Growth In Growth In Telecom SectorTelecom Sector
TopTopicsics
The Journey so far!The Journey so far!
Where it stands today? Where it stands today? Article discussionArticle discussion
What Next?What Next?
HistHistoryory
1854 : A regular, separate department was opened, when telegraph facilities were thrown open to the public.
January 1985 : Two separate dept for the Posts and the Telecom were created.
1986 : Mahanagar Telephone Nigam Ltd. (MTNL) was created.
HisHisttoryory
January 1997 : Telecom Regulatory Authority of India (TRAI) was formed.
1st October 2000 : Dept created BSNL, a new entity to operate services in different parts of the country as a PSU.
2004 : The policy for Broadband was defined with the aim to increase the internet penetration in India.
Telecom India DailyTM
Market Market ChangesChanges
1985: First mobile telephone service started on non-commercial basis in Delhi.
1995: GSM entered India. 1st cell phone-call was made by Mobile joint venture between Telstra & B.K. Modi group. 1st call was made by Jyoti Basu.
1996: Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle.
The sector was liberalized and private mobile operators began their journey.
New New InitiativesInitiatives Reasons for high growth are changes or initiatives taken
in the recent years.
1. New Licenses given by Government in 2008 added up in ongoing competition – 120 new licenses awarded.
2. Lowest tarrifs in the world with local calls reaching 10 paise/min and STD tarrifs dropping to 50 paise/min from high tarrifs of 17 Rs/min in 1994
3. Reduction in Handset prices has made mobile a common tool.
TopTopicsics
The Journey so far!The Journey so far!
Where it stands today?Where it stands today?
What Next?What Next?
Article Article DiscussionDiscussion
Expected single-digit growth during the quarter ended Expected single-digit growth during the quarter ended Dec 2010.Dec 2010.
These postings were on the basis of following criteria'sThese postings were on the basis of following criteria's•Net subscribersNet subscribers•Stable tariff scenarioStable tariff scenario
Article Article DiscussionDiscussion In Dec 2010 for the growth in revenue there were the
following expected figures : Idea by 6% RCOM& Airtel by 3-4%
Less fluctuations were expected for Dec’2010.
Operating margin of the following is expected to grow RCOM by a tad 10 basis points (bps) to 32.7% Idea’s to remain at 24% Airtel at 33.4% with 30bps dip in margin
Article Article DiscussionDiscussion Oct & Nov 2010,net subscriber additions were strong for Oct & Nov 2010,net subscriber additions were strong for
Bharti as compared to peersBharti as compared to peers
Airtel’s net subscriber base against previous year jumped to Airtel’s net subscriber base against previous year jumped to 30% 30%
RCOM & Idea had a 20% increase in the net subscriber base.RCOM & Idea had a 20% increase in the net subscriber base.
A report says that the 3G launch is further expected to reduce A report says that the 3G launch is further expected to reduce the drop in the avg. revenue per minute(ARPU).the drop in the avg. revenue per minute(ARPU).
Article Article DiscussionDiscussion
Mobile Network Portability(MNP) is likely to have a Mobile Network Portability(MNP) is likely to have a impact on the profitability of telecom, but it is impact on the profitability of telecom, but it is expected to be restricted to a certain limitexpected to be restricted to a certain limit.
Existing Existing OperatorsOperators
Service ProvidersService Providers TechnologyTechnology
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
Telecom India DailyTM
New New PlayersPlayersNameName Operation StartedOperation Started
Datacom Solutions Pvt. Ltd. In process
Etisalat DB Telecom Pvt. Ltd. In process
Loop Telecom Private Ltd. T.N., Orissa, Karnataka, Kerala
Reliance Communications Limited GSM service launched in all new licensed areas.
S Tel Ltd. In process
Sistema Shyam Teleservices T. N., Kerala, Kolkata, West Bengal and Bihar.
Tata Teleservices LimitedChennai, Karnataka, Kerala, Orissa, T.N.,
Andhra Pradesh
Unitech Wireless Pvt. Ltd. In process
Mobile Mobile TariffsTariffs0.23
0.22
0.19
0.170.16
0.11 0.11 0.11
0.09
0.05 0.050.04
0.030.02
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0.05
0.1
0.15
0.2
0.25
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Telecom India DailyTM
Present Present StatusStatus (as on (as on 31.12.2010)31.12.2010)
Customer Base in million
Wire line Customers : 32.72 GSM Customers : 37.71 Total Customers : 70.43 Broadband customers: 1.81 Internet Customers : 4.67
Telecom India DailyTM
TopTopicsics
The Journey so far!The Journey so far!
Where it stands today? Where it stands today?
What Next?What Next?
Innovation Innovation will be will be keykey
New Innovative ideas and services will hold the key
Convergence of Mobile, fixed line & internet will give rise to new services
Mobile will see new technologies like 3G, 4G and WiMAX, IPTV, VOIPWiMAX, IPTV, VOIP
Positive trends in Positive trends in Cellular ServicesCellular Services
Focus on future aspectsFocus on future aspects
Consistent GrowthConsistent Growth
Advanced technologyAdvanced technology
Negative trends in Negative trends in Cellular ServicesCellular Services
Increasing No of competitorsIncreasing No of competitors
Lack of reliabilityLack of reliability
Inappropriate Business planInappropriate Business plan
ThaThanks!nks!
SourcesTelecom India Daily (internal research)……..open internet
Prepared by…Prepared by…
Yuvraj ZalaYuvraj Zala
(KBSCMR)(KBSCMR)
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