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Cellular Industry in India

CELLULAR SERVICE MARKET

grouped under Metro. A. B and C. namely  GSM  CDMA services launched in India during  23 circles in India .7% of the total cellular usage in India.  .Introduction  Cellular 1999  Cellular services split into two.  Metro circle makes up to 20.

Highest minutes of usage India has the lowest call tariffs in the world.  . the highest minutes of usage as well. and thus.

GSM v/s CDMA  GSM  CDMA GSM900 and 1800 spectrum  GSM subscriber base crosses the 200mn mark in ‘07-’08  Better roaming accessibility    CDMA uses 1800 MHz frequency band  Better call quality and surfing speed  Call costs cheaper   .

58 .GSM AND CDMA SUBSCRIBERS COMPARISON GSM CDMA Apr ’08 (in mns) 199.80 71.18 65.25 May ’08 (in mns) 205.

Market Players Airtel  Vodafone  Idea Cellular  Reliance  Tata Indicom  BSNL  .

Airtel Bharti Tele-Ventures Ltd.  . broadband and telephone services.  Submarine cable landing station at Chennai  Airtel services include mobile services (GSM). longdistance services and enterprise services. (BTVL) aka Bharti Airtel  Co provides telephone and internet access over DSL in 14 circles.  Vodafone and SingTel holding Airtel stakes  Signed MoU with Nokia-Siemens for $9mn expansion of mobile and fixed network.

of 1.5mn net additions per month  Among the fastest growing cellular service cos.Vodafone Vodafone Essar acquired 67%stake of Hutch for US$11. providing voice and data services over mobile phones  Operates in 25 countries across 5 continents and 40 partner networks with over 200 mn customers worldwide  Rapid increase in revenue by 50% with an avg. of India  Earned profits of about £6756mn as on March ‘09  .1bn  Voice Data Fone.

Goa. Rajasthan. Kerala and Delhi. AP. UP (West). group talk and a complete suite of mobile email services  Initially started as a merger of Tata Cellular and Birla AT&T Communications in 1995  The co had a split with the Tata taking an exit from the co for Rs. Himachal Pradesh and UP (East)  Acquisition of Escotel in 2004 covered Maharashtra.Idea Cellular First cellular co to launch background tones. MP. Chattisgarh.44.06bn  Launched 3 more circles. Haryana.  . Gujarat.

Reliance Telecom and Flag Telecom a part of Reliance Communications Ventures (RCoVL)  Reliance Infocomm uses CDMA2000 technology  Reliance telecom-GSM services in 340 towns within 8 circles  CDMA services cover 19 states.Reliance Reliance Infocomm. almost 65% of India  Provides both wireless and wireline services as well as convergent digital network   .

8mn customer base  Includes wireless desktop phones. Operates in 20 circles in India  Partnership with Motorola. Ericsson. voice and data services  . acquired Hughes Telecom (I) Ltd and launched Talk World plan in 2007  With total investment of Rs.Tata Indicom Incorporated in 1995 and is the first one to provide CDMA mobile services  In 2002. 19924 Cr. public phone booths. Lucent and ECI Telecom for reliable and advanced network  Leader in fixed wireless telephony with 3.

market value $100bn  Provides services like wireline.  World’s 7th largest Telecommunications Co  . carrier service. etc. CDMA mobile. broadband. GSM mobile. internet.BSNL First one to provide 3G services  India’s oldest and largest CSP and also largest PSU.

a.     . and domestic long distance telephony services  According to Unified Licensing Policy 15% of operator revenue goes to the govt.  India’s cellular market has grown rapidly since last few years and is poised to be the 2nd largest network globally by 2012  Almost 80% of the cellular subscriber base from pre-paid segment  Avg.Market Share and Growth Major growth drivers – intl. growth rate is about 85% p.

 Several Indian firms gaining a foothold in the global market. MOST (Mobile Operators Shared Tower) started infra-sharing in India with the concept of multi-technology (GSM & CDMA) and multi operators (upto 6 operators) sharing a single tower.      .

Airtel Vodafone  105177635 78680291 50700367 48516824 23101900 12840939 4332631 2350537 325701124 MARKET SHARE OF COMPANIES – JULY 2009 BSNL Idea Aircel  Reliance MTNL Loop Total  .

talktime schemes. creative ads. long distance calling prices and handset prices.Marketing Strategies Revenues used to reduce airtime tariffs. etc.  Target market of cellular cos being the youth  . business solutions.  Cos focusing on rural areas for more connections.  This reduction in airtime tariffs increases the demand for cellular services. loyalty rewards.  Increasing VAS provided by different cellular cos  Other promotional strategies include – celebrity endorsements.

Value Added Services  As per COAI.  . income from VAS was 10% of total income of service providers in 06-07  SMS 57%  Caller line idntification6%  Other VAS 19%  Ring tones 7%  Content download 6%  GPRS5% VAS supplied by mobile network operators or VASP/CP  Many national and intl investors ready to invest in this segment of telecom market.

3G SPECTRUM – THE LATEST BUZZ .

 Transfers both voice data and non-voice data  BSNL and MTNL spectrums allotted immediately and private cos to get spectrum allocations by 2009    .  More than 60 3G networks present across 25 countries. fast downloading and video calling.3G technology Supports diverse multimedia applications  Enables triple play and broadband services  Requires huge bandwidth (15-20 MHz)  Providing high-speed internet.

160cr. 30k-40k cr.  Circle C Rs. 3500cr. 80cr. In ‘08 but it has been recently brought down by DoT to Rs. to earn about Rs. 30cr.  Govt.  Circle B Rs.Main highlight – video calling  Finance Ministry decided of reserve price to be Rs.   Metro & Circle A Rs. 4040cr. for 4 spectrum blocks     .

Future Trends Location based services  Mobile music will increase with better bandwidth  Migrattion to 3G will increase ARPU  Mobile commerce might be developed further  Mobile email will be driven by enterprises  Stocks on mobile will see an uptake  .

to provide a fair and transparent policy environment. The directions. interconnection and quality of service as well as governance of the Authority.   .TRAI  TRAI’s mission is to create and nurture conditions for growth of telecommunications in the country in a manner and at a pace which will enable India to play a leading role in emerging global information society. In pursuance of above objective TRAI has issued from time to time a large number of regulations. Objective of TRAI . orders and regulations issued cover a wide range of subjects including tariff. orders and directives to deal with issues coming before it and provided the required direction to the evolution of Indian telecom market from a Government owned monopoly to a multioperator multi-service open competitive market.

non-governmental society dedicated to the advancement of communication. non-profit. With a vision to establish and sustain a world-class cellular infrastructure and facilitate affordable mobile communication services in India. .COAI  The Cellular Operators Association of India (COAI) was constituted in 1995 as a registered. COAI's main objectives are to protect the common & collective interests of its members. particularly modern communication through Cellular Mobile Telephone Services.