INDIAN TELECOM INDUSTRY Telecom infrastructure in India has brought Indian telecom industry in an enviable position, as it is second amongst

the emerging nations of Asia. Indian telecom sector ranks as the fifth largest world over. The Indian telecom history begins in 1851 when the British India capital Calcutta (now Kolkata) witnessed its first operational landlines. However the telephone services came thirty years later in 1881. In the modern telecom scenario, the major change was the advent of private telecom business companies. In 1997, the formulation of the Telecom Regulatory Authority of India (TRAI) to facilitate the Indian telecom business plan expansion led to increased share of private telecom companies in the telecom market size of India. In 1999, the new national telecom policy came with cellular telecom services. The smooth functioning of Indian telecom market is supervised by a government telecom regulatory body called the Telecom Regulatory Authority of India (TRAI). The telecom regulatory authority of India is a subordinate of the ministry of telecommunications India. The telecommunication service in India include telephone services, national and international dialing services, pay phone service, telex and telegraph (both manual & automatic), remote area business message network based on satellite transmission, email and voice mail facility, cellular mobile phone, video conferencing, VSAT, internet, and intelligent network services among the major telecom services and solutions. The following topics define the Indian telecom industry: GOVERNMENT ACTS FOR REGULATION OF TELECOM INDUSTRY The various telecom India related acts by the Department of Telecommunications India are:  

  

Indian Telegraph Act 1885: This act empowered the government of India to take control of the existing telegraph lines and lay down the necessary infrastructure for further expansion of telecommunications in India. Indian Telegraph (amendment) Rules 2004: This act set the guidelines for the set up and development of public telecom services in India. Indian Wireless Act 1993: According to this act wireless telecom services could be set up only after due licensing from the telegraphy authority of India. Information Technology Act 2000: The act defines the information technology based communications in India. Telecom Industry of India was shown e-commerce way through this act in a legal manner. Communication Convergence Bill 2001: This bill declared the establishment of Communications Commission of India to regulate the transfer of all form of communication including broadcasting, telecommunications and multimedia.

Telecom Regulatory Authority of India (TRAI) Act 1997: The act established TRAI for the regulation of telecom business in India. Further amendments were made in the act as per the needs of the Indian telecom market that surfaced in the telecom market analysis and research conducted.

ISDN. Idea Telecom.TELECOM NETWORK SERVICES The telecom network services in India are being expanded in order to meet the in-house demands and also set new world standards. . International Subscriber Dialing Network: It is a fully automated system with services available for all countries. Cellular Service Providers (CSP's) The cellular services in India are also categorized as GSM (Global Mobile Communications System) and CDMA (Code Division Multiple access) system. Airtel. videoconferencing and other high-end services. The international telecom services and products by India's overseas telecom service provider Videsh Sanchar Nigam Limited (VSNL) include:   Long Distance Transmission Network: It is based on terrestrial microwave radio relay and coaxial cables along with optical fiber cables. These include both pre-paid and post paid mobile phone cards and services providers. The leading GSM services providers in the Indian telecom industry 2007 are Hutchison or hutch (Now Vodafone and known as Orange in Maharashtra). The leading CDMA providers are still Reliance communications and Tata Indicom with Airtel and Touchtel just entering the market. and Reliance. TELECOM SERVICE PROVIDERS IN INDIA The Indian telecom directory shows two major divisions: Fixed Service Providers (FSP's): These include the basic service providers that are the state operators like MTNL India and BSNL India who collectively account to over 90% of the total basic telecom services and private sector telecom service providers in india who mainly focus on leased lines. Tata.

the total number of towers in the country was 337. The telecom operators are now strongly contemplating sharing telecom infrastructure to save time and cost. The current scenario . 19 December 2010 A voluminous and sustained increase in the subscriber base month-over-month has put immense pressure on the existing telecom infrastructure. Indus Towers stood at the front of its competitors.000. with a total count of 108. Idea. At the moment. Pan-India rollout plans by regional operators like Aircel.000 towers). and the rollout of 3G and WiMAX networks by the second half of CY10 will add momentum to the industry. even though valuations are down and profitability is elusive.000 towers). TELECOM TOWERS: Passive and active infrastructure-a promising combination Sunday. The rest of the pie was shared between BSNL and MTNL (60. Infrastructure sharing in the wireless telecom sector is a new concept in India. Bharti (32.PASSIVE TELECOM INFRASTRUCTURE Third Party Passive Infrastructure sharing is a new concept in the Indian telecom industry and is yet to be successfully proven.000 towers. Internationally. GTL (33. along with passive infrastructure sharing becoming a standard practice.000 towers).000 towers). telecom infrastructure has evolved into an independent industry. As of April 2010. although passive infrastructure sharing has been successful in the US. This will trigger an expansion in the telecom towers space. and Reliance GSM. ATC (7100 towers). Quippo-WTTIL (31. With an increasing pressure on average revenue per user and declining usage charges. The growth phase in the cellular subscriber base in India is expected to continue.000 towers).000 towers within the next three years. Thus achieving scalability could face problems. the thrust among the telecom operators has shifted to cost cutting. and other players. Reliance (50. The industry is anticipating a requirement of 150. The telecom towers business has evolved as a separate entity in India. it has not yet been proven in Asia. Tele-density in India reached 51 percent in FY 2009-2010.

