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COUNTRY REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN
INTERNATIONAL BUSINESS
COMPARATIVE ANALYSIS OF THE GROWTH OF TELECOM SECTOR
IN INDIA & US
SUBMITTED BY: FACULTY GUIDE Name-MANINDER SINGH JUNEJA Faculty-prof debashish choudhary MBA-3CMBA (2010-2012) Amity International Business School Roll No. : A1808710023
AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA AMITY UNIVERSITY – UTTAR
PRADESH
ACKNOWLEDGEMENT Doing a project requires the assistance of many people. These people do their part by guiding us, efficiently developing an outline & providing us the feedback. This project is an honest effort towards putting forward whatever I have gained as a valuable experience that surely, will help me in the path I have chosen. I owe my sincere & heartiest gratitude to Mr Ajit Kumar Pandey and Dr Sanjeev Chaturvedi Faculty, Amity International Business School, for his able guidance, continuous support and cooperation throughout my project without which the present work would not have been possible.They constantly encouraged me and showed the right path from day first till the completion of my project.
I would also like to thank the Head of the Organization, Prof:DEBASHISH CHOUDHARY for providing chance to do this research and also his entire constant support and help in the successful completion of my project. It was an extremely rewarding experience for me in terms of learning I consider it a privilege to express through the pages of this report, a fewwords of gratitude and respect to those who guided and inspired in the completion of this project However, I accept the sole responsibility for any possible errors of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.
Signature (student)
CONTENTS:
Chapter-1 INTRODUCTION 4 Chapter-2 HISTORY 6 Chapter-3 OBJECTIVES 11 Chapter-4 TELECOM SECTOR IN INDIA 12 Chapter-5 GROWTH OF TELECOM IN INDIA 53 Chapter-6 TELECOM SECTOR IN USA 70 Chapter-6 SWOT ANALYSIS 90
Chapter-7 CONCLUSIONS OF INDIA 97 Chapter-8 CONCLUSIONS OF USA 98 Chapter-9 REFRENCES 99
INTRODUCTION Telecommunication is the transmission of information over significant distances to communicate. In earlier times, telecommunications involved the use of visual signals, such as beacons, smoke signals, semaphore telegraphs, signal flags,
and optical heliographs, or audio messages via coded drumbeats, lung-blown horns, or sent by loud whistles, for example. In the modern age of electricity and electronics, telecommunications now also includes the use of electrical devices such as the telegraph, telephone, and teleprinter, as well as the use of radio and microwave communications, as well as fiber optics and their associated electronics, plus the use of the orbiting satellites and the Internet.
A revolution in wireless telecommunications began in the 1900s (decade) with pioneering developments in wireless radio communications by Nikola Tesla and Guglielmo Marconi. Marconi won the Nobel Prize in Physics in 1909 for his efforts. Other highly notable pioneering inventors and developers in the field of electrical and electronic telecommunications include Charles Wheatstone and Samuel Morse (telegraph), Alexander Graham Bell(telephone), Edwin Armstrong, and Lee de Forest (radio), as well as John Logie Baird and Philo Farnsworth (television).
The world's effective capacity to exchange information through two-way telecommunication networks grew from 281 petabytes of information in 1986, to 471 petabytes in 1993, to 2.2 exabytes in 2000, and to 65 exabytes in 2007.This is the informational equivalent of 2 newspaper pages per person per day in 1986, and 6 entire newspapers per person per day by 2007. Given this growth, telecommunications play an increasingly important role in the world economy and the worldwide telecommunication industry's revenue was estimated to be $3.85 trillion in 2008. The service revenue of the global telecommunications industry was estimated to be $1.7 trillion in 2008, and is expected to touch $2.7 trillion by 2013.
Telecom industry comprises the firms in business transmission of voice and data between devices.Voice and data are encoded and decoded into electrical signals after transmission and before reaching the destination. The signals are then transmitted over a network of copper/fiber-optic cable.The significance of this industry can be judged from the enormous amount of the revenues it generates. In 2005 the total revenues across the world in this industry to amounted 1.2 trillion which is almost 3% of the world GDP. In the US,Voice
business amounts to 64.9% of the business while Data and other services take the rest of the market However due to recent advances in technology the share of data has been increasing rapidly High speed internet is rapidly making a way into households and is poised to become the leading revenue earner for the firms in the industry. Most of the firms in the business have one or more four distinct lines of business,
1) Voice services
2) Wireless voice/data services and
3) Internet/ Broadband/Data services and more recently
4) Video services.
Until the early 90’s the industry was compromised of monopoly regional operators strictly regulated by the Federal Communication Commission (FCC) and the state public utility commissions. The firms who wanted to enter the business in this industry needed the licenses from FCC. The monopolistic nature of these corporations meant price controls were imposed any price rises were decided by the regulatory bodies upon requests by businesses citing increased expenses.
Chapter 2
HISTORY Ancient systems Greek hydraulic semaphore systems were used as early as the 4th century BC. The hydraulic semaphores, which worked with water filled vessels and visual signals, functioned as optical telegraphs. However, they could only utilize a very limited range of pre-determined messages, and as with all such optical
telegraphs could only be deployed during good visibility conditions.
During the Middle Ages, chains of beacons were commonly used on hilltops as a means of relaying a signal. Beacon chains suffered the drawback that they could only pass a single bit of information, so the meaning of the message such as "the enemy has been sighted" had to be agreed upon in advance. One notable instance of their use was during the Spanish Armada, when a beacon chain relayed a signal from Plymouth to London that signaled the arrival of the Spanish warships
Systems since the Middle Ages In 1792, Claude Chappe, a French engineer, built the first fixed visual telegraphy system between Lille and Paris. However semaphore systems suffered from the need for skilled operators and the expensive towers at intervals of 10–30 kilometers (6–20 mi). As a result of competition from the electrical telegraph, Europe's last commercial semaphore line in Sweden was abandoned in 1880.
Telegraph and telephone The first commercial electrical telegraph was constructed by Sir Charles Wheatstone and Sir William Fothergill Cooke, and its use began on April 9, 1839. Both Wheatstone and Cooke viewed their device as "an improvement to the electromagnetic telegraph" not as a new device.
The businessman Samuel F.B. Morse and the physicist Joseph Henry of the United States developed their own, simpler version of the electrical telegraph, independently. Morse successfully demonstrated this system on September 2, 1837. Morse's most important technical contribution to this telegraph was the rather simple and highly efficient Morse Code, which was an important advance over Wheatstone's complicated and significantly more expensive telegraph system. The communications efficiency of the Morse Code anticipated that of the Huffman code in digital communications by over 100
years, but Morse and his associate Alfred Vail developed the code purely empirically, unlike Huffman, who gave a detailed theoretical explanation of how his method worked.
The first permanent transatlantic telegraph cable was successfully completed on 27 July 1866, allowing transatlantic electrical communication for the first time. An earlier transatlantic cable had operated for a few months in 1859, and among other things, it carried messages of greeting back and forth between President James Buchanan of the United States and Queen Victoria of the United Kingdom.
However, that transatlantic cable failed soon, and the project to lay a replacement line was delayed for five years by the American Civil War. Also, these transatlantic cables would have been completely incapable of carrying telephone calls even had the telephone already been invented. The first transatlantic telephone cable (which incorporated hundreds of electronic amplifiers) was not operational until 1956.
The conventional telephone now in use worldwide was first patented by Alexander Graham Bell in March 1876. That first patent by Bell was the master patent of the telephone, from which all other patents for electric telephone devices and features flowed. Credit for the invention of the electric telephone has been frequently disputed, and new controversies over the issue have arisen from time-to-time. As with other great inventions such as radio, television, the light bulb, and the digital computer, there were several inventors who did pioneering experimental work on voice transmission over a wire, and then they improved on each other's ideas. However, the key innovators were Alexander Graham Bell and Gardiner Greene Hubbard, who created the first telephone company, the Bell Telephone Company in the United States, which later evolved into American Telephone & Telegraph (AT&T).
The first commercial telephone services were set up in 1878 and 1879 on both sides of the Atlantic in the cities of New Haven, Connecticut, and London, England.
Radio and television In 1832, James Lindsay gave a classroom demonstration of wireless telegraphy via conductive water to his students. By 1854, he was able to demonstrate a transmission across the Firth of Tayfrom Dundee, Scotland, to Woodhaven, a distance of about two miles (3 km), again using water as the transmission medium. In December 1901, Guglielmo Marconi established wireless communication between St. John's, Newfoundland and Poldhu, Cornwall (England), earning him the Nobel Prize in Physics for 1909, one which he shared with Karl Braun. However small-scaleradio communication had already been demonstrated in 1893 by Nikola Tesla in a presentation before the National Electric Light Association.
On March 25, 1925, John Logie Baird of Scotland was able to demonstrate the transmission of moving pictures at the Selfridge's department store in London, England. Baird's system relied upon the fast-rotating Nipkow disk, and thus it became known as the mechanical television. It formed the basis of experimental broadcasts done by the British Broadcasting Corporation beginning September 30, 1929. However, for most of the 20th century, television systems were designed around the cathode ray tube, invented by Karl Braun. The first version of such an electronic television to show promise was produced by Philo Farnsworth of the United States, and it was demonstrated to his family in Idaho on September 7, 1927.
Television, however, is not solely a technology, limited to its basic and practical application. It functions both as an appliance, and also as a means for social story telling and message dissemination. It is a cultural tool that provides a communal experience of receiving information and experiencing fantasy. It acts as a “window to the world” by bridging audiences from all over through programming of stories, triumphs, and tragedies that are outside of personal experiences.
Computer networks and the Internet
On 11 September 1940, George Stibitz was able to transmit problems using teleprinter to his Complex Number Calculator in New York and receive the computed results back at Dartmouth College in New Hampshire. This configuration of a centralized computer or mainframe computer with remote "dumb terminals" remained popular throughout the 1950s and into the 1960s. However, it was not until the 1960s that researchers started to investigate packet switching — a technology that allows chunks of data to be sent between different computers without first passing through a centralized mainframe. A four-node network emerged on December 5, 1969. This network soon became the ARPANET, which by 1981 would consist of 213 nodes.
