TELECOMMUNICATION MARKET IN INDIA
The Indian telecommunications Network with 250m telephone connections is the fifth largest in the world and is the second largest among the emerging economies of Asia. Today it is the fastest growing market in the world and represents unique opportunities for UK companies in the stagnant global scenario. Tele-density, which was languishing at 2% in 1999, has shown an impressive jump to 9.5% in 2006 and 10.5% in 2007 and is set to increase to 20% in the next five years beating the Govt. target by three years. Accordingly, India requires incremental investments of USD 20-25 bln for the next five years. Private operators have made mobile telephony the fastest growing (over 164% p.a.) in India. With more than 33 million users (both CDMA and GSM), wireless is the principal growth engine of the Indian telecom industry. Given the current growth trends, cellular connections in India will surpass fixed line by late 2004/early 2005. Intense competition between the four main private groups - Bharti, Vodafone, Tata and Reliance and with the State sector incumbents-BSNL and MTNL has brought about a significant drop in tariffs. There has been almost 74% in cell. phone charges, 70% in ILD calls and 25% drop in NLD charges, resulting in a boom time for the consumers. The Government has played a key enabling role by deregulating and liberalising the industry, ushering in competition and paving the way for growth. While there were regulatory irregularities earlier, resulting in litigation, these have all been addressed now. Customs duties on hardware and mobile handsets have been reduced from 14 percent to 5 percent. The Indian government has merged the IT and Telecom Ministries to speed up reforms and decision on the Communication Convergence Bill to enable the common regulation of the Internet, broadcasting and telecoms will be taken after the new Government assumes responsibilities in may this year. An independent regulatory body (TRAI) and dispute
the cellular subscriber base in the country has almost doubled in March 2005. which operates in only eighteen circles. has a subscriber base of 37 lakh subscribers. is the fourth largest operator with a subscriber base of 17. Idea. Thus BSNL stands second largest cellular operator in terms of subscriber base at the end of the fiscal ending March 31. during March 2005. Vodafone. with a base of 8.32 lakh subscribers. till it was too late in the day. BSNL.80 lakh. Belying fears of a slowdown in cellular subscriber acquisitions. The cellular subscriber club expanded by 21. which operates in 23 circles.31 lakh last month. Unlike fellow public sector undertaking. the highest growth in any month so far. displacing Vodafone from the second position. Year-on-year. MTNL is the ninth largest operator. followed by Reliance
Telecom's 8. Spice Communications. with 50 lakh subscribers. and is expanding at the rate of 25% per year thereafter.
INDIAN CELLULAR MARKET
The Bharti Group. which operates in Mumbai and Delhi." said a telecom analyst. is the third largest operator with a subscriber base of 32 lakh. which operates in 22 circles.settlement body (TDSAT) is fully functional. The subscriber numbers per operator drop sharply with the sixth largest operator. MTNL.
This is much higher than 5.13 lakh in January 2005.31 lakh subscribers across four circles. the cell club has reported a 7. which operates in Seven circles.9 lakh subscribers.40 lakh. continues to be the country's largest cellular operator. 2007. higher than BPL's 11.9 lakh subscribers added in February 2005 and 2.92% growth. were taken by surprise and did not take effective steps to counter it. BSNL has been a very aggressive player in the market. "Cellular operators who expected BSNL to go the MTNL way. having a subscriber base of 9.
646 added by Delhi. higher than the 1. with a total base of 33.64 lakh.7 per cent a year.69%.18 % to reach 43. After two rather difficult years.89 lakh.58. However.74 % growth with subscriber numbers jumping to 5. India is potentially one of the most exciting GSM markets in the world.63.38% to 44.
GSM MARKET IN INDIA
Regional Interest Groups . Uttar Pradesh (East).75 lakh monthly additions in the third quarter. Andhra Pradesh. While the cellular industry has been on roll for the first three quarters of the previous financial year with an average of 16.180 subscribers. Uttar Pradesh (West).39 lakh in the metros.1 billion growing at roughly 1.08 lakh. Category B circles of Kerala. the first two months of 2007 had seen the growth slowing down. Much of this success can be attributed to the stabilisation of the licensing and regulatory environment. Circle C has reported 12. subscriber base of category A circles of Maharashtra. the past 12 months have seen the region's promise beginning to come to fruition. Punjab.While the subscriber base-jumped by 3. Rajasthan. while Mumbai added 1. it has been the government's New Telecom Policy (1999) that has had the most radical impact on the development of GSM services.GSM India
With a population of around 1. There is a genuine commitment to creating a modern and efficient communications
. Gujarat.74 lakh subscribers. 'The policy's mission statement is 'affordable communications for all'. More significant liberalisation followed in 1996 with the licensing of new local fixed line and mobile service providers. Karnataka and Tamil Nadu jumped by 10.
Among the metros. the Capital's cellular subscriber base of over 80 lakh is still higher than Mumbai's 66. India's telecommunications have undergone a steady liberalisation since 1994 when the Indian government first sought private investment in the sector. Madhya Pradesh and West Bengal recorded a jump of 10. Haryana.
GSM India will work with its members to realise the potential of early packet services in anticipation of the award of 3GSM licences. a figure that is set to be supplemented by a further Rs.
