HISTORY OF TELECOMMUNICATION INDUSTRY

The history of telecommunication industry started with the first public demonstration of Morse’s electric telegraph, Baltimore to Washington in 1844. In 1876 Alexander Graham Bell filed his patent application and the first telephone patent was issued to him on 7th of March. In 1913, telegraph was popular way of communication. AT&T commits to dispose its telegraph stocks and agreed to provide long distance connection to independence telephone system. In 1956, the final judgment limited the Bell System to Common Carrier Communications and Government projects but preserving the long-standing relationships between the manufacturing, researches and operating arms of the Bell System. In this judgment AT&T retained bell laboratories and Western Electric Company. This final judgment brought to a close the justice departments seven –year-old antitrust suit against AT&T and Western Electric which sought separation of the Bell Systems Manufacturing from its operating and research functions. AT&T was still controlling the telecommunication industry. In 1982 , AT&T was requested to divestiture its stock ownership in Western Electric; termination of exclusive relationship between AT&T and Western Electric; divestiture by Western Electric of its fifty percent interest in Bell Telephone Laboratories, AT&T ‘s telecommunication research and development facility, is a jointly owned subsidiary in which AT&T and Western Electric each own 50% of the stock; separation of telephone manufacturing from provision of telephone service and the compulsory licensing of patents owned by AT&T on a non-discriminatory basis. It was telecommunication act of 1996 that true competition was allowed. The act of 1996 opened the market to all competitors. AT&T being the first telecommunication company paved the road for the telecommunication industry as well as set the policy and standards for others to follow.

Beginning of telecommunication in India
         1851 : First operational land lines were laid by the government near Calcutta 1881 : Telephone services introduced in India 1883 : Merger with postal system 1923 : Formation of Indian radio Telegraph Company 1932 : Merger of ETC and IRT into Indian Radio and Cable Communication Company 1947 : Nationalization of all foreign telecommunication companies to form the posts, telephone and telegraph, a monopoly run by the government’s ministry of communications 1985 : Department of telecommunication established , an exclusive provider of domestic and long-distance services that would be its own regulator 1986 : Conversion of dot into two wholly government – owned companies the VSNL for international telecommunication and MTNL for services in metropolitan areas 1997 : Telecom regulatory authority created

or "Baby Bells. and used the name MCI WorldCom followed by WorldCom before taking its final name on April 14. MCI's history. service providers are the main drivers. The company formerly traded on NASDAQ under the symbols "WCOM" (prebankruptcy) and "MCIP" (post. AT&T Inc. Inc. Louis. wireless service. GLOBAL PLAYERS 1 AT&T AT&T Inc. Formerly SBC Communications. headquartered in St. Inc. Missouri. is an American telecommunications company that is headquartered in Ashburn. 2003 as part of the corporation's emergence from bankruptcy. In telecom industry. whereas equipment manufacturers are witnessing growth and decline in successive quarters as sales is dependent on order undertaken by the companies.. Virginia. It took full control of Southwestern Bell Telephone on January 1. The corporation was the result of the merger of WorldCom (formerly known as LDDS followed by LDDS WorldCom) and MCI Communications.S. and DSL Internet access in the United States. the company shed its name and took on the iconic AT&T moniker and the T stock-trading symbol (for "telephone") after its acquisition of American Telephone & Telegraph Company (later known as AT&T Corporation).bankruptcy).Telecommunication is important not only because of its role in bringing the benefits of communication to every corner of India but also in serving the new policy objectives of improving the global competitiveness of the Indian economy and stimulating and attracting foreign direct investment. was founded in 1983 as Southwestern Bell Corporation. antitrust action against American Telephone & Telegraph Company in 1983. echoes most of the trends that have swept American telecommunications in the past half-century: It was instrumental in . Indian Telecom industry is one of the fastest growing telecom markets in the world. 2006. 2 MCI Worldcom MCI. combined with the histories of companies it has acquired." The company — a holding company for Southwestern Bell Telephone Company — was created as a result of U. 1984. is the largest provider of both local and long distance telephone services. It was one of the seven original Regional Bell Operating Companies. The corporation was purchased by Verizon Communications with the deal closing on July 7. and is now identified as that company's Verizon Business division with the local residential divisions slowly integrated into local Verizon subsidiaries.