ARPANET's development centred around the Request for Comment process and on 7 April 1969, RFC 1 was published. This process is important because ARPANET would eventually merge with other networks to form the Internet, and many of the communication protocols that the Internet relies upon today were specified through the Request for Comment process. In September 1981, RFC 791 introduced the Internet Protocol version 4 (IPv4) and RFC 793 introduced the Transmission Control Protocol (TCP) — thus creating the TCP/IP protocol that much of the Internet relies upon today.
However, not all important developments were made through the Request for Comment process. Two popular link protocols for local area networks (LANs) also appeared in the 1970s. A patent for the token ring protocol was filed by Olof Soderblom on October 29, 1974, and a paper on the Ethernet protocol was published by Robert Metcalfe and David Boggs in the July 1976 issue ofCommunications of the ACM. The Ethernet protocol had been inspired by the ALOHAnet protocol which had been developed by electrical engineering researchers at the University of Hawaii
TELECOMMUNICATION INDUSTRY
The Telecommunications Industry Association (TIA) is the leading trade association representing the global information and communications technology (ICT) industry through Standards development, Policy initiatives, business opportunities, market intelligence and networking events. With support from hundreds of members, TIA enhances the business environment for companies involved in telecom, broadband, mobile wireless, information technology, networks, cable, satellite, unified communications, emergency communications and the greening of technology. TIA is accredited by ANSI.
CHAPTER-3
OBJECTIVES
v To compare and contrast the difference in the USA and INDIA’S TELECOM SECTOR and their contributions to respective economies.
v Major challenges for TELECOM SECTOR in INDIA AND USA
and its weaknesses, and analyze their roots.
v The opportunities for TELECOM Business in future and the major competitors to its business.
INDIAN TELECOM MARKET
Third largest in the world and the second largest among the emerging economies of Asia, the Indian Telecommunication network has proved its mettle time and again. Public as well as private segments of the economy have made significant contributions to make the sector one of the key contributors to India's success story.
The growth of Indian telecommunication sector is highly driven by supportive government policies, emerging new technologies and changing consumer behaviour. The fact that the industry has made stupendous growth in recent times is reflected in the statistics, key developments, investments and future prospects pertaining to itare discussed hereafter.
Key Statistics
• In its recent statement issued, Telecom Regulatory Authority of India (TRAI) has revealed that the country's mobile subscriber base has increased from 893.84 million in December 2011 to 903.73 million in January 2012, growing by 1.11 per cent
• Telecom operators added 9.88 million mobile subscribers in January 2012, taking the total telephone user base to 936.12 million
• The overall tele-density (telephones per 100 people) reached 77.57 per cent
• Broadband subscriber base increased from 13.30 million at the end of December 2011 to 13.42 million at the end of January 2012
Market Dynamics
The Indian handset market has registered 14.1 per cent growth in 2011 marking a volume sale of 182 million handsets. The Indian handset market is led by Nokia with 37.2 per cent market share, followed by Samsung (14.9 per cent), G'Five (7.5 per cent) and Micromax (5.8 per cent).
Indian handset market experiences a strong presence of domestic and Chinese handset makers (like Micromax, G'Five, Karbonn, Spice, Maxx and Lava) owing to their offerings that are reasonably priced as well as fully featured with latest technologies and applications.
Moreover, every vendor is venturing into the flourishing smartphone market in India. A report by CyberMedia Research (CMR) reveals that that there were 10 million units of smartphones shipments over January-November 2011. The report titled 'India Monthly Mobile Handsets Market Review' also stated that there were 23 smartphone model launches in the month of November itself.
For smartphone shipments also (during January-November 2011), Nokia led the market with 38.4 per cent share, with Samsumg (27.5 per cent) and Reliance India Mobile (RIM [15.5 per cent]) trailing behind.
Key Developments & Investments
• In a bid to globalise its Indian operations that would support its global product supply chain, Ericsson, the world's largest mobile network equipment maker, has plans to ramp up its investments in the country. Driven by changing demographics and consumer behaviour, Ericsson's strategy is to upgrade Indian operations from being domestic-market oriented to export oriented
• Indian start-up company Lava has formed a strategic partnership with Intel with the launch of the first Intel-powered smartphone in India, the Xolo X900. Lava, which has so far manufactured budget phones, will now produce smartphones under the brand name 'Xolo'
• India's third largest mobile phone company Idea Cellular has entered an alliance with Opera Software to launch a customised 'Opera Mini' mobile web browser. Apart from being a mass-market web browser that claims to offer a rich web experience to smartphone users, Opera Mini would also help in driving data traffic and increase average revenue per user (ARPU)
• Bharti Airtel has launched an innovative mobile money platform called 'Airtel Money' in India through its wholly-owned subsidiary Airtel M Commerce Services Ltd (AMSL). Airtel users, across 300 key cities in India, would be empowered to top-up their cell-phones with airtime and pay for their utility bills, recharges, shopping at 7,000-plus merchant outlets and online transactions through this fast, simple and secure service
• India's fifth-largest Global System for Mobile Communications (GSM) operator Aircel, has decided to renew its outsourcing contract worth US$ 100 with Nokia Siemens Networks (NSN) to manage its mobile networks in seven circles - Delhi, Mumbai, Kolkata, Punjab, Haryana, West Bengal and Rajasthan
NSN has also bagged a contract from Bharti Airtel, the world's fifth largest telecom company, to build and operate its long-term evolution (LTE) network in Maharashtra circle. LTE is a 4G mobile broadband technology that supports services like high-speed internet and video streaming on the go.
Government Initiatives
The sector regulator, TRAI, has issued guidelines to all the operators to set up a complaint centre under Telecom Consumers Complaint Regulations, 2012. The centre would be responsible in acknowledging all the complaints it receives, even if the complaint is made by a subscriber of another mobile operator. It would have a toll-free number and would be equipped with a web-based complaint monitoring system, through which the consumers can track their complaints.
TRAI is also doing its bit to achieve the aim of carbon emission reduction under which operators are directed to achieve carbon reduction to the extent of 5 per cent by 2012-13, 12 per cent by 2016-17 and 17 per cent by 2018-19. With regards to these norms under 'Green Telephony', TRAI has further mandated for all the operators that at least 50 per cent of all rural towers and 20 per cent of all urban towers are to be powered by hybrid power by 2015. The government has also given its nod for the same.
Moreover, the National Telecom Policy (NTP) 2012 has received approval from the Telecom Commission. It will now head to the Cabinet for further consideration and approval. The new telecom policy endorses free roaming service to telecom users while allowing them to retain their numbers without paying extra. The new policy would also allow telecom players to exit from the business under specific conditions
Information Note to the Press (Press Release No. 72/2012)
TELECOM REGULATORY AUTHORITY OF INDIA
New Delhi, 7th April, 2012
For immediate release Website: www.trai.gov.in
Highlights on Telecom Subscription Data as on 29th February 2012
Particulars Wireless Wireline Total
Wireless+Wireline
Total Subscribers (Millions) 911.17 32.33 943.49
Total Net Addition (Millions) 7.44 -0.07 7.37
Monthly Growth (%) 0.82% -0.21% 0.79%
Urban Subscribers (Millions) 594.11 24.71 618.82
Urban Subscribers Net Addition (Millions) 3.01 -0.02 2.99
Monthly Growth (%) 0.51% -0.07% 0.49%
Rural Subscribers (Millions) 317.06 7.62 324.68
Rural Subscribers Net Addition (Millions) 4.43 -0.05 4.38
Monthly Growth (%) 1.42% -0.65% 1.37%
Overall Teledensity* 75.42 2.68 78.10
Urban Teledensity* 162.61 6.76 169.37
Rural Teledensity* 37.62 0.90 38.53
Share of Urban Subscribers 65.20% 76.43% 65.59%
Share of Rural Subscribers 34.80% 23.57% 34.41%
Mobile Number Portability requests increased from 32.79 million subscribers at the end of January 2012 to 37.11 million at the end of February 2012. In the month of February 2012 alone, 4.32 million requests have been made for MNP. Active wireless subscribers on the date of Peak VLR in February 2012 are 670.65 Million. Broadband subscription reached to 13.54 Million in February 2012 from 13.42 Million in January 2012.
_______________________________________________________________________________________________ * Based on the population projections from Census data published by the Office of Registrar General & Census Commissioner of India.
1
I. Total Telephone Subscribers
� The number of telephone Total (Wireless+Wireline) Subscribers in Million
subscribers in India increased to
1000 936.12
943.49
943.49 Million at the
end of
900
February, 2012 from 936.12 Million
800
at the end of January 2012, thereby
700
615.83
618.82
registering a growth rate of 0.79%.
600
The share of Urban subscribers has
500
declined to 65.59% from 65.79%
400
320.29
324.68
whereas share of Rural Subscribers
300
has increased to 34.41%
in the
200
month of February 2012. With this,
100
the overall Tele-density in India
0
reaches to 78.10 at the end of January‐12 February‐12
February, 2012 from 77.57 of the Total Subscribers Urban Rural
previous month.
Overall Teledensity � Subscription in Urban Areas grew
from 615.83 million in January, 2012
168.84
180 169.37
to 618.82
million
at the end of
160 February, 2012. Subscription in Rural
140 Areas increased from 320.29 million
120
to 324.68 million during the same
100
77.57
78.10
period. The growth of
Urban and
80
Rural Subscription is
0.49% and
60
38.04 38.53 1.37% respectively. The overall Urban
40
teledensity has increased from 168.84
20
0 to 169.37 and Rural teledensity
January‐12 February‐12 increased from 38.04 to 38.53.
