PROJECT ON TELECOM SECTOR OF INDIA

VISHWA VISHWANI INSTITUTE OF SYSTEMS & MANAGEMENT GROUP MEMBERS AREBasanta Kumar Padhan Satyajit Paul Shailendra Shrivastava Mukesh Kumar Bhatta Rabi Kumar Sadija

INTRODUCTION OF TELECOM INDUSTRY
History -India’s telecom renaissance has been remarkable. After 44 years of government monopoly, market liberalization introduced in 1991 has led to a 7-fold increase in the number of phones in just 12 years.  The mobile market recently topped 31 million customers.  India is one of the fastest growing telecom markets with an average annual growth of about 22% for basic telephony and over 100% for cellular and Internet services.

BSNL . Telephone and Telegraph (PTT).  Year -2000 Do not becomes a corporation.History of telecommunication         India requires investments of at least $37 billion by 2005 and $69 billion by 2010. a monopoly run by the government's Ministry of Communications Year -1997 Telecom Regulatory Authority of India created Year -1999 Cellular Services are launched in India. Year-1851 First operational land lines were laid by the government near Calcutta (seat of British power)  Year-1881 Telephone service introduced in India Year -1923 Formation of Indian Radio Telegraph Company (IRT)  Year -1947 Nationalization of all foreign telecommunication companies to form the Posts. New National Telecom Policy is adopted.

Spice Communications)  .Major Players There are three types of players in telecom services:  • -State owned companies (BSNL and MTNL)  • -Private Indian owned companies (Reliance Infocomm. BPL Mobile. Idea Cellular.  Escotel.)  • -Foreign invested companies (HutchisonEssar. Bharti Tele-Ventures. Tata Teleservices.

Introduction of major players  BSNL  BHARTI  MTNL  RELIANCE INFOCOMM  TATA TELESERVICES  VSNL  HUTCH  IDEA .

  MARKET SHARE OF PLAYER IN TELECOM SERVICE .

service provider and a consumer. service providers.Regulatory Control Entry of private service providers in 1992 brought the need for independent regulation.  Telecom Regulatory Authority of India(TRAI) was established from 20February 1997 to regulate telecom services & tariffs fixation.  Telecommunications Dispute Settlement and Appellate Tribunal(TDSAT) was established from 24January 2000 to settle disputes between a licensor and a licensee.  .

 Technology development and transfer  Service provision.Recent Policy Changes  Restructuring the sector.  Increased the investment. .

handset features. v An average of 4million subscribers added every month for the past 6 months. v The wireless subscriber base has increased 75percent from 2002 to 2007.broadband.internet. .Major Market Trends v Telecom trends in India have a great impact on the PC.Cable. v 18 percent of mobile users are willing to change their handsets every year.

Mergers Demand for new spectrum as the industry grows and the fact the spectrum allocation is done on the basis of number of subscribers will force companies to merge so as to claim large no . . Of subscribers to gain more spectrum as a precursor to the launch of larger and expanded services.

EQUIPMENT MARKET .

EQUIPMENT OF TELECOM INDUSTRIES IN INDIA .

TOP 10 INDIAN TELECOM PROVIDER IN INDIA .

2007-08: subscriber expected to cross 250 mn 2006-07: Base Stations installed: 100.000. Annual growth: 60% 14 Million Units .Telecom Market in India : 2002-07 Mobile Phones • • • Annual subscriber base growth 44%. Annual growth: 55% 2006-07: Towers installed: 100.000.

of Telecom 26 November 2006 15 .Dept.

› Provide world class telecom service at affordable cost Dept.Key Policy Initiatives/milestones  New Economic Policy (1991) › Opening up of Telecom service sector (Mobile –metros)  National Telecom Policy 1994 › Telecom. key for development › Inadequacy of public resource to meet demand › Private sector to supplement Govt. of Telecom 26 November 2006 16 .

Key Policy initiatives (contd.)  Establishment of TRAI (1997)  New Telecom Policy (NTP 99) › Transition from fixed license fee to revenue share › Introduction of free competition › Technology neutral licenses › Tariff rebalancing  Creation of BSNL (2000)  Establishment of TDSAT (2000) 17 ..

)  Opening of National & International long distance  Launching of mobile service by BSNL (2002)  Establishment of USO Fund  Broadband policy (2004) Dept. of Telecom 26 November 2006 18 ..Key Policy initiatives (contd.

KEY FACTOR OF TELECOM GROTH IN INDIA q Telecom industry is growing at a scorching pace in the recent years. q It is due to the following reasons 3. Global economics is growing. 7. Wireless revolution is taking place in country. Another key role is implementation of customer greater control over telecom costs. (CPP REGIME) . Intense competition among several player. 5. We have moved from an environment that was monopolized. 4. 6. by state own company.

NEW STEPS FOR TELECOM       1. Foreign Direct Investment of up to 100 percent permitted for the following: Manufacturing of telecom equipment Internet service (not providing international gateways) Infrastructure providers (Category I) E-mail service Voice mail service Call Centers and IT enabled services 2. Foreign Direct Investment of up to 74 percent permitted for the following:    Internet service (providing international gateways) Infrastructure providers (Category II) Radio paging services   .

Full reparability of dividend income and capital invested in the telecom sector   q 7. royalty up to 5 percent for domestic sales and 8 percent for exports in telecom manufacturing (higher amount through specific approvals)   q 6.NEW STEPS FOR TELECOM   q 5. Fiscal incentives and concessions for the telecom sector:      Amortization of license fee Tax holiday Rebate on subscription to shares/debentures Scope for tax exemption on financing through venture capital Import duty rates reduced for various telecom equipment   . Automatic approval for technology fee up to US$ 2 million.

H PROJECT ON TELECOM "U" N A BA SAN TA K UMAR PADHA N SA T YA JI T PAUL SH AILENDRA SH RI VAST AVA RABI KUMA R SA DIJA JY OTI RAN JA N JENA T K .

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