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• Indian teleco mmunic ati on fir ms ad de d 5.19
mi llion new s ubs criber s in A pri l 2007 , tak ing t he
total u ser base abo ve 212 .02 m ill ion .
• W ir eles s se r vice pr ovider s continued to
domi na te user g rowth by ad ding 5.15 mil lion
sub scr iber s in A pr il , w hile 40 ,000 new fi xed-l ine
user s signed u p.
• At 500 m inute s a m onth, Ind ia ha s t he highes t
monthl y 'm inute s of usa ge ' (M OU ) per su bsc riber
in the As ia-P acif ic re gion.
• India is emer ging as a for er unner in u si ng the
cel l phone as a too l to acce ss the Inter net, w ith
one in e ver y 11 peop le l og ging on to the web
acr os s the w or ld thr ough mob il es tur ning out to
be an Indian .
• T he countr y's te lecom se ctor w ill see
in vest ments up to US$ 25 bi ll ion over the next
fi ve y ear s, pr ojects global consu ltanc y fi r m
Er nst & Y oung .
• India is expected to r e gis ter hand set pr oduction
of over 51 m ill ion un its i n 2007 to recor d the
highe st g rowth i n the A sia -P acif ic r e gion,
accor ding to tec hno log y resear ch fi r m Ga r tner .
• India pr oduced near ly 31 m ill ion mob il e phone s
in 2006 w or th about US $ 5 bil lion. T he
pr oduction of handset s is s et to incr ea se b y 68
per cent in un it s and 65 per cent in value ter ms
in 2007. By 2011, pr oduct ion volume s ar e
exp ected to r eac h near l y 95 mi lli on un it s at a
compound annual g rowth rate (CA GR) of 25 per
cent.
• T he retai l ma r ket for mob il e phone s - - hand set s,
acces sor ies and ai r ti me - - is over US $ 15 .6
bi ll ion and g rowing at the rate of 15-20 per cent .
• Mas siv e i nfr ast r uctur e need s i n India mi ght
pr ovide a potenti al pr iv ate equit y role . A recent
st udy by t elecom re gula to r T eleco m R e gul ator y
Authorit y of Ind ia (T RAI) ha s es ti ma ted tha t the
countr y wil l need a bout 350,000 telecom to wer s
by 2010 , a s agains t 125 ,000 i n 2007.
• W ith a C AGR of 46 per cent , Ind ia ha s emer ged
as the fas tes t g rowing mar ket in the da ta
centr e-s tr uctur ed ca bl ing m ar ket in the As ia
Pac ific re gion , accor ding to Acces s Ma r kets
Inter na tional (AMI) Par tner s, a US- based
consu ltanc y agenc y. T he da ta centr e s tr uctur ed
ca bli ng ma r ket i s expected to g row fr om U S$ 19
mi llion in 2005 to US $ 125 mil lion in 2010 . T he
over al l st r uctur e ca bling ma r ket is e xpected to
g row fr om US $ 127 mil lion in 2005 t o U S$ 345
mi llion by 2010 a t a CA GR of 22 per cent. .
• In Ma y 2007, Indian GS M mobi le phone ser vice
pr ovider s signed up 5 .1 m illi on cu stomer s,
taking tota l user s to 130 .6 m ill ion , the C el lu lar
Oper ator s' Assoc ia tion of India sa id .
• T he combined revenue of a ll oper ator s fr om
thei r m obi le bus ines se s wou ld mor e than double
to U S$ 33 .1 b il lion by 2010, fr om about US $ 12.8
bi ll ion in 2006 .
• T he total r evenue of al l tel ecom oper ator s i s
al so se t to near l y doub le to US $ 43.6 bi ll ion in
four year s, fr om U S$ 22.5 bil li on i n 2006. T he
revenue sh ar e of m obi le bus ines s would ri se to
76 per cent i n the s ame per iod, fr om 57 per cent
cur rentl y. Ind ia, w hic h is ad ding o ver s ix m illi on
mobi le su bsc riber s e ver y month, ha s su r pas sed
Russi a t o become the t hir d lar ge st m obi le
mar ket in the wor ld after Ch ina and the US . T he
total m obi le sub scr iber base in the countr y is
lik el y to r eac h 425 m illi on b y Mar ch 2010 wi th
Bhar ti Ai r te l (GS M) and R eli ance (C DMA and
GS M) e mer ging a s the t op two m obi le oper ator s
in ter ms of nu mber of s ub scr iber s.
Telecom indus tr y-
IN VEST IN INDI A
Gr owth Avenues
T he Indian teleco m s ector of fers unpr ecedented
oppor tunit ie s for for eign compan ies in v ar ious ar ea s,
su ch a s 3G , vir tual pri va te netw or k, in ter na tional
long di stance cal ls, v al ue ad ded s er vi ces , etc.