Overall Urban Rural
2
Overall Teledensity (Circle Wise)
All India
Assam Bihar
Madhya Pradesh
J & K
UP*
North East
Orissa Rajasthan
West Bengal*
Andhra Pradesh Haryana
Gujarat
Karnataka
Maharashtra*
Kerala Punjab
Tamil Nadu
Himachal Pradesh Delhi
0
* Population data/Projections are available state wise only. Notes:
1. Teledensity figures are derived from the subscriber data provided by the operators and the population projections published by the Office of the Registrar General & Census Commissioner, India.
2. Delhi Service area, apart from the State of Delhi, includes wareas served by the local exchanges of Ghaziabad & Noida (in UP) and Gurgaon & Faridabad (in Haryana).
Overall Teledensity (Circle Wise)
Overall Teledensity
78.10
45.46
48.25
53.52
54.17
60.16
64.74
65.45
71.80
79.25
80.64
87.82
90.04
96.81
96.50
107.77
113.25
116.57
119.59
236.33
50 100
150 200
250
* Population data/Projections are available state wise
Teledensity figures are derived from the subscriber data provided by the operators and the population projections published by the Office of the Registrar General & Census
Delhi Service area, apart from the State of Delhi, includes wireless subscribers of the areas served by the local exchanges of Ghaziabad & Noida (in UP) and Gurgaon & Faridabad (in Haryana).
3
236.33
250
Teledensity figures are derived from the subscriber data provided by the operators and the population projections published by the Office of the Registrar General & Census
ireless subscribers of the areas served by the local exchanges of Ghaziabad & Noida (in UP) and Gurgaon &
II. Wireless Segment (GSM, CDMA & FWP)
� Total Wireless subscriber base Total Wireless Subscribers (in Millions)
increased from 903.73 Million in 1000 903.73
911.17
January 2012 to 911.17 Million at
900
the end of February 2012, 800
registering a growth of 0.82%. The 700 591.10
594.11
share of Urban Subscriber
has 600
500
marginally decreased from 65.41 %
400 312.62
317.06
to 65.20% where as share of Rural
300
Subscribers has marginally 200
increased from 34.59% to 34.80%. 100
The overall wireless Tele density in 0
January‐12 February‐12
India reaches 75.42. Total Subscribers Urban Rural
• Wireless subscription in Urban
Wireless Teledensity Areas increased from 591.10 million
180 162.06
162.61
in January 2012 to 594.11 million at
the end of February 2012.
The
160
140 subscription in Rural Areas
120 increased from 312.62 million to
100 317.06 million during the same
74.89
75.42
80
period. This shows higher growth in
60 Rural Subscription (1.42%) than
37.13 37.62 Urban Subscription (0.51%).
The
40
Urban wireless teledensity
has
20
increased from 162.06 to 162.61 and
0
Rural teledensity has increased from
January‐12 February‐12
Overall Urban Rural 37.13 to 37.62. Detailed statistics is
at Annexure I.
4
• Private operators hold 88.64% of the wireless market share where as BSNL
and MTNL, two PSU operators hold only 11.36% market share. The graphical
presentations of market shares and shares in net additions
providers during the month of February 2012 are given below:
A. Service Provider wise Market Share as on 29
Videocon
Sistema 0.68%
1.69%
Uninor
4.52%
Aircel
6.94%
Tata 8.99%
BSNL 10.73%
Idea
12.15%
B. Service Providers’ share in net additions during February 2012
31.4
8%
2 4. 5 0 %
.08%
1 3
Uni
nor
h a r t i
Relia
nce
Note: The subscriber figures of S Tel are taken as on January 2012, due to noninformation for February 2012.
• Private operators hold 88.64% of the wireless market share where as BSNL
and MTNL, two PSU operators hold only 11.36% market share. The graphical
presentations of market shares and shares in net additions of all the service
providers during the month of February 2012 are given below:
A. Service Provider wise Market Share as on 29th February 2012.
Videocon MTNL Loop Stel 0.63% 0.38% 0.36% HFCL
0.68%
0.15%
Etisalat
0.09%
Bharti
19.62%
Reliance 16.68% Vodafone
16.40%
Pvt : 88.64% PSU: 11.36%
B. Service Providers’ share in net additions during February 2012
Share in Net Addition
(Net Add.= 7,440,985)
26%
.6 7 %
1 0
.69
%
12 %
54%
17%
47%
15%
00% 22
4 .
3 .
1 .
1 . . . 0 0 0
Voda
fon
e i r c e l
Sist
ema
BSNL
HFCL
MTN
L Lo
op
Stel
Vide
ocon
The subscriber figures of S Tel are taken as on January 2012, due to non-submission ofinformation for February 2012.
5
• Private operators hold 88.64% of the wireless market share where as BSNL
and MTNL, two PSU operators hold only 11.36% market share. The graphical
of all the service
February 2012.
Bharti
19.62%
Reliance
16.68%
B. Service Providers’ share in net additions during February 2012
Net Addition
(Net Add.= 7,440,985)
22 %
6 1 %
. .
2 4 ‐
T a t a
submission of
III. VLR Data
Out of the total 911.17 Million wireless subscribers, 670.65 Million were
active on the date of Peak VLR for the month of February 2012. The total
active VLR number excludes the CDMA VLR figure of BSNL, as the service
provider has not provided the VLR figures of their total CDMA subscriber base
of 4.10 million. The proportion of VLR subscribers is approximately 73.60% of
the total wireless subscriber base reported by the service providers.
Circle-wise, J&K has the highest proportion of VLR subscribers with
82.81% followed by Assam (82.13%) and MP (80.55%); Mumbai has the
lowest proportion with 63.74%. Service Provider wise, Idea leads the tally with
92.90% followed by Bharti (91.88%); STel is at the bottom with 28.53%. The
detailed statistics of proportionate VLR is at Annexure II & methodology used
for reporting subscriber base/active subscribers is at Annexure IV. Proportion of VLR subscribers (Circle wise)
Proportion of VLR
.8 1 .13
.55
.00
.71
.51
.48
.68
.85
.33
90
8 28 2 .6 3 .9 7 .59 .5 2
90
8 0 .3 1 .1 3
ill io n s)
7 9 .3 7
7 7 7 7 .2 3
7 6 .6 2 .4 1
75
7 4 7 4 7 3 7 2
72 7 2 .3 9
63.7
4
80 7 1 80 7 1 6 9 6 8
6 7 6 7
70 6 4
70
60 60
%
50 50
VLR
Subs
cribe
rs 40 40
30
30
20 20
10 10
0
0
K
Assam
Mad
hya
Mah
arashtra
Rajasthan
Gujarat
And
hra
(E)
Delhi
Karna
taka
Pun
jab
West
(W)
Bihar
Kerala
Haryana
HP
East
Orissa
Kolkata
Nad
u Mum
bai
&
.
J P .
P
Nort
h
.
U .
Tam
il
U
Total Subs VLR Subs VLR %
6
Proportion of VLR subscribers (Service Provider wise) Proportion of VLR
.9 0 .8 8 87
.68
9 2
200 9 1 100
180
90
.39
160
31 06
80
6 5 7 9 .11
140 70 .
57 5 7
66
5 5 8 6
120
53 7 9 .4 7 5 5 60 %
.
48
4 5
2 9
4 3 4 2
VL
R
100
4 1 50
.
5 3
80 3 6 . 40
28
60
30
40 20
20 10
0
Idea
Tata
Loop
Tel 0
S
Voda
fone R
eli anc
e Siste
ma is al at
Vide
ocon
M T N L
Total Subs VLR Subs VLR %
* The subscriber figures of S Tel are taken as on January 2012, due to non-submission of
information for Feb-2012.
7
IV. Mobile Number Portability As per the data reported by the service providers, by the end of February
2012 about 37.11 million subscribers have submitted their requests to
different service providers for porting their mobile number. In MNP Zone-I
(Northern & Western India) maximum number of requests have been
received in Gujarat (3.42 million) followed by Rajasthan (3.26 million)
whereas in MNP Zone-II (Southern & Eastern) maximum number of requests
have been received in Karnataka (3.94 million) followed by Andhra Pradesh
Service area (3.46 million). In the month of February 2012, total number of
subscribers who have submitted their request for MNP is 4.32 million. The
status of MNP requests in various service areas is given below:
Service Area Wise MNP Status at the end of February, 2012
Zone -1 Zone - 2
Number of Number of
Service Area Porting Service Area Porting
Requests Requests
Delhi 1641506
Andhra Pradesh 3460753
Gujarat 3426450 Assam 85400
Himachal Pradesh 141593 Bihar 778624
Haryana 1642668 Karnataka 3940238
Jammu & Kashmir 6055 Kerala 1860763
Maharashtra 2909573 Kolkata 777454
Mumbai 1299078 Madhya Pradesh 2264486
Punjab 1436221 North East 27959
Rajasthan 3256438 Orissa 788425
Uttar Pradesh - East 2031205 Tamil Nadu 2232754
Uttar Pradesh - West 2038921 West Bengal 1064683
Total 19829708 Total 17281539
Total (Zone-1 + Zone-2)
37111247
Net Addition
4322509
(in February 2012)
8
V. Wireline Segment
Wireline subscriber base declined from 32.39 Million at the end of January
2012 to 32.33 Million at the end
Subscribers has increased from 76.32% to 76.43% where as share of Rural
Subscribers has declined from 23.68% to 23.57%.
density in India has remained, more or less, stable at 2.68 with urban and
rural teledensity being 6.76 and 0.90 respectively. BSNL and MTNL, two PSU
operators hold 80.76% of the Wireline market share. Detailed statistics is at
Annexure-III. The graphical presentation of market share of all service
providers as on 29th February 2012 is given below:
A. Service Provider wise Market Share as on 29
Reliance3.93%
Tata 4.40%
Bharti 10.08%
MTNL 10.69%
Pvt : 19.24%
Note: Fixed line subscriber base corresponding to Vodafone is for corporate they have started reporting to TRAI from February 2012.
