Changing trends in Indian Tele-Communication Industry-Abhisek Paul

8/8/2019 Changing trends in Indian Tele-Communication Industry-Abhisek Paul

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Name: Anurag Gupta Enrollment no: 09BS0000377Mobile No: 9811682046 Email Id: [email protected]

MANAGEMENT RESEARCH PROJECT

INTERIM REPORT

INTERIM

REPORT

December 6

2010

MANAGEMENT RESEARCH PROJECT

SUBMITTED TO:PROF.Gautam Kaul

Anurag Gupta

09BS0000377

IBS Gurgaon

Class of 2011


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Introduction:

Telecommunication is the transmission of messages, over significant distances, for the purposeof communication. In earlier times, telecommunications involved the use of visual signals, suchas beacons, smoke, semaphore telegraphs, signal flags, and optical heliographs, or audiomessages via coded drumbeats, lung-blown horns, or sent by loud whistles, for example. In themodern age of electricity and electronics, telecommunications now also includes the use ofelectrical devices such as telegraphs, telephones, and teletypes, the use of radio and microwavecommunications, as well as fiber optics and their associated electronics, plus the use ofthe orbiting satellites and the Internet.The first breakthrough into modern electrical telecommunications came with the push to fullydevelop the telegraph starting in the 1830s. The use of these electrical means of communicationsexploded into use on all of the continents of the world during the 19th century, and these alsoconnected the continents via cables on the floors of the ocean. The use of the first three popularsystems of electrical telecommunications, the telegraph, telephone and teletype, all required theuse of conducting metal wires.A revolution in wireless telecommunications began in the first decade of the 20th century,with Guglielmo Marconi winning the Nobel Prize in Physics in 1909 for his pioneeringdevelopments in wireless radio communications. Other highly notable pioneering inventors anddevelopers in the field of electrical and electronic telecommunications include CharlesWheatstone and Samuel Morse (telegraph), Alexander Graham Bell (telephone), NikolaTesla, Edwin Armstrong, and Lee de Forest (radio), as well as John Logie Baird and PhiloFarnsworth (television).Telecommunications play an important role in the world economy and the worldwidetelecommunication industry's revenue was estimated to be $3.85 trillion in 2008. The servicerevenue of the global telecommunications industry was estimated to be $1.7 trillion in 2008, and

is expected to touch $2.7 trillion by 2013.

1.0 Executive Summary

Over the last four years, Telecom Technology, a well respected $300 million steel

conglomerate, has built up significant interests in the telecom sector ranging from wireless

and paging services to billing software. Telecom Technology Taiwan, was formed in

Taiwan in 1994 to pursue opportunities in the Operations Support Systems () telecom

software market, with a particular focus on customer care and billing software solutions (CCB

systems). Since 1994, Telecom Technology Taiwan has grown steadily, building acustomer base of 24 telecom operators for its software.

In 1998, encouraged by the potential of the billing software market opportunity,

Telecom Technology decided to pursue a more aggressive expansion strategy, appointing an

experienced and credible executive management team to unleash the potential of the

Telecom Technology Taiwan business. Corresponding with the placement of the executive

management team, Telecom Technology was created. Telecom Technology has

already made and continues to make significant investments in growing the business.


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2.0 Situation Analysis

Telecom Technology current situation:

2.1 Market Summary

Operations support systems encompasses a broad range of applications and services.

Although definitions vary, typically includes applications geared toward customer

acquisition, service provisioning, asset management, network management, customer care,

and billing. Increasingly, these applications are becoming more interdependent and carriers

are beginning to realize how important a world-class is to effective competition.

Telecommunications

The segment of the telecommunications industry is experiencing tremendous growth.

The increasingly competitive telecommunications market, both wire line and wireless, has

increased carriers' awareness of the importance of . As a result, companies are investingmillions of dollars in their in order to improve operations and create a competitive

advantage.

In terms of aggregate spending on , projections differ, mainly because there is no

consensus on the exact definition of . Nevertheless, the Yankee Group predicts that the

market will grow to almost $60 billion worldwide in 2003 before falling off slightly. The

slight decrease in spending is the result of more companies choosing to build rather than buy

certain components of their .Customer Care & Billing Overview

Telecom Technology currently focuses on one aspect of , customer care and billing(CCB)

systems. At its highest level, a CCB system provides a carrier with the means to bill itscustomers for service.

However, bill generation is but one aspect of a complete CCB application. The data captured

by the billing system provides valuable information to both the carrier and the customer on

how services are used, what additional services are necessary, how services can be used

more efficiently, or even how effective particular promotions or operations have been.

Today's CCB systems collect, collate, manage, and report this valuable information to

management, usually in real time.

CCB systems are also vital in terms of customer service and satisfaction. By having real time

access to customer information, customer service representatives can better respond to

customer needs in a timely and efficient manner.

In addition, modern CCB systems can turn the monthly bill into an invaluable marketing tool;

this is important since the customer's bill is the only regular contact a company has with its

customers. As a result, a great deal of attention is typically placed on a company's CCB

applications.

Connected to the Internet or "online." In 1991, only 4.5 million people were estimated to be


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online. In September 1998 it was estimated that 148 million people were online worldwide.

Undeniably this is substantial growth, and this growth has created unparalleled opportunities for

those providing Internet connectivity. These companies, Internet service providers (ISPs), have

enjoyed tremendous revenue growth over the last five years. Worldwide ISP revenues have

increased from approximately $50 million in 1994 to an estimated $14 billion in 1998.

