INTRODUCTION

India is currently the world’s second-largest telecommunications market with a subscriber base of
1.05 billion and has registered strong growth in the past decade and half. The Indian mobile
economy is growing rapidly and will contribute substantially to India’s Gross Domestic Product
(GDP), according to report prepared by GSM Association (GSMA) in collaboration with the
Boston Consulting Group (BCG). The country is the fourth largest app economy in the world.

The liberal and reformist policies of the Government of India have been instrumental along with
strong consumer demand in the rapid growth in the Indian telecom sector. The government has
enabled easy market access to telecom equipment and a fair and proactive regulatory framework
that has ensured availability of telecom services to consumer at affordable prices. The deregulation
of Foreign Direct Investment (FDI) norms has made the sector one of the fastest growing and a
top five employment opportunity generator in the country.

The Indian telecom sector is expected to generate four million direct and indirect jobs over the
next five years according to estimates by Randstad India. The employment opportunities are
expected to be created due to combination of government’s efforts to increase penetration in rural
areas and the rapid increase in Smartphone sales and rising internet usage.

International Data Corporation (IDC) predicts India to overtake US as the second-largest

Smartphone market globally by 2017 and to maintain high growth rate over the next few years as
people switch to smart phones and gradually upgrade to 4G.
 NEWS COLLECTION AND ITS ANALYSIS

1. Demand For VoLTE Devices Doubles on Jio's 4G launch

Uploaded: 1st November, 2016
 Consumer demand for smart phones that support the voice over long-term evolution feature
has nearly doubled since reliance Jio Infocomm's 4G services launch with higher interest.
Smartphone brands and insiders in network provider community say the fact Jio led to
consumers in the smaller towns seek VoLTE phones, equating those free calls.
 At the same time, internet searches for under Rs. 5000 VoLTE phones surged the most
prompting vendors to launch more mobiles.
 Ever since Jio launch in early September, interest in VoLTE phones have surged, as
indicated by internet search volumes for the devices jumping sequentially by 40% in the
quarter ended September, as per data by 91mobiles.com Over 14 million VoLTE -enabled
smart phones estimated to have been ship to India in September quarter e=nearly twice the
number in previous quarter

2. AIRTEL TO WATCH JIO BEFORE TARIFF CUT DECISION

Uploaded: 2nd November, 2016
 Bharti Airtel will not cut down the prices of its services but will wait for Reliance Jio
Infocomm's Tariff to kick in and then do what it takes to be compete, India CEO Gopal
Vittal said, adding that the newcomer's entry would hurt smaller players more and lead to
industry consolidation.
 He further said that pressures on pricing and realizations due to the entry of Jio India’s
No.1 telecom companies is still adding to its revenue market share, and experts to gain
more in the quarter ahead.
 He though is concerned about the increasing number of subscribers from 2.5-2.6% up to
3.5% in the just end quarter due to increasing competition which must be brought down.
 3. JIO TO INSTALL 45,000 TOWERS IN SIX MONTHS
Uploaded: 03rd December, 2016
 Reliance Jio will install around 45,000 mobile towers in the next six months to boost its
4G network. Jio in meeting with Telecom Minister (Manoj Sinha) has committed to invest
45,000 crore mobile towers in next 6 months to further strengthen its network.
 The company has said it has plans to invest Rs. 1 lakh crore over 4 years and the new
towers are part of this investment, an official source said. No immediate comments were
received from Jio on the matter.
 The source said Jio informed the minister that it has already invested Rs 1.6 lakh crore in
the networks and installed 2.82 lakh base stations across the country.

4. 10,000 CUTOMERS OPEN ACCOUNTS WITH AIRTEL PAYMENT

BANK
Uploaded: 28th December, 2016
 Over 10,000 customers opened saving accounts with Airtel payments bank within the
first two days of the first payments bank in India going live.
 The payments bank, a subsidiary of the country's leading mobile phones operator
Bharti Airtel, offers the highest annual interest rate of 7.28% and an insurance of Rs.
1 lakh per accounts.
 Shashi Arora, Managing director, Airtel Payments bank said we are very enthused by
the response from customers from semi-urban and rural areas. Airtel Payment banks
rolled out pilot services across 10,000 Airtel retail outlets in Rajasthan last week.

5. Bharti Airtel kills all national roaming charges to counter Reliance Jio
Uploaded: Feb 27, 2017

 As we know that Reliance Jio is offering free of cost on voice calling & free SMS as well
as free roaming facilities to its customers. Whereas, to beat the competitions Bharti Airtel
is also going to give a free roaming services to its customers.
 Apart from this we can say that high competition is there in telecom industry. The general
public will be benefited from this because the cost for data and call rates will be
automatically become cheaper due to competition in the market to sustain for longer period
of time. Airtel is also providing lesser cost for international roaming calls as compared to
others.

6. Telenor India buy won't affect Bharti Airtel's financial position: S&P
Uploaded: Feb 27, 2017, 03.04 PM IST

 The acquisition, which is subject to regulatory approvals, will help Bharti Airtel improve
its market and spectrum position without any material increase in debt. Airtel is India's
largest wireless operator with over 269 million subscribers and a revenue market share of
over 33 per cent.
 As the new owner, Airtel will take over Telenor India's spectrum, licenses and operations,
including its employees and customer base of 44 million.
 The acquisition, if successful, will help Bharti Airtel consolidate its market position and
increase its revenue market share by about two percentage points to about 35 per cent, S&P
said.