Wireline subscriber base declined from 32.39 Million at the end of January
32.33 Million at the end of February 2012. The share of Urban
Subscribers has increased from 76.32% to 76.43% where as share of Rural
Subscribers has declined from 23.68% to 23.57%. The overall wireline tele
in India has remained, more or less, stable at 2.68 with urban and
rural teledensity being 6.76 and 0.90 respectively. BSNL and MTNL, two PSU
operators hold 80.76% of the Wireline market share. Detailed statistics is at
III. The graphical presentation of market share of all service
providers as on 29th February 2012 is given below:
A. Service Provider wise Market Share as on 29th Feb. 2012
Reliance HFCL Sistema
0.62% 0.15%
3.93%
Vodafone
0.05%
BSNL
70.07%
PSUs : 80.76%
Fixed line subscriber base corresponding to Vodafone is for corporate customers, whichthey have started reporting to TRAI from February 2012.
9
Wireline subscriber base declined from 32.39 Million at the end of January
The share of Urban
Subscribers has increased from 76.32% to 76.43% where as share of Rural
The overall wireline tele-
in India has remained, more or less, stable at 2.68 with urban and
rural teledensity being 6.76 and 0.90 respectively. BSNL and MTNL, two PSU
operators hold 80.76% of the Wireline market share. Detailed statistics is at
III. The graphical presentation of market share of all service
Feb. 2012
customers, which
B. Service providers’ share in Net Addition during February 2012.
40% 20% 0%
-20% -40% -60% -80% -100% -120% -140% -160% -180%
Share in Net addition
0.73%
Bharti
BSNL
-152.95%
B. Service providers’ share in Net Addition during February
Share in Net addition
(Net addition= -66562)
23.23% 26.41%1.36% -1.30% 1.50% 1.01%
HFCL MTNL
Reliance
Sistema Vod
afone
152.95%
B. Service providers’ share in Net Addition during February
26.41%
Vod
afo
10
VI. Category wise Growth
� From the below tables, Circle A shows the highest net addition and highest rate of monthly growth in the wireless sector from January 2012 to February 2012.
Category wise Net Additions and subscriber base
Net Additions during the Category month of February, 2012
Wireline
-14356.7 Circle A
Circle B -57196
Circle C -5998
Metro 10988.43
All India -66562
Category-wise Growth Rate in Access Service
Monthly Rate of Growth
Category (Feb-2011 to Feb
Wireline
-0.11% Circle A
Circle B -0.55%
Circle C -0.29%
Metro 0.16%
All India -0.21% � Metros indicate data for Delhi, Mumbai & Kolkata. Data for Chennai service area has
been included in Circle A, as part of TN
Category wise Growth
From the below tables, Circle A shows the highest net addition and highest rate of monthly growth in the wireless sector from January 2012 to February 2012.
Category wise Net Additions and subscriber base
Net Additions during the Subscriber Base as on 29month of February, 2012 February, 2012
Wireline
Wireless
Wireline
14356.7
12769715
3789806
57196 3320601 10471157
5998 1251812 2075705
10988.43 -921234 7075461
66562 7440985 32392038
wise Growth Rate in Access Service
Monthly Rate of Growth
Yearly rate of growth
2011 to Feb-2012) (Feb-2011 to Feb
Wireline
Wireless
Wireline
Wireless
0.11%
-4.97%
1.19%
0.55% 0.93% -8.24%
0.29% 1.01% -27.95%
0.16% -0.88% -1.86%
0.21% 0.82% -7.28%
tros indicate data for Delhi, Mumbai & Kolkata. Data for Chennai service area has been included in Circle A, as part of TN
11
From the below tables, Circle A shows the highest net addition and highest rate of monthly growth in the wireless sector from January
Subscriber Base as on 29th
February, 2012
Wireless
322010067
360624143
125336344
103197639
911168193
Yearly rate of growth
2011 to Feb-2012)
Wireless
14.03%
16.56%
19.63%
8.83%
15.14%
tros indicate data for Delhi, Mumbai & Kolkata. Data for Chennai service area has
VII. Broadband (≥ 256 Kbps download)
Total Broadband subscriber base has increased from 13.42 million at the
end of January 2012 to 13.54 million at the end of February 2012, there by
showing a monthly growth of 0.87%. Yearly growth in broadband subscribers is
18.02% during the last one year (Feb. 2011 to Feb. 2012).
As on 29th Feb. 2012, there are 155 Internet Service Providers (ISPs) which
are providing broadband services in the country. Top three ISPs in terms of
market share are: BSNL with 8.78 million subscribers, Bharti Airtel with 1.36
million and MTNL with 1.03 million subscribers.
Broadband Market Share
Others, 17.5%
BSNL, 64.8%
MTNL, 7.6%
Bharti, 10.0%
BSNL Bharti MTNL Others
***
Contact details in case of any clarification:
Raj Pal, Advisor (ER), TRAI
Mahanagar Doorsanchar Bhawan
Jawahar Lal Nehru Marg, Authorised to issue:
New Delhi – 110002
Ph: 011-23230752 (Raj Pal)
Fax: 011-23236650
E-mail: [email protected] Advisor (ER)
Note: Information in the Press Release is based on the data provided by the Service Providers.
12
Wireles
s Subscriber Bas
e Annex
ure-I
Pag
e 1 of 3
Group
Bharti
Reliance
Vodafone
Tata
Idea
Airce
l/Dishnet
Circle
Jan-12
Feb
-12
Ja
n-12
Feb
-12
Ja
n-12
Feb
-12
Jan-12
Feb
-12
Jan-12
Fe
b-12
Jan-12
Feb
-12
Andhra Pradesh
1790
0408
1800
5577
9349
500
9443
471
6784
329
6624
192
7707
188
7697
402
9623
900
9874
869
1957
801
1877
284
Assam
3565
349
3604
326
2686
136
2771
995
1951
967
2000
504
1275
351275
282876
82
2988
23
3704
649
3700
224
Bihar
1681
6652
1707
5806
9462
237
9491
206
5799
023
5887
902
5002
835
4966
124
5476
438
5598
131
5082
942
5135
743
Delhi
8589
731
8666
307
8686
907
8653
048
8340
459
8415
704
4856
373
4640
386
4585
267
4736
999
2364
118
2444
970
Gujarat
6814
699
6867
664
8170
553
8309
872
1576
1617
1594
7610
3857
732
3754
102
7713
978
7944
883
5914
28
6252
41
Haryana
2275
808
2349
201
4260
263
4265
016
4343
430
4368
831
2867
646
2848
288
3431
364
3559
508
5835
21
5943
08
Himachal P
radesh
1777
668
1806
122
1872
074
1837
334
4229
62
4339
69
4005
063998
134292
35
4424
71
6931
85
7256
63
J & K
2026
209
2052
589
5205
31
5373
78
6859
29
7009
96
1167
351181
691625
60
1708
63
1575
250
1606
563
Karnataka
1527
8989
1535
3628
8045
188
8069
504
6614
514
6684
965
7014
596
7101
538
5528
696
5599
658
1731
093
1700
038
Kerala
3501
206
3507
520
4253
749
4266
119
5825
894
5838
915
2376
342
2391
961
7402
840
7398
445
2415
121
2351
517
Kolkata
3801
989
3830
230
5342
181
5403
634
4445
740
4419
352
3156
152
3029
610
1210
597
1283
469
1776
039
1792
172
Madhya Prade
sh
9602
627
9635
114
1228
6268
1228
8542
3790
520
4005
622
4950
199
4957
233
1331
5056
1353
2307
8345
63
8624
74
Maharashtra
9449
972
9646
997
1084
4584
1090
1353
1265
9140
1285
3290
9198
909
8676
060
1497
2162
1513
9241
1205
671
1222
626
Mum
bai
3714
217
3719
123
8761
138
8714
220
6002
506
5902
412
5177
457
4673
113
2818
843
2866
050
1202
151
1252
429
North East
2194
615
2228
206
9062
54
9551
46
9164
93
9280
00
7568
77540
71919
18
1959
71
2371
230
2377
169
Odisha
6003
168
6175
241
4700
014
4699
435
2514
974
2552
046
2513
609
2515
623
9767
58
1028
637
2759
507
2873
435
Punjab
6926
186
6944
261
4914
581
4953
072
4454
905
4504
979
3097
240
3168
079
5194
458
5365
154
8738
83
8899
84
Rajasthan
1376
8431
1401