Although the Internet in total has expanded significantly, Internet access and actual use varygreatly among countries. On a usage basis, the U.S. accounts for the largest share at 55

percent. On an access basis, Canada is the leader followed by the U.S.

Market Forecast

2.1.3 Market Growth

Projected Market Growth

While a historical perspective is valuable, what is most important with respect to

Telecom Technology is future growth. While it is impible to predict the future with 100

percent accuracy, it is pible to gain a sense of what is likely to happen and gain an

appreciation for the size of this ever-expanding market.Telecommunications

Historically, the global telecommunications marketplace has enjoyed tremendous growth in

terms of network size, number of subscribers, number of operators, and overall revenues.

While this growth has been impressive, of real importance is what is going to happen to the

telecommunications market in the near future, say the next five years. The next five years

will be a pivotal time for the telecommunications industry as the effects of global

deregulation, the continued expansion of wireless services, and the further build out of

developing countries combine to reshape the global marketplace. The build out of developing

countries is critical if these countries are to increase teledensity and data capacity in order tojoin the 21st century.

As a result of these fundamental influences in the telecommunications market, demand for voice

telephone service alone is expected to increase dramatically. In fact, the total demand for voice

telephony is expected to increase more than 50% from 1998 to 2004.

Another fundamental influence that will drive the growth of telecommunications is the

continued growth in the world's population. Obviously, as the population expands so does the

need for telecommunication services.

The historical growth in main telephone lines worldwide is expected to continue through the turn

of the century. The number of main telephone lines worldwide is expected to grow fromapproximately 850 million in 1998 to 1.25 billion in 2004.

The majority of the growth in main telephone lines is expected to come from non-U.S.

regions. The bulk of that growth is expected in the Asia/Pacific region. Corresponding with the

projected growth in main telephone lines is an expected growth in worldwide tele-density.

Worldwide tele-density is expected to increase from 14 lines per 100 people in 1998 to

approximately 19 in 2004.


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Access to telecommunication services worldwide has grown at an impressive pace over the

last twenty years. In large part this is due to the emergence of wireless telephony. This is

especially true in emerging markets where it is considerably less expensive to deploy wireless

infrastructure than it is to deploy traditional copper wire. As a result, the number of wireless

subscribers has grown significantly over the past decade. This growth is projected to continue

at a compound annual growth rate (CAGR) of 24% from 1998 to 2004.A number of competing technologies exist in the global wireless market: analog, CDMA,

TDMA, GSM, and PDC (PDC is Japan's digital technology). Most carriers today are in the

process of upgrading their current systems from analog to digital technologies and new

carriers are starting with digital technology. As a result, the technology mix is expected to

change significantly from 1997 to 2004.

Telecom Technology originally developed its products for use with GSM technologies.

Therefore, the growth in GSM is of particular interest to Telecom Technology. GSM is

rapidly becoming the standard digital wireless technology worldwide. In fact, GSM operators

are currently adding four new subscribers every second.

What all of this growth in wire line and wireless telephony drives is revenue. Worldwide telecomservice revenue is expected to grow from $840 billion in 1998 to $1.4 trillion in2004. This

growth represents a compound annual rate of 8.7 percent.

It is evident that the global telecommunications market is expanding and will continue to

expand in the foreseeable future. This expansion has created tremendous opportunities for

incumbent operators and emerging operators, who are, in turn, creating opportunities for

companies that support them. Infrastructure vendors, consultants, software vendors, and

many other types of suppliers are enjoying the expanded opportunities the telecom market is

offering. Telecom Technology is positioning itself to take advantage of the growing

telecom market.

Internet

In the entire scheme of communications, the Internet is still in its infancy. The technology is

still evolving as are its applications and uses. Electronic commerce, perhaps the biggest

revenue generating opportunity of all time, is just emerging. In addition, Internet telephony

is showing promise and is beginning to attract meaningful support, as the technology is

refined. As more and more information, entertainment, and goods & services become

available on the Internet the number of host computers and Internet users is expected to

increase. The number of host computers connected to the Internet is expected to mushroomto around 285 million by 2004.

Corresponding to the growth in Internet infrastructure is the expected continued rapid growth

in Internet users. The number of people projected to be online by 2004 increases to more

than 500 million, more than three times the number of people online today.

Without a doubt, the Internet has tremendous market potential. Every aspect of the Internet

(hardware, software, and services) is projected to grow significantly in the next few years. In


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total, the Internet market place is expected to be worth in excess of $22 billion in just two years.

This is a rapidly expanding and, as of yet, largely untapped market.

Currently, the numbers of ISPs operating worldwide is estimated at close to 4,000.

Undoubtedly the number of ISPs is likely to increase as more and more people desire to be

online, especially in non-U.S. regions where Internet usage is relatively low. Partially

offsetting the growth in the number of ISPs is the eventual wave of consolidations that islikely to grip the industry.

The Internet offers several opportunities for Telecom Technology, with respect to CCB

applications. The biggest opportunity is in IP (Internet Protocol) telephony or voice-over IP

(VoIP). Using the Internet to make phone calls has been pible for a few years now but

although the rates were cheap quality was poor. However, recent technological

advancements have made the prospects of wide reaching IP telephony a reality.

In fact, IP telephony is poised to secure a significant portion of telephone traffic in the next

several years. Probe Research predicts that by 2003, 18.5% of telephone traffic in the U.S. Will

be via the Internet. As ISPs and other companies begin to offer IP telephony services, there will

be a tremendous need for CCB applications capable of billing for this new service.Another CCB opportunity made pible by the Internet is usage-based pricing for data.

