Professional Documents
Culture Documents
Indian Telecom Sectar
Indian Telecom Sectar
Telecommunication
Sector
August 2007
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Presentation Plan
6 Growth Avenues
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Indian Telecom Industry – A Lucrative Option
One of the fastest growing cellular markets in Total telecom subscribers – 688.38million in
the world in terms of number of subscriber July 2010
additions – 20 million in (April to sept 2009) Tele density – 58.17percent in 2010 July
Expected to reach total subscriber base of Number of new mobile subscribers added
about 1000million by 2012 (i.e., more than
every month – 16.92 million in 2009
two phone for every household)
Telecom equipment market – 136833 cr. In
More GSM subscribers than fixed-line
2008-09
subscribers
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Telephony services (mobile and basic) and Internet services
dominate the Indian telecom services
The total revenue in the telecom service sector was Rs. 86,720 crore in 2005-06 as against Rs. 71, 674 crore in
2004-2005, registering a growth of 21%. The total investment in the telecom services sector reached Rs.
200,660 crore in 2005-06, up from Rs. 178,831 crore in the previous fiscal.
The Indian telecom services can be divided predominantly into basic, mobile and Internet services. It also
comprises smaller segments, such as radio paging services, Very Small Aperture Terminals (VSATs), Public
Mobile Radio Trunked Services (PMRTS) and Global Mobile Personal Communications by Satellite (GMPCS).
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Private players account for highest subscriber base growth in the
basic telephony services segment
Bharti Airtel and Reliance are market Market Share* of Basic Service Operators in
leaders in this segment. India (2009-10)
Subscriber of wireline = 5.72%
60.00%
Subscriber of Wireless = 94.28%
50.00%
40.00%
30.00%
20.00%
10.00%
* In terms of Subscriber Base
0.00%
Bharti Airtel Reliance Vodafone Others 5
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GSM surpasses CDMA in number of additions to subscriber base
CDMA, 27%
GSM, 73%
Hutch, 22.0%
MTNL, 0.5%
BSNL, 22.8%
BSNL, 8.0%
Syam Telilink,
0.2%
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Various other services emerged by leveraging the telecom
services industry
Radio Paging
PMRTS have not grown to their expected potential GMPCS services were launched in India
in India. The high licence fee leaves a very thin in 1999. These services allow a
margin for services providers; thereby, inhibiting its subscriber to communicate from any
growth. About 31,000 subscribers are currently Other Telecom point on earth through a handheld
availing this service in India from 12 different Services terminal. Moreover, the telephone
operators. number remains unchanged,
irrespective of the subscriber’s location.
Market Share of Top Five Internet Service BSNL and MTNL caters to more than two-thirds of Internet subscribers in India.
Providers (as of quarter ending March 2010)
BSNL, 45.2% India had 6.35 million broadband connections at the end of June 2010
Bharti Airtel, Private players are catching up fast due to increased penetration of Internet and
6.8% broadband services in India.
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India: An Ideal Destination for Investments in Telecom Sector
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Increasing mobile subscriber numbers and low level of teledensity
offers large opportunities to Indian companies
18.3 19.9 20
200
providers with a large untapped potential due to the
12.8 16
150 country’s increasing population and its low teledensity. The
9.1 12
225.21
100 7.0 government has plans to raise teledensity to 72 percent by
206 8
5.1 140.3
50
76
98.4 4 2013; thereby, offering greater growth opportunities for
53
0 0 service providers.
2002–03 2003–04 2004–05 2005–06 2006–07 2007–08 (as
of June
2007)
Telecom Subscriber Base Teledensity
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Regulatory Framework provides level playing field for all operators
IndianTelecom
Indian TelecomIndustry
IndustryFramework
Framework
They formulate various policies and pass laws to They undertake various research activities and monitor
regulate the telecom industry in India. the quality of service provided in the Indian telecom
industry. They also provide various recommendations
to improve the status of telecom operations in India.