7. Jio’s free voice services violated TRAI tariff orders: Vodafone to Delhi
High Court
Uploaded: Feb 22, 2017, 12.41 AM IST

 From this News we can say that, Vodafone is against the Jio Services Provided so far.
Vodafone mentioned that Reliance Jio is violating the Rules of (TRAI) for Tariffs orders
as well.
 The company argued that Jio was providing free voice calls and by continuing to do so
beyond the promotion offer period of 90 days, it was violating IUC and tariff regulatory
 rules. It added that free plans can be offered as long as the weighted average of all other
plans of a telecom companies complied with the IUC floor price.
 Reliance Jio, on the other hand, opposed the maintainability of Vodafone's plea, and said
the regulator had given the new entrant a clean chit. The company had claimed that TRAI
has also failed to implement the telecom department’s (DoT) circulars, which say that all
tariffs must be compliant with the IUC norms and should be non-discriminatory.

8. Jio’s winding up of freebies lifts RIL shares to 8-year high: Next 30 days
crucial, say brokers
Uploaded: Feb 22, 2017

 Shares of Reliance Industries (RILBSE 1.34 %) shot up 10 per cent in Wednesday’s trade
to hit a level last touched in June 2009. The stock logged the gains after the company said
it would start charging for its 4G services from April 1, 2017.
 On Wednesday, shares of Reliance Industries shot up over 10.14 per cent to hit an eight-
year high of Rs 1,198.6o on BSE, adding about Rs 35,000 crore to the market capitalization.
This was the biggest intraday gains for the stock since May 16, 2014.
 Shares of Bharti Airtel (BSE -2.25 %) and Idea were trading flat to negative.
 Jio’s pricing is attractive, but not overly disruptive. Jio offers Rs 303 for unlimited voice
(no roaming charges) and data, compared with Rs 349 for unlimited voice and 1GB data
offered by Vodafone. However, we note that the top 10 per cent of Indian mobile
subscribers (who have an average expenditure of Rs 600) account for 40 per cent of
industry revenues and will still find Jio offer attractive.

9. Bharti Airtel’s revenue per user may drop lower than Idea’s in Q4
Uploaded: Tue, May 09, 2017
 In this news article it is mentioned that India’s telecom major, Bharti Airtel, with the widest
subscriber base have suffered a fall in average revenue per user (ARPU) in the fourth
quarter of FY17.
 Reason for fall in revenue per user could be the ‘flood of high volume low yielding
terminating minutes on the incumbent’s network’.

 Airtel’s ARPU’s was the highest at the end of third quarter at Rs 172; while Vodafone
came in second at Rs 158 and Idea and Reliance Communication had ARPUs of Rs 157
and Rs 154 respectively.
 The analysts estimated that Airtel will report ARPU of Rs 160 in Q4 while Idea will report
ARPU of Rs 154, which is comparatively a lesser fall due to low subscriber additions by
the latter.

10.Reliance Jio Added 4.7 Million New Customers in May 2017; Total
Telecom Subscriber Base in India Reaches 1.2 Billion
Uploaded: July 14, 2017

 According to The Telecom Regulatory Authority of India (TRAI) the total of telecom
subscribers in India (both wired and wireless) increased from 1198.9 million at the end of
April 2017 to 1204.98 million at the end of May 2017.

 The total wireless subscribers (GSM, CDMA and LTE) increased from 1174.60 million to
1180.82 million at the end of May 2017, registering a growth of 0.53%.

 Overall, the subscriber addition showed a monthly growth of 0.51% from April to May and
the urban subscription increased from 695.99 million at the end of April 2017 to 697.06
million at the end of May 2017, and the rural subscription increased from 502.90 million
to 507.92 million during the same period. The monthly growth rates of urban and rural
subscription were 0.15% and 1.00% respectively during the month of May 2017.

 The Wireless subscription in urban areas increased from 675.48 million 676.65 million at
the end of May 2017, and wireless subscription in rural areas also increased from 499.12
million to 504.18 million during the same period. The monthly growth rates of urban and
rural wireless subscription were 0.17% and 1.01% respectively.
 11.TRAI confirms Reliance Jio’s 4G download speed almost double of that
offered by rivals
Uploaded: Apr 3, 2017
 TRAI shows that Reliance Jio tops the chart with almost double the download speed of
those offered by its nearest rivals -- Idea Cellular and Airtel.

 The speed of Jio was almost double of its nearest rivals Idea Cellular (8.33 mbps) and
Airtel (7.66 mbps).

 According to TRAI data, there have been a marginal decline in download speed of Idea
and Airtel as well compared to their performance in January.

 Among other networks, download speed on Vodafone and BSNL also dipped marginally
to 5.66 mbps and 2.01 mbps from 6.13 mbps and 2.89 mbps, respectively.

 The data showed average download speed on Reliance Communications, Tata DoCoMo
and Aircel network at the end of February was 2.67 mbps, 2.52 mbps and 2.01 mbps
respectively.

 Jio and Airtel have been at loggerheads over claim of being the fastest network in the
country. Based on broadband speed test result by a private company Ookla, Airtel has
issued an advertisement claiming to be officially the fastest network.

12.Jio extends Prime offer till April 15, springs additional summer surprise
Uploaded: Apr 11, 2017

 Mukesh Ambani-owned Reliance Jio, the newest telecom company, announced that the
company has notched an unprecedented 72 million paid subscribers, and extended by 15
days its rock-bottom priced data offer under Prime membership.

 The company, whose free extended promotional offer came to an end on March 31, also
announced a complimentary offer for three months for those who paid Rs 303 prior to April
15.
 The company extended the deadline for purchasing Jio’s Rs 303 (and other) plans till April
15th.

 Company also added that customers who could not enroll for JIO PRIME by 31st March
for whatever reason can still do so by paying Rs 99 along with their first purchase of Jio’s
Rs 303 and other plans till 15th April.

13.Airtel: Lost Rs 550 crore with the tsunami of calls from Reliance Jio
Uploaded: Friday, July 21, 2017

 In this news article Airtel loses 21 paise for every minute that is carried on its network.
This has resulted in a loss of Rs 550 crore per quarter due to the tsunami of calls originating
from Reliance Jio's network.
 Ravi Gandhi, Chief Regulatory Officer, Bharti Airtel mentioned that: "In effect, Reliance
Jio aims to build its business by getting a free ride on the highways built by Airtel and other
operators. Their proposal to move to Bill and Keep will further burden other operators and
make them weak. At the same time, it allows Reliance Jio to continue with its strategy of
predatory pricing and ultimately throttle all competition. This is the sinister design of Jio."