1209
7673
753
7694
048
9409
930
9257
085
3927
410
3802
547
3762
139
3950
149
1405
751
1523
698
Tam
il Nadu
1326
6658
1329
2922
8653
682
8742
594
1223
5508
1224
8080
4511
465
4549
243
2018
098
2084
095
2186
8334
2207
4747
U.P.(E)
1401
9449
1429
5939
1249
9488
1258
6458
1455
9374
1468
9390
4640
824
4659
549
7054
244
7310
273
2365
414
2460
822
U.P.(W
) 6625
502
6631
344
9705
091
9797
371
9464
037
9504
231
4933
645
4736
206
9995
876
1021
4038
2038
307
2103
031
West B
engal
9034
631
9077
805
7434
027
7620
750
1161
8854
1167
2101
3208
778
2999
751
1975
171
2115
580
3062
163
3061
930
Total
1769
5416
4 17
8777
131 151028199
152001566
148602105
149440176 83
7188
6381
8877
3210
8127
280 11
0709
614 62
4621
21 63
2560
68
Net Addition
18
2296
7
97
3367
8380
71
-183
1131
2582
334
79
3947
13
Wireles
s Subscriber Bas
e Annex
ure-I
Pag
e 2 of 3
Group
BSNL
MTNL
Uninor
Sistema
Loop
Video
con
Circle
Jan-12
Feb
-12
Ja
n-12
Feb
-12
Ja
n-12
Feb
-12
Jan-12
Feb
-12
Jan-12
Feb
-12
Ja
n-12
Feb
-12
Andhra Pradesh
8940
056
8949
035
0
0
3142
932
3468
012
6188
666217
370
0
1093
4
1093
3
Assam
1604
587
1250
394
0
0
127
172
1134
1229
325
325
0
0
Bihar
6033
464
6110
271
0
0
4571
564
4655
224
1572
850
1580
729
364
364
2029
9
2009
5
Delhi
0 0
2826
624
2851
834
0
0 1074
913
1127
867
0 0
0
0
Gujarat
4135
930
4187
494
0
0
3052
199
3463
080
1288
361425
8773
73
1234
333
1318
783
Haryana
2994
325
2986
988
0
0
205
273
2132
612069
2493
88
8521
65
9235
38
Himachal P
radesh
1716
774
1709
085
0
0
61
94
313
544
0 0
7901
5
7870
9
J & K
1014
332
1036
358
0
0
40
75
516
297
0 0
0
0
Karnataka
6665
782
6759
761
0
0
1823
105
1986
471
2074
851
2127
990
618
653
1198
7
1190
0
Kerala
6955
611
7046
043
0
0
7229
23
7138
53
6222
286307
580
0
2380
83
2405
95
Kolkata
2401
422
2413
871
0
0
1698
321
1761
685
8160
778413
832348
2369
2966
4152
Madhya Prade
sh
4854
454
4725
504
0
0
883
845
1888
2071
270
307
1158
819
1234
316
Maharashtra
6018
121
6121
687
0
0
4080
333
4507
648
7122
657314
10357
413
1368
1
1383
0
Mum
bai
0 0
2912
105
2921
883
1424
832
1481
997
6772
375036
623240
766
3252
030
9802
78
1024
215
North East
1558
450
1587
344
0
0
51
62
188
205
41
41
0
0
Odisha
4308
907
4371
415
0
0
1347
034
1379
335
434
519
966
965
1067
0
1067
3
Punjab
4742
674
4727
579
0
0
319
399
691
808
147
145
0
0
Rajasthan
5662
270
5656
771
0
0
383
645
2351
655
2355
410
400
421
1057
0
1084
9
Tam
il Nadu
9546
801
9597
504
0
0
1677
247
1998
367
1657
076
1752
738
0 0
1179
228
1248
902
U.P.(E)
1018
9190
1015
7472
0
0
7054
485
6973
229
4565
604871
000
0
1672
2
1671
9
U.P.(W
) 4729
667
4773
450
0
0
4560
885
4848
913
4529
644923
968
8
8827
8825
West B
engal
3563
744
3583
168
0
0
3640
447
3900
324
1715
463
1773
784
0 0
2015
2
2057
5
Total
9763
6561 97
7511
94
5738
729
5773
717 38
7983
76 41
1407
03 15
1502
6615
3821
4832
4677
6 32
5820
2
5848
729
6197
609
Net Addition
11
4633
3498
8
23
4232
7 23
1882
11
426
34
8880
14
Wireles
s Subs
criber Bas
e
Annex
ure-I
Pag
e 3 of 3
Group
S-Tel*
HFCL
Etisa
lat
Total
Circle
Jan-12
Feb
-12
Ja
n-12
Feb
-12
Ja
n-12
Feb
-12
Jan-12
Feb
-12
Net Add.
Andhra Pradesh
0 0
0
3486
8
1621
7 6607
0782
6658
8729
5179
47
Assam
7999
2 7999
2
0
0
0 1400
9483
1383
5512
-17397
1
Bihar
2029
624
2029
624
0
4122
2
1697
4 6190
9514
6256
8193
6586
79
Delhi
0 0
0
7592
10
4237
31
4208
3602
4196
0846
-12275
6
Gujarat
0 0
0
3271
2
1684
0 5149
4090
5257
8229
1084
139
Haryana
0 0
0
1517
1
7161
2183
7252
2211
0124
2728
72
Himachal P
radesh
4549
24
4549
24
0
0
0 7846
717
7888
728
4201
1
J & K
0 0
0
0
0 6102
102
6223
288
1211
86
Karnataka
0 0
0
2971
2
1424
0 5481
9131
5541
0346
5912
15
Kerala
0 0
0
1209
7
5435
3432
6094
3439
1161
6506
7
Kolkata
0 0
0
0
0 2465
3832
2478
1927
1280
95
Madhya Prade
sh
0 0
0
7819
0
3555
7 5087
3737
5127
9892
4061
55
Maharashtra
0 0
0
3505
1
1556
8 6919
0246
6983
0123
6398
77
Mum
bai
0 0
0
4699
09
1437
32
3738
1439
3645
4866
-92657
3
North East
3208
3 3208
3
0
0
0 8247
010
8379
634
1326
24
Odisha
8336
65
8336
65
0
0
0 2596
9706
2644
0989
4712
83
Punjab
0 0
1292
888
1379
754
1844
0
8986
3151
6412
3194
3200
4267
88
Rajasthan
0 0
0
3598
7
1875
6 4800
8679
4828
1588
2729
09
Tam
il Nadu
0 0
0
3191
5
1344
8 7664
6012
7760
2640
9566
28
U.P.(E)
0 0
0
5024
6
2530
0 7290
5996
7366
2251
7562
55
U.P.(W
) 0
0
0
4713
3
2034
6 5256
1942
5313
0159
5682
17
West B
engal
0 0
0
0
0 4527
3430
4582
5768
5523
38
Total
3430
288
3430
288
1292
888
1379
754
1691
863
7822
91 903
7272
08 91
1168
193
7440
985
Net Addition
0
86
866
-909
572
74
4098
5
*
Th
e su
bsc
rib
er f
igu
res
of S
Tel
are
tak
en a
s on
Jan
uar
y 2
01
2,
du
e to
non
-su
bm
issi
on o
f in
form
atio
n f
or F
eb-2
01
2.
15
Pro
port
ion o
f V
LR
on t
he
dat
e of
Pea
k V
LR
in t
he
mon
th o
f Feb
ruar
y, 2012 (%
)
Annex
ure
-II
Circle
Aircel
Bharti
BSNL
Etisalat
HFCL
Idea
Loop
MTNL
Reliance
S Tel*
Sistema
Tata
Uninor
Video
con
Vodafone
Total
(Except
CDMA)
Andhra Pradesh
60.95
94.99
70.65
0.06
92.86
58.45
59.50
63.57
57.94
4.45
66.33
76.48
Assam
78.37
95.65
70.72
94.52
7.69
68.88
52.77
87.88
74.34
90.03
82.13
Bihar
45.90
97.84
35.44
9.24
94.03
72.71
24.58
38.02
47.52
57.14
6.85
99.47
72.52
Delhi
53.53
84.00
64.97
87.00
40.67
78.21
27.13
49.45
93.79
74.85
Gujarat
87.42
87.79
58.43
1.66
91.25
64.90
43.01
62.21
59.33
47.50
87.84
77.51
Haryana
33.76
94.12
51.54
91.32
52.63
61.44
40.80
93.80
71.13
Him
achal
58.60
95.09
60.18
92.42
61.52
12.7
35.12
14.43
97.74
69.37
Pradesh
J & K
84.08
96.13
65.67
91.37
68.95
68.51
77.21
82.81
Karnataka
39.68
92.62
53.52
1.10
91.13
66.05
62.01
63.80
52.40
0.61
77.60
74.33
Kerala
40.85
84.85
64.83
3.55
94.42
57.04
49.25
59.46
33.67
24.60
83.17
71.31
Kolkata
53.59
87.10
33.92
72.73
2.15
67.40
52.71
68.10
49.90
82.11
67.41
Mad
hya Prades
h
57.53
90.63
56.73
3.57
100.85
36.48
72.03
50.65
68.00
43.48
74.58
80.55
Mah
arashtra
42.83
87.98
67.34
0.71
96.42
63.29
49.26
63.61
64.11
2.45
91.51
79.00
Mumbai
52.66
86.10
54.99
82.15
41.61
32.02
70.02
27.17
47.78
56.14
46.84
82.47
63.74
North East
69.83
96.01
22.38
90.95
9.76
57.30
33.24
75.64
82.91
68.23
Orissa
50.06
95.36
58.64
65.37
2.07
60.83
28.88
119.27
53.37
51.09
1.15
84.97
67.62
Punjab
55.17
91.48
51.40
0.23
43.79
91.49
13.10
56.27
41.46
56.38
92.32
73.63
Rajasthan
94.17
93.43
50.35
0.00
107.66
15.20
60.98
45.59
53.40
4.35
87.45
77.71
Tam
il Nad
u 51.24
93.40
45.65
1.61
65.32
54.68
49.91
56.75
46.01
42.85
88.22
64.39
U.P.(E)
68.80
96.45
43.46
0.39
93.62
68.33
46.37
52.55
62.54
12.18
91.00
75.68
U.P.(W
) 61.40
79.78
48.61
0.74
92.45
61.20
47.58
51.73
57.42
3.72
92.17
72.59
West Ben
gal
51.85
86.73
48.23
78.54
74.01
62.58
38.12
53.74
2.06
90.79
72.97
Total
55.79
91.88
53.11
45.86
43.79
92.90
41.55
36.29
65.39
28.53
48.66
57.31
57.06
42.47
87.68
73.60
* T
he
sub
scri
ber
fig
ure
s of
S T
el a
re t
aken
as
on J
anu
ary
20
12
, d
ue
to n
on-s
ub
mis
sion
of
info
rmat
ion
for
Feb
-20
12
. 16
Wireline Subscriber Base
Ann
exure-III
Group
BSNL
MTN
L
Bharti
Reliance
Ta
ta
HFCL
Sistema
Vodafone
Total
Circle
Jan-12
Feb
-12
Jan-12
Feb
-12
Jan-12
Feb
-12
Jan-12
Feb
-12
Jan-12
Feb
-12
Jan-12
Feb
-12
Jan-12
Feb
-12
Jan-12
Feb
-12
Jan-12
Feb
-12
Net Add.
