College of ineering,Sion [email protected], Principal, PVPP College of Engineering,Sion Wireless...

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Wireless Technology – India

Dr. K. T. V. ReddyPrincipalPVPP college of Engineering, SionEmail: [email protected], [email protected]:www.pvppcoe.ac.in

Governing Council Member, IETE, India

April 10, 2023 SSS, ACT2012

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Presentation Plan

1

5

Telecom Industry Overview

Emerging Trends in Telecom Market

3 Regulatory Framework and Its Impact

4

Telecom – Investment Attracting Sector2

Major Players in Telecom Sector

6 Growth Avenues


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Background Relationship between telephony and economic

development is well recognized Teledensity has been a good indicator of economy Establishing quantitative relationship has not been easy From plain telephony to a converged technology

Telephone, computer, broadband, multimedia All Packet communication Cable TV Digital, virtual and mobile


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Developing Countries Mixed picture Some highly motivated relatively smaller

countries have performed better than much larger (richer?) countries

Literacy, social and cultural factors Interest in ICT Dealing with diverse languages and scripts Poor basic infrastructure


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Technology Advances Exceptionally favorable situation Moving to All Packet Networks ( ~ 4G) Mobile and Wireless Techs Very large bandwidths Rapid fall in costs Technology as commodity


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Technology, some concerns Not quite user friendly yet Multiplicity of mutually incompatible

standard and protocols High costs Handling local languages and scripts Reliability and ruggedness


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India Large Populations, vast area Over 60% still in rural areas, significant

illiteracyMore than 500,000 villages many still to be fully ‘served’

Large internal ‘digital divide’, disparities in living standards, lifestyle, etc.

ICT, a key for rapid development (self driven)


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India, Some Positive Factors Large, younger, tech savvy population, not burdened by

history! Exceptional popularity of the cell phone Democracy,... may be chaotic! Extensive use of English Appearance of Roman script for Indian languages Satellite TV, Cable and Multimedia Mass market, needs new business model


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The Indian Scenario Very slow growth till the 80s Faster and faster growth from 90s Impact of Privatization, the Internet, the cellphone and

affordability Cellphone as a multiservice device India has among the world's cheapest services 8+ million cellphones added every month! PCs and Broadband Internet


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ion Digital Technology Starts a Revolution

in India in the 80s Digital (PCM) switching and transmission First digital switch in a village (Kittur) in 1986 IBM PC, CMOS Technology, HLL, etc. Demonopolization Privatization on a limited scale Nationwide network of payphones Low cost reliable international access from the remotest

area Ancillary industry Enlightened leadership


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ion Present Situation

Currently 500 Million lines, 1000+ million lines in 2015

More than 80 million lines added every month Broadband DSL, slower growth still Widespread usage of Internet, large number of

ISPs, etc. 3G yet to pickup Attention to rural areas


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ion The Impact in the80s

The first digital rural exchange in 1986 -The RAX Better facilities than most urban areas International dialing, etc. Economic impact study by National Institute of Bank

Management Pune There was significant increase in bank deposits Helped farmer in his business Awareness of new technology


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ion Reasons for the success of RAX

Very innovative approach Very inexpensive Rugged Low power, can handle irregular power

supply Simple to use, maintain and manufacture Developed with village at the focus


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90s and the rise of the Internet Mostly data networks Internet usage in academics and research Businesses, government, education... ‘Narrow’ band Relatively expensive bandwidth


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The Convergence Cheaper bandwidths DSL based broadband to homes All services, voice, data, video on a common data pipe (IP) Cable TV for broadband delivery Digital Cinema Integration of all services Services with 100Mbps+ Wireless emerges as a key technology, WiFi, WiMax, etc. Cellphone as a very low cost transaction device