14. My Jio App Crosses 100 Million Downloads

Uploaded: August 11, 2017, 10:00 AM IST
 In this news articles Self-care applications of leading telecom operators -- Airtel, Vodafone
India and Idea Cellular, have registered over 10 million downloads on Google Play Store.
 Jio TV, the TV app of Reliance Jio, recorded over 50 million downloads, compared to over
5 million downloads of TV app from Airtel, over 1 million each of TV app from Vodafone
and Idea.
 It was also observed that "My Jio is first Indian app to crossed 100 million mark in less
than a year,”
 It is the second Indian mobile application to cross 100 million download mark and first
self-care mobile application from an operator,” Hot star is ahead of My Jio crossing 100
million downloads.

15. Jio Phone by Reliance: 9 Ways How Reliance Jio Could Disrupt the
Market
Uploaded: July 22, 2017, 7:18 PM IST
 As we know Android gaining focus in the Indian mobile market, it was unlikely that a
feature phone from Reliance Jio could be disruptive.
 While telecoms kept pushing for 4G adoption through flashy advertisements, and handset
makers offered substandard budget Android smart phones, nothing changed the ground
reality. Mobile data continues to be relatively expensive, people still complain about
mobile internet speeds and affordable Android smart phones remain unreliable.
 Here are nine ways how Reliance Jio disrupt the market.

a) Free Calls Always

b) 50 Crore Additional Mobile Data users
c) Smart’ but Not a Smartphone
d) Keep Check on Mobile Bills
e) More Pressure for Telecom companies Rivals
f) More Video Consumption
g) Mass Migration from 2G to 4G VoLTE
h) Disrupt DTH Service Providers
i) Cheap Android Phones Need to Get Better

16. Jio, Vodafone, Idea 4G Download Speeds Decline in July, Airtel’s Rises
Uploaded on: 04 August 2017

 For the second consecutive month, Reliance Jio, Idea Cellular, and Vodafone saw their 4G
peak download speed decrease, while Airtel was the only one of the four big telecom
operators whose 4G download speed increased.
 The data comes from the TRAI My Speed app, which tracks network speeds and other
information by collecting data from consumers’ phones. Jio has retained its position as the
fastest telecom network in the country with a peak download speed of 18.654Mbps, making
July the sixth consecutive month it has remained on top of the list.

 The company’s highest speed was in May, when the My Speed app registered Jio’s 4G
peak download as 19.123Mbps. Vodafone was the second fastest this month with peak
download speed of 11.070Mbps on its 4G network, down from the peak of 12.297Mbps of
June.

 Similarly, Idea’s9.465Mbps in July is slower than the peak speed of 11.685Mbps it

recorded the preceding month. Only Airtel, with 8.916 Mbps 4G peak download speed,
bucked this downward trend; its download speed in June was 8.233Mbps

 The Jio network is expected to see a lot more traffic in the coming months as the company’s
new Jio Phone handset hits the market.
 CHARACTERISTICS OF TELECOM INDUSTRY

Telecom subscriber base expands substantially. India is currently the second-largest

telecommunication market and has the third highest number of internet users in the world. India’s
telephone subscriber base expanded at a CAGR of 19.96 per cent, reaching 1058.86 million during
FY07–16. In March 2016, total telephone subscription stood at 1,058.86 million, while tele density
was at 83.36 percent

Wireless segment dominates the market. In March 2016, India’s telephone subscriber base reached
1,058.86 million. In March 2016, the wireless segment (97.62 per cent of total telephone
subscriptions) dominated the market, with the wireline segment accounting for an overall share of
2.4 per cent. Urban regions accounted for 57.6 per cent share in the overall telecom subscriptions
in the country, while rural areas accounted for the remaining share.
India is the world's second-largest telecommunications market, with over 1.0 billion subscribers
as of May 2015. The wireless segment (97.36 per cent of total telephone subscriptions) dominates
the market. It has also been growing at a brisk pace. During FY07-15, wireless subscriptions
witnessed a CAGR of 24.78 per cent to 969.8 million.

It is also the second largest country in terms of internet subscribers. The country is now the world’s
second largest smartphone market and will have almost one billion unique mobile subscribers by
2020.
India’s telecommunications market is expected to experience further growth, fuelled by
increased non-voice revenues and higher penetration in rural market. Telecom penetration in the
nation's rural market is expected to increase to 70 per cent by 2017. The emergence of an affluent
middle class is triggering demand for the mobile and internet segments.
Strong policy support from the government has been crucial to the sector’s development. Foreign
Direct Investment (FDI) cap in the telecom sector has been increased to 100 per cent from 74 per
cent.

MAJOR PLAYERS

I. Vodafone-Idea Merger
Vodafone India, is an Indian subsidiary of UK-based Vodafone Group plc, the world's
second-largest mobile phone company, is a provider of telecommunications services in
India with its operational head office in Mumbai. As of August 2016, Vodafone India has
a market share of 18.42% with approximately 200 million subscribers and is the second
largest mobile telecommunications network nationally after Airtel.
Idea Cellular is an Indian mobile network operator based in Mumbai, Maharashtra. Idea is
a pan-India integrated GSM operator offering 2G, 3G and 4G mobile services. Idea is
India’s third largest mobile operator by subscriber base. Idea has 191 million subscribers
as of 31 December 2016.
 On 20 March 2017, Idea and Vodafone India announced that their respective boards had
approved a merger of the two companies. The merger will not include Vodafone's 42%
stake in Indus Towers Ltd. The merger will create the largest telecom company in India by
subscribers and by revenue. Under the terms of the deal, the Vodafone will hold a 45.1%
stake in the combined entity, the Aditya Birla Group will hold 26% and the remaining
shares will be held by the public. The merger is expected to be completed by March 2019,
and the newly merged entity will be named at a later date.

