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Indian Telecom sector

History of Landline Service

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Quick Facts & Figures as on 31st Dec 2010
1.Total Telecom Subscribers 2.Total cellular Subscribers 3.Fixed Line Subscribers 4.Tele Density 5.Number of GSM Subscribers 6.Number of CDMA subscribes 7.Broadband Subscribers 8.Foreign direct Investment 787 million 752 Million 35.1 Million 625/1000 526 Million 155 Million 10.9 Million 4070Million (Apr2000-Mar-2010)
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INDIAN CONSUMERS GET THE WORLDS LOWEST MOBILE TARIFFS
0.25 0.23 0.22 0.2 0.19 0.17 0.16 0.15

USD

0.11 0.1

0.11

0.11 0.09

0.05 0.05

0.05 0.04 0.03 0.02

0

Philippines

Hong Kong

Thailand

Italy

Belgium

Taiwan

Argentina

Malayasia

France

5

Pakistan

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China

Brazil

India

UK

6% 178.28 35.46 21.13 185.4% 194.42 12.3% 146.95 18.Snapshot: India Telecom Market Subscriber Base as on 31st December.themegallery.99 14.20 6.43 33.com . 2010 All Figures in Million Population Metros Penetratio n Bombay Delhi Chennai Kolkata 17.5% www.

themegallery.82 45.93 56.03 56.65 58.com .8% www.2% 62.6% Tamil Nadu Maharashtra & Goa 62.87 53.A Circles Gujarat Andhra Pradesh Karnataka 56.8% 67.01 43.60 76.9% 78.41 86.58 89.04 83.

89 40.81 69.52 35.5% 86.73 29.com .02 21.98 74.12 96.64 40.7% 84.1% www.6% 59.7% 65.themegallery.73 62.1% 47.5% 45. Sikkim 27.91 57.17 120.5% 47.03 89.58 18.B Circles Punjab Rajasthan MP & Chattisgarh Kerala + Lakshadweep Haryana Uttar Pradesh – West (UPW) Uttar Pradesh – East (UPE) WB& AN.82 40.11 35.56 26.

58 40.80 11.C Circles Bihar & Jharkhand Orissa Assam North East Jammu & Kashmir Himachal Pradesh Total for India 120.com .1% 46.04 20.28 5.1% www.09 49.50 10.6% 50.13 6.7% 66.15 6.129.40 29.59 6.72 746.67 1.2% 49.7% 36.themegallery.3% 100.26 12.68 40.

com .Major Players RELIANCE CDMA Service Providers www.themegallery.

Service Providers GSM Service Providers • VODAFONE • AIRTEL • BSNL • IDEA • SPICE • AIRCELL • RELIANCE • TATA DOCCOMO • TATA INDICOM • VIDEOCON Fixed LINE •BSNL •MTNL •BHARTI •TATA TELECOM •VODAFONE •RELIANCE www.themegallery.com .

themegallery.Market Share of Each Company www.com .

MVNO : Mobile Virtual Network Operator 5. IMS : IP Multimedia Subsystem 2.com .themegallery.Emerging Telecom Technologies 1. 4G : 4th Generation Mobile Networks www. IPv6 : Internet Protocol Version 6 6. MOBILE TV 4. HSDPA : High Speed Downlink Packet Access 3.

INVESTMENT SCENARIO www.com .themegallery.

 .Internet Service. .Cellular Mobile.  74% subject to :  .Infrastructure Providers.Foreign Direct Investment  49% subject to : . www.com .National & International Long Distance.themegallery.Radio Paging Service.VAS. .  .

Electronic Mail.themegallery.Continue…  100% subject to : . www.ISPs not providing gateways. . . .Infrastructure Providers providing dark fibre.com .Voice Mail.