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Benefits Digital divide still wide open Benefits have not yet reached the village Technology not yet affordable and

manageable in rural areas Expensive and not simple to use Lot remains to be done in application

development


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The Very Positive Side! Key role in promoting India's IT industry Helped expansion of exports especially IT business Highly affordable broadband service Broadband IP (2Mbps) replacing the std telephone line Strong support for smaller businesses, SOHO, etc. Many new value added services New opportunities for innovation based on intelligent

integration of diverse technologies Technology supporting individual freedom and democratic

processes The chaotic, young India simply loves it! A self-driven process for development


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Taking ICT to the Village Several interesting initiatives coordinated by Swaminathan

Foundation A knowledge centre in every village Many solutions driven by equipment suppliers, may not fully

match the needs The problem is not commercially attractive yet! Good potential but no significant impact yet Some problems with technology and affordability The application and the technology yet to get together fully The user may not be very comfortable yet More field work, pilot trials and innovation required


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ion An Observation

A couple of months back, the securities firm CLSA came out with detailed analysis of the Indian IT industry which revealed that:

20-25% of India’s GDP expansion over the next 3-4 years will comefrom IT;

India’s IT exports will cross India’s oil imports from 2007/08onwards assuming that oil prices are at around $65 a barrel;

The IT industry –directly and indirectly—will pick up a third of theaddition to the urban labour force over the next three-four years.

Over the next three-four years, the IT industry will pick up around80-85% of India’s employable engineers.

One in seven income tax payers in the country will be a ITprofessional by 2010 up from the current one in ten.


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Indian Telecom Industry FrameworkIndian Telecom Industry Framework

Indian Government Bodies Independent Bodies

Wireless Planning and Coordination (WPC)

Department of Telecommunications

Telecom Commission

Group on Telecom and IT (GoT-IT)

Telecom Regulatory Authority of India (TRAI)

Telecom Disputes Settlement and Appellate Tribunal (TDSAT)

Handles spectrum allocation and management

DoT – Licensee and frequency management for telecom

Exclusive policy making body of DoT

Handles ad hoc issues of the telecom industry

Independent regulatory body

Telecom disputes settlement body

Regulatory Framework provides level playing field for all operators

They formulate various policies and pass laws to regulate the telecom industry in India.

They undertake various research activities and monitor the quality of service provided in the Indian telecom industry. They also provide various recommendations to improve the status of telecom operations in India.

The Department of telecommunications (Government of India) is the main governing

body for the industry.

Telephone Regulatory Authority of India (TRAI) assists the Government of India

(GoI) to take timely decisions and introduce new technologies in the country.


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Go-ahead to the CDMA technology

IND

IA

Private players were allowed in Value Added Services

National Telecom Policy (NTP) was formulated

1992

1994

1997

Independent regulator, TRAI, was established

NTP-99 led to migration from high-cost fixed license fee to low-cost revenue sharing regime

1999

2000

2002

BSNL was established by DoT

ILD services was opened to competition

Internet telephony initiated

Reduction of licence fees

2003

Calling Party Pays (CPP) was implemented

Unified Access Licensing (UASL) regime was introduced

Reference Interconnect order was issued

2004

Intra-circle merger guidelines were established

Broadband policy 2004 was formulated—targeting 20 million subscribers by 2010

2005

FDI limit was increased from 49 to 74 percent

Attempted to boost Rural telephony

2006

Number portability was proposed (pending)

Decision on 3G services (awaited)

2007

Department of Telecommunication (DoT) is the main body formulating laws and various regulations for the Indian telecom industry.

Various important regulations and laws have been passed in the Indian telecom industry post-liberalisation era

ILD – International Long Distance


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0

4

8

12

16

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Cellu

lar

Tariff (

INR

per

min

ute

)

0

30

60

90

120

150

Num

ber

of S

ubscribers

(millio

ns)

Cellular Tariff Total Cellular Subscribers

NTP 99

Telecom Tariff Order

WLL

UASL, CPP

Lowering of ADC

Important regulations and their impact on the Indian telecom industry

Access Deficit Charges (ADC)

ADC makes it mandatory for a service provider at the caller’s end

to share a percent of the revenue earned with the service provider at

the receiver’s end in long-distance telephony. This subsidises the

infrastructure costs of the service provider enabling access at

receiver’s end, especially because rental for fixed-line services is

low. Revision in the ADC regime is expected to be followed by

further tariff reduction in telecom services.