II. Airtel
Bharti Airtel Limited is an Indian global telecommunications services company based in
New Delhi, India. It operates in 18 countries across South Asia and Africa. Airtel provides
GSM, 3G and 4G LTE mobile services, fixed line broadband and voice services depending
upon the country of operation.
Airtel is also testing VoLTE technology across five cities in India and should roll out the
technology towards the end of 2017. It is the largest mobile network operator in India and
the third largest in the world with 400 million subscribers. Airtel was named India's second
most valuable brand in the first ever Brandz ranking by Millward Brown and WPP plc.

Airtel is credited with pioneering the business strategy of outsourcing all of its business
operations except marketing, sales and finance and building the 'minutes factory' model of
low cost and high volumes. The strategy has since been adopted by several operators.
Airtel's equipment is provided and maintained by Ericsson, Huawei, Nokia Solutions and
Networks whereas IT support is provided by IBM. The transmission towers are maintained
by subsidiaries and joint venture companies of Bharti including Bharti Infratel and Indus
Towers in India. Ericsson agreed for the first time to be paid by the minute for installation
and maintenance of their equipment rather than being paid up front, which allowed Airtel
to provide low call rates of ₹1/minute.

III. Jio
Reliance Jio Infocomm Limited, or Jio, is an LTE mobile network operator in India. It is a
wholly owned subsidiary of Reliance Industries headquartered in Navi Mumbai,
 Maharashtra that provides wireless 4G LTE service network (without 2G/3G based
services) and is the only 'VoLTE-only' (Voice over LTE) operator in the country which
lacks legacy network support of 2G and 3G, with coverage across all 22 telecom circles in
India.
The services were first beta-launched to Jio's partners and employees on 27 December 2015
on the eve of 83rd birth anniversary of late Dhirubhai Ambani, founder of Reliance
Industries and later services were commercially launched on 5th September 2016.
On 21 July 2017, Jio introduced its first affordable 4G feature phone named as Jio Phone.
The price announced for it is ₹ 0 with a security deposit of ₹ 1500 which can be withdrawn
back by the user by returning the Jio Phone at Jio stores only after 3 years. This phone is
scheduled to be released for beta users on 15 August 2017 and pre-booking for regular
users will start from 24 August 2017 onwards.

IV. BSNL Mobile

BSNL Mobile (formerly CellOne) is an Indian mobile network operator, operated by the
public enterprise BSNL. It provides both pre-paid and post-paid mobile services as well as
many value added services. BSNL Mobile has a pan-India presence with presence in all
the 21 telecom circles in India. BSNL Mobile provides all of India with roaming access,
including Delhi and Mumbai, and International roaming access to more than 300 networks
across the world.

The company's CellOne network (GSM/GPRS) was launched in late 2002 and has
coverage in major cities and towns and more places are being covered. BSNL Mobile offers
both GSM as well as CDMA prepaid and postpaid services. CellOne was renamed BSNL
Mobile in 2007. It was the first company which made incoming roaming charges free
across the country. BSNL has total 101 million subscribers as on 31 March 2017. Talks of
its merger with MTNL are under process.
MARKET SIZE

The mobile industry is expected to create a total economic value of Rs 14 trillion (US$ 217.37
billion) by the year 2020. It would generate around 3 million direct job opportunities and 2 million
indirect jobs during this period.
The total number of telephone subscribers in the country rose by 11.13 per cent year-on-year to
1,151.78 million in the September-December quarter of 2016. According to a report by leading
research firm Market Research Store, the Indian telecommunication services market will likely
grow by 10.3 per cent year-on-year to reach US$ 103.9 billion by 2020.
The revenue of mobile handset industry rose 22 per cent to Rs 1.36 trillion (US$ 21.12 billion) in
2016. In 2017, around 200 million mobile handsets will be made out of India out of the 270 million
mobile handsets to be shipped.
According to the Ericsson Mobility Report India, Smartphone subscriptions in India is expected
to increase four-fold to 810 million users by 2021, while the total Smartphone traffic is expected
to grow seventeen-fold to 4.2 Exabyte (EB) per month by 2021.
According to a study by GSMA, smart phones are expected to account for two out of every three
mobile connections globally by 2020 making India the fourth largest Smartphone market.
India is expected to lead in the growth of Smartphone adoption globally with an estimated net
addition of 350 million by year 2020.
Total number of Smartphone shipments in India stood at 25.8 million units in the quarter ending
December 2016, and Smartphone shipments during 2016 stood at 109.1 million units, up by 5.2
per cent year-on-year.
Broadband services user-base in India is expected to grow to 250 million connections by 2017.

GOVERNMENT INITIATIVES
The government has fast-tracked reforms in the telecom sector and continues to be proactive in
providing room for growth for telecom companies. Some of the other major initiatives taken by
the government are as follows:

 The Telecom Regulatory Authority of India (TRAI) focuses on identifying issues that make
it difficult to do telecom business in India like licence acquisition and spectrum allotment
 among others, and review them in order to simply these processes to the maximum possible
extent.
 The Government of India plans to auction the 5G spectrum in bands like 3,300 MHz and
3,400 MHz to promote initiatives like Internet of Things (IoT), machine-to-machine
communications, instant high definition video transfer as well as its Smart Cities initiative.
 The Government of India has launched a phased manufacturing programme (PMP) aimed
at adding more Smartphone components under the Make in India initiative thereby giving
a push to the domestic manufacturing of mobile handsets.
 The Government of India has allocated Rs 10,000 crore (US$ 1.5 billion) for rolling out
optical fibre-based broadband network across 150,000 cumulative gram panchayats (GP)
and Rs 3,000 crore (US$ 450 million) for laying optical fibre cable (OFC) and procuring
equipment for the Network For Spectrum (NFS) project in 2017-18.
 TRENDS IN TELECOM INDUSTRY