749 (2.006(44 28) 7% 7% www.116) 7.411 (6.614) 20072008 (MarApr) 26.438) 2.223) 39.047 (4.600) 8% 4 5 2.989 (1.com .623 (1.589 (6.261) 11.754) 34.179) 6.019 (22.727 (2.028) 10.SECTORS ATTRACTNIG HIGHEST FDI EQUITY INFLOWS Amount Rupees in crore (US$ in million) R an k Sector 20062007 (MarApr) 21.themegallery.664) 11.811 (2.615) 5.121 (467) 4.786 (2.558) 10.424 (985) 8.380 (1.621 (2.743) 12.410) 20082009 (MarApr) 28.189) 8.155 (478) 5.792 (2.103 (1.179 (8.801) 8.565 (2.677) 20092010 (MarNov) 16. basic telephone services) HOUSING & REAL ESTATE CONSTRUCTION ACTIVITIES (including roads & highways) 2. cellular mobile.701) 20.529) % age of total inflow 22 % 1 2 3 SERVICES SECTOR (financial & nonfinancial) COMPUTER SOFTWARE & HARDWARE 9% TELECOMMUNICATIO NS (radio paging.687) 42.329 (1.566 (3.348 (7.763 (575) Cumulative Inflows 101.259 (9.

themegallery.com .Foreign Direct Investment www.

• Telecom Regulatory Authority of India (TRAI) assists the Government of India (GoI) to take timely decisions and introduce new technologies in the country.Regulatory Framework provides level Playing Field for all Operators • The Department of telecommunications (Government of India) is the main governing body for the industry. www.com .themegallery.

themegallery.com . Wireless Planning and Coordination (WPC) Department of Telecommunicati ons Handles spectrum allocation and management DoT – Licensee and frequency management for telecom Independent Bodies They undertake various research activities and monitor the quality of service provided in the Indian telecom industry. They also provide various recommendations to improve the status of telecom operations in India. Telecom Regulatory Authority of India (TRAI) Independent regulatory body Telecom Commission Group on Telecom and IT (GoT-IT) Exclusive policy making body of DoT Handles ad hoc issues of the telecom industry Telecom Disputes Settlement and Appellate Tribunal (TDSAT) Telecom disputes settlement body www.Indian Telecom Industry Framework Indian Government Bodies They formulate various policies and pass laws to regulate the telecom industry in India.

 This will necessitate the healthy and a visionary future for the telecom sector.com . www.  The Government of India believes that for the rapid economic development the telecom infrastructure of India needs to be uplifted.  It is the prime support services needed for the rapid growth and modernization of various other sectors. internet.e commerce etc.. cable tv services .Infrastructure  The telecom services have been recognised all over as the important tool for socio-economic development.themegallery.  Also widened the scope of the telecom sector to other allied ventures like mobile services.

MARKETING ENVIRONMENT www.themegallery.com .

Important Role due to huge demand & Infancy of new companies. Media and Internal Employee. Totally Dependent on Foreign Suppliers.Micro Environment Companies Suppliers Intermediarie s Customers Competitors Publics Government . Government. Consumer. Private and Foreign Companies.com . Corporate Customers and Government.themegallery. End Users. www. Intense Competition.

India’s GDP growth is substantial. government makes the •Politics •Culture www.Macro Environment •Demography •Economy •Technology High Tele-Density still to be chased. Diverse Culture.com . Sometimes unstable functioning uneasy. Want to be world leader but still dependent on foreign suppliers.themegallery.

60%.com . www.  The information and communications technology (ICT) industry alone accounts for about 2% or 860 million tonnes of the world‟s greenhouse gas emissions.  India has around 3. alleged “double standards” in the case of foreign manufacturers.40% .themegallery.Environmental Issues  Telecom Equipment Manufacturers Association (TEMA).000 telecom towers.3 million litres of CO2 is produced per year.10.Total consumption is 2 billion litres of diesel and 5.

RF exposure from base stations include headaches. headaches. stress and tiredness. brain tumors.use of mobile handsets including impairment to short-term memory. depression.themegallery. sleep disturbance. www.Effects On Human Beings  Handsets . depression and tiredness.com . sleep disturbance.  Mobile base stations . other cancers.

themegallery. www. Safe Telecom Waste Disposal. Environment Friendly design of Telecom Buildings.Green Telecom Green Telecom Networks.  Green Manufacturing.com .

themegallery.com .Services Offered Services Offered WiMax www.

