jyoti's ppt

8/3/2019 Jyoti's ppt

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Price War In Telecom Sector

In India


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Telecom India DailyTM

Topics

The Journey so far!

Where it stands today?

What Next?


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Organizational changes

1854:A regular, separate department was opened, when

telegraph facilities were thrown open to the public.

Dr. O'Shaughnessy was the first Superintendent of Electric

Telegraphs in India and later became the first DirectorGeneral.

1914: World War I, Postal Department and the Telegraph

Department were amalgamated under a single Director-

General.

1st April, 1950: In 1950 the number of Telephone Exchangesabsorbed from princely states was 196.

The installed capacity of these 196 exchanges was 13,362

lines with 11,296 working connections.


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Organizational changes

1981:Prime Minister Indira Gandhi signed contracts with ofFrance to merge with the state owned Telecom Company(ITI), in an effort to set up 5,000,000 lines per year.

January 1985: two separate Departments for the Posts andthe Telecommunications were created.

1986 : Mahanagar Telephone Nigam Ltd. (MTNL) wascreated.

1989:The Telecom Commission was constituted. January 1997: Telecom Regulatory Authority of India (TRAI)

was formed. 1st October 2000:Department created BSNL, a new entity to

operate services in different parts of the country as a publicsector unit.


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Policy Changes

1986:Department reorganized the Telecommunication Circles

with the Secondary Switching Areas as basic units.

1994 : First National Telecom Policy was introduced and the

sector was opened up for privatization. 1998: First tariff order issued in thus reforms effective from

1998.

1999 : The second National Telecom Policy was introduced to

