TELECOMSECTOR

BY:NITIN AGARWALASHU SAHUISHAN SHARMAAITREY BANERJEEROHIT MATHUR

POST GRADUATE DIPLOMA IN MANAGEMENT(2009-11),JAGAN INSTITUTE OF MANAGEMENT STUDIES(JIMS), SECTOR 5,ROHINI, DELHI

TELECOM REVOLUTION

SOME FACTS….

TELEPHONY SUBSCRIBERS: 543.20 mn(nov 09)Cellphones: 506.04 mn (nov 09)Landlines: 37.16 mn (nov 09)Teledensity: 46.32 (nov 09)Projected teledensity: 626 mn,

51(by 2010 end)(as per TRAI report)

INDIAN TELECOM REVENUE

• 2002-03• 2003-04• 2004-05• 2005-06• 2006-07• 2008-09• 2009-10(FORCASTED)

• 9 US$ BILLION• 10 US$ BILLION• 11 US$ BILLION• 15 US$ BILLION• 20 US$ BILLION• 32 US$ BILLION• 43 US$ BILLION

PAST TO PRESENT… Liberalization in 1990 Prior to that VSNL and MTNL DEPARTMENT OF TELECOM(DoT) set up in 1994 NATIONAL TELECOM POLICY in 1994, 1999 TELECOM REGULATORY AUTHORITY OF INDIA

(TRAI) in 1997 Cellular services in 1999.

CURRENT MARKET TREND

CURRENT MAJOR PLAYERSPRIVATE PUBLIC

TYPES OF SERVICE PROVIDERS

GSM(GLOBAL SYSTEM FOR MOBILE COMMUNIOCATIONS)

• AIRTEL• VODAFONE-HUTCH• IDEA CELLULAR• BSNL• UNINOR

CDMA(CODE DIVISION MULTIPLE ACCESS)• RELIANCE• TATA INDICOM• MTNL

COMPANIES CUSTOMER MARKET SHARE REVENUE MARKET SHAREBHARTI AIRTEL 24.3 33.8VODAFONE INDIA 18.8 23.7IDEA CELLULAR 11.2 12.1BSNL 12.7 10.2RELIANCE 18.9 11.5OTHERS 14.1 11.7

Other aspects of telecom…• Telecom companies apart from voice calls also

provide value added service such asI. Multimedia messaging II. VOIPIII. Video conferencing Telecom sets manufacturing companies such as

NOKIA, ERICSSION . 500 mn telephone sets by 2011.

THE FUTURE…• RURAL AREAS: having teledensity of 18 Urban areas(having teledensity of over 100) NEW TECHNOLOGY: WIMAX , IPV6 , 3G

ECONOMIC FACTORS & IT’S IMPLICATIONS

Wants to bring in advanced Technology & more capital in Telecommunication sector.

• FDI( Foreign Direct Investment)• Capital Markets• GDP• Employment Market

INTRODUCTION

Economic Sectors

• One of main Key contributor to attract FDI

INVESTMENTS

Benefits of Inflows• Technology Transfer, Market Access• Increases the flow of foreign currency • Helps in maintaining harmonic relationship

with the investing country

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

4,3226,051

8,961

22,826

34,362 35,168

116 129 680 478 12612558

Total FDI InflowFDI inflow in Telecom in-dustry

• Vodafone• Norway based Telecom operator Telenor• Japanese Telecom Major NTT Docomo• Singtel• Mauritious• Baharain’s Batelco• Etisalat’s (gulf based Telecommunication Company)• Juniper Networks(Second Largest maker of

networking Equipment)

Investment Companies

• The telecom sector, which clocked a 42.2% growth in the quarter ended September, has emerged as a big contributor to the GDP growth.

• The telecom sector is expected to perform even better; its contribution to the nation's GDP is expected to increase from 2% in 2006 to an estimated 3.6 per cent in 2010.

• The telecom sector's potential in India remains under-tapped and growth rate in Teledensity, especially in rural India, will remain robust.

• High growth rate in this sector - with weight of less than 3% in GDP - was a key driver which pushed GDP figures for the quarter ended September to 7.6%," Companies reflect the confidence, and the sector will continue its growth story remain unscathed by the global financial turmoil.

GDP

• With telecom sector booming, career in the industry is very lucrative. The career path to the leading companies goes via telecom engineering. The telecom sector offers a variety of career options.

• Career Opportunity in Telecom Market Market Analyst Hardware Engineer for Mobile Handsets In Marketing People Financial Analyst New Players Entered so hike in salary & New employment Opportunity created

Expected by 2012• Direct employment -2.8 million• Indirect Employment- 7 million

Employment Markets

Telecom sector companies which are listed on the Stock Exchange Bharti Airtel Idea communication MTNL Reliance Communication Spice Communication Tata Tele Services

CAPITAL MARKETS

• Company Current Price EPS

Airtel 319 6.05Reliance 189 - .57 Idea 58 .88MTNL 92 .33Spice 63 .91Tata 362 .37

INTRODUCTION -• It is a Singapore based company founded in

2001• It is a service based operator providing high

quality international direct dialing (IDD),voice over internet protocol (voip),internet protocol facsimile etc.

• It provides global IDD connections to more than 200 destinations.

PRODUCTS AND SERVICES -• SMART 1542 – it is smarttel’s premium voip IDD

service.It provides an unparalleled voice quality.with smart1542,our subscribers saves up to 97% of their long distance call charges.