1. Increase in demand for data services over calling services provided by telecom
companies
The number of mobile Internet users in India is projected to double and cross the 300
million mark by 2017 from 159 million users at present, a new report by Internet and
Mobile Association of India (IAMAI) and consultancy firm KPMG.
Though India has low Internet penetration at 19% compared with other developed and
developing economies that have up to 90% penetration, the country has the third-largest
Internet user base in the world, with more than 300 million users, of which more than 50%
are mobile-only Internet users.
The number of mobile Internet users in India is expected to grow to 314 million by the end
of 2017 with a CAGR (compounded annual growth rate) of around 28% for the period
2013- 2017. This impressive growth would drive India to become one of the leading
Internet markets in the world with more than 50% of Internet user base being mobile-only
Internet users.
The growth will be led by the government’s Digital India initiative, collaboration among
mobile Internet ecosystem stakeholders and innovative content and service offerings from
mobile-based services players.
Digital India is an umbrella Programme that encompasses providing Internet access to all
by creating infrastructure, delivering government services on the Web and mobile phone,
promoting digital literacy and increasing electronic manufacturing capability.
In the 2014-15 Union budget, the government committed Rs.500 crore for building
infrastructure, as per the National Rural Internet and Technology Mission, with an
additional Rs.100 crore for improving e-governance with the aim to increase tele-density
in rural areas.
The content as well as service providers have emerged as important stakeholders for the
growth of mobile Internet.
 Meaningful and compelling content can be an important driver for enabling adoption of
mobile Internet. Traditional services like voice, SMS are gradually being replaced by
mobile data services. Indian mobile content usage is dominated by email, social
networking, chat, games and news. While these categories gained popularity because they
fulfil multiple needs of consumers, the positive social and economic impact of the Internet
is probably manifold.
The mobile phones are being touted as one of the greatest mediums of change—like giving
people without a bank account access to financial services and providing health services in
rural areas. The mobile data services would help to tackle key issues plaguing education,
health, finance, agriculture and governance in India.
On the consumer side, increase in smartphone penetration and increasing demand for
Internet-based services such as chat, social media, video and music through the mobile
medium will accelerate growth in mobile Internet usage.
India has become the third-largest smartphone market in the world. The number of
smartphone users is expected to reach 369 million by 2018.

2. Fiber Network

The race for 5G’s global market debut has begun, with South Korea’s KT Telecom setting
the stage for the first-ever official demonstration of 5G technology during the 2018 Pyeong
Chang Olympics, Apple obtaining the Federal Communications Commission (FCC)
approval to test 5G communications, and Verizon testing 5G networks across 11 cities in
the U.S.
In India, Nokia has recently signed a MoU with BSNL and Airtel to work on 5G technology
solutions, and Reliance Jio has tied up with Samsung to explore various technologies and
equipment for 5G.
In the wake of growing awareness around Internet of Things (IoT) and the use cases it
presents to Indian businesses and consumers, 5G will open a new era of opportunities for
telecom operators and ecosystem partners in the country.
Though it’s difficult to get an accurate estimate of the market size right now, IoT is
expected to provide a $15 billion market opportunity for Indian businesses by 2020,
according to officials at Department of Telecom (DoT). Combine this with the
unprecedented growth in the number of smartphone users in India, which is expected to
overtake the U.S. in terms of smartphone shipment by 2019. Analysts are optimistic that
India will hold around 15% of the world’s smartphone market share by that period – Indian
consumers are ready for 5G.
Indian operators, however, need to address the issues surrounding 5G infrastructure and
deployment. Challenges involving regulatory policies, investments and infrastructure
readiness need to be addressed on priority.
Challenges ahead for telecom operators in India are multi-fold compared to their peers in
the rest of the world. Diverse geography, disparate population and disparity in economic
distribution among the rich and the poor pose serious challenges to operators, preventing
uniform investments across different telecom circles. Also, issues such as Right of Way
have created uncertainty in fiber investments across different states. These apart, the rising
cost of air waves and the challenges involved in migrating to new technologies bring
additional challenges.
Moreover, the industry’s performance on key indicators such as network speed, coverage
and customer service is not satisfactory. For example, average Internet speed in India
stands at 3.5 Mbps compared to 29 Mbps in South Korea, 15 Mbps in the U.S., and 4.3 in
China.
With a promise of 10Gbps speed, less than 1 MS latency and 90% reduction in network
energy utilization, 5G will spur the next round of telecom infrastructure investments across
the globe, say experts. The growth of 5G will be fuelled by the sharp hike in consumer data
and the proliferation of IoT devices. ITU estimates the market for IoT devices will result
in over USD 1.7 trillion in value added to the global economy by 2019. In view of these
developments, ITU expects that investments on fiber infrastructure will surpass $ 144.2
billion during 2014 – 2019.
The fact that 5G network will have to support burst data from emerging applications like
Video on Demand IoT, Smart Cities, and the like also makes backhaul a critical concern.
In several markets, operators are turning to fiber backhaul as an alternative to costly
 microwave technologies. Since fiber is essential for both wireline and wireless networks,
investors show greater levels of confidence in fiber investment.