Several companies are exploring the viability of charging customers based on the data they

actually use. This type of arrangement would require billing systems beyond the typical ISP's

current capabilities and therefore represents a significant opportunity for Telecom

Technology and its competitors.

Key concepts

A number of key concepts reoccur throughout the literature on modern telecommunication

systems. Some of these concepts are discussed below.

Key elements:

A basic telecommunication system consists of three primary units that are always present in

some form:

A transmitter that takes information and converts it to a signal.


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A transmission medium, also called the "physical channel" that carries the signal. Anexample of this is the "free space channel".

A receiver that takes the signal from the channel and converts it back into usable information.For example, in a radio broadcasting station the station's large power amplifier is the transmitter;

and the broadcasting antenna is the interface between the power amplifier and the "free space

channel". The free space channel is the transmission medium; and the receiver's antenna is the

interface between the free space channel and the receiver. Next, the radio receiver is the

destination of the radio signal, and this is where it is converted from electricity to sound for

people to listen to.

Sometimes, telecommunication systems are "duplex" (two-way systems) with a single box

of electronics working as both a transmitter and a receiver, or a transceiver. For example,

a cellular telephone is a transceiver. The transmission electronics and the receiver electronics in a

transceiver are actually quite independent of each other. This can be readily explained by the fact

that radio transmitters contain power amplifiers that operate with electrical powers measured in

the watts or kilowatts, but radio receivers deal with radio powers that are measured in

the microwatts or nano watts. Hence, transceivers have to be carefully designed and built to

isolate their high-power circuitry and their low-power circuitry from each other.

Telecommunication over telephone lines is called point-to-point communication because it is

between one transmitter and one receiver. Telecommunication through radio broadcasts is

called broadcast communication because it is between one powerful transmitter and numerous

low-power but sensitive radio receivers.[

Telecommunications in which multiple transmitters and multiple receivers have been designed to

cooperate and to share the same physical channel are called multiplex systems.

Analog or digital communications?

Communications signals can be either by analog signals or digital signals. There are analog

communication systems and digital communication systems. For an analog signal, the signal is

varied continuously with respect to the information. In a digital signal, the information is

encoded as a set of discrete values (for example, a set of ones and zeros). During the propagation

and reception, the information contained in analog signals will inevitably be degraded

by undesirable physical noise. (The output of a transmitter is noise-free for all practical

purposes.) Commonly, the noise in a communication system can be expressed as adding or

subtracting from the desirable signal in a completely random way. This form of noise is


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called "additive noise", with the understanding that the noise can be negative or positive at

different instants of time. Noise that is not additive noise is a much more difficult situation to

describe or analyze, and these other kinds of noise will be omitted here.

On the other hand, unless the additive noise disturbance exceeds a certain threshold, the

information contained in digital signals will remain intact. Their resistance to noise represents a

key advantage of digital signals over analog signals.

Communications networks

A communications network is a collection of transmitters, receivers, and communications

channels that send messages to one another. Some digital communications networks contain one

or more routers that work together to transmit information to the correct user. An analog

communications network consists of one or more switches that establish a connection between

two or more users. For both types of network, repeaters may be necessary to amplify or recreate

the signal when it is being transmitted over long distances. This is to combat attenuation that can

render the signal indistinguishable from the noise.

Communication channels

The term "channel" has two different meanings. In one meaning, a channel is the physical

medium that carries a signal between the transmitter and the receiver. Examples of this include

the atmosphere for sound communications, glass optical fibers for some kinds of optical

communications, coaxial cables for communications by way of the voltages and electric currents

in them, and free space for communications using visible light, infrared waves, ultraviolet light,

and radio waves. This last channel is called the "free space channel". The sending of radio waves

from one place to another has nothing to do with the presence or absence of an atmosphere

between the two. Radio waves travel through a perfect vacuum just as easily as they travel

through air, fog, clouds, or any other kind of gas besides air.

The other meaning of the term "channel" in telecommunications is seen in the

phrase communications channel, which is a subdivision of a transmission medium so that it can

be used to send multiple streams of information simultaneously. For example, one radio

station can broadcast radio waves into free space at frequencies in the neighborhood of

94.5 MHz (megahertz) while another radio station can simultaneously broadcast radio waves at

frequencies in the neighborhood of 96.1 MHz. Each radio station would transmit radio waves

over a frequency bandwidth of about 180 kHz (kilohertz), centered at frequencies such as the

above, which are called the "carrier frequencies". Each station in this example is separated from

its adjacent stations by 200 kHz, and the difference between 200 kHz and 180 kHz (20 kHz) is

an engineering allowance for the imperfections in the communication system.


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In the example above, the "free space channel" has been divided into communications channels

according to frequencies, and each channel is assigned a separate frequency bandwidth in which

to broadcast radio waves. This system of dividing the medium into channels according to

frequency is called "frequency-division multiplexing" (FDM).

Another way of dividing a communications medium into channels is to allocate each sender a

recurring segment of time (a "time slot", for example, 20 milliseconds out of each second), and

to allow each sender to send messages only within its own time slot. This method of dividing the

medium into communication channels is called "time-division multiplexing" (TDM), and is used

in optical fiber communication Some radio communication systems use TDM within an allocated

FDM channel. Hence, these systems use a hybrid of TDM and FDM.