Unified Access Service License Regime (UASL)

Unified licensing marked the end of the license regime in the Indian telecom industry. It helped in aligning convergent technologies and

services. The establishment of the Unified Access Licensing Regime (2003) eliminated the need for different licenses for different

services. Players are now allowed to offer both mobile and fixed-line services under a single license after paying an additional entry fee.

This does not take into account national and international long-distance services and Internet access services.

Universal Service Obligation (USO)

The USO policy was laid along with NTP ’99 to widen the reach of telephony services in rural India. All telecom operators are bound to

contribute 5 percent of their revenues to this fund. This system was put in place to bridge the wide gap between urban and rural teledensity,

bringing it down from the current 31 percent. Initially, only basic service providers were under the purview of USO. Later, its scope was

expanded to include mobile services also. Although it increases the cost burden for the telecom companies, USO helps in building the

telecommunication infrastructure in the rural areas.


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Vodafone purchased stake in Hutch from Hong Kong's Hutchison Telecom International for USD 11.08 billion.

Telekom Malaysia acquired a 49 percent stake in Spice Communications for USD 179 million.

Maxis Communications acquired a 74 percent stake in Aircel for USD 1.08 billion.

Ericsson to design, plan, deploy and manage Bharti Airtel network and facilitate their expansion in the rural areas, under a USD 2 billion contract.

116 129

680

521

100

300

500

700

2003–04 2004–05 2005–06 2006–07

FD

I (U

SD

milli

on)

Recent Deals in Telecom Sector

FDI in Telecom Sector

The Indian telecom industry has always attracted foreign investors. In

fact, the cumulative FDI inflow, during the August 1991 to March 2007

period, in the telecommunication sector amounted to USD 3,892

million. It is the third largest sector to attract FDI in India in the post-

liberalisation era.

FDI calculation takes into account radio paging, cellular mobile and

basic telephone services in the telecommunication sector.

FDI and other M&A activities increasing in number

Reliance Communications Limited has sold a five percent equity share capital of its subsidiary Reliance Telecom Infrastructure Limited to international investors across the US, Europe and Asia. The deal was worth USD 337.5 million.

The Indian telecom industry has a 74 percent FDI limit in the telecom

services segment.

The GoI has permitted 100 percent FDI in manufacturing of telecom

equipment in India.

Major trends in the telecom sector is increasing M&A activity, de-regulation of telecom policies and growing interest of international investors.


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Basic Services Operators

BSNL

MTNL

Major Players in different segments of Indian telecom industry

Reliance

TTSL

GSM Services Operators

Airtel

Vodafone

Idea

Reliance

TTSL

BSNL

CDMA Services Operators

Reliance

Internet Services Operators

BSNL

MTNL

Reliance

TTSL

BSNL

Airtel

TTSL – Tata Teleservices Ltd.

MOBILE SERVICES

BSNL – Bharat Sanchar Nigam Ltd.

MTNL – Mahanagar Telecom Nigam Ltd.


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Emerging technologies – 3G and WiMax to assist in penetration of telecom services in India

WiMAX has been one of the most significant developments in wireless communication in the recent past. Since

this mode of communication provides network access in inaccessible locations at a speed of more than 4 Mbps, it

is expected to be a major factor in driving telecom services in India, especially wireless services. Thus, it will

lead to the increased use of telecom services, Internet, value-added services and enterprise services. WiMAX is

expected to accelerate economic growth and assist in providing better education, healthcare and entertainment

services. It is estimated that India will have 13 million WiMAX subscribers by 2012. Aircel is the pioneer in WiMAX technology in India. The state-owned player, BSNL, aims to connect 74,000 villages through WiMAX. Bharti, Reliance and VSNL have acquired licenses in the 3.3GHz range to utilise the opportunities offered by this

domain.