3. Make in India and Digital India initiative

After the announcement of ‘Digital India’ program by the government came as a breath of
fresh air for an ailing telecoms sector. Telecom companies embraced the initiative and
committed in excess of INR4 trillion to further this growth agenda. The underlying
commitment is towards strengthening network infrastructure, enhancing mobile broadband
connectivity and providing next generation services and applications. This was followed
by Government’s decision to develop 100 smart cities across India that continues to draw
both international and domestic interest.
The creation of a spectrum roadmap for the nation. The Government’s star achievement is
undoubtedly the approval of spectrum trading and sharing norms along with the ease in
M&A guidelines. For a highly fragmented sector, consolidation which was once for talked
for a long time and has today become a reality. Operators can acquire spectrum or pool
together their holdings for better efficiency, improved quality of service and to cater to
growing demand for data services.
The blockbuster success of the March 2015 auction which helped the Government garner
INR1.09 trillion in revenues was critical in safeguarding business continuity for telecom
companies and provided clean litigation free spectrum for the next two decades. In this
regard, all eyes are set on the upcoming multi-band spectrum auction for which the
Telecom Commission has cleared the largest quantum of spectrum with nearly 2,142 MHz
for sale.
While expensive auctions resulting from high reserve prices have long been an issue of
contention for the operators, the Government’s positive move to reduce spectrum usage
charges (SUC) from 5% to 3% of AGR has come as a huge relief to financially stressed
operators.
The increase in pace of delivering broadband connectivity to the masses. Rural
connectivity has regained focus with the revival of the National Optic Fiber Network,
which was revamped as BharatNet to enhance broadband connectivity. From a mere 358
 route km of optic fiber, the project has gathered pace and 116,000 route km fiber has been
laid in the tenure of this Government. In the last one year, internet subscribers have
increased by 32% and broadband at an impressive 125%. With the rising subscriber base,
thrust on data services has enabled a smartphone revolution.
The performance of the sector is revitalizing. Performance on several parameters has been
encouraging. Gross revenues have increased by nearly 11% in the last two years to reach
INR2.6 tn. EBITDA margins have improved from 19.9% in 2014 to 24.8% in 2015. FDI
in telecoms has steadily risen to INR 270 billion, one of the highest ever. Steps for turning
around the loss making state incumbent is beginning to see traction, with operating losses
turning profitable for the first time in the last decade.

The industry is aiming to drive financial inclusion through the Payments Bank initiative.
The millennium development goal of ‘universal financial inclusion’ seems like a distant
dream with nearly 41% of India’s population still unbanked, In the last one year, new policy
initiatives have opened doors to drive revenue growth. Operators have received in-principal
approval from the RBI for Payments Bank license, which is expected to aide in customer
retention and enables them to build on their M-Payment services.

4. VoLTE Technology
Operators are competing for the best mobile broadband offering, with highest speeds and
best coverage, where Long Term Evolution (LTE) is the means for most operators to
achieve this. On the other hand communication services are considered a key part of the
operator’s business. In order to continue supporting operator services such as voice and
SMS using packet only access such as LTE, Voice over LTE (VoLTE) was developed.

With the introduction of VoLTE operators can leverage the all-IP based network
architecture to ensure and improve voice quality, while also opening up for broader range
of communication capabilities such as for example video calling and multi-device support
VoLTE is offering provides operators with a complete solution to evolve their voice and
SMS business towards an all-IP communications network. This is achieved by evolving
the installed base of CS core networks towards IMS core networks. In addition to ordinary
mobile telephony services, Ericsson’s VoLTE offering also supports value added services
such as: HD voice, video calling, Wi-Fi calling, multi device, enriched calling services and
voice support for IoT devices.

In order to handle a smooth evolution from circuit switched voice to VoLTE as well as
situations of non-ubiquitous LTE coverage, Ericsson’s VoLTE offering supports a full set
of complementing accesses including both 2G, 3G and Wi-Fi. Seamless handover of calls
between LTE and Wi-Fi through packet handover, as well as 2G/3G with Single Radio
Voice Call Continuity (SRVCC) are also supported. VoLTE offering is verified towards
device and chipset vendors. This secures smooth deployment, efficient network operations
and future evolution of the VoLTE offering.
Building on an all-IP infrastructure such as LTE, EPC and IMS allows operators not only
to cut operational cost through improved resource utilization such as for example improved
spectrum efficiency, but also introduce new higher value-added services to end-users in
order to reduce churn, such as HD voice, enhanced HD voice, video calling, multi device,
call enrichment etc.
VoLTE offering includes full set of professional services based on strong local integration
capabilities and global experience.
VoLTE users will keep the convenience of the mobile experience, using the built-in phone
dialer and call screen with no need for app’s to make calls or messaging over IP. Users can
also continue to benefit of a service with global reach, i.e. make and receive calls from any
phone number in the world as well as continue to enjoy the advantage of roaming anywhere
and still be reachable.
IMPLEMENTATION OF THESE TRENDS BY TELECOM COMPANIES

1. Increase in data demand

Following the launch of Reliance Jio, the price wars in the telecom market have been
intense, where incumbents like Airtel, Vodafone, Idea and BSNL have been pushing hard
to match the aggressive pricing of Jio.
Telecom companies in India have resorted to combative data pricing thanks to Reliance
Jio’s inexpensive data offerings. The latest entrant in the telecom sector, which rolled out
its services on September 1, 2016, has already crossed 108 million user base. Meanwhile,
rivals like Idea, Airtel and Vodafone have lowered their data tariffs as well to increase its
subscriber base.
While Jio is offering some extra data to its customers under a new deal, Airtel, Vodafone
and Idea have come up with data and voice calling offers as well. Jumping on the
bandwagon, even BSNL has rolled out an attractive new tariff plan. Reliance Jio has
reportedly seen a decline in the number of new subscribers, and this sudden rain of offers
seems to be an attempt by rivals to keep the tariff battle on.
In a separate incident, Bharti Airtel, Vodafone and Idea Cellular on Thursday clashed with
new entrant Reliance Jio when they suggested at an industry meeting with the Telecom
Regulatory Authority of India that a separate floor price should be fixed for voice and data
tariffs. As Indian telecom companies keep at loggerheads owing to Reliance Jio’s cheap
data offerings.
The recent price war among the telecom companies has given out sweet effects of
competition. At least for the consumers. Prices of mobile data and calls are in free fall after
Jio's entry and now they are going to even lower. Airtel has now come out with the data
and voice plans for its pre-paid users so that it can match what Jio is offering, at least in
terms of prices for its basic plans. The latest plans with which Airtel attempts to take on
Jio are its Rs 149 plan, Rs 349 plan and Rs 399 plan.
Reliance Jio changed the entire telecom market with its cheap and unlimited tariff plans
last year. Well, it was free last year. The paid plans came only this year. Jio was introduced
 back in September last year, and since its arrival, it is giving sleepless nights to other
telecom giants like Airtel, Vodafone, and Idea Cellular. It has managed to attract millions
of customers.
Now Airtel has introduced several new ultra-low cost data and free voice call recharge
packs for its prepaid users which start from a minimal amount of Rs 8 to Rs 399. The
telecom operator has introduced a range of plans. These are Rs 8, Rs 40, Rs 60, Rs 149, Rs
199, Rs 349 and Rs 399 plans. To recall, Reliance Jio also offers Rs 149, Rs 349 and Rs
399 plans for its customers.