Modulation

The shaping of a signal to convey information is known as modulation. Modulation can be used

to represent a digital message as an analog waveform. This is commonly called "keying" - a term

derived from the older use of Morse Code in telecommunications - and several keying techniques

exist (these include phase-shift keying, frequency-shift keying, and amplitude-shift keying). The

"Bluetooth" system, for example, uses phase-shift keying to exchange information between

various devices. In addition, there are combinations of phase-shift keying and amplitude-shift

keying which is called (in the jargon of the field) "quadrature amplitude modulation" (QAM) that

are used in high-capacity digital radio communication systems.

Modulation can also be used to transmit the information of low-frequency analog signals at

higher frequencies. This is helpful because low-frequency analog signals cannot be effectively

transmitted over free space. Hence the information from a low-frequency analog signal must be

impressed into a higher-frequency signal (known as the "carrier wave") before transmission.

There are several different modulation schemes available to achieve this [two of the most basic

being amplitude modulation (AM) and frequency modulation (FM)]. An example of this process

is a disc jockey's voice being impressed into a 96 MHz carrier wave using frequency modulation

(the voice would then be received on a radio as the channel "96 FM").[28] In addition, modulation

has the advantage of being about to use frequency division multiplexing (FDM).

Society and telecommunication

Telecommunication has a significant social, cultural. and economic impact on modern society. In

2008, estimates placed the telecommunication industry's revenue at $3.85 trillion (USD) or just

under 3.0 percent of the gr world product (official exchange rate) The following sections discuss

the impact of telecommunication on society.

Economic impact


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Microeconomics:

On the microeconomic scale, companies have used telecommunications to help build global

business empires. This is self-evident in the case of online retailer Amazon.com but, according to

academic Edward Lenert, even the conventional retailer Wal-Mart has benefited from better

telecommunication infrastructure compared to its competitors. In cities throughout the world,

home owners use their telephones to organize many home services ranging from pizza

deliveries to electricians. Even relatively-poor communities have been noted to use

telecommunication to their advantage. In Bangladesh's Narshingdi district, isolated villagers use

cellular phones to speak directly to wholesalers and arrange a better price for their goods. In Cte

d'Ivoire, coffee growers share mobile phones to follow hourly variations in coffee prices and sell

at the best price.

Macroeconomics

On the macroeconomic scale, Lars-Hendrik Rller and Leonard Waverman suggested a causal

link between good telecommunication infrastructure and economic growth.[31] Few dispute the

existence of a correlation although some argue it is wrong to view the relationship as causal.[32]

Because of the economic benefits of good telecommunication infrastructure, there is increasing

worry about the inequitable access to telecommunication services amongst various countries of

the worldthis is known as the digital divide. A 2003 survey by the International

Telecommunication Union (ITU) revealed that roughly one-third of countries have fewer than

one mobile subscription for every 20 people and one-third of countries have fewer than one land-

line telephone subscription for every 20 people. In terms of Internet access, roughly half of allcountries have fewer than one out of 20 people with Internet access. From this information, as

well as educational data, the ITU was able to compile an index that measures the overall ability

of citizens to access and use information and communication technologies.[33] Using this

measure, Sweden, Denmark and Iceland received the highest ranking while the African

countries Nigeria, Burkina Faso and Mali received the lowest.

Social impact

Telecommunication has played a significant role in social relationships. Nevertheless' devices

like the telephone system were originally advertised with an emphasis on the practicaldimensions of the device (such as the ability to conduct business or order home services) as

opposed to the social dimensions. It was not until the late 1920s and 1930s that the social

dimensions of the device became a prominent theme in telephone advertisements. New

promotions started appealing to consumers' emotions, stressing the importance of social

conversations and staying connected to family and friends.


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Since then the role that telecommunications has played in social relations has become

increasingly important. In recent years, the popularity of social networking sites has increased

dramatically. These sites allow users to communicate with each other as well as post

photographs, events and profiles for others to see. The profiles can list a person's age, interests,

sexuality and relationship status. In this way, these sites can play important role in everything

from organizing social engagements to courtship.

Prior to social networking sites, technologies like SMS and the telephone also had a significant

impact on social interactions. In 2000, market research group Ipsos MORI reported that 81% of

15 to 24 year-old SMS users in the United Kingdom had used the service to coordinate social

arrangements and 42% to flirt.

Other impacts

In cultural terms, telecommunication has increased the public's ability to access to music and

film. With television, people can watch films they have not seen before in their own home

without having to travel to the video store or cinema. With radio and the Internet, people can

listen to music they have not heard before without having to travel to the music store.

Telecommunication has also transformed the way people receive their news. A survey by the

non-profit Pew Internet and American Life Project found that when just over 3,000 people living

in the United States were asked where they got their news "yesterday", more people said

television or radio than newspapers. The results are summarized in the following table (the

percentages add up to more than 100% because people were able to specify more than one

source).

Local TV National TV Radio Local paper Internet National paper

59% 47% 44% 38% 23% 12%

Telecommunication has had an equally significant impact on advertising. TNS MediaIntelligence reported that in 2007, 58% of advertising expenditure in the United States was spent

on mediums that depend upon telecommunication. The results are summarised in the following

table.

Interne Radi Cabl Syndicate Spot Networ Newspap Magazin OutdooTotal


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t o e TV d TV TV k TV er e r

Percen

t7.6% 7.2%

12.1

%2.8%

11.3

%17.1% 18.9% 20.4% 2.7% 100%

Dollar

s

$11.31

billion

$10.6

9

billio

n

$18.0

2

billio

n

$4.17

billion

$16.8

2

billio

n

$25.42

billion

$28.22

billion

$30.33

billion

$4.02

billion

$149

billio

n

Telecommunication and government

Many countries have enacted legislation which conform to the International Telecommunication

Regulations establish by the International Telecommunication Union (ITU), which is the

"leading United Nations agency for information and communication technology issues." In 1947,

at the Atlantic City Conference, the ITU decided to "afford international protection to all

frequencies registered in a new international frequency list and used in conformity with the

Radio Regulation." According to the ITU'sRadio Regulations adopted in Atlantic City, all

frequencies referenced in the International Frequency Registration Board, examined by the

board and registered on the International Frequency List"shall have the right to international

protection from harmful interference."