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com .  Low Labour Cost.  Large Talent Pool. www.India’s Competitive Advantage @ Recession  Stable Economic Outlook.themegallery.  Large Market Potential.

themegallery.com .POTER‟S 5 FORCES ANALYSIS www.

companies shall go for the untapped market 2) Keep the technology up to date. 3)Pressurising govt to make 3) There shall always be the procedures tough for something new for the new entrants customers 4)New offers for existing 4) Better customer service customers in terms of prices and services www.The Threat of the Entry of New Competitors THREAT OF NEW ENTRANTS 1) Reducing product and service price 2) New advertising campaign SUGGESTIONS 1)As Rural teledensity is still 21%.com .themegallery.

themegallery.POWER OF SUPPLIERS STARTEGY TO TACKLE THE POWER OF SUPPLIERS 1)Indian telecom industry keeps on negotiation with so many suppliers to deliver the message that they have many options 2)Always make media sensation so that there many options of suppliers to bargain with www.com SUGGESTIONS 1) Indian telecom industry should make alliance with foreign supplier and invest jointly in Research & Development activity. .

2) Providing the highest quality of service.themegallery. 3) Providing best customer service. 2) Try to be market leader in product and service range offerings 1) Keeping the price according to market level.com .POWER OF BUYERS STRATEGIES TO DEAL WITH THE BARGAINING POWER OF THE CUSTOMERS SUGGESTIONS 1)Try to maintain the uniqueness of product as long as possible. 4) Providing value added services at competitive price. www.

themegallery.com SUGGESTIONS 1)Indian telecom companies should invest more in self Research & Development activity 2)Should not depend on foreign suppliers . www. 2) Providing Value added services. 3) Providing the facility of substitute product in the current product or service range.AVAILABILITY OF SUBSTITUTES STRATEGIES TO DEAL WITH THE AVAILABILITY OF SUBSTITUTES 1) Product innovation at regular basis.

themegallery.com . 3) Keeping the price of product and service according to demand and needs of customers www. 2) Entry in new market segment 2) Make strategic alliance with as well as new geographical equipment supplier so that area. become a market leader in the terms of technology. SUGGESTIONS 1)Should focus more on new rural area where teledensity is very low and competition is less.COMPETATIVE RIVALRY STRATEGY TO TACKLE COMPETATIVE RIVALRY 1) Always expanding the product and service range.

themegallery.com .SUCCESS STORIES OF MAJOR COMPETITORS www.

themegallery.MOBILE SERVICE PROVIDERS STRATEGIES Bharat Sanchar Nigam Ltd. is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India  Rural Penetration  Low cost strategy www.com .  Bharat Sanchar Nigam Ltd.

. Bharti Airtel  Business Alliances  Unified Brand Strategy Reliance Communications.Continue.com .  Integrated Service  Large Distribution Network www.themegallery.

Continue…  VODAFONE  Its building a wonderful image in the minds of people by its advertisement campaings  Works on for being the leader in the market.com .themegallery.  Good after sales services „Happy to help‟ www.

com .themegallery. in association with the Virgin Group on a Franchisee model basis  IDEA  Large communication network  ‘An Idea Can Change Your Life’. TATA TELESERVICES LIMITED  services targeted towards the youth. www.

HANDSET MANUFACTURERS  Nokia  Rapid Innovation  Mass Customisation – Made for Indian Model.com .themegallery.  Motorola  Competitive Pricing.Connecting the unconnected  Attractive Designing www.

themegallery. LG Mobile Market Penetration Rapid Innovation Samsung New Innovation Global Touch www.com .

themegallery.Trends In Growth Of Subscriber subscriber(millions) Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 www.com .

16 billion in WiMax Project  Vodafone Essar – invest US $ 6 billion next 3 years to increase mobile subscriber base.TRENDS IN GROWTH  Every month 8-10 million subscribers are adding in the market.com .themegallery.  BSNL – will put US $ 1. www.

CDMA. Mobile phone providers have also come up with GPRS enabled multimedia messaging  The much-awaited 3G mobile technology has entered in the Indian telecom market.themegallery. WLL service providers are all upgrading them to provide 3G mobile www.com .  The GSM.

Private and public subscribers private public www.themegallery.com .

themegallery.  Huge initial investments.  The current demand – supply mismatch  Inverted duty structure currently hampering the industry www.Problems Faced The bottlenecks for ' Indian Telecom Industry are:  Service providers bears huge initial cost to make inroads and achieving break-even is difficult.  Limited spectrum availability and interconnection charges between the private and state operators.com .

GURUDAS KAMAT www.com .themegallery.

BY: Meeta.Leesha .Prabhat.Sneha.