PESTLE ANALYSIS

OFINDIAN

TELECOMBIDHAN PRADHAN

CONTENT

• PESTLE• INDIAN TELECOM• COVERAGE• INTRODUCTION• PESTLE ANALYSIS• STATISTICS

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INDIAN TELECOMMUNICATION

COVERAGE

INTRODUCTION• India is the world's second-largest telecommunications market, with 933 million subscribers

by the end of FY14. It stood third-highest in terms of total internet users in 2013, with 164.81 million internet subscriptions.

• The Indian telecom sector's revenue grew by 13.4 per cent to touch US$ 64.1 billion in FY12.

• GDP contribution – 6%.

• Increasing income has been a key determinant of demand growth in the telecommunication sector in India and forecasts income to expand during 2013-18.

• The mobile application (app) market is expected to expand at a CAGR of 70.4 per cent to US$ 100 billion during 2012-15. The growth is expected to be driven by increasing mobile connections and availability of low-range smartphones.

POLITICAL

• The Government of India plans to cut license fees by up to 33 per cent for operators.

• The Government has been proactive in its efforts to transform India into a global telecommunication hub.

• Relaxed FDI (Foreign Direct Investment) Norms.

• The Government recently revised the M&A ( Mergers & Acquisition) guidelines for the telecom sector; it raised the limit on the market share of a merged entity in a circle to 50 per cent from 35 per cent earlier.

• To boost local research and manufacturing of telecom products, the government has proposed an investment of USD32.2 billion in three phases:

i) USD9.2 billion to the Telecom Research and Development Fund, ii) USD4.6 billion for the Telecom Entrepreneurship Promotion Fund, and iii) USD18.4 billion to the Telecom Manufacturing Promotion Fund during the 12th Five-Year Plan

ECONOMICAL

ECONOMICAL• The Indian Telecom industry has been playing an important role in the world economy and

global revenues. In 2008, there were USD 4 trillion, expected to grow at a steep 11% p.a. CAGR over the next 2 years.

• India’s telecom service revenue was USD$ 55 billion in 2012, and believed that it is projected to almost double to USD$ 90 billion by 2015.

• GDP contribution – 6%.

• Output per annum - ₹ 136,833 crores per annum & Increasing 20% for every month.

• Increase in disposable incomes. • Falling mobile phone prices.• Falling call charges rates with more utility.

SOCIAL• Growing young population.

• Change in Lifestyle.

• Increment in services which includes digital television, voice and high-speed internet services and various social application.

• Chain of information flow.

• Building awareness and connecting people.

• Exploitation of young minds, too compulsive, and sometimes too much information.

• Irritating and annoying due to excess amount of calls and messages.

TECHNOLOGICAL• Driven by 3G and 4G services, it is expected that there will be huge machine-to-machine (M2M) growth in

India in 2016-17. There’s a lot of scope for growth of M2M services in the government's ambitious Rs. 7,000 crore (US$ 1.1 billion) 'Smart City' program.

• Increasing MOU (Minutes Of Use) and Data usage.

• Liberalisation of spectrum and convergence of network, services and devices.

• New and upgraded devices and applications with massive features like GPS, WiFi, etc.

• SIM cards, Nano SIM cards, etc.

LEGAL

• National Telecom Policy, aims at a ‘One Nation-One license’ regime with no roaming charges and nation wide number portability.

• “Telecommunications” falls under the legislative competence of the Union government and the Parliament and not the States.

• In India Legal framework, covering telecom sector include various services like Internet, voice mail, sat. communications, E-Commerce, broadcasting services etc.

• The Legal Framework is provided by: 1. The Indian Telegraph Act 1885. 2. The Wireless Telegraphy Act 1933.3. The Telegraph Wires (Unlawful Possession) Act1950.4. The Cable Television Network (Regulation) Act1996.

ENIVRONMENTAL• Environmental Issues are increasing on daily basis.

• Excess use of Electricity.

• Causing air pollution, by emitting unnecessary radio waves, strangling cables all over the cities.

• No proper and systematic installation.

• Unnecessary Ads, Billboards and exploitation of papers.

• ISO 14004:2004 provides guidelines on the elements of an environmental management system and its implementation.

STATISTICS