Name Sandeep Taparia Srinath R Ritu Panwar Ravi Kumar Shivangi Kadam Rajan Sehgal Richa Yashodhan Mundra

Enrollment No. 08BS0002937 08BS0002474 08BS0002652 08BS0002633 08BS0002836 08BS0002533 08BS0002658 08BS0003864

 Intr ducti n  Brief Hi t ry  
arket Structure aj r Firm & Share

± ± ± -

Rajan Richa Richa Ritu Ritu a h dhan a h dhan Ravi Srinath Sandeep Shivangi 

Pricing P licy  Trend in Inve tment  Exp rt 
arket Strategy 

Perf rmance (Financial Analy i )  Future Analy i  C nclu i n

 Indian Telec m had g ne thr ugh pha e f gr wth and diver ificati n.  Telegraphic and teleph nic y tem in the 19th century  U e f advanced techn l gie like: o GS , o CD A, o WLL & o 3G Techn l gy.  B th Public and Private Player .  Give maximum facilitie t the cu t mer .  The Telec m ect r c ntribute 2.83 % t the t tal GDP in 2006-07 a again t 2.71 % in 2005-06.

Semic nduct r .Internet Service . .  bile Teleph ny. Telec mmunicati n Indu try include : o Telec m ervice : . . .Br adband Service . . .Teleph ne Service :  Fixed Line Teleph ny.Ph ne In trument .Netw rk Infra tructure.Telec m Equipment : . .

3rd large t by 2007 V ice Revenue dr pping.      India ± Fa te t gr wing market in W rld ± 190 mn ub criber 4th large t m bile market gr wing at 6 mn Sub/m nth 4th large t internet market. PCO .5 mn @ CQGR f 7.22% Paying highe t taxe and regulat ry charge . Variable Licen e fee.4. .

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1997 Telec m Regulat ry Auth rity f India created.1851 Fir t perati nal land line were laid by the g vernment near Calcutta ( eat f Briti h p wer) 1881 Teleph ne ervice intr duced in India 1883 erger with the p tal y tem 1923 F rmati n f Indian Radi Telegraph C mpany (IRT) 1932 erger f ETC and IRT int the Indian Radi and Cable C mmunicati n C mpany (IRCC) 1947 Nati nalizati n f all f reign telec mmunicati n c mpanie t f rm the P t . an exclu ive pr vider f d me tic and l ng-di tance ervice that w uld be it wn regulat r ( eparate fr m the p tal y tem) 1986 C nver i n f DOT int tw wh lly g vernment. Teleph ne and Telegraph (PTT). 2000 D T bec me a c rp rati n. 1999 Cellular Service are launched in India. New Nati nal Telec m P licy i ad pted. a m n p ly run by the g vernment' ini try f C mmunicati n 1985 Department f Telec mmunicati n (DOT) e tabli hed. BSNL .wned c mpanie : the Vide h Sanchar Nigam Limited (VSNL) f r internati nal telec mmunicati n and ahanagar Teleph ne Nigam Limited ( TNL) f r ervice in metr p litan area .

Ministry of Communication & Information Technology Licensor Dept of Telecom Regulator Telecom Regulatory Authority of India Judiciary Telecom Dispute Settlement Appellate Tribunal Wireless Operators GSM 900 & 1800 Unified License Operators Fixed Line Operators National Long Distance Operators CDMA International Long Distance Operators 1800Mhz .

0% 19.7% 2. Largest mobile services provider.0% 8.3% 21.2% 4.6 1.4 Reliance Hutch IDEA Tata Teleservices Aircel Spice Others Total 3.7% BSNL MTNL Bharti Government owned.9% 2.0 4.8 1.4% 2.7% Mobile 19.9 0. Announced Plans to expand GSM footprint in North and North east Pure play GSM player in 2 circles 37.2% 17.9 8.3 15.4 6.7% 7. Integrated operator. Plans expansion of GSM network apart from being the largest private CDMA operators. National presence (except Mumbai and Delhi) Government owned. Integrated operator.4 50 1. Has ramped up GSM services. Operates in Delhi and Mumbai.6% 2.1% . Provides CDMA services in 20 circles Operates in 2 circles.4 90 2.7 2.6 Share (%) Fixed 74. Pure play GSM operator in 11 circles.4 3.0 19.4 7.0% 5.0 17. Pure play GSM operator in 6 circles Integrated operator (along with VSNL) with presence in all segments.Company Presence Subscribers Jul 06 (mn) Fixed Mobile 17. with presence in all sectors.

Internati nal Bandwidth U age Gbps 2000 Australia China India Indonesia Japan Singapore Taiwan Thailand 9 16 2 1 39 7 8 1 2001 21 34 4 1 70 12 18 2 2002 27 56 5 2 87 19 30 3 2003 33 93 8 3 179 37 45 5 2004 54 178 16 5 283 57 88 6 2005 93 352 2006 157 602 2007 250 954 33 9 443 97 196 10 61 16 733 159 311 16 101 25 1176 256 508 26 *S urce : Telege graphy ‡ The ab ve figure i f r u age f bandwidth ‡ China ha m re than 10 time f higher bandwidth u age a c mpari n t India .