From a global perspective, there have been political debates and legislation regarding the

management of telecommunication and broadcasting. The history of broadcasting discusses

some of debates in relation to balancing conventional communication such as printing and

telecommunication such as radio broadcasting. The onset of World War II brought on the first

explosion of international broadcasting propaganda. Countries, their governments, insurgents,

terrorists, and militiamen have all used telecommunication and broadcasting techniques to

promote propaganda. Patriotic propaganda for political movements and colonization started the

mid 1930s. In 1936, the BBC did broadcast propaganda to the Arab World to partly counter

similar broadcasts from Italy, which also had colonial interests in North Africa.

Modern insurgents, such as those in the latest Iraq war, often use intimidating telephone calls,

SMSs and the distribution of sophisticated videos of an attack on coalition troops within hours of


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the operation. "The Sunni insurgents even have their own television station, Al-Zawraa, which

while banned by the Iraqi government, still broadcasts from Erbil, Iraqi Kurdistan, even as

coalition pressure has forced it to switch satellite hosts several times."

THE TELECOMMUNICATION HIERARCHY

Computer networks

y ARPANETy Ethernety Internety Wireless networksy Public switched telephone networks (PSTN)y Packet switched networksy Radio networksy Television networks

Aspects of telecommunication transmission

y Analogy Digitaly Opticsy Telecommunication technologyy

Modulationy Amplitude modulationy Frequency modulationy Quadrature amplitude modulationy Nyquist ratey Nyquist ISI criteriony Pulse shapingy Inter-symbol interference

Communications media types

y Physical media for Telecommunicationy Twisted pairy Coaxial cabley Optical fibery Telecommunication through Free Spacey Broadcast radio frequency including television and radioy Line-of-sight propagation Line-of-sight


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y Communications satellitey Terrestrial Microwavey Wireless LANy Relationship between media and transmittersy Physical access to mediay Simplexy Duplex (telecommunications)y Logical relationshipsy Return channely Two-way alternatingy Two-way simultaneous

Multiple access to media

y Multiplexingy Analogy Digitaly Time-division multiplexingy Statistical multiplexing and Packet switchingy Media Access Controly Contentiony Token-basedy Centralized token controly Distributed token controly Basic telecommunication conceptsy E-maily Instant messagingy Radioy Telephoney VoIPy Videoconferencingy Television

Major telecommunications equipment manufacturers

y Coral Telecom Limitedy Ericssony Alcatel-Lucenty Nokiay Avayay Aricenty NECy Nortel


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y ZTEy Cisco Systemsy Huawei

Terrestrial

These are the world's 30 largest mobile network operators by number of subscribers (and

by proportionate subscribers, if the company has holdings in other operators).

Ra

nk

Company Main Markets Technology

Propor

tionate

subscri

bers

(in millions)

Total

subscriber

s

(in millions

)

Ownership

1China

MobileChina[show]

GSM, GPRS,

EDGE[show]

564.356 [1]

(September

2010)

Government of

the PRC (74.25

%)[show]

2 Vodafone

United

Kingdom (Vodafo

ne UK)[show]

GSM, GPRS,

EDGE[show]

323.27 [

2]

(Septem

ber2009)

427.99* [2]

(September

2009)

3 Telefnica /

Movistar / O2Spain ()[show]

GSM, GPRS,

EDGE[show]

278 [3]

(June 2010)

4Amrica

MvilMexico (Telcel)[s

how]

GSM, GPRS,

EDGE[show]

215.06 [4]

(June 2010)

5Bharti

AirtelIndia (Airtel)[sho

w]

GSM, GPRS,

EDGE[show]

200 [5]

(October

2010)

Bharti (64.76%)[

show]

6 TelenorNorway (Telenor

GSM, GPRS,184.00 [6]

(June 2010,


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Norway)[show] EDGE[show] including

VimpelCo

m)

7 Orange France (Orange

France)[show]

GSM, GPRS,

EDGE[show]

93.8 [7]

(Septem

ber

2009)

182.0 [7]

(June 2010)

France

Tlcom (100%)

8 T-Mobile Germany (Teleko

m.de)[show]

GSM, GPRS,

EDGE[show]

150.90 [8]

(September

2009)

Deutsche

Telekom (100%)

9

/

TeliaSonera Sweden[show]

GSM, GPRS,

EDGE[show]

143.9 [9]

(September2009)

10China

Unicom

China (China

Unicom)

GSM, GPRS,

EDGE[show]

156.962 [10]

(June 2010)

China Unicom

(BVI) Limited

(state-owned)

(40.92%)[show]

11MTN

Group

South

Africa[show]

GSM, GPRS,

EDGE[show]

137.47 [11]

(September

2010)

12

Orascom

Telecom / WI

ND

Egypt (Mobinil)[s

how]

GSM, GPRS,

EDGE[show]

127.39 [12]

(September

2010)

Weather Investm

ents[show]

13 EtisalatUnited Arab

Emirates ()[show]

GSM, GPRS,

EDGE[show]

>100 [16]

(February

2010)

14

Reliance

Communicatio

ns

India ()[show]CDMA, GPRS

[show]

110.8

(March

2010)

Reliance Anil

Dhirubhai

Ambani Group

15 MTS Russia (MTS GSM, GPRS,102.01 [17]

(JanuarySistema


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Russia)[show] EDGE[show] 2010)

16Verizon

Wireless

USA (Verizon

Wireless)

cdmaOne[sho

w]

93.2

(October

2010)

Verizon

Communications

(55%)[show]

17AT&T

MobilityUSA ()[show]

GSM, GPRS,

EDGE[show]

92.81 [4] (O

ctober

2010)

AT&T Inc.