In 2006.pushing legal and regulatory changes that led to the breakup of the AT&T monopoly that dominated American telephony.000 people (half outside of France) and has nearly 159 million customers worldwide (2007). all iDEN "walkie-talkie" phones currently being shipped are still branded with the Nextel logo and graphics.6 billion. The current CEO is Didier Lombard. It accepted a proposed purchase by Verizon for US$7. Sprint Nextel has its executive headquarters in Reston. which primarily provides Nextel wireless services to more rural markets. It currently employs about 191. its purchase by WorldCom and subsequent bankruptcy in the face of accounting scandals was symptomatic of the Internet excesses of the late 1990s. 3 NEXTEL Sprint Nextel Corporation is one of the largest telecommunications companies in the US. Kansas (where the largest number of Sprint Nextel employees are based). and. As of June 2008. 4 Deutsche Telecom Deutsche Telekom (DTAG) is a telecommunications company headquartered in Bonn. the company spun off its local landline telephone business. Sprint is a global Tier 1 Internet carrier.5 billion acquisition of Nextel Partners. Both internally and externally. 5 France telecom France Télécom is the main telecommunication company in France and one of the largest in the world. behind AT&T and Verizon Wireless. The company was created in 2005 by the $35 billion purchase of NEXTEL Communications by Sprint Corporation. Germany. however. as such. and another 17% through the government bank. makes up a portion of the Internet backbone. In the United States. under the brand Orange Business Services. naming it Embarq and also completed the $6. It is the largest telecommunications company in Germany and in the European Union. With 53. one of its largest affiliates. the German Government still holds a 15% stake in company stock directly. Sprint Nextel operates the third largest wireless telecommunications network in the United States (based on total wireless customers). For the twelve months ending September 2004 it had revenue of US$60.11 billion. Virginia and maintains an operational and engineering headquarters in Overland Park.8 million subscribers. rebranding it Orange España. France Telecom-Orange is the number three mobile operator and the number one provider of broadband internet services in Europe and. the company also operates the second largest wireless broadband network and is the third largest long distance provider. is one of the world leaders in providing telecommunication services to multinational companies . Deutsche Telekom was formed in 1996 as the former state-owned monopoly Deutsche Bundespost was privatized. "Sprint" is an acceptable short name for the company. FT acquired a 77% ownership in the Spanish mobile phone company Amena. In August 2005.

the scope for growth in this Industry is unprecedented The Ministry of Communications and Information Technology (MCIT) is has very aggressive plans to increase the pace of growth. So. targeting 250 million telephone subscribers by end-2007 and 500 million by 2010. The telecom reforms have allowed the foreign telecommunication companies to enter Indian market which has still got huge potential. if 70% of total population is rural. Even though the fixed line market share has been dropping consistently. And. Currently the Indian Telecommunication market is valued at around $100 billion (Rupees 400. Surprisingly. The other reason that has tremendously helped the telecom Industry is the regulatory changes and reforms that have been pushed for last 10 years by successive Indian governments.9%. India’s rural telephone density has been languishing at around 1. The two major reasons that have fuelled this growth are low tariffs coupled with falling handset prices. International telecom companies like Vodafone have made entry into Indian market in a big way. Despite the manner in which the country’s Internet market has been booming.Bharti Airtel with 27% market share and Reliance Communication with 20% along with other players like BSNL (Bharat Sanchar Nigam Limited) and AT&T.2%. broadband penetration in India still remains around only 0.000 crore). this has not been reflected in broadband subscription numbers. Most of the expansion in subscribers is set to occur in rural India. CDMA market has increased it market share upto 30% thanks to Reliance Communication. CDMA has been loosing out numbers to popular GSM technology. across the globe. The savings through the setting of tower companies will . still in itself comparatively low. The mobile sector has grown from around 10 million subscribers in 2002 to reach 150 million by early 2007 registering an average growth of over 90%. contrary to the scenario in India. while there appears to be considerable enthusiasm amongst the population for the Internet itself. India’s move into high-speed broadband Internet access has been distinctly slow. The subscriber addition rate has been strong in the last 12 months but the regulatory developments will increase competition and thus curtail the long-term growth rates of individual companies. One segment of the market that has been puzzling is broadband Internet. the overall (fixed and mobile) subscribers have risen to more than 200 million by first quarter of 2007. broadband services still account for only 25% of the total Internet subscriber base.TELECOM SUBSCRIBER BASE IN INDIA Indian telecommunication Industry is one of the fastest growing telecom market in the world. Despite this surge. In 2006 India witnessed a good surge in broadband users with the total subscriber base in the country expanding by almost 200% to just over 2 million by years end. According to Telecom Regulatory Authority of India (TRAI) the rate of market expansion would increase with further regulatory and structural reforms. However. Two telecom players dominate this market .

