INDUSTRY STRUCTURE AND ATTRACTIVENESS

OFINDIAN TELECOM INDUSTRY…….

Presented by:-Chandan Singh PGDM 2009-11

ASBM, bhubaneswar

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Indian Telecom Industry – A Lucrative Option

In recent years, the Indian telecom industry has witnessed phenomenal growth. A conducive business environment, favourable demographic outlook and the political stability enjoyed by the country have contributed to the growth of the industry. India achieved the distinction of having the world's lowest call rates (2–3 US cents), the fastest sale of million mobile phones (1 week), the world's cheapest mobile handset (USD 19) and the world's most affordable colour phone (USD 31).

One of the fastest growing cellular markets in the world in terms of number of subscriber additions – 19.35 million in 3 months (April to June 2009)

Expected to reach total subscriber base of about 500 million by 2011 (i.e., more than one phone for every household)

Annual growth rate of the telecom subscribers – 47 percent (2008–09)

More GSM subscribers than fixed-line subscribers

Indian Telecom Industry – Facts

Total telecom subscribers – 225.21 million (June 2009)

Tele density – 19.86 percent (June 2009)

Number of new mobile subscribers added every month – 7.34 million (June 2009)

ARPU for GSM – USD 6.6 per month

Telecom equipment market – USD 17,100 million (2008–09)

Handset market – USD 4,750 million (2008–09)

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GSM surpasses CDMA in number of additions to subscriber base

Market Share* of Wireless Operators

(as of quarter ending March 2007)

CDMA, 27%GSM, 73%

* In terms of Subscriber

Base

GSM surpasses CDMA segment by a

large margin in terms of subscriber

numbers.

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BPL, 0.9%

MTNL, 2.3%

Aircel, 4.6%

Spice, 2.3% Reliance, 2.8%

Idea, 11.6%

Hutch, 22.0%

BSNL, 22.8%

Bharti, 30.8%

Market Share GSM* Service Providers (as of quarter ending March 2009)

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TTSL, 35.9%

MTNL, 0.5%

BSNL, 8.0%

Syam Telilink, 0.2%

Reliance, 55.2%

HFCL, 0.3%

Market Share* CDMA Service Providers (as of quarter ending March 2009)

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ZTE4%

Nokia 53%

Motorola 11%

LG11%

Sony Ericsson 6%

Huaw ei1%Haier

1%

Samsung 6%

Others7%

Market Share of GSM and CDMA Handset Manufacturers: 2008–09

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World’s largest democracyIndependent judiciarySkilled and competitive labour forceFifth largest telecom network in the world; second largest

among the emerging economies after ChinaOn an average, about 6–7 million new users added per month,

making India the world’s fastest growing wireless services market

Liberal Foreign Investment Regime–FDI limit increased from 49 percent to 74 percent; the rural telecom equipment market is also open to large investments

Among the countries offering the highest rates of return on investment

The large untapped potential in India’s rural markets–1.9 percent teledensity in rural markets as compared to the national level of 18 percent

Expected to become the second largest telecom market by 2011The government promoting telecom manufacturing by providing

tax sops and establishing telecom specific Special Economic Zones

Fully repatriable dividend income and capital invested in telecom equipment manufacturing

India: An Ideal Destination for Investments in Telecom Sector