18VimpelCom

Russia (Beeline

Russia, GT)[show]

GSM, GPRS,

EDGE[show]

89.40[18]

(Q2 2010)

Alfa

Group (44,65%)[

show]

19 Telkomsel Indonesia (Telko

msel)

GSM, GPRS,

EDGE[show]

88.32 [5] (J

uly 2010)

TelkomIndonesia (65%)[

show]

21Telecom

Italia / TIM Italy (TIM)[show]GSM, GPRS,

EDGE[show]

71.50 [19]

(September

2009)

Telefonica (24.5

%)

22 AxiataGroup Berhad

Malaysia (Celcom

)(100%)[show]

GSM, GPRS,EDGE[show]

72.7(exclud

ed Idea

Cellular, M1 )

(September

2010)

Malaysian (93.26%):[show]

23 Turkcell Turkey (Turkcell)

[show]

GSM, GPRS, P

DC[show]

61.9 [21]

(June 2009)

Turkcell

Group[show]

24 Qtel Qatar ()[show]GSM, GPRS,

EDGE[show]

33.60 [2

2]

(Decem

ber

2009)

60.53 [22]

(December

2009)

25 Tata India GSM, GPRS, 72.53 [6](J Tata


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Teleservices EDGE[show] une 2010) Group (>50%)[s

how]

26Idea

CellularIndia

GSM, GPRS,

EDGE

62.14 [7] (F

ebruary

2010)

Aditya Birla

Group (49.05%)[

show]

20 BSNL IndiaGSM, GPRS,

EDGE[show]

81.00 [8] (

October

2010)

Government of

India

27China

TelecomChina

PHS

CDMA, EV-

DO

74.52 [23](J

une 2010)

28 Vivo BrazilGSM, CDMA,

3G

57.30 [9] (S

eptember

2010)

Telefonica[show

]

29NTT

docomo

Japan (NTT

docomo)[show]

GSM, GPRS, P

DC[show]

56.08 [10] (

March

2010)

Nippon

Telegraph and

Telephone

30

Maxis

Communications

Malaysia (Maxis)[show]

GSM, GPRS,EDGE[show]

54.64 [11]

[12] (March 2010)

Ananda

Krishnan (75%)[show]

Satellite based

These are the world's 5 largest satellite network operators by number of subscribers.

Rank Operator TechnologySubscribers

(in millions)Ownership

1 GlobalstarProprietary CDMA 0.383 (September 2010)[24]


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2 Iridium Proprietary TDMA 0.347 (June 2009)[25]

3 Thuraya Proprietary FDMA/GSM 0.260 (December 2007)[26] Etisalat(28%)

4 Inmarsat Proprietary GSM 0.254 (September 2009)[27]

5 ACeS 0.020 (December 2007)

Introduction to the Project:

"Analysis on changing trends of customer needs and strategies adopted by the

Telecommunication Industry"

Trends and developments in the telecommunication environment

The global market for telecommunications is expanding rapidly. It is not a question of demandpull or supply push. Both are happening. The interaction of these two forces has madetelecommunications one of the leading growth sectors in the world economy. It has also madetelecommunications one of the most important components of social, cultural and politicalactivity.

On the demand side, growth is pulled by an increasing reliance on telecommunicationsand information technology in every area of human life in all sectors of economic and social

activity; in government, in the provision of public services, and in the management of publicinfrastructures; in the pursuit of knowledge and the expression of culture; in the control of theenvironment; and in response to emergencies, whether natural or man-made.

On the supply side, growth is pushed by rapid technological developments whichcontinuously improve the efficiency of existing products, systems and services, and provide thefoundation for a continuing stream of innovations in each of these areas. Particularly noteworthyis the convergence of telecommunication, information, broadcasting and publishing technologies,which has greatly enriched the communication choices available to consumers.The effect of the fundamental forces driving demand and supply has been amplified by the

worldwide trend to liberalize markets for telecommunication and information technology goodsand services. As a result of this trend, the majority of telecommunication networks are now

privately owned and operated. Significant developments have also taken place to introducecompetition at the national, regional and international levels. Of particular importance is theWorld Trade Organization (WTO) agreement to liberalize trade in basic telecommunicationservices which was concluded in February 1997 by 69 countries which together account for morethan 90% of global telecommunication revenues. The agreement entered into force on 5 February1998.


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The new framework developed by WTO to govern trade and regulation of telecommunicationservices will facilitate further globalization of the telecommunication equipment and servicesindustries, as well as the closely-related information technology industry.

In the 1995-1999 planning period, "globalization" was more a slogan than a reality, since

it referred mainly to alliances between major operators to provide end-to-end services tomultinational enterprises. Public networks and residential customers were relatively unaffectedby this kind of globalization, although various forms of "alternative calling procedures" providedconsumers in countries which allowed such practices a "poor-man's version" of the benefitsenjoyed by big business users.