2. Fiber Network
Reliance Jio, which has over 100 million 4G mobile subscribers in India, has announced
the launch of its new submarine cable system with 100Gbps capacity, and this new system
links Asia-Africa-Europe (AAE-1). In a press statement, Reliance Jio said the AAE-1 is
longest 100Gbps-technology based submarine system, and it will stretch over a distance of
25,000 km.
Jio’s new cable system will go from Marseille in France to Hong Kong, and there will be
21 cable landings across Asia and Europe. Jio says it has worked with other telecom
providers from Europe, the Middle East, and Asia for this extensive cable network. The
cable system has Points of Presence in Hong Kong and Singapore, and three onward
connectivity options in Europe. These are via France, Italy and Greece.
The new terabit capacity and 100Gbps direct connectivity to global content hubs and
interconnection points ensure that Jio will continue to offer its customers the most
exceptional high speed internet and digital service experience.
The company is excited to participate in the launch and deliver the cable landing in Mumbai
at the time when India’s data traffic continues its accelerated data consumption and growth.
Jio says the new cable system will be passing through critical hubs and connecting points.
The cable system will help deal with the burgeoning demand for video-centric data
bandwidth, which has grown in India, especially post Jio’s entry into the market.
AAE-1 links with other cable systems and fiber networks to deliver direct access to all
global markets, says the company.
 The company is claiming the design, route of the new cable system will ensure lowest
latency routes between Hong Kong, India, Middle East and Europe. Reliance Jio is
providing the Network Operations and Management for this submarine cable system.
AAE-1 cable system deploys 100Gbps transmission technology, with a minimum design
capacity of 40 Tbps. The cable terminates in Singapore, but also continues further into Asia
via Thailand connecting Vietnam, Cambodia and Hong Kong.

3. Make in India and Digital India Initiative

India’s top telecom company, Bharti Airtel, has decided to not take anything by chance
even if it’s regarding its other businesses. It has now launched indigenously made HD set-
top boxes in the country. These Indian made set-top boxes will not only help Airtel Digital
TV cut down on import costs but will also let it pass the benefits of reduced costs to the
subscribers.
These would be the first indigenously made set-top boxes that Airtel Digital TV will launch
in the country. During the initial phase, the set-top boxes will be available only in HD but
the company will soon start manufacturing all types of set-top boxes in the country.
The company is proud to partner with the Government’s Make in India initiative and launch
indigenous set-top-boxes made in the country. With this we aim to reduce our imports and
thus help drive employment and growth within the country. In the long run, cost synergies
will further help us extend more benefits to our customers.
The launch also re-establishes our leadership in offering world class TV viewing
experience with innovations such as these,” said Shashi Arora, CEO, DTH/Media at Bharti
Airtel.
With this move, Airtel has become the latest corporate to jump into the ‘Make in India’
bandwagon of the Indian government. This launch will also provide the much needed boost
to the set-top box industry in India as more and more people will get into its production
and related services. This way country will establish its own DTH set-top box expertise
center locally.
Reliance Industries is reportedly in talks with Foxconn to manufacture dual-SIM mobile
phones, which would be priced in the sub-$25 (approximately Rs 1,600) price bracket. The
 latest report comes on the heels of the company’s annual AGM event, where it launched
the Jio Phone feature phone with 4G VoLTE capabilities.
Reliance Industries is reportedly mulling alliance with Foxconn to make mobiles locally.
The company’s telecom arm Reliance Jio Infocomm is looking at launching a $23-$25
dual-SIM mobile phone soon.
The purported handset is likely to feature slots for both 2G and 4G SIM cards, and would
cost Rs 1,625-Rs 2,200 post taxes. It also adds that the processor is expected to be built by
Spreadtrum Communications.
Keeping with the tradition of bundling its phones with Jio offers, the rumored phone is also
expected to come with lucrative 4G tariffs. It is also expected that the phone may further
be offered with discounts, phone exchange schemes, or special tariffs.

4. VoLTE Technology
Jio Phone made a splash at the Reliance AGM on Friday as Mukesh Ambani took the
covers off the long-rumored 4G feature phone. The handset, introduced as "India ka
Smartphone" and launched at an "effective price" of Rs. 0 (though buyers will have to shell
out a refundable, upfront deposit of Rs. 1,500 for the device).
Jio Phone will be crucial for the company in tapping the estimated 50 crore feature phone
users who have not been able to join the Jio 4G bandwagon because of the high costs
associated with smartphones.
Although Reliance Jio launched in India in September, the company's offering has been
restricted to smartphone users as it is a 4G only network, and to make calls, a phone has to
support the VoLTE technology, which is usually not found on basic phones.
The company aims to change that with the Jio Phone, which comes with 4G VoLTE
support. The Jio Phone will include access to apps like Jio Cinema, Jio TV and Jio Music.
Bharti Airtel Ltd plans to take on Reliance Jio Infocomm Ltd by launching its own VoLTE
(a 4G voice network) service by March 2018, and working with phone makers on new low-
cost 4G feature phones.
On Friday, Reliance Jio announced the August launch of the Jio Phone, a 4G feature phone
that the firm plans to make available to users, effectively for free.
 SWOT ANALYSIS OF TELECOM INDUSTRY