3G Se r vices – T he Ne w B uzz Wor d
T he ind ian mar ket s is wel l poi sed to l ever age the
ser vice of fer ing i n content c ate gor ies s uc h as
spo r ts , game s and mu si c.
3G
3G trend MT NL/ BS NL w on t he bid ding for Spect r um
for 3G . O ther play er s st ill in the row.
T her e wer e mor e t han 9.27 m ill ion inter net user s i n
India
at the end of Mar ch 2007
• T her e is a r equ ir ement for br oadba nd da ta
connecti vi ty,
espec ial l y t o the bus ine ss c las s
• Ce llu lar tec hno log y is una ble to fu lfi l th is need due
to co st
and comp le xit y
• W iMax wi ll acceler ate econom ic g rowth and a ss ist
in
pr oviding better educa tion, hea lthcar e and
enter tai nment
ser vices
• Antenna system s
• Ca ble s and tr an sm is sion syste ms
• Bac khau l (cor e infr astr uctur e wi th s wi tc he s and
netw or king)
Pol ic y I mpac t
At pr esen t, India is the thir d lar ge st der e gu la ted
teleco m m ar ket i n the w or ld .
T he Indian go ver nment has conti nuousl y la id st rong
focus on the de velopment of wor ld-c las s tel ecom
infr astr uctur e and the indu str y has w itne ss ed
syn chr onous pol ic y change s 1999 onw ar ds .
Buo yed by thi s, the entr y of numer ou s pr iva te
pla yer s has tr ig ger ed an i mpr ovement i n the qua li ty
of se r vice s; a reduction in the tar if f le vel acr os s al l
se gment s and the de velopment of i nfr as tr uctur e.
Cur rent l y, pri va te par tic ipa tion is per mitted in a ll
se gment s of the teleco m i ndus tr y, inc luding
in ter na tional lo ng dis tance, dome sti c l ong d is tance ,
bas ic cel lul ar, in ter net, radio pa ging , e tc
Key Tr ends i n the Indus tr y -
A Dynam ic Ma r ket
Mer ge rs and Acqu is it ion s (M&A)
Bha r ti Air te l
Bhar ti Ai r te l, a par t of Bhar ti Enter pri se , i s India’ s
fir st and lar gest pri vate ser vi ce pr ovide r w ith a
na tion-w ide oper ati onal pr esence . W hi le it was
founded in 1995 as B har ti T ele ventur e Ltd. ( BTVL) , i n
A pri l 2006, the company changed it s name to Bhar ti
Ai r te l.
Bu si nes s Al liance s
In or der to impr ove cos t and qual it y, the compan y
outsour ce s non -cor e act iv itie s thr ough bu si nes s
al li ances T he se al li ances pr ovide acces s to new
tec hno logie s and allo w the co mpany to adopt the
bes t pr act ices of enhancing cus tomer experience. In
fact, A ir tel ha s e sta bli shed al li ances wi th Si ng Tel ,
Er ics son , Nok ia, S ie mens , No r tel , Cor ning, IB M.
Bhar ti has dec ided to use Air tel as the single br and
name acr oss a ll it s ca te gor ies su ch as ce llu lar , fix ed
and inter net ser vices . T he compan y bel ie ves th at an
in te g rated appr oac h s uc h as O ne Ai r te l w ill he lp it
in better ad dr es si ng cu stomer needs thr ough
bundled ser vi ce of fer ings . T his in it ia tiv e is s lated to
incr ea se A ir tel ’s ROI.
Lo w Co st Str ate gy
Nokia
As in the rest of the wor ld, hand set m ajor Nokia is
al so the m ar ket leader in the Indian mob ile hand set
se gment . Des pi te tough competi tion , Nok ia has been
succe ss ful in r eta ini ng i ts mar ket leader ship wi th
mor e t han 50 per cent shar e. T he company ha s a ls o
figur ed in the top-f iv e Indian br ands in the Br and
Equi ty s ur vey thi s year . Nok ia’ s m anuf acturing hub
in Chenna i, Ind ia, pr oduces handset s.
Compet it iv e Pr ic ing
LG M obi le
LG f or ay ed into t he Ind ian hand set m ar ket b y
par tneri ng with Reliance Inf oco m i n the C DM A
se gment . LG i s the b ig gest pr oducer of CD MA
handset s in the wor ld . La te r, the Kor ean maj or, LG, ,
al so laun ched GSM handset s in the Indian ma r ket.
Bu si nes s Str ate gies
“Wireless at maximum”