And
hra Prade
sh
1964
273
1967
206
12
5048
1250
7088
499
8879
5
1711
2017
2718
0750
2348940
2354539
5599
Assam
2283
8522
8179
26
0225
82
230987
230761
-226
Bihar
5943
1059
4198
4827
4859
10
149
9730
609286
608787
-499
Delhi
0
15
5664
3 15
5924
210
7417
610
7422
2.4
1824
49
1830
27
7704
078
189
0
7710
2890308
2902390
1208
2.431
Gujarat
1630
181
1619
725
54
949
5500
611
0702
1099
43
6597
466
760
0
301861806
1851464
-103
42Haryana
5484
0354
5324
2376
923
812.688
4876
4956
19
107
1968
9
596155
593782
-237
3.313
Himacha
l Prade
sh
3059
8530
4013
4462
4462
18
6119
03
312308
310378
-193
0J & K
2051
0020
4165
33
433
4
205434
204499
-935
Karna
taka
1982
030
1976
209
48
9563
4896
4011
0870
1105
90
1213
4512
3100
01590
2703808
2701129
-267
9Kerala
3078
823
3073
401
55
473
5548
755
991
5620
2
1268
112
317
3202968
3197407
-556
1Kolkata
9775
9296
9509
9232
392
335
8158
1 81
377
3043
131
082
0
690
1181927
1174993
-693
4Mad
hya Prade
sh
8504
4884
8544
2403
6524
0379
3565
9 35
032
1012
710
990
0
301136599
1134975
-162
4Mah
arashtra
2256
119
2247
892
70
049
7008
8.3
1013
47
1018
16
2254
1923
0666
0210
2652934
2650672
-226
1.7
Mum
bai
00
1899
470
1896
006
3306
3133
0679
2303
07
2308
12
5428
1854
5869
05700
3003226
3009066
5840
North East
2529
4025
2383
24
924
4
253189
252627
-562
Odisha
4531
4945
1438
4130
4143
72
2270
44
0
30464501
462655
-184
6Pun
jab
1117
328
1100
762
10
5423
1054
2732
348
3168
2
1554
015
289
1993
1520
0222
090
1469954
1453472
-164
82Rajasthan
1071
837
1064
300
39
164
3917
625
389
2570
3
5545
5795
47395
48070
090
1189330
1183134
-619
6Tam
il Nad
u 25
0935
825
0228
9
48
4146
4841
8714
6962
1477
27
6176
162
691
0
660
3202227
3197554
-467
3U.P.(E)
1269
513
2216
50
50
294
5032
3.063
4034
6 40
588
1312
513
124
1373278
325685
-104
7593
U.P.(W)
7721
2817
9651
8
24
080
2410
5.25
5689
5690
75
1875
18
809415
1833831
1024
416.3
West B
engal
6850
8268
3475
2263
2290
61
1359
10
693458
691675
-178
3To
tal
22752984
22651180
3456113
3455248
3259453
3259938
1268697
1269694
1408081
1423544
199315
200222
47395
48070
017580
32392038
32325476
-66562
Net Addition
-101804
-865
485
997
15463
907
675
17580
-66562
N
ote
: F
ixed
lin
e su
bsc
rib
er b
ase
corr
esp
ond
ing
to V
odaf
one
is f
or c
orp
orat
e cu
stom
ers,
wh
ich
th
ey h
ave
star
ted
rep
orti
ng
to T
RA
I fr
om F
ebru
ary
20
12
.
17
Annexure IV
VLR Subscribers in the Wireless Segment Home Location Register (HLR) is a central database that contains details of each mobile phone subscriber that is authorized to use the GSM core network. The HLRs store details of every SIM card issued by the mobile phone operator. Each SIM has a unique identifier called an International Mobile Subscriber Identity (IMSI), which is the primary key to each HLR record. The HLR data is stored for as long as a subscriber remains with the mobile phone operator. HLR also manages the mobility of subscribers by means of updating their position in administrative areas. It sends the subscriber data to a Visitor Location Register (VLR). Subscriber numbers reported by the service providers is the difference between the numbers of IMSI registered in service provider’s Home Location Register(HLR) and sum of other figures as given below:-
1 Total IMSI's in HLR (A)
2 Less: (B=a + b + c + d + e)
a. Test/Service Cards
b. Employees
Stock in hand/in
Distributional Cannels
c. (Active Card)
Subscriber Retention
d. period expired
Service suspended pending
e. disconnection
3 Subscribers Base (A-B)
18
Visitor Location Register (VLR) is a temporary database of the subscribers who have roamed into the particular area, which it serves. Each base station in the network is served by exactly one VLR; hence a subscriber cannot be present in more than one VLR at a time. If subscriber is in active stage i.e. he is able to send/receive calls/SMSs he is available both in HLR and VLR. However, it may be possible that the subscriber is registered in HLR but not in VLR due to the reason that he is either switched-off or moved out of coverage area, not reachable etc. In such circumstances he will be available in HLR but not in VLR. This causes difference between subscriber number reported by the service providers and numbers available in VLR. The VLR data calculated here is on the basis of active subscribers in VLR on the date of Peak VLR of the particular month for which the data is being collected. This data is to be taken from the switches having the purge time of not more than 72 hours.
--------- 19
37
GROWTH OF TELECOM IN INDIA
38
• 1994 National Telecom Policy – 1994 Announced • 1995 Kolkata became the first metro to have a (Aug) cellular network
• 1997 Telecom Regulatory Authority of India was Setup
• 1999 Tariff rebalancing exercises gets Initiated • 1999 National Telecom Policy – 99 announced (Mar) • 1999 License fee (revenue share) reduced from (Aug) provisional 15% to 12%, 10% & 8% on
Circle wise basis (A type, B type & C type circles)
• 2000 TRAI Act amended & separate tribunal Proposed
• 2001 TDSAT started functioning (Jan) • 2001 Policy announced for additional licenses (Jan) in Basic and Mobile Services
• 2001 Limited mobility allowed to Basic Services (Jan) (CDMA spectrum allotted to Basic Service Operators)
• 2002 BSNL entered in to GSM cellular (Oct) operation w.e.f 19th October, 2002.
Made incoming call free & initiated tariff equalization process Tariff for GSM cellular mobiles reduced.
39
• 2003 Unified Access (Basic & Cellular) (Nov) Service License (USAL) introduced as a first Step towards Unified License Regime.
Technology neutral and allows provisioning any kind of service.
• 2004 License fee reduced by 2% across the (Apr) board for all the access licenses. • 2008 Issue of 3G guidelines for spectrum (Apr) allocation through auction.
Exponential Growth
40
During the month of January 2012, the operators added 9.59 million subscribers.
Particulars Wireless Wireline Total Total subscribers 903.73 32.39 936.12 Total Net addition 9.88 -0.29 9.59 % of monthly growth 1.11% -0.90% 1.04% Urban subscribers 591.1 24.73 615.83 Rural subscribers 312.62 7.67 320.29 Tele density 74.89% 2.68% 77.57% Urban teledensity 162.06% 6.78% 168.84% Rural teledensity 37.13% 0.91% 38.04% Share of Urban subscriber 65.41% 76.32% 65.79% Share of Rural subscriber 34.59% 23.68% 34.21%
Mobile Services
• Mobile connections are provided on GSM and CDMA technology
41
• GSM Connections increased from 12.68 Million in March 2007 to 219.297 Million in July 2008. • CDMA connections rose from 0.31 Million in March 2003 to 76 Million in July 2008. • Ratio of GSM and CDMA subscribers is 3:1 • Mobile connections are provided on GSM and CDMA technology. • GSM Connections increased from 12.68 Million in March
2007 to 219.297 Million in July 2008. • CDMA connections rose from 0.31 Million in March 2003 to 76 Million in July 2008. • Ratio of GSM and CDMA subscribers is 3:1
Growing Share of Private Sector
• Share of private sector in total Connections has steadily increased from 20.9% in 2003 to 75.92% in July 2008.
• Private Sector is mainly active in Wireless Segment.
42
• Private Sector’s contribution in Wireline Segment is just 11.6%.
Growing Share (%) of Private Sector
TELECOM SERVICE PROVIDERS
• There are 23 Licensed Service Areas. • 12 Service Providers are providing phone services in these
areas. • Two Public Sector Operators are MTNL and BSNL. • MTNL providing service in Delhi + Mumbai only.
20.9
39.27
47.05
57.01
65.32
75.92
0
10
20
30
40
50
60
70
80
2003 2004 2005 2006 2007 2008 July
Share (%)
43
• BSNL providing service in 21 out of 23 LSAs excluding Delhi and Mumbai.
• There are six major Telecom players i.e. BSNL, Airtel, Reliance, Vodaphone, Tata Tele & Idea.
PERCENTAGE MARKET SHARE OF MAJOR TELECOM PLAYERS IN INDIA
MAJOR PLAYERS’ DATA
8.368.33
15.1215.79
22.0622.38
0
5
10
15
20
25
30
BSNL AIRTEL RELIANCE VODAPHONE TATA TELE IDEA
44
BSNL AIRTEL RELIANCE IDEA
Customer
Base
(in millions)
72.8 71.8 51.4 27.2
Annual
Revenues
(in US $ bn)
10 6.9 3.75 1.1
Annual
Profit
(in US $ bn)
1.9 1.7 1.3 0.1
Mobile Tariffs in India one of the Lowest
45
TELECOM TARIFF & REVENUES
0.23
0.22
0.19
0.17
0.16
0.11 0.11 0.11
0.09
0.05 0.05
0.04
0.03
0.02
0
0.05
0.1
0.15
0.2
0.25
Belgium
Italy
UK
France
Brazil
Philippines
Taiwan
Argen
tina
Malayasia
Hong Kong
Thailand
Pakistan
China
India
46
• Telecom Tariffs have fallen to very low level during past five
years. • Local call tariff from mobile calls has seen steady decline
from Rs. 16 per minute to Rs. 0.50 per minute
• Public Sector has played crucial role in bringing down mobile tariff.