3G and Broadband Wireless Access (BWA) policies have since been issued. Pilot projects on the existing and emerging technologies have been undertaken including WiMax. It is expected that the telecom equipment R & D shall be doubled by 2010 from present level of 15%. 3G etc. Also to improve the R&D infrastructure in the telecom sector and bridge the digital divide. India telecom infrastructure – present status India has proven its dominance as a technology solution provider. a very healthy net addition rate infact. top academic institutes and the Government of India together set up the Telecom Centres of Excellence (COEs). cellular operators. as also comprehensive security infrastructure for telecom network. Emphasis is being given to technologies having potential to improve rural connectivity. All the private operators GSM as well as the CDMA operators have been very consistent in their performance. The sector provides very strong revenue as well as earnings visibility over the next 12 months. Network expansion • 500 million connections by the year 2010. Efforts are being continuously made to develop affordable technology for masses. Modern technologies inductions are being promoted.partly go towards the higher capex and opex costs from more stringent spectrum allocation norms for the incumbents. • Provision of mobile coverage of 90% geographical area by 2010. Research is on for the preparation of tested infrastructure for enabling interoperability in Next Generation Network. However the recent regulatory developments are seem to be negative for the telecom companies as it will increase the number operators per circle which will intensify competition. The Telecommunications sector has been consistently adding more than 7 million subscribers for the last 6 months. Targets Set By the Government of INDIA Indian government has taken up the following expansion plan for the future: 1. .

Bharti Airtel Ltd. Broadband • Broadband with minimum speed of 1 mbps. • Comprehensive security infrastructure for telecom network. Rural telephony • One phone per two rural households by 2010 (about 80 million rural connections). • Tested infrastructure for enabling interoperability in Next Generation Network. • Doubling the telecom equipment R&D by 2010 from present level of 15%.5 billion in 2010. 3. 2. Infrastructure Sharing • USO subsidy support scheme for shared wireless infrastructure in rural areas with about 18. • Broadband coverage for all secondary & higher secondary schools and public health care centres by the end of year 2008. TOP FIVE COMPANIES The Top five companies. • Increase sharing in urban areas to 70% by 2010. Vodafone Essar Ltd.2. • Quadrupling production in 2010.000 towers by 2010. 6. 7. Research & Development • Pre-eminence of India as a technology solution provider. 2009 are: 1. 4. on the basis of ‘Market Share’ as on 31st January. • Achieving exports of 6 times from present level of 0. Introduction of Spread of IPTV and Mobile TV • IPTV in 600 towns by 2010. 8. • Reduce urban-rural digital divide from present 25:1 to 5:1 by 2010. 3. Reliance Communications Ltd. International Bandwidth • Facilitating availability of adequate international bandwidth at competitive prices to drive ITES sector at faster growth. Idea Cellular + Spice . BSNL 5. • Broadband coverage for all gram panchayats by the year 2010 4. 5. Manufacturing • Making India a hub for telecom manufacturing by facilitating more and more telecom specific SEZs.

telecom sector of India is the fastest growing market in the world.Current Scenario of Indian Telecom Industry It is a matter of proud to us that the Telecom industry of our India is the second largest emerging economies of Asia and third largest in whole world.Today. . Liberal policies of the Government that provide easy market access for telecom equipment and a fair regulatory framework for offering telecom services to the Indian consumers at affordable prices has facilitated the rapid growth to Indian Telecom industry. Recent rapid growth in telecom in India Our telecom industry in facing a fast growth rate in current era as a result of various positive and proactive actions of government and by the fruitful combination of both public and private sector. Indian telecom industry has provided a robust thrust to the economic growth of country this year.

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