In the 1999-2003 planning period, globalization is likely to become much more of areality. The WTO agreement will make it possible for foreign operators to have direct accessthrough interconnection and interoperability to public networks in most of the world's majortelecommunication markets, as well as to make direct investments in the development of thosenetworks.Five years ago, few would have predicted that the Internet would emerge so rapidly as a serious

competitive force in telecommunications. However, today's Internet is only a precursor to thenew competitive forces that are likely to emerge in the next five to ten years in the new"communications and information sector" which will result from technological convergence.

The essential lesson to be learned from the Internet phenomenon is that competition is no longera public policy tool which can be introduced in a completely controlled fashion and regulatedwithin the confines of the traditional telecommunication sector. Competition intelecommunications is rapidly becoming a true market force whose evolution cannot be plannedby policy-makers, a force which increasingly is seen as best regulated on the basis of principlesthat are not specific to telecommunications, but derived from a broader economic, social andcultural perspective.

Although far from universally accepted, the sweeping changes in telecommunications describedabove have broad support among many countries, including a number of developing countrieswho see it as the best way forward in developing their telecommunication networks and servicesto the benefit of their overall economic and social development.

The liberalization of telecommunications does not mean an end to regulation but it has changedboth the role of government and the nature of telecommunication regulation:

In the past, most administrations of ITU Member States tended to be "all-purpose"creatures policy-makers and operators which both provided and regulated telecommunicationson the basis of a "public utility" model.

The liberalization of telecommunications has been accompanied by a separation of thesefunctions. The trend now is for administrations of ITU Member States to be policy-makers,nested within a general department of government (e.g. industry and trade); fortelecommunications to be operated by corporations whether public, private or mixed; and for"the public interest" in telecommunications to be protected by an independent regulatoryauthority.


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In countries that have introduced partial or full competition, the model for regulatingtelecommunications is changing. Principles derived from competition law are taking their placealongside the classical precepts of public utility regulation. In some jurisdictions, sector-specifictelecommunication regulation has been abandoned.

Again, the WTO agreement will amplify these regulatory trends. More than 60

signatories accounting for more than 90% of global telecommunication revenues have madecommitments to apply in whole or in part a set of regulatory principles includinginterconnection, transparency and anti-competitive safeguards. These regulatory commitments,and indeed all other commitments, are subject to the WTO dispute resolution mechanism. Theyare therefore more than a voluntary code of conduct. They are binding commitments which areenforceable under the WTO dispute resolution mechanism.In the 1999-2003 planning period, it is likely that the trends noted above with respect toliberalization, competition and globalization will begin to combine in new ways that mayultimately change the way the telecommunication industry sees itself and is seen by itsregulator(s) and customers.

Countries that began permitting competition in telecommunications 10 or 20 years agogenerally introduced it in a planned and orderly manner: first in terminal equipment; then invalue-added services; then in the long-distance service; and finally in local and internationalservices. In addition, competition was generally permitted among different service providersusing the same infrastructure before being allowed between different infrastructure providers.Even today, most countries that permit competition do so on a highly regulated basis

As a result of technological progress, convergence and market liberalization, countriesonly now beginning to introduce competition are less likely to be in a position to plan anevolution of this kind

Even in those countries that have experience with competition, service providers andregulators that have based their respective plans on an orderly evolution of this kind are findingthat the "rules of the game" are suddenly changing, that competition is coming from unforeseendirections, and that it cannot be regulated as it was in the past

More than any other phenomenon, the Internet symbolizes the changing nature oftelecommunications. It is based on different technologies, network architectures, standardizationand addressing schemes. Its economic foundations and charging principles are diametricallyopposed to those of public telecommunication operators. It has experienced phenomenal growthand it has largely been outside government regulation. Yet it is emerging as a serious alternativeto the traditional services provided by the telecommunication industry in every market segment,from intra-corporate communications to public voiceFrom one point of view, encouraging progress has been made in the 1995-1999 period in certaincountries and some regions in forging the "missing link" identified by the Maitland Commission.Overall, the gap between developed and developing countries in access to basictelecommunication services is closing. However, from other points of view, new gaps arebeginning to appear:

In general, the majority of the least developed countries (LDCs) have made little progressin the past five years in closing the gap in access to basic telecommunication services. In somecases, teledensity (the number of telephone lines per 100 people) has fallen, as population growthhas outstripped telecommunication growth. New technologies such as global mobile personal


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communications by satellite (GMPCS) may help close the "telecommunication gap". This willonly be possible, however, if their services are affordable to inhabitants of the LDCs.

There is currently an enormous gap between developed and developing countries inaccess to the Internet. Even as the telecommunication gap which has preoccupied the Union forso many years is beginning to close, an "information gap" of even greater proportions is opening

up. A difference in regulatory practices is emerging between countries which have decided toliberalize their telecommunication markets under the WTO agreements, and those that have not.If competition brings the first group of countries the anticipated benefits in terms of investment,technology transfer, innovative services and lower prices, these regulatory differences maybecome a new development gap. In this regard, it is important to recall that although the 119 ITUMember States that are not yet part of the WTO basic telecommunications agreement generateless than 10% of global telecommunication revenues, they include more than 45% of the world'speople.On the eve of the 21st century, the Union thus finds itself in a dynamic situation. On the onehand, the goal established by the Maitland Commission of achieving universal access to basic

telecommunications will be technically achieved, and the overall gap between developed anddeveloping countries is steadily narrowing. However, at the same time, new differences aredeveloping, for example within the developing world, between the LDCs and other developingcountries, between liberalized and non-liberalized countries which may be either developed ordeveloping, and between countries that are moving rapidly towards competition and thosemoving at a slower pace.This raises important questions in relation to the vision of the global information society (GIS).This vision was the subject of considerable discussion during the 1995 1999 period, initiallyin the G-7 group of advanced industrial economies, then in the broader international community.Today, the basic ideas behind the concept of the GIS have been broadly accepted and indeedendorsed. In this vision, all forms of economic, social, cultural and political activity willincreasingly depend on access to the telecommunication and information services provided bythe global information infrastructure (GII). The rapid development of electronic commerce onthe Internet is one tangible example of how the GIS is becoming a reality. The challenge facingthe international community is to find ways to ensure that the GIS is truly global, and that peopleeverywhere are able to share in its benefits.