• Despite low tariffs, telecom sector has shown positive
financial results. • Gross revenues for the sector have grown at compound
annual rate of about 21% and stands at US $ 26 Billion – 34% contribution of Public Sector and 66% of Private Sector.
REGULATORY REGIME
47
• Tariff under forbearance except for fixed rural line services, National roaming in mobile service and Leased Circuits.Operators to report tariff plans to TRAI within 7 days from the date of implementation.Tariff once offered can not be hiked for minimum period of 6 months. Lifetime / unlimited tariff plans to be available to subscribers during the period of current / renewed license.
• No chargeable Value Added Services to be provided to a
customer without explicit consent. Publication/ advertisement of tariff for consumer information shall contain minimum essential information. Websites of the service provider to contain complete details of the tariff plans as well as financial implications for various usage slabs.
• Customers to be informed in writing, within a week of activation of service, the complete details of his tariff plan.Quality of Service Standard bench marks to be ensured by Operators.
48
Opportunities & New revenue streams
• BPO & KPO business is growing fast: Telecom can ride on it. • As globalization is increa Opportunities & New revenue
streams sing, more percentage of global business for Indian telecom.
• Technologies like NGN, 3G, Wi-MAX, will open up new frontier of business.
Services Through 3 G
Services ON DEMAND DATA / VOICE Data connectivity on the move,Quad play i.e Voice, Video, Data and mobility with suitable core network. E-mail and Web services on demand for SME VPN service for group of customersGaming, Video Services like Live TV, E-governance, E-health, E-education Internet Access on the move Video Messaging and rich data appliactions
Service Performance Guarantee IP services with QoS, and support concurrently 3 types of QoS for one subscriber. Class of service: Support for different types of data delivery services which are-UGS,RTBandwidth management: support flexible bandwidth assignment and the inter-user QoS
Service Performance Guarantee
IP services with QoS, and support concurrently 3 types of QoS for
Class of service: Support for different types of data delivery UGS,RT-VR,NRT-VR,BE and ERT-VR
Bandwidth management: support flexible bandwidth assignment user QoS
49
Service Performance Guarantee
IP services with QoS, and support concurrently 3 types of QoS for
Class of service: Support for different types of data delivery VR
Bandwidth management: support flexible bandwidth assignment
50
NEW OPPORTUNITIES – VAS
• Value added services like M-Commerce, M-Marketing, Special
• Information, Ring tones, etc. offer venues of additional revenue.
• Annual Revenue US $ 1.2 billion (approx.) • VAS contributes 10 – 14% of total telecom revenue [source
Voice-Data]. • Non-voice revenue increasing. • Present contribution > 50% through SMS (P to P). • Revenue from other value added services growing [IVR,
PRBT, Games, Data].
PROJECTIONS:
• Revenue Expected by 2015 US $ 5.2 Billion. • Applications which can ride on SMS,Mobile Commerce (Bill
Payment, Prepaid top-up, ticket booking) • Search (on Voice, SMS, WAP) • Location Based Services, Music based Services, IVR
MNP – OPPORTUNITY as well as THREAT for Operators
• It will change the market dynamics.The perceptionownership of customer will
• New innovations will be needed for keeping attached to service
• Enterprise business will be the key target and face intense competition
OPPORTUNITY as well as THREAT for Operators
It will change the market dynamics.The perceptionownership of customer will have a paradigm shift.
ons will be needed for keeping attached to service Enterprise business will be the key target and face intense competition
51
OPPORTUNITY as well as
It will change the market dynamics.The perception of have a paradigm shift.
ons will be needed for keeping customer
will
52
Internet & Broadband Services
• No. of Broadband Connections have grown from 0.02 Million in March 2004 to 4.57 Million in July 2008.
• BSNL is the largest Broadband Internet Service Provider with 53 % Market Share. 589 District Hqrs., 2698 Block Hqrs., 3261 Cities & 30124 Villages have been covered by Broadband.
• In INDIA, ISPs are providing Broadband Service on DSL, Cable Modem, Ethernet LAN, Fibre, Radio, Leased Line etc.
Telecom Growth- the way ahead
• Network expansion o 250 million by 2007 - Already achieved o 600 million by 2012
• Rural connectivity o 100 million by 2010 o 200 million by 2012
• Broadband o 20 million broadband connections and 40 million
internet connections to provide by 2010 o Broadband connections to provide on demand across
the country by 2012.
53
Challenges in Telecom Sector
• No. of operators are increasing per circle. • ARPUs are going down. • Cost/ Customer is very high in rural areas. • Spectrum – a scare commodity. • Infrastructure readiness in rural. • PC prices are very high. • Availability of Contents in local language. • International Bandwidth is costly.
Broadcasting & Cable Services
• Like Telecom Sector, Broadcasting & Cable Services have been opened for Private participation.
• Broadcast & Cable services being provided through All India Radio, FM Channels, Community Radio Stations, Cable TV, Satellite TV Channels, DTH & IPTV. Multi System Operators (MSOs) across the country providing Cable TV services.
• MSOs are carrying maximum 133 Free-to-Air Channels, 95 Pay Channels & 8 Local Channels on their networks . IPTV Service has been recently soft launched in Gurgaon, Faridabad & Noida by BSNL.
• BSNL plans to launch IPTV Service in 100 Cities by March 2009.
54
U.S. INDUSTRY ANALYSIS
How it all started…
1982 In January, AT&T ends a long-running antitrust suit by the US Department of Justice by agreeing to break itself up into a national long-distance carrier and seven “Baby Bells.” The breakup is scheduled to happen in 1984.
1984 The breakup takes place. AT&T’s old local phone companies become Ameritech, Bell Atlantic, BellSouth, NYNEX, Pacific Telesis, Southwestern Bell, and US West.
55
1986 GTE, an independent phone company with roots going back to 1918, spins off its GTE Sprint division and merges it with US Telecom, which has roots going back to 1899. The merged company begins offering long-distance service in competition with AT&T under the name Sprint (which, incidentally, stands for “Southern Pacific Railroad Intelligent Network of Telecommunications”).
1987 Wireless phone company Fleet Call is founded. It changes its name to Nextel in 1993. SBC acquires Cellular One, the cellular business of Metromedia.
56
1988 Pacific Northwest Cellular is founded. It later changes its name to VoiceStream.
1994 AT&T acquires wireless pioneer McCaw Cellular, joint owner with Southwestern Bell of the Cellular One brand name, and begins using the AT&T name rather than Cellular One (but Southwestern Bell continues to use the Cellular One name) . Pacific Telesis spins off its wireless services into AirTouc
57
1995 Southwestern Bell changes its name to SBC.
1996 In the first major reversal of the Bell breakup, Bell Atlantic acquires NYNEX.
58
1997 SBC acquires Pacific Telesis. WorldCom, a long-distance company with roots dating to 1983, acquires MCI, which goes back to 1963, to form MCI WorldCom.
1999 SBC acquires Ameritech. AirTouch merges with Vodfone of the UK to form Vodafone Airtouch.
59
2000 QWEST (founded in 1996) acquires US West. Vodafone Airtouch and Bell Atlantic form a joint venture called Verizon Wireless. Bell Atlantic merges with GTE to form Verizon.
2001 SBC and BellSouth combine their wireless businesses into a company called Cingular.
60
2002 AT&T (which has been trying to turn itself into a long-distance/wireless/cable megaconglomerate) spins off its wireless business to form AT&T Wireless Services. German telecommunication giant Deutsche Telekom, which had acquired VoiceStream in 2001, changes the U.S. operations’ name to T-Mobile.
2003 WiMAX provider Clearwire is founded. After a massive accounting scandal, WorldCom changes its name to MCI.
61
2004 Cingular acquires AT&T Wireless. Qwest, which had offered its own wireless service, sells off its assets and becomes a reseller for Sprint (in 2008, it switches to Verizon Wireless). (It continues to offer landline service, but I’m removing it at this point from this accounting.)
2005 Sprint buys Nextel to form Sprint Nextel. SBC acquires AT&T and adopts its name. Verizon acquires MCI.
62
2006 AT&T acquires BellSouth and renames the latter’s Cingular wireless service to AT&T.
2008 Sprint Nextel’s wireless broadband unit XOHM merges with Clearwire, giving Sprint 54% ownership of the combined company. (Clearwire is still in business, but I’m removing it from this accounting since it’s majority-owned by Sprint.)
2011 AT&T agrees to buy T-Mobile US from Deutsche Telekom, in a deal expected to close next year.
Whew. At this point, there aren’t many theoretical mergers left to happen, although Sprint (which was supposedly angling to buy T-Mobile before AT&T stepped in) could end up being bought by somebody. And hey, if the Department of Justice feels like stepping in and imposing competition before we end up with one phone company again, there’s a handy template. We could just go back to this:
MARKET SATURATION
• Four major mobile telephony operators:
o AT&T Wirelesso Sprint PCS o Verizon Wirelesso Cingular Wireless
In 2001 over $65 billion in revenues was generated with apenetration rate of about 45%
U.S. Market Share Data
0%
Small Providers
Verizon
Cingular
At& T
Sprint
Nextel
Voice stream
Alltel
MARKET SATURATION
Four major mobile telephony operators: AT&T Wireless
Verizon Wireless Cingular Wireless
In 2001 over $65 billion in revenues was generated with apenetration rate of about 45%
U.S. Market Share Data
5% 10% 15% 20%
63
In 2001 over $65 billion in revenues was generated with a
U.S. Market Share Data
20% 25%
64
GROWTH RATE
1987 – Cellular telephone subscribers exceed 1 million 1999 – Spending on wireless communications services totaled $45.2 billion 2002 – 268 million people in the U.S. live in counties with access to 3 or more different operators 2003 – Spending projected increase to $75.6 billion
65
66
Porter’s Five Forces Analysis
Threat of Entry:
Prior to Mid-nineties, entry into fixed line telecom business was very difficult owing to several factors, Firstly it was a very capital intensive industry, entry into this industry meant that the firms needed access to huge amount of capital mainly to cover the fixed costs to lay and maintain a physical network (exchanges, fiber optic cables etc) to the premises of customers. In addition to that firms needed to get regulatory approval/licenses from the Federal Communications Commission (FCC), which was both costly, and a tedious affair. Hence the companies in this industry mostly tended to monopolies strictly regulated by the government subject to price controls and moderate to heavy taxation. Deregulation and the telecom act of 1996 provided a significant reduction in barriers as the new entrants did not need to own their networks.The technological changes also provided impetus to the significant reduction of barriers; Internet Telephony provided a way for several firms to enter the market and compete with the incumbents without the significant upfront fixed costs. One of the notable entrants into the business is Vonage, this firm began offering its version of IP telephony product since 2003. The entry of new progressively become very easy, in fact it has become so easy that there are company’s like RTC Factory claim to provide services that can let firms start their own branded fixed line IP telephony voice business within 6-8 weeks in 10 easy steps.