Wireless Planning and Handles spectrum allocation and Telecom Regulatory
Coordination (WPC) management Authority of India (TRAI) Independent regulatory body
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FDI and other M&A activities increasing in number
Major trends in the telecom sector is increasing M&A activity, de-regulation of telecom policies and growing
interest of international investors.
Important Deals in Telecom Sector The Indian telecom industry has a 74 percent FDI limit
in the telecom services segment.
Vodafone purchased stake in Hutch The GoI has permitted 100 percent FDI in
from Hong Kong's Hutchison
Telecom International for USD manufacturing of telecom equipment in India.
11.08 billion.
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Major Players in different segments of Indian telecom industry
Vodafone
Reliance
Idea
TTSL
Reliance
BSNL
Internet Services Operators
BSNL
CDMA Services Operators
MTNL Reliance
Reliance
TTSL
TTSL
BSNL
Airtel
Infrastructure
Rural Sharing Managed
Telephony Services
Value-Added
Growth
Growth Virtual Private
Services
Avenues
Avenues Network
WiMax
Enterprise
Telecom
3G Services
To reduce their network deployment costs, many service providers are considering
infrastructure sharing offers the following advantages:
Virtual Private Network is a private data network Improved service quality
that provides connectivity within closed user groups via Increased affordability for customers
public telecommunication infrastructure. Competition is Faster roll out of services in rural and remote areas
likely to heat up in the VPN segment as DoT has Significant reduction in initial set up costs
relaxed the norms for private players. Increased environmental aesthetics
Lower operating costs for service providers
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Emerging technologies – 3G and WiMax to assist in penetration of
telecom services in India
The Indian government plans to auction the spectrum for 3G services by inviting bids from
domestic as well as foreign players, and creating a competitive environment that offers better
services to consumers. Therefore, the 3G spectrum is among the major investment
opportunities and growth drivers of the telecom industry.
The immense potential for 3G is reflected by the 30–40 percent annual growth in Value-Added
Services.
Cell phone manufacturers are striving to develop USD 100 priced 3G handsets for the Indian
market.
India expects to replicate its 2G growth in 3G services.
WiMAX has been one of the most significant developments in wireless communication in the recent
past. Since this mode of communication provides network access in inaccessible locations at a speed
of more than 4 Mbps, it is expected to be a major factor in driving telecom services in India, especially
wireless services. Thus, it will lead to the increased use of telecom services, Internet, value-added
services and enterprise services. WiMAX is expected to accelerate economic growth and assist in
providing better education, healthcare and entertainment services.
It is estimated that India will have 13 million WiMAX subscribers by 2012.
Aircel is the pioneer in WiMAX technology in India.
The state-owned player, BSNL, aims to connect 74,000 villages through WiMAX.
Bharti, Reliance and VSNL have acquired licenses in the 3.3GHz range to utilise the opportunities
offered by this domain.
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Value-Added Services and Rural Telephony holds large market
potential in India
Value-Added Services in India (2009–10)
The VAS industry was worth USD 1102 million in
Person to
Application & Game & Data, 7% 2009–10. The industry is estimated to grow by 60
Application to
Person SMS, Others (MMS percent in 2011–12 and become an USD 1,611 million
15% etc.), 3% opportunity.
Ringtone
Dow nload, 35%
Person to Person
SMS, 40%
The VAS industry is currently focussing on the entertainment sector, such as the Indian film
industry and cricket; however, there is scope for growth in other avenues as utility-based
services, such as location information and mobile transactions.
Rural Telephony
As the government targets to increase rural teledensity from the
current 2 percent to 25 percent by 2012, rural telephony will
require major investments. This segment will boost the demand
for telecom services, equipment, Internet services and other
value-added services; thereby, offering great market
opportunities for telecom players.
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THANK YOU
• PRESENTED BY
• RAJESH KUMAR BISWAS
• ANIKET KHODE
• PIYUSHKUMAR BORAD
• RAJU SHAH
• JOY DUTTA
• GIRIRAJ SHARMA
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