. 300 billion over the next five years.' Competition in the mobile sector has already had a visible impact on prices with calls currently costing less than 9 cents per minute. which cover the seven largest cities. India has more than 40 networks.infrastructure that takes account of the convergence of telecom. 300 billion over the next five years. One of the challenges facing GSM operators in India is the diversity of the coverage regions -from remote rural regions to some of the most densely populated metropolitan areas in the world. IT and media. It also helps explain why a recent Telecom Asia survey revealed that more than 70 per cent of Indian mobile subscribers felt that prices were now at a reasonable level. had been invested in India's GSM industry by mid-2000. the policy places significant emphasis on greater competition for both fixed and mobile services. This means that service costs have fallen by 60 per cent since the first GSM networks became live in 1995. over 7000 towns and several Lacs villages. With India's low PC penetration and high average Internet usage -at 14-20 hours a month per user it is comparable to the US -the market for mobile data and m-commerce looks extremely promising. It is estimated that more than Rs200 billion had been invested in India's GSM industry by mid-2000. In the year ahead. WAP services have already been launched in the subcontinent and the first GPRS networks are in the process of being rolled out. The good news is that subscriber growth is beginning to look healthy. Such depth of coverage has required enormous investment from India's operators. a figure that is set to be supplemented by a further Rs. In addition.
Hadden said: "GSM is the world's most successful mobile standard with over 1 billion users. he said.The good news is that subscriber growth is beginning to look healthy. Commenting on the raging debate over GSM versus CDMA in mobile services arena. GSM India will work with its members to realise the potential of early packet services in anticipation of the award of 3GSM licences. It is one of the fastest growing markets with its subscriber base doubling in 2005. Globally. adding GSM accounted for 80 per cent of the new subscriber growth in 2005. "For GSM. It also supports automatic international roaming. the target of 150 million subscribers by 2007-2008 is definitely achievable. and is an open mobile standard." Alan Hadden."
."Almost every Latin American operator has chosen GSM. said at a news conference in New Delhi. which is a major contributor to business plans. In North America GSM growth is bigger than CDMA (code division multiple access). the GSM market reached 1 billion users in February 2005. At this pace. WAP services have already been launched in the subcontinent and the first GPRS networks are in the process of being rolled out. India fastest growing GSM mart India is expected to have 145 million GSM (global system for mobile communications) customers by 2007-08 compared to 26 million subscribers as on March 2005. With India's low PC penetration and high average Internet usage -at 14-20 hours a month per user it is comparable to the US -the market for mobile data and m-commerce looks extremely promising. president of GSA. according to the Global Mobile Suppliers Association. In the year ahead. India is a success story." he said.
Vodafone and BPL are yet to hold the trials.
. if achieved. The company was the first to conduct field trials in November with its equipment supplier Ericsson. which constitute. Idea too held EDGE field trials in February this year with its vendor Nokia. Vodafone and BPL are yet to hold the trials. the EDGE! Bharti Cellular is close to commercially launching its EDGE service in Delhi and Mumbai by end May or early June. sources said.Bharti is almost there But first.)
Bharti Airtel Limited was incorporated on July 7. 1995 for promoting investments in telecommunications services. claimed chairman of GSA India chapter Rakesh Malik
Airtel (Bharti Airtel Ltd. The two companies would eventually migrate to EDGE.4 million fixed line customers. Its subsidiaries operate telecom services across India. 44. The scalable cost of migrating from GPRS to EDGE is not too high and mainly comprises software upgrades in case of a modern network such as Bharti and Hutch. but perhaps after seeing the response to Bharti’s service too held EDGE field trials in February this year with its vendor Nokia. The two companies would eventually migrate to EDGE. as of March 31.6 million mobile and 5. 2007. but perhaps after seeing the response to Bharti’s service.180 kbps (as against the theoretical speed of around 380 kbps) which. Bharti Airtel is India's leading private sector provider of telecommunications services based on a strong customer base consisting of 50 million total customers. EDGE holds the promise of delivering data speeds of around 170. promises the launch of many data applications.
not only to reflect our corporate ethos but also business strategy". with a footprint in 23 states covering all four metros and more than 50 million satisfied customers. Bharti also manufactures and exports telephone terminals and cordless phones.
. Apart from being the largest manufacturer of telephone instruments in India. Jagdish Kini.Airtel comes to us from Bharti Airtel Limited . Bharti is the leading cellular service provider. which underscores a more caring. Bharti Enterprises. SMS. it is also the first company to export its products to the USA. which underscores the leading theme for the new brand vision.engineering its image as just simply a cellular service provider to an all out information communications services provider. etc but which engulfs the whole gamut of wireless digital broadband services that will constitute tomorrows cellular services. followed by "The Good Life".
Airtel to “Touch Tomorrow” with a new brand vision The Bharti Mobile promoted AirTel cellular service will go in for repositioning of its brand image. The new campaign is in two phases . According to Mr. Bharti provides a range of telecom services. Karnataka "We are adopting a new brand.a part of the biggest private integrated telecom conglomerate.Touch Tomorrow . Bharti has also put its footsteps into Insurance and Retail segment in collaboration with Multi. which include Cellular. Touch Tomorrow is meant to embrace the new generation of mobile communication services and the changing scope of customer needs and aspirations that come along with it The new communication is about a new dimension in the cellular category that goes beyond the Internet.platform .the first of which will communicate overall brand philosophy and the second products and services. IVRS. Internet and recently introduced National Long Distance. Basic. The new brand ethos is portrayed in two distinct fashions .the tag line "Touch Tomorrow".National giants. Chief Operating Officer. roaming. more customer centric organization. Aimed at re. Bharti Mobile Limited.
.The new identity will have the logo in Red. AirTel will incorporate the latest branding in all of its communication and will soon be going in for an enhanced promotional drive to establish the brand's presence. Black and White colours along with lower case typography to convey warmth.