67
Supplier Power:
The Suppliers in this industry are the manufacturers of telephone switching /switch board equipment, fiber optic cables, network equipment, and billing software makers. The prominent names in this industry include Cisco, Alcatel-lucent, Nokia, Nortel, Motorola and Tellabs etc. After the deregulation of downstream service providers and the technological breakthrough in IP networks, Telecom equipment makers began to ramp up manufacturing in order to meet the huge anticipated demand, however aftermath the dot com bubble, demand did not pan out as expected and led to overcapacity and eventually demise of several firms. The evidence of decline can be gauged from the fact that the telecommunications industry Association (TIA) reported that in 2001, a cumulative decline of $30.5 billion in revenues4 [Encyclopedia of American Industries]. With excess capacity and falling demand, the suppliers have do not have the power and clout to negotiate with the telecom behemoths. However with the demand in recent years has started to pick up with fixed line providers deciding to install fiber based networks to provide faster data and video services.
68
Power of Buyers:
With increased choice of several technologies and means of communication available and entrance of several new firms buyer power is been increasing. The consumer now has access to several means of communication like email, instant messaging which are diminishing the importance voice services. Residential consumer also benefits with local number portability (A regulation from FCC which mandates the carriers to move the phone number when the customer switches to a different carrier). This feature makes switching costs negligible. The business segment however is prone to significant switching costs as they rely on more customized products which are tailored to their businesses and most times are locked into long-term contracts.
Threat of Substitutes:
Several substitute products and services have emerged to fixed line telephones as a result of technological breakthroughs. Some of these are more convenient and offer far greater value to the consumer and have diminished the importance of fixed line phones. Substitutes include IP Telephony, Mobile phones, Satellite, Email, and Instant Messaging etc. Among the several substitutes that have emerged, IP telephony has emerged as the biggest threat. Applications like Skype have been extremely popular among younger generation users and are fast emerging as preferred means of communication.Wireless phones are also getting cheaper each year over the last decade; this has provided consumers with more convenience and mobility, to the extent that the younger demographic now considers a fixed line phone redundant.
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Industry Rivalry:
Industry rivalry has become extremely intense with the emergence of new competing firms leading to price cuts across the industry. Voice offerings are turning into commodities with the business going to lowest cost provider.
Major Players in U.S.
• AT&T • Verizon Wireless • Cingular • Sprint
AT&T
� Competitive monthly fee � Best home area coverage � Best national coverage � Unlimited night and weekend minutes � Best rates international calling � Good website – compared to Verizon
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Verizon
� Largest wireless provider � Lowest monthly fee � Good home area coverage � Good national coverage � Second best international calling � Easy to navigate website/ well organized
Sprint
� Smallest of four companies � Average monthly charges � Higher priced phones � Minimal home and national coverage � Minimal/non-existent international calling � Poor website – not easy to navigate and technical problems
Competitive Advantages Summary
� AT&T - Best coverage, unlimited nights and weekends
� Verizon – Best monthly charges, good coverage, largest supplier
� Cingular – No roaming calling from anywhere � Sprint- No competitive advantage noted in comparison
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U.S. Environmental Analysis
The Demographic Environment
• As of December 2009, 128.5 million subscribers (45% of
population) • 268 million people (94% of the total population) have three
different operators offering mobile phone service • 229 million people (80 % of the population) live in countries
with five or more mobile operators • Nearly 58% of Americans 12 and older own a mobile phone • Geographic: Rural Vs. Urban
§ Virtually no difference in price § Usage is significantly different
The Sociocultural Environment
• “Cutting the Cord”—growing evidence proves more people
are canceling service from their home telephone provider • Almost one in five mobile phone users regard their wireless
phoane as their primary phone • Even though average pricing has been increasing since
1999, usage has increased to an average of 385 minutes. An increase of 51% from the prior year, during the same month
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U.S. SWOT Analysis
Strengths
� Lows prices/affordability � Variety of service providers and calling plans � Calling plan benefits � free long distance � wireless web � PDA-like features � Easy of use
Weaknesses
� Customer service � Service provider web sites not user friendly � Mass marketing strategy � Need to market to different segments � Need to differentiate from competitors � Service contracts
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Opportunities
� Wireless web � Bundling � Bundle phone with accessories � Business to Business market � Work on current weaknesses � improve customer service � practice differentiated marketing � Improve service provider web sites
Threats
� Satellite communication � Current infrastructure would be rendered obsolete � Two-way radios � Nextel � Government regulations
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Key Success Factors in Telecommunications Industry
Bundling:
Consumers value convenience more than anything else. A company’s ability to provide multiple services like wireline / wireless/ high speed internet / video at an attractive price not only provides value to the consumer but also helps the company’s bottom-line due to reduced customer acquisition costs. It also is widely believed in the telecom industry and supported by the data, that churn reduces drastically for customers subscribed to a bundle as a result of increased switching costs.
Network Quality:
One of the key difference between the old generation PSTN (public switched telephone network) used by telecom companies versus the new generation IP networks used by both the cable providers and VoIP providers is the ability to receive phone calls on the PSTN networks when the power is out. There is difference in quality of the voice transmitted, however the gap is closing fast .1.4.3 Economies of scale: Telecom is a huge fixed cost business; most of the costs go into installing and maintaining the network. The marginal cost of adding a new customer is very small. As a result, Providers with large subscriber bases enjoy a significant advantage over the smaller ones.
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Customer Service:
In this industry, although the customer contact with the firm is minimal, it is very critical and can define customer experience. Customer mostly comes into contact with the employees of the firm only during installation and service outages, the expectation of the customer is that the service be always available and the problems be immediately fixed.
Brand Name:
Brand Name plays an important role for the customer choosing the service. In this Industry Bell and Cable companies have been able to build brand recognition over time, VoIP entrant however have to spend significant amount of money in advertising to be able to counter these strong brand names.
Retail Presence:
Wireless phone industry has required retail presence from traditional telecoms mainly to display and sell wireless devices, this presence has helped them with customer as they were more accessible to the customers and provided a new medium of distribution for all services, Cable and VoIP firms however have to depend on electronic retailers.
Financial Strength/Resources:
With high fixed costs in this industry and frequent network up gradation and licensing costs, it is essential for the firms in this industry to have a strong balance sheet. The ability to raise money at cheaper rates compared to the competition provides a significant competitive advantage
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Convergence:
Convergence is the ability for customers to access any data seamlessly without restrictions and the networks and the devices to get to that data. In future the success of the telecom companies is dependent on how effectively they can provide converged services.
Partnerships:
Diversity of services this industry makes it difficult for a service provider to be good at everything, so the crucial thing for a firm in this industry is to be able to forge partnerships to be able to provide what customers need.
Data Speeds/Bandwidth: Explosive growth of internet has created content rich applications
which require enormous amount off bandwidth. The Service
provider who has the biggest amount of bandwidth with the last
mile connectivity will have competitive advantage over the rest of
the competition
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4 P’s in the U.S.
� Product � Price � Place � Promotion
4Ps: Product
� Voice & data products and services � Text Messaging � Wireless Internet � Family/share plans � Mobile-to-mobile
4Ps: Price
� Competitive pricing � Dependant upon local or national plans & number of
minutes � “Options” pricing sets companies apart
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4Ps: Place
� Internet sales & service � Full service stores for sales & service � Retail chains for activation
4Ps: Promotion
� TV, Print, Radio, Direct Mailings, and in-store placement � Sponsorships of Movies, TV, and events � Free services
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CONCLUSION INDIA
� India is second largest emerging economy of the world. � GDP growth 9% & Services Sector growth 10.8%. � Fastest growing Telecom Market in the World. � Teledensity is still less than 30% with rural teledensity just
around 10%. � Wireless technologies to play crucial role in providing
connectivity in rural, remote & far flung areas. � Mobile Number Portability to change Market Dynamics &
ensure improved standards of service. � With launch of VOIP telephony, Long Distance call charges
slated to fall further. � IPTV & DTH are providing digital experience to users. � High Growth in Mobile, Internet & Broadband foreseen till
2012.
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Conclusion US
� Biggest national market � Analog switching digital - 4 technologies � Focus on individual users � “Cutting the cord” � Trying to define niche market � Price competitiveness � Increasing the market share through price differentiation
strategy
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Reference
� Nicholas Economides The Telecommunications Act of 1996 and its Impact http://www.stern.nyu.edu/networks/telco96.html
� FCC Local Telephone Competition and Broadband Deployment http://www.fcc.gov/wcb/iatd/comp.html
� “Telephony.” Encyclopedia of Emerging Industries. Online Edition. Thomson Gale, 2007. Reproduced in Business and Company Resource Center. Farmington Hills, Mich.:Gale Group. 2008. http://galenet.galegroup.com.proxy.libraries.uc.edu/servlet/BCRC
� VoIP Magazine, 2005. Telecom Industry Revenue to Reach $1.2 Trillion in 2006
� The Industry Handbook – The Telecommunications Industry – Investopedia
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