Project Implementation and Schedule

Methodology & Schedule: The various methodologies that will be used in order to collect thedata for this project Probability of Acceptance of Philips upcoming LED technology in Indian

market.

Primary data:

y The primary data will be directly collected from the Research and technical journals ofthe telecommunication Industry

y Responses of the Sample size.Secondary data:


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y By company websites and journals.y Web study regarding Telecommunication Technology.

Phase 1:Extensive study:

y Study of brochure, literature and itinerary to acquire market and technical knowledgey Observing closely by looking in to the market trends and product Induction techniques of

the Market Leaders.

y Through internet surfing and Secondary DataPhase2:Data Collection (Survey Method)

y Market segmentation study (disposable Income)y Market analysisy Trend Analysisy Trend hypothesis and analysis.y Brand Goodwill evaluation

Data Collected - Through Questionnaire and Feedback formsType of Data - Primary DataMode of Data Collection - One-to-one SurveySource of Data - Telecom Mass Market.Respondents - Markets of Delhi-NCRSample Size - 60

Phase 3:

Analysis:

Analysis Tools; SPSS Tools-(Factor Analysis)Data Organizing and Mining-(MS-EXCEL)

Limitation of the study:

y Misleading Reponses.y Respondents lack of will to respond/Biased or false data.y Unavailability of confidential data.y Location confined to Delhi-NCR.y Organization lack of will provide access to exact data and process.

Main Text:


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PHASE-I: Understanding the Telecommunication Industry

Over the last four years, Telecom Technology, a well respected $300 million steel

conglomerate, has built up significant interests in the telecom sector ranging from wireless

and paging services to billing software. Telecom Technology Taiwan, was formed in

Taiwan in 1994 to pursue opportunities in the Operations Support Systems () telecomsoftware market, with a particular focus on customer care and billing software solutions (CCB

systems). Since 1994, Telecom Technology Taiwan has grown steadily, building a

customer base of 24 telecom operators for its software.

In 1998, encouraged by the potential of the billing software market opportunity,

Telecom Technology decided to pursue a more aggressive expansion strategy, appointing an

experienced and credible executive management team to unleash the potential of the

Telecom Technology Taiwan business. Corresponding with the placement of the executive

management team, Telecom Technology was created. Telecom Technology has

already made and continues to make significant investments in growing the business.

PHASE 2: Survey through Questionnaire(Direct Method)

Preparation of the Questionnaire . Data collection through questionnaire. Systems Analysis

QUESTIONNAIRE

FOR|ANALYSIS OF CHANGE IN TRENDS IN THE INDIAN

TELE-COMMUNICATION INDUSTRY}


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I would like to take few moments of your precious time with your permission to

find out few details that are considered to be a requirement for the survey process.

Question 1-7 are to be ticked, questions 8&9variant and are to be rated on a scale

of 1-10 based on your preferences and the questions .Question no 10 is a

percentage allotment 11-13 are brief descriptive type feedback questions.

Requesting your valuable observation and thanking for not being biased.

Your participation is praiseworthy. Before proceeding can I request you to fill up

the contact details for future references????

CUSTOMER DETAILS:

Name: __________ Occupation: ___________

Contact No:_______ Email id: _____________

Sex: M F

Contact details: +91-___ -____-_____ (India)

Thank you once again. So can I request you to proceed to the next part of the

questionnaire?

Following questions are to be ticked in the boxes provided

1. What is your perception about the frequency of change in the telecommunication

industry?

VeryHigh High Neutral

Medium Low Very Low

2. how do you classify your technical know-how about the Industry?


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Very Technical High Medium Low

3. What is your perception level about Telecommunication Industry?

Emerging Incubating Hibernating

Dominating Penetrating No Idea

4. What is your income range p.m ?

>5,00,000 3,00,000-4,99,000 1,00,000-2,99,000

50,000-99,000


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y With the range and strengthy With the Techniques and Value Add-ons

8. What is your expectation percentage from the upcoming technology

developments and trend inductions ?

(Rate between 10-100 in the box provided)

9. What kind of expectation and perception you have from the upcoming trend

variations?

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

10.What all specifications & features you would like the new technology to come

up with ?

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________

__________________________________________________________________


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We would like to have feedback and suggestions if any, on your part.

Thanking you for the wonderful effort provided by you and the precious time you spent,

and looking forward to strengthen our relationship further.

THANKYOU

PHASE 3: Analysis of Collected Data and report generation

The 3rd

phase deals entirely with the analysis of the collected data and using the

available technology to do the same. The analyzed report helps in suggestions andinferences that are the needful of the project as well as the company.


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Changing trends in Indian Tele-Communication Industry-Abhisek Paul

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Transcript of Changing trends in Indian Tele-Communication Industry-Abhisek Paul