in the meantime. It acquired 4450 wireless communication sites for a total consideration of Rs. has taken over Essar Telecom Infrastructure in an all cash deal. .5 in two years. Reliance Infratel and GTL Infrastructure had entered into a non-binding agreement to merge their telecom tower assets. accompanied by 21. SBI-Macquarie Infra Fund has acquired an 11 percent stake in Quippo WTTIL.Although the telecom ministry had recommended the sharing of active infrastructure (antennae feeder cables. 2064 crore. 1318 crore to Quippo-WTTIL. Viom. Latest developments ( Competitors) The competitive landscape for the tower industry is beginning to consolidate. the subsidiary of ATC. Essar's site portfolio averages 1. and is expected to invite RFPs for this deal. backed by a bank guarantee of an additional 20. which now has 27. and transmission systems) in 2008. and is making a tower valuation of around Rs.000 telecom towers with 80. With 3G/WiMAX rollouts on the horizon. GTL Infrastructure Limited. However. The company has also initiated work to set up 50 towers to launch WiMAX service in Vadodara. With advantages such as sizeable reductions in OpEx and CapEx. The move has tripled ATC's presence in India. the deal did not finally materialize. It is targeting a tenancy ratio of 2. GTL gets 17. has completed the purchase of telecom towers from Aircel Limited and its subsidiaries in a deal valued at Rs.000 active tenants.500 telecom towers of Aircel. It has proposed to set up 104 telecom towers in the vicinity of the India-Pakistan border. RAN. and reduced time to market. Transcend Infrastructure Ltd.000 tenants. RCom is in discussions with other strategic and financial investors to pursue a similar transaction. This transaction has enabled GTL to achieve a sizeable tower portfolio in high ARPUgenerating metros and class A cities. Rajasthan and Gujarat over 2010-2011. 8026 crore. which would go a long way in attracting new 2G/3G/broadband wireless access (BWA) operators. mergers and acquisitions make strategic business sense. There is also a commitment. Quippo-WTTIL has been in discussions with many investors to get funds in exchange for stockholding. BSNL is in the process of adding more towers to its existing portfolio.000 tenancies to GTL over the next three years from Aircel Limited and its subsidiaries. Punjab.8 tenants per tower.000 towers over the next two years. accelerated network rollout. which is the same as the previous GTL-Aircel deal. and Quippo-WTTIL has now been renamed Viom Networks. infrastructure sharing has become a compelling business case for telecom operators as they target the next level of growth. in the states of Jammu and Kashmir. it is yet to gain traction. Tata Teleservices Maharashtra (TTML) is planning to sell its telecom towers for an enterprise value of Rs. Passive infrastructure space and energy management have gained significance as mobile subscriber growth is heavily dependent on the off-grid population. plans to add 25. (TIL). With this deal. It is planning to hive off its 7000 towers across seven circles. Vodafone Essar is looking to monetize its tower business outside the portfolio it has in Indus Towers. 45 lakh. Node B.

the TRAI has recommended spectrum sharing. In metros today.000 towers by 2013 to meet the growing needs of the population. Realizing the potential of the rural masses.000 towers.000-150. and shared network infrastructure has an important role to play in the coming future. while 450 MHz of spectrum will be available.Future outlook ( Demand for Telecom towers) The telecom industry in India is poised for continued growth with robust net additions. and will require an additional 100. with an estimated requirement of 554. Anticipating the future demand.000 towers by 2015. connecting the remote parts of the country within this fiscal year. mobile operators need a tower every 200-400 meters to service their customer base.25 percent by 2013. The market is poised for a 17 percent per annum growth. The total requirement of spectrum in the next five years is 500 MHz to 800 MHz. India's rural mobile teledensity is expected to reach about 36. . the government plans to construct 10.

Sign up to vote on this title
UsefulNot useful