i. Strengths
 The strengths in a SWOT analysis for the telecommunications industry focus
around the things the business does best.
 The industry can focus on the types of assets it owns, the human capital is
possesses, where the business makes its money from, and what experience
exists.
 The industry might have a particularly good record with phone call quality,
according to customers or it could be the only provider of a particular
successful product.
ii. Weaknesses
 The telecom industry's weaknesses in a SWOT analysis center around what
the business is not doing well.
 The business may be losing money in a particular area, or could be without
resources to better the business model.
 Especially within the telecom industry, which can change quickly, it is
essential to be honest and upfront about what the current weaknesses are, so
they can be eliminated in the future.

iii. Opportunities
 The telecom industry's opportunities in a SWOT analysis include those
variables that are out of the control of the industry, but could benefit the
business.
 Perhaps new customers will enter the market or the government will supply
subsidies to supply the newest piece of technology.
 Since technologies that the telecom industry supplies change so frequently, it
is essential that the businesses know what types of products are soon-to-be-
supplied, so they can have the proper marketing prepared.
iv. Threat
 The threats in a SWOT analysis for the telecom industry focus on the issues that
are coming from the outside that might negatively impact business.
 These could include new competitors opening their doors, or a failing economy.
 The telecom industry sells products that are key for communication, but are not
essential if someone is trying to cut their budget. Free use of computers and
extremely cheap phones are available for use in public facilities.
 Poor economic conditions could keep people from buying a new phone or
computer, and could hurt business.
 REFERENCE

1. http://economictimes.indiatimes.com/news/company/corporate-trends/bharti-airtel-kills-all-national-
roaming-charges-to-counter-reliance-jio/articleshow/57374955.cms

2. http://timesofindia.indiatimes.com/business/india-business/telenor-india-buy-wont-affect-airtels-financial-
positionsp/articleshow/57373150.cms?TOI_browsernotification=true

3. http://economictimes.indiatimes.com/news/company/corporate-trends/jios-free-voice-services-violated-trai-
tariff-orders-vodafone-to-delhi-high-court/articleshow/57280803.cms

4. http://economictimes.indiatimes.com/markets/stocks/news/jios-winding-up-of-freebies-lifts-ril-shares-to-8-
year-high-next-30-days-crucial-say-brokers/articleshow/57285406.cms

5. http://www.zeebiz.com/companies/news-bharti-airtel-s-revenue-per-user-may-drop-lower-than-idea-s-in-
q4-15924

6. https://telecomtalk.info/reliance-jio-may2017-total-telecom-subscriber-base-in-india-reaches-1-2-
billion/165923/

7. http://www.dnaindia.com/scitech/report-trai-confirms-reliance-jio-s-4g-download-speed-almost-double-of-
that-offered-by-rivals-2380101

8. http://www.hindustantimes.com/business-news/reliance-jio-extends-prime-offer-till-april-15-offers-
additional-summer-surprise/story-poBRo14miWDyEVVueZ70UL.html

9. https://www.gizbot.com/telecom/news/airtel-lost-rs-550-crore-with-the-tsunami-calls-from-reliance-jio-
042716.html

10. http://www.thehindubusinessline.com/info-tech/myjio-app-crosses-100-million-download-
mark/article9811041.ece

11. http://www.news18.com/news/tech/jio-phone-9-ways-how-reliance-jio-could-disrupt-the-market-
1468779.html

12. http://gadgets.ndtv.com/telecom/news/jio-4g-download-speed-july-2017-idea-airtel-vodafone-1733483

13. http://economictimes.indiatimes.com/tech/hardware/demand-for-volte-devices-doubles-on-reliance-jios-4g-
launch/articleshow/55167170.cms

14. https://www.thequint.com/tech-and-auto/tech-news/bharti-airtel-to-watch-reliance-jio-before-taking-rate-
cut-plunge-mukesh-ambani-gopal-vittal

15. http://www.livemint.com/Industry/Q1ypaQwCcwJt6BZlOYgBON/Reliance-Jio-to-install-45000-mobile-
towers-in-6-months-to.html

16. http://www.airtel.in/about-bharti/media-centre/bharti-airtel-
news/corporate/over+10%2C000+customers+open+savings+accounts+with+airtel+payments+bank+within
+first+two+days+of+going+live
 ACKNOWLEDGEMENT

The assignment on “Telecom Industry” has been taken up by us as a part of the curriculum in the
Bachelor’s Degree in Business Administration.

We have tried our best to present this information as clearly as possible using basic terms that I
hope will be comprehended by the widest spectrum of researchers, analysts and students for
further studies.

We have completed this assignment under the able guidance and supervision of Mr. Akashdeep
Joshi (Faculty In charge) who helped and guided us in every step of our assignment.

We will be failed in our duty if we do not acknowledge the esteemed scholarly guidance, assistance
and knowledge, we have received from them towards the fruitful and timely completion of this
work.

We thank God Almighty, who kindly helped and gave us strength to complete this assignment.
Mere acknowledgement may not redeem the debt we owe to our parents for their direct and indirect
support during the entire course of this assignment.

Lastly, we are thankful to our friends who have been instrumental in creating proper, healthy and
conductive environment and including our new and fresh innovative ideas for us without them, it
would have been extremely difficult for us to get the assignment done on time.

- AM, ZK, SK, STJ, MA

 TABLE OF CONTENTS

Title Page No.

Acknowledgement i

1. Introduction 01

2. News Collection and its Analysis 02

3. Characteristics of Telecom Industry 11

4. Trends in Telecom Industry 17

5. Implementation of these Trends by Telecom companies 23

6. SWOT Analysis 27

7. References 29