TELECOM INDUSTRY

IN

INDIA

Pre liberalization

Historically telecom network in India was owned and managed by Government as it is considered as a strategic service. At that time the Telecom industry was monopoly in nature. http://www.airtel3gplans.com

Current Scenario in Telecom Industry

India is 4th largest market in Asia after China, Japan and South Korea.

India is the 5th largest in the world and 2nd largest among emerging economies of Asia.

Contribution of telecom sector in terms of revenue is 2.1 % of GDP as compared to 2.8% in developed economies.

Lowest tariff charges in the world.

REFORMS IN TELECOM SECTOR

Reforms in telecom sector began in 1980 with telecom manufacturing being opened for private sector followed by national telecom policy(NTP) in 1994 and 1999.

In 1990 telecom revolution in many countries which resulted in better quality of service with lower tariff rates force Indian policy makers to open up telecom sector for private players.

POLICY REFORM

PHASE 1 PHASE 2 PHASE 3

Phase-1The decade of 1980's saw private sector being

allowed in telecommunications equipment manufacturing.

Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) were formed.

A telecom commission was set up to give focus to telecommunications policy formation

Phase-2 In 1990s, telecommunications sector also benefited

from the general opening up of the economy.

NTP 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector.

Availability of telephones on demand (targeted by 1997)

Universal service covering all villages and one pco per 500 persons in urban areas at the earliest (targeted to be achieved by 1997)

Telecom services at affordable and reasonable prices

Phase- 3NTP 1999 brought in the third generations of reforms in the

Indian Telecommunications sector.

FDI increase from 49% to 74%.

Internet telephony in 2002.

Launch of cdma technology.

3-6 operator in each circle.

Intra circle merger guidelines.

Broadband policy 2004.

Declinging Tariff – Rising Revenue

MAJOR PLAYERS IN TELECOM SECTOR- 2010

Service provider No of subscribers CDMA No of subscribers GSM

Reliance 1.5CR 11.35CR

Tata 2.35CR 7.25CR

Airtel 14.45CR

MTNL 24.98LAC

Bsnl 7.98CR

Vodafone 10.35CR

Idea 6.58CR

Aircel 2.35CR

MARKET SHARE MAJOR PLAYERS IN TELECOM SECTOR

Net Sales(₹Cr)- 2010

TRAI is the regulatory authority for telecom sector in India.

The Telecom Regulatory Authority of India was established on 20 February 1997 by an act of parliament called "Telecom Regulatory Authority of India Act 1997".

The mission of TRAI is to create and nurture an environment which will the enable quick growth of the telecommunication sector in the country

Airtel was Established in 1985, Bharti (Airtel) has been a pioneering force in the Telecom Sector.

Bharti Airtel is one of India's leading private sector providers of telecommunications services

An aggregate of 15,00,00,000 customers in that 13,00,00,000 are under GSM (Global System for

MobileCommunications) mobile and 1,656,031

broadband & telephone Customers.

Bharti airtel is planning to invest about $14 billion by the year 2013.

Wireless Services

– 2G/3G

– Rural MarketTelemedia Services

– Fixed Line

– Broadband

– DTH

Enterprise Services– Carrier– Corporate

Passive Infrastructure– Bharti Infratel– Indus Tower

Different services available at airtel

Chairman and Managing Director of Bharti Airtel, Sunil Bharti Mittal.

Industry Analysis

Challenges

• India centric – Major revenues from India• Falling ARPU(Average Revenue Per User)• Intense Competition & Shortage of

Bandwidth• New Players coming in India• Uncertain Economic conditions • Mobile Number Portability - upcoming

Challenge.

FUTURE PROSPECT OF TELECOM SECTOR

Telecom sector targets announced by Government of India

650 million subscribers by 2013

64.5 million broadband subscribers by 2013

Usage of internet based mobile services in More than

11,000 remote villages by 2015.

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