The Indian government plans to auction the spectrum for 3G services by inviting bids from domestic as

well as foreign players, and creating a competitive environment that offers better services to

consumers. Therefore, the 3G spectrum is among the major investment opportunities and growth

drivers of the telecom industry. The immense potential for 3G is reflected by the 30–40 percent annual growth in Value-Added

Services. Cell phone manufacturers are striving to develop USD 100 priced 3G handsets for the Indian market. India expects to replicate its 2G growth in 3G services.


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Huge Potential of Indian Broadband Markets

S-Curve in Addressable MarketIndian Broadband Subs Penetration

S-Curve in Addressable Market: affordable population excluded population under poverty line and below 15 years old

India 30%10％

Start-up Period

Fastest growth period

Saturation Period

90％

50％Key Point

India 0.45％

Broadband markets is still in its infancy stage with low penetration rate.Broadband markets is still in its infancy stage with low penetration rate.

A big gap with other developing/developedA big gap with other developing/developed countries anticipates a huge countries anticipates a huge

potential.potential.

0.04% 0.10% 0.45% 0.56%3.63% 4.82% 6.24%

22.34%23.53%

31.98%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Broadband Subs Penetration

Source: TRAI


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Hype Cycle for Wireless networking Infrastructure

Source： Gartner

For a new technology, people are usually keen on the advantages. Their overenthusiasm generates the peak of inflated expectations.

When the new technology is put into commercial use, people find that there is a variety of limits. Thus the trough of disillusionment occurs.

The new technology enters the stage of practical application and enjoys stable development in line with the commercial law.

WiMAX 16e is entering the stage of practical application. In the following years, WiMAX 16e will see broad application throughout the world. 16e+ is available at the end of 2010, WiMAX is about 3 years ahead of LTE in the Product chain.

EV-DO Rev. B

Innovation Trigger

Peak of Inflated

Expectations

Trough of Disillusionment

Slope of Enlightenment

Plateau of Productivity

Time

Expectations

Years to Mainstream Adoption:

less than 2 years

2 to 5 years

5 to 10 times

more than 10 years

obsolete before plateau

WiMAX 16e

HSPA

TD-SCDMA

WiFi

LTE

Cloud Computing

M2M

HSPA+WCDMA

WiMAX is entering the stage

of practical application

WiMAX 16mLTE-Advance

WiMAX 16e+


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SSS, ACT2012

Indian Telecom Statistics

Indian Telecom Statistics Oct 09Total telephone subscriber base 525.65Over all Tele-density 44.87%Fixed-line user base 37.25Wireless user base (GSM+CDMA+WLL(F)) 488.4GSM Subscribers 355.25CDMA Subscribers 133.15Monthly additions (Wireline + Wireless) 16.62Monthly additions (Wireline) -0.02Monthly additions (Wireless) 16.67Broadband subscribers 7.4

April 10, 2023

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SSS, ACT2012

Existing Operators

Service Providers Technology

Bharat Sanchar Nigam Limited (BSNL) GSM, CDMA & Fixed Line

Bharti Airtel Limited (Airtel) GSM & Fixed Line

Reliance Communications Limited (RCOM) GSM, CDMA & Fixed Line

Vodafone Essar Limited (Vodafone-Essar) GSM

Idea Cellular Limited (Idea) GSM

Tata Teleservices Limited (TTSL) GSM, CDMA & Fixed Line

Tata Teleservices Maharashtra Limited (TTML) CDMA & Fixed Line

Mahanagar Telephone Nigam Limited (MTNL) GSM, CDMA & Fixed Line

Aircel Cellular Limited (Aircel) GSM

Reliance Telecom GSM

Loop Mobile Limited (Loop mobile) GSM

HFCL Infotel Limited (HFCL) CDMA & Fixed Line

April 10, 2023

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SSS, ACT2012

Thanks! Sources DOT TRAI COAI & AUSPI Ernest & Young IMRB BDA Telecom India Daily (internal research) ……..open internet

April 10, 2023

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Conclusion India has benefited immensely from ICT It has given an opportunity of rapid

economic and social development


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Thank You !


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