• smartROAM – it is a value added service. 80% of mobile subscribers who travel overseas can be benefited from this service. They are provided with prepaid GSM sim card of the country and smarttel provides them with unique smartDIAL and smartREACH no.

SELECTION CRITERIA -• The company visited the campus in the year

2007 & 2009.• The company visited the campus for Finance ,

Marketing & HR profiles.• The selection procedure includes two steps - CASE STUDY ANALYSIS - PERSONAL INTERVIEW• The company was offering the salary package of

4.15 lakhs ctc.

MATRIX CELLULAR -• It is a telecommunication solution provider

headquarter in NEW DELHI.• It was founded in 1995.• Indian mobile services business is in partnership with

VODAFONE ESSAR company India.• It is structured in four strategic business units -

International sim cards - International 3G data cards - Indian mobile service - Radiocom

Contd….• International 3G Data cards - Matrix offers 3G data connectivity in the following

countries: Germany, Singapore, U.S.A. & U.K.• Indian Mobile Services Matrix Indian Mobile Services business is in

partnership with Vodafone Essar, and provides local post-paid mobile, BlackBerry and Data solutions for Delhi and the National Capital Region (NCR).

SELECTION CRITERIA -• The company visited the campus in the year 2008 & 2010• The company visited the campus for Marketing &

finance.• The selection procedure includes two steps - CASE STUDY ANALYSIS - PERSONAL INTERVIEW• The company was offering the salary package of 3 lacs

ctc.• The profile offered by the company was Business Development Executive

PROJECTON

TELECOM

VODAFONE

PREPAID-• 100% talk time recharge :Recharge with a Rs 400

Recharge Card and get Rs 400 talk time & zero validity.

• Full Calling Value Recharge :Recharge with Rs 222 and get Rs 197.58 talk time & zero validity.

• Chhota Recharge Now recharge your Vodafone mobile phone from as little as Rs 10 onwards. Get maximum talk time for your recharge.

• Validity Offers:-

Connected for life. Recharge with Rs 99 & stay connected for life! Recharge with Rs 74 & get One year validity with Rs 5 talk time

• Bonus Cards:Now make local and STD calls from Vodafone to Vodafone @ 1p/sec with the Rs 28 Bonus Card.Now recharge with SMS bonus card 24 and get all Local SMS’s at 10 paisa and All National SMS’s at 20 paisa with a validity of 30 days.

POSTPAID• Talk 222- 222 M2M Local / STD min free

Local Vodafone–to–Vodafone, Local Mobile to Mobile, To other phones - 75p STD Vodafone–to–Vodafone, To other phones – Rs 1.3 SMS Local Vodafone–to–Vodafone 1 National 1.5International 5

AIRTEL Services:-• Mail & messages- Rs 1.50 for local SMS as per bill plan, Rs. 2 for National SMS & Rs. 5 for International SMS.

• Call conferencing- With Airtel call conferencing, you can teleconference with 6 people simultaneously! Data services- Stay connected to the internet, and access your e-mail anywhere, anytime while on the move.

• Operator services- Everything you need like Railway info, Infotel etc., is just a call away

PREPAIDTariffs:-

• Going mobile is now a lot more affordable with amazingly reduced tariffs from Airtel .So go ahead and choose Airtel’s New Prepaid with lowest monthly cost of staying cellular, available for both new and existing customers.

Roaming-• Recognizes your accessibility needs. Extensive

coverage of more than 400 roaming partners in over 200 destinations worldwide. 

POSTPAID

• New Airtel 150 (Airtel/DL/GSM/1) Bill Plan Charge 150Local Rates: AIRTEL, CDMA, LANDLINE-Re. 1STD Rates 1.5SMS- Local/CDMA 1National 1.5 International 5

IDEA

PREPAID• IDEA Cellular India’s 4th largest GSM Mobile service provider

has introduced ‘Pay Per Second Billing Plan’ for its GSM Prepaid customers in Delhi and NCR telecom circle.

• IDEA’s prepaid subscribers availing this “PAY PER SECOND PLAN” will get to make all Local and STD calls to any network with in the country for Just 1 Paisa for one Second. The STD calls will be charged at 1p/sec for first 18000 sec of the month, Post that it will be charged at 1.2 paisa/sec.

Postpaid Plans

• SMS Local / National / International will be charged as Rs. 1/- /Rs. 1.50/- / Rs. 5/-respectively.

• Home tariff will be applicable while roaming on Idea network, on non-idea networks charge of 10 paise / 10 kB is applicable towards GPRS usage.

• International Roaming Tariff - Rs 5 /10 kb

Reliance Communications, India's largest and only nationwide operator offering both GSM and CDMA mobile services.

Reliance Mobile customers can avail of two revolutionary SMS tariff plans:ONE PAISE PER SMS UNLIMITED SMS's @ Re. 1 PER DAYThe new SMS tariff plans are add-on plans and are applicable for all Reliance Mobile customers irrespective of CDMA or GSM network as well as prepaid and postpaid customers.

Reliance

TARIFF WARS:

• Voda to voda 75p/min• Voda to other Rs1.3/min• Local Rs 1/min• STD Rs 1.5/min• 1paise/second for18000 sec

then1.2p/sec• 50 p/sec

• VODAFONE

• AIRTEL

• IDEA

• RELIANCE

SMS WAR..

• VODAFONE

AIRTEL

IDEA

• Local Rs 1, national Rs 1.5, international Rs 5

• (special scheme sms local 24p, national 20p)

• LOCAL Rs 1, national Rs 1.5 , International Rs 5LOCAL Rs 1, national Rs 1.5, international Rs 5