TELECOM SECTOR

Overview
 Indian telecom Industry is the second largest
market in the world.
 Presently there are 870.02 million subscribers.
 The usage of Internet in mobile has also
increased to 15.05 million subscribers.
 Increased competition has led to lower price.
 The usage of 3G technology is also picking up.
 The players in the Industry are BSNL, Bharati
Airtel, Vodafone, Idea, Reliance, S tel, Etisalat,
HFCL, Loop, MTNL, Videocon, SISTEMA, Uninor,
Aircel,


 Presently some of the companies such as Uninor
and S tel are non operational due to legal hurdels.
 The overall sector is divided into different states and
each state is regarded as a telecom circle.
 The license is given to each company in each circle
separately.

Indian Market
 The telecom sector has recorded gross revenue at INR
52,937.32 crore (roughly USD 98 billion) during the quarter
ended September 2012, an increase of 0.80% over the
previous quarter at Rs 52,512.10 crore.

 Adjusted gross revenue declined by 0.07% to Rs 35,473.16
crore during the September quarter from Rs 35,499.01 crore
reported during the quarter ended June 2012.

 The government’s earning from the telecom sector in terms
of license fee also dipped 1.97% to Rs 2,884.16 crore during
the July-September quarter, as against Rs 2,941.02 crore
earned during the April-June quarter this fiscal year.

CONT’D
 However, operators gross revenue (excluding revenues of ILD,
NLD and ISPs, VSAT) declined by 0.61% during the quarter
ended September 2012 to Rs 39661.37 crore.

 The average revenue per user (ARPU) for GSM service dipped
0.45% to Rs 95.05 in July-September 2012 quarter from Rs
95.47 in April-June 2012 quarter. ARPU for CDMA service
increased by 3.80% from Rs 74.91 in quarter ended June to Rs
77.76 during the quarter ended September 2012.

 The tremors of official auditor CAG's last year estimation of
Rs 1.76 Lakh crore presumptive revenue loss to the
government in the allocation of 2G spectrum continued to be
felt in 2012 with Supreme Court cancelling as many as 122
telecom licenses in February
CONT’D
 LTE Revenues In India To Reach $11.88Bn In 2017

 LTE revenues in India, UAE and Saudi Arabia are set to reach
$11.88 billion, $4.55 billion and $3.38 billion.

 In last four years, the sector grew by 20% CAGR and the
mobile subscriber base crossed 900 million, second only to
China

 Telecom contributes approximately 3% to India’s GDP

 The country is completely dependent on the instant voice
and data communication provided by the telecom networks;
this dependency is irreversible.

International Market
21. BRAZIL Market
22. The migration of GSM handsets, which still represents
more than 70% of mobile lines in the country, for 3G will
also accelerate in 2013, though 3G handsets are not
likely to overtake GSM devices until 2015.

23. Virgin Mobile is set to begin its mobile virtual network
operator service, which could then entice others to
enter the market and helping to establish the MVNO
market inside Brazil.


EUROPE Market
 Wholesalers must lessen their dependence on
traditional wholesale fixed voice sales by meeting
customers’ needs for non-voice services

 Mobile wholesale, a growing sector in Europe,
offers significant potential for growth based on an
increasingly diverse customer base

 Ovum found that a number of carriers, including
Telecom Italia and France’s SFR, did increase their
revenues from other sectors to more than
compensate for declines in fixed voice

Major Players
 Bharati Airtel is
the largest player
in the Indian
market based on
the number of
customer base.
 Vodafone is the
seacond largest
followed by Idea,
tatadocomo.

Competitors profile
 BSNL
 Airtel
 Vodafone
 Idea
 DoCoMo

Different Products
 Call service Local, National, International
 Messaging
 Internet
 VAS such as Caller tones, Astrology, News etc
 Customized call rates.
 MNTP (Mobile Number Portability)
Policy Frame Work
 The Indian telecom Industry is governed by the
TRAI (Telecom Regulatory Authority of India).
 All the aspects of new pricing, offers, promotions
etc has to be approved by the TRAI.
 The telecom circles are licensed by the TRAI.
Challenging Factors
 Heavy linciencing fees.
 Needs heavy investment on promotion to
generate sales.
 Less scope for new entrants
 Introduction of MNTP is a great threat to the
players.
 Increasing cost of opertaions has lead to
decrease in revenue.