
Abhinanda(002)AbhishekSingh(003)Abhishek
Tanwar(007)AnjulAgarwal(023)DeepakGarg(031)Kapil
Singh(043)Manish
Tembhurkar(053)
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Table of ContentsIndias Telecommunications framework...............................................................................3
Government Agencies.........................................................................................................4
Industry associations............................................................................................................5
Industry associations
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Indias Telecommunications framework
Indian telecom framework helps in regulating the level playing field for all
the operators. The department of telecommunication ( GOI) is the
governing body in the industry. Telephone Regulatory Authority of India
(TRAI) assists the Government of India (GoI) to take timely decisions and
introduce new technologies in the country.
There are two governing bodies
Indian Govt body The body formulates various policies and pass laws,thus regulating the telecom industry in India.
a. Wireless planning and coordination ( WPC ) The body handles
spectrum allocation and management
b. DoT It regulates the licenses and frequency management for
telecom
c. Telecom commission It makes exclusive policy making body of
DoT.
d. Group on Telecom and IT ( GoT-IT) It handles the ad hoc issues
of the telecom industry.
Independent bodies -- They undertake various research activities
and monitor the quality of service provided in the Indian telecom
industry. They also provide various recommendations to improve the
status of telecom operations in India.
a. Telecom Regulatory Authority of India (TRAI) Independent
body
b. Telecom Disputes Settlement and Appellate Tribunal (TDSAT) --Telecom disputes settlement body
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Government Agencies
Government Agencies (TRAI / DOT etc)
Telecom Regulatory Authority of India (TRAI) Independent regulatory
body to regulate the telecommunication business set up by Govt in 1997.
It formulates the terms and conditions for licensce for the service
provider. Its role is to maintain the competition among the service
providers by formulating rules and regulating liceneses. Ref:http://en.wikipedia.org/wiki/TRAI
DoT It regulates the licenses and frequency management for telecom. It
is the executive branch of Ministry of communication and Information
Technology. The Department of Telecom has been formulating
developmental policies for the accelerated growth of the
telecommunication services. The Department is also responsible for grant
of licenses for various telecom services like Unified Access Service
Internet and VSAT service. The Department is also responsible for
frequency management in the field of radio communication in close
coordination with the international bodies. It also enforces wireless
regulatory measures by monitoring wireless transmission of all users in
the country.
Telecom Disputes Settlement and Appellate Tribunal. --
http://en.wikipedia.org/wiki/TRAIhttp://en.wikipedia.org/wiki/TRAI -
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Industry associations
Cellular Operators Association (COAI) The objective of the association
is to improve the standards and quality of service wrt to GSM
Association of Unified Telecom Service Providers of India ( AUSPI) The
association represents industry body of Unified Access Service (UAS)
licensing providing the telecom services based on CDMA technology.
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The Indian Wireless Industry
The wireless subscriber base was 391.76 million subscribers at the end of the
financial year in comparison to the subscriber base of 261.07 million at the end of
March, 2008. It added 130.69 million subscribers in the financial year 2008-09
registering an annual growth rate of about 50.06 %.
The total subscriber base of wireless services has grown from 33.69 million in
March, 04 to 391.76 million in March, 09
The Indian Wireless Industry is divided in to 23 circles
The circles have been categorized as Metros, A circle, B circle & C circle
The circled are categorized by degree of affluence, infrastructure development and
revenue potential areas.
There are four metro cirlces
-Chennai
-Mumbai
-Delhi
-Kolkatta
These circles accounts for 15.3% of Wireless subscribers and have highest ARPU
compared to other circles
There are five category A circles covering the state of Andhra Pradesh, Gujarat,
Karnataka, Maharashtra and Tamil Nadu
These circles form a major portion of total subscriber base of 137.18 million
subscribers
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There are eight category B circles covering the state of Haryana, Kerela, Madhya
Pradesh, Punjab, Rajasthan, Uttar Pradesh(East & West) and West Bengal(including
Andoman & Nicobar Islands)
These circles form a major portion of total subscriber base of 146.84 million
subscribers and recorded a increase in growth
There are six category C circles covering the state of Assam, Bihar, Himachal
Pradesh, North East, Orissa, and Jammu & Kashmir.
These circles form a minor portion of total subscriber base of 45.65 million
subscribers and have lowest tele-density and ARPU levels
Circles distribution
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Evolution of Cellular Networks
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GSM
Global system for mobile communication
Goal: Digital voice service with improved quality and also provide better data
services
Time Frame: 1990- 2000
Technology: TDMA/TDD
Enhanced for data services
General Packet Radio Service (GPRS)
Enhanced Data rates for GSM Evolution (EDGE)
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CDMA
Code division multiple access.
used in several wireless broadcast channels (cellular, satellite, etc) standards
unique code assigned to each user; i.e., code set partitioning all users share same
frequency, but each user has own chipping sequence (i.e., code) to encode data
data rates up to 144K
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VAS
Not a form of basic service but rather adds value total service offering
Stands alone in terms of profitability and/or stimulates incremental demand for core
service(s)
add-on to basic service
e.g SMS, GPRS, mobile stores (R-world, airtel world ...)
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Wimax
Worldwide Interoperability for Microwave Access
Brand licensed by the WiMax Forum.
a standards-based technology enabling the delivery of last mile wireless
broadband access as an alternative to cable and DSL
WiMAX was seen as more of a Metropolitan Area Network (MAN) technology
providing a much larger coverage.
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3G
Goal: High speed wireless data access and unified universal standard
Time frame: 2002-
Two competing standards
One based on GSM, IS-136 and PDC known as 3GPP
Other based on IS-95 named 3GPP2
Completely move from circuit switching to packet switching
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Enhanced data rates of 2-20Mbps
3G, BWA and MNP status
3G auctions started on April 7 2010.
BWA (wimax) auction to done after 3G.
3 licences in each circle to be given.
All major companies bidding.
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Mobile number portability TRAI issued notification in June 2009
Not yet implemented (deadline of 31 march 2010 extended).
4G (LTE)
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Supports even higher data rates than 3G
50 Mbps upload and 100 Mbps download.
Commercial installation started in different parts of world
The sale process for 4G will begin as soon as operators roll out their 3G networks
this year
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Challenges
No. of operators are increasing per circle: hence more competition
ARPUs are going down
Cost/ Customer is very high in rural areas
Spectrum a scare commodity
Infrastructure readiness in rural
PC prices are very high
Availability of Contents in local language
Availability of Contents for Rural Population
International Bandwidth is costly
Telecom Manufacturing in India.
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Opportunities
IPTV
VoD (Video on Demand)
Gaming
Video calls
Convergence (e.g. access internet from TV)
Peer to peer sharing
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Wireline vs mobile data access
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Role in development
Connect rural India to urban India and the world
Connect even remote areas to the information highway (internet)
Growth in telecom directly related to globalization.
Direct and indirect employment
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Rural/Urban distribution of total telecom subscribers
Trends in subscription (Voice Communication):
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Trends in subscription (Data Communication):
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Trends in teledensity (Rural/Urban and Wireless/Wireless):
Trends in usage (GSM/CDMA):
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Market Share (Wireless/Wireline)
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Bharti Airtel
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SUNIL BHARTI MITTAL
Chairman and Managing Director of Bharti Group, India's largest GSM-based mobile phone
service provider. Sunil Mittal can be called as originator of cellular phone revolution in
India. Sunil B.Mittal company runs India's largest GSM-based mobile phone service. Son of
a politician, he built his Bharti group, along with two siblings, into India's largest mobile
phone operator in just ten years. Sunil has always been a pioneer.
In his personal capacity, Sunil has received several awards such as:
Telecom Person of the Year, Voice & Data, 2006
Best Asian Telecom CEO, Telecom Asia Awards 2005
Best CEO, India, Institutional Investor, 2005
Business Leader Of The Year, Economic Times, 2005
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Ernst & Young Entrepreneur Of The Year 2004, Ernst & Young
1976
Mittal started his first business at the age of 18, with a capital investment of
Rs 20,000 (U$500) borrowed from his father. His first business was to make
crankshafts for local bicycle manufacturers .
1982
started a full-fledged business selling portable generators imported from
Japan.
1986
Incorporated Bharti Telecom Limited (BTL) and entered into a technical
tie up with Siemens AG of Germany for manufacture of electronic push button
phones.
1990
Mittal was making fax machines, cordless phones and other telecom gear.
started marketing telephones, answering/fax machines under the brand
name Beetel and the company picked up really fast
1992
Successfully bid for one of the four mobile phone network licences auctioned
in India, in collaboration with French telecom group Vivendi.
1995
Launched services in Delhi, when Bharti Cellular Limited (BCL) was
formed to offer cellular services under the brand name AirTel.
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Bharti Airtel Snaphot
3rd Largest wireless operator in the world.
6th Largest Integrated telecom operator in the world.
Largest wireless operator in India.
Largest operator in NLD, ILD and VSAT business.
Largest TELECOM company listed on Indian Stock Exchange.
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Bharti Group Important Event Snapshot
1995
Launched cellular services 'AirTel in Delhi.
1996
launched cellular services in Himachal Pradesh
1998
First Indian private fixed-line service, ending fixed-line services monopoly of
DoT (now BSNL)
2001
Bharti Cellular entered into license agreements to provide cellular services in
eight new circles.
Bharti Telenet entered into license agreements to provide fixed-line services
in the Haryana, Delhi, Tamil Nadu and Karnataka circles
Bharti Telesonic launched national long distance services under the brand
name of IndiaOne
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Bharti Telenet launched fixed line services in Haryana under the brand name
of TouchTel.
2002
Comes out with issue of 18.53 crore equity shares through book building
route with a floor price of Rs 45 per share
Shares listed on BSE, NSE and DSE, opens at 11% premium to its issue price
of Rs 45
2003
Company accorded its approval for amalgamation of its subsidiary companies
viz: Bharti Telenet Ltd, Bharti Telesonic Ltd, Bharti Broadband Networks Ltd
and Bharti Comtel Ltd through scheme of Amalgamation. The merged entity
would be renamed as Bharti Infotel Ltd
2004
Bharti Tele-Ventures enters into a three year service agreement with Ericsson
Bharti Tele-Ventures (BTVL) has signed and received unified access service
licence to provide GSM services in five circles
Bharti Tele-Ventures Ltd signed an information technology outsourcing deal
with infotech major IBM, estimated to be in the range of 0-750 million for aten-year period.
2008
Nokia Siemens Networks on Jan 3 declared that it has been awarded a multi
million euro contract from Bharti Airtel Ltd for deployment of a single
interactive voice response (IVR) platform across 23 circles.
2010
acquire Zain Africa BV based on an enterprise valuation of USD 10.7 billion.
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Latest Results Q3 FY09/10
Q3 FY 2010 Y-on-Y
Customers 121.85 mn 38.0%
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Revenue $2,093mn 1.4%
EBITDA $838 mn -0.9%
Cash Profit $876 mn 8.9%
Net Income $473 mn 2.3%
Bharti Marketing Strategy
2002
Ties up with SSC (Secondary School Certification) Board, Hyderabad, where
Bharti will announce SSC results to its customers on their mobile phones
ICICI Bank ties up with Bharti for pre-paid mobile cards via ATMs
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Bharti Group's cellular brand Airtel has unveiled free multimedia messaging
services (MMS) for its customers. The company has also rolled out pan-India
GPRS (General Packet Radio Services) for its corporate subscribers
Launches its `IndiaOne MeetXpress' audio-conferencing service
Airtel provides SMS cricket updates
AirTel, Touchtel jointly offer freeTouchtel land line for post-paid Airtel
connection
AirTel rolls out voice mail service for pre-paid customers
Offers 0-1-2, a new cellular package for the customers, which means zero
charges on incoming calls, Re 1 on mobile-to-mobile outgoing calls, Rs 2 on
mobile-to-mobile STD calls Iinks distribution pact with Hathway Cable. With
this alliance, Bharti is said to be the first telecom firm to step into television
distribution services
2004
Samsung India Electronics Limited has tied up with cellular operator Bharti for
bundling its mobile handsets with a connection.
Bharti Tele-Venture on July 19 launched ring back tone service which is a
personalized mobile music service where the caller hears songs and other
sound clips instead of the traditional switchboard ring-ring tone
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Bharti Product Innovations
Bharti Strategic Business Units
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Performance
Wireless Customer market share leadership at 22.7%.
Total minutes on network carried in Q3 175 billion
Total employee strength 18,201
Balance sheet strength:
Assets -$ 14 billion
Net debt -nil * ($414 million inclCCD)
Net debt to EBITDA nil * (0.12 inclCCD)
Continues to be FCF positive on a standalone basis
Note: * Net Debt is excluding fully and compulsory convertible,non-cumulative,
unsecured and interest free Debentures of US$ 661.
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Segment contributionRevenue , EBITDA and Investment
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Bibliographyhttp://wikipedia.org/
www.trai.gov.in
www.coai.com
www.airtel.in
.
.
http://wikipedia.org/http://www.trai.gov.in/http://www.coai.com/http://www.airtel.in/http://wikipedia.org/http://www.trai.gov.in/http://www.coai.com/http://www.airtel.in/