INDIAN TELECOMMUNICATION

INDUSTRY
By
• Rachi Agrawal (102)
• Sahil Arora (103)
• Ashwath Bereke (104)
• Krishna Chaitanya (105)
• Rajshri Bhatter (106)
• Michelle Chandy(107)
• Hari G(109)
• Swathi Krishnan(123)
SNAPSHOT OF TELECOM INDUSTRY
Third largest telecommunication network in the world
Second largest in terms of number of wireless
connections
FDI Inflow during April 2000 to March 2009-Rs
2,75,444 mn to exceed
Year Contribution to GDP
1980-89 .7%
1990-99 1%
2000-08 3.6%
2007-08 5.7%
2014-15(Projected) 15.4%
 SNAPSHOT OF TELECOM INDUSTRY(Contd..)

As in March 2009 Figure

Total telecom subscribers 429.72 mn

Wireless Subscibers 391.76 mn

Wire line Subscribers 37.94 mn

Tele Density 36.98%

India Service Providers
revenue in Q1 2009 $8.2 bn
India's rural mobile phone
users 100 mn
TELECOM SECTORS
MARKET PLAYERS AND MARKET SHARE
GROWTH TRENDS OF WIRELESS SUBSCRIBERS

Subscriber Subscriber
Base Base
All Figures in (As on 31st (As on 30th
Million Population May, 2009) June, 2009) Penetration
Metros
Bombay 17.95 19.85 20.27 112.9%
Delhi 18.20 22.84 23.30 128.0%
Chennai 6.99 9.44 9.56 136.8%
Kolkata 14.43 12.00 12.23 84.8%
 ROLE OF TECHNOLOGY AND LABOR
Gradual shift in dependency from labor to
technology.
Employment increasing at 5% compared to 11%
in all industries.
Technologies and automated software
 COST CONSTITUENTS
License and spectrum charges
Installation, operating and expansion of network Costs
Costs due to change in technology
Advertising and Campaigning
Taxes payable
Salaries and maintenance

Comparing 3rd and 4th Quarters of 2008-09

 GOVERNMENT POLICIES
 100% FDI through automatic route in telecom Equipment manufacturing
 FDI ceiling raised to 74%
 Unified access licensing scheme on a Pan India basis
 Introduction of Mobile Number Portability
 Set up community service centre in rural India to provide broadband
community
 Bidding for 3G
 Spectrum Allocation
 Internet Service Provider

TELECOM IN THE BUDGET 2009

 16.21 thousand Crore Rupees invested which accounts for 3.6% of total
expenditure in budget
 Special additional duty(equivalent to sales tax) on import of parts used for
manufacture of mobile phones exempted up to July 6, 2010.
 Service provider providing taxable and exempt services now had the
option to pay reduced rate of 6% of the value of exempt service
 DEMAND DRIVERS
 Increased focus of operators on rural areas
 Increased adoption of Value Added Services
 Availability of cheaper handsets
 Entry of consumer durable and electronic companies into the mobile
handset segment
 Market potential
 Infrastructure
 Government policies and business climate(Interest rates and
Inflation)
 Technology and Special zones
 Competition
 Income levels and Changing Lifestyles of Consumers
GROWTH AVENUES

India Population Subscription

contribution contribution

Rural
India 72% 28%

Urban 15-20% 80-85%

India
 FUTURE OUTLOOK
 Network expansion
 Rural telephony
 Infrastructure Sharing 
 Introduction of Spread of IPTV and Mobile TV 
 Research & Development 
 3G and 4G
 Higher mobile penetration
 Increase in mobile usage rate
 Changes in technology
 Increase in number of service providers
 Decreased call rates
Thank You