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September 2005 Players Bharti BSNL Hutc Idea Reliance Tata Aircel MTNL Spice BPL HFCL S yam % Share 20.54 6.69 0.59 20.80 0.89 18.11 0.05 Bharti Aircel % Share Sept 2005 BSNL TNL Hutch Spice 0% 2% 2% 3% 3% 5% 22% Idea BPL 0% Reliance Tata HFCL Shyam   20% 19% 9% 15%   .93 1.56 2.06 9.87 1.30 13.

0 17.September 2006 Players Bharti BSNL Idea Reliance Tata Aircel MTNL Spice BPL % Share 22. 0 7.01 3.60 20.90 16.10 8.21 1.21 Bharti Aircel % Share Sept 2006 BSNL TNL Hutch Spice Idea Reliance Tata HFCL Shyam BPL 1% 2% 2% 0% 0% 3% tch FCL Shyam ¡ ¡ ¤ £ ¢ ¢ 10% 21% 21% 19% 7% 14% .66 0. 6 0.69 1.61 0.

60 3.February 2007 Players Bharti BSNL Idea Reliance Tata % Share 20.00 0.30 . 0 1. 0 0.30 3.10 1.90 10. 0 1 .20 21.00 Bharti Aircel % Share Feb 2007 BSNL TNL Hutch Spice Idea BPL Reliance Tata HFCL Shyam 2% 1% 2% 0% 0% 3% 7% tch ircel MTNL Spice BPL FCL Shyam ¥ ¨ ¨ ¥ ¨ § ¦ ¦ © 22% 20% 18% 9% 16% .30 18.

Internati nal Pricing P licy .

40 per minute f r utg ing NLD call  R . 1.The Auth rity ha pre cribed a c mp ite ceiling r aming charge a indicated bel w:  R . 1. 2.75 per minute f r inc ming call The ther alient feature pre cribed are:  N rental permitted f r Nati nal r aming in any f rm N urcharge i leviable f r any f the nati nal r aming ervice N eparate PSTN charge n r aming call  Receiving S S i free while r aming .40 per minute f r utg ing l cal call  R .

ILD Servic es from Oct 2006 45. (Sinc e 1998) private investors and the Gov of Seychelles Seyc helles Telec om Seyc helles Jersey Telenet MTNL United Telec om (Sinc e 2002) MTML (Sinc e 2005) Reliance US. NZ. Eskom. Franc e. FWP. Nexus. CommuniTel . and UK Mauritius 500. and NVPL Wholly owned subsidiary CDMA-based WLL servic es CDMA-based WLL services ILD servic es to India.032 (March 2006) 20000 (March 2006) TCIL VSNL. cellular 34000 (March 2006) 2G and 3G. Two. Singapore. Canada. Malaysia.000 + - IndiaCall servic es (Since 2005) VSNL (ac quired lic ense in 2005) South Afric a Fixed (Servic es to c ommenc e in Aug-Sep 2006) Transnet/ Transtel. Germany.Players Bharti Countries Services Subscribers Partners Emtel of Mauritius. UK and Canada Nepal State of Jersey Fixed. Australia.

BSNL  Netw rk in n n-lucrative area e p. in rural area  Acce Deficit Charge (ADC)  Uni-brand trategy  bile TV f r GS u er  Wi-max in rural regi n  Reduce fare n fixed line .

cla e in tead f the ma e t drive the pr fit Vodafone-Essar Ltd  updated new n a wide range f ubject  Brand image with trademark ad .Bharati Cellular Ltd  Airtel c ncentrate n VAS (Value Added Service )  Impr ving n brand image  Br adband .

i st of pr i s t M pho s o dea cellular Ltd.  Thr  r  Inno ation ( o ile internet and  ri ing numbers (offering exciting products.Reliance Communications Ltd  Opti fi   o r t or s r ts ri ol . Tata Teleservices Ltd. .  Re tructuring the rganizati n ± acquire the internal hare  erger with Spice telec m t impr ve the ub criber ba e pill r str t I ( heap rand and refresh the i age ) offering ore). ser ices and packages).

Ci c .Semic nduct r indu try  C ncentrating n chip de igning  18 f the t p 25 indu trie had et up chip de ign center in India In trument    tly imp rted fr m China by n n-Indian player ± N kia. etc re m del in l w egment re ch ice n feature in y uth egment  Re tricted up gradati n in executive egment .

Netw rk Infra tructure  Segregating the t wer bu ine  Bharati. V daf ne-E Indu T wer  Reliance ± ptic fiber  BSNL ± rural netw rk ar & Idea merged their t wer bu ine .

 Sterlite Tech.Sterlite Techn l gie Limited:  Leading gl bal ervice pr vider. Increa e by 75%. 320 Cr. i n C nduct r. k fR .  P wer Tran mi cable . Telec mmunicati n  Acc unted f r 31% f their revenue.  F r Q1 F µ09 the c mpany rep rted a Str ng Order B 1.  µNati nal Telec m Award 2008¶ f r excellence in exp rt ( > 4 Cr.020. Optical Fibre . ± 4 illi n. .00 f which it exp rt am unted t R .)  T tal Telec m exp rt ± 100 Cr.

1.6% f t tal Indu try Sale .Telec m S ftware Exp rt fr m India:  Size f S ftware Exp rt ± R 4100 Cr (Exp rt & D me tic).  Size f Telec m S ftware market wa R 66 Cr. .

) Bharti tch Reliance BSNL Idea Tata Indicom Spice Aircel MTNL FCL Shyam Telelink Escotel BPL 2.00 322.00 6.00 2004 (Cr.9 6.00 2.00                  .00 3.98 .00 2.00 23.00 .00 6.00 1.00 0.) 3.08 .00 2 3.2003(Cr.00 .00 1.00 227.313.00* 1.030.00 1 37 .00 12. 36.00 10.00 6.) 7.00 8 .73 .00 6.261. 7 .00 2005 (Cr.928.00 1.00 99.00 2. 71.00 90.00 338.36 .00 20.00     .00* 61.837.878.00 706.00 22.262.080.00 11.00 2.00 .00 6.966.00 963.00 10.673.00 * * 11.00 683.00 1.) 2006 (Cr.00 230.701.00 12.00 3 0.00   880.00 1.089.

10000 8000 6000 4000 2000 0 2003 2004 2005 2006 Year 2007 2008 Hutch Reliance BSNL Idea ata Indicom Spice Aircel M NL HFCL Shyam elelink .Revenue Projections CSP Bharti 14000 12000 Crore Rs.

 bile arketing c ncept .OPPORTUNITIES: T ffer value added ervice n GS .  .  Inc me level in the rural area ri ing due t r bu t agricultural utput.  C ntent influenced by l cal culture and Gl bal ucce t rie . CD A and IP.  bile ph ne u er rate hitting a aturati n p int in big citie .interc nnected.  -C mmerce / E-Ticketing.  India a A ia¶ third large t ec n my i adding at lea t 1mn new m bile ph ne u er every m nth.--c rdinated.  C ntent Service ± u ic/Vide etc  Unified me aging platf rm .  Language independent ervice .merged m  F reign inve tment in f rm f equity r techn l gy.  Share f the rural market in the c untry¶ m bile p pulati n i h wever le than 15%.

THREATS: L w c t ervice pr vider ± n p ibility f breaking even in h rt term.---c py right  S ftware and digital c ntent Piracy.--duplicate  P litical in tability.  Weak IPR (Intellectual Pr perty Right ) pr tecti n.²legal b die wt l t f new rule  .²un tablene .unreliable  Regulat ry interference.

equipment.CHALLENGES Regulat ry P licie  Lack f level playing field  Penetrati n Level  Acr the w rld and within India  Seamle R aming  Infra tructure Pr gram  anufacture telec m equipment in India  Pa ive Infra tructure Sharing  V IP ±v ice ver internet pr t c l  Value Added Service  Unutilized ftware capability Digital Divide  N n Availability f techn l gy.  f r . netw rk acce milli n f p r.

 Emerging arket  Driving V lume Gr wth  L w Tariff (ARPU ) Devel ped arket  L w Sub criber Ba e  Techn l gical Advancement  Indian Telecom depends on the global telecom industry for technology platforms & network management While Indian market size attracts telecom giants .

helping c mpanie t enter new bu ine pp rtunitie and generate ting the c untry¶ ec n my.  Unified licen e regime. telec m infra tructure and telec m ervice are the key player in haping t day¶ ec n my. empl yment b  .  C n umer are ready t pay f r cutting edge techn l gy.  India p e e cheap lab r t attract f reign inve tment.  Fa te t gr wing m bile market in the w rld.STRENGTHS: Hike in the pr p ed FDI limit t 74 %. telec m pr fe i nal .  Huge wirele ub criber p tential.  Revenue haring trategie are leading t merger and acqui iti n .  Telec m ftware.

 arket tr ngly regulated by G vernment b dy ± G verning b th ISP and Telec m ect r .  .WEAKNESSES: L we t call tariff in the w rld. T many auth ritie ruling the ect r.  High c t f ervice pr vi i n.  Huge p tential f r l w end and cheap hand et .  Primarily a v ice ba ed market.  L w inc me c untry like India cann t aff rd t replicate expen ive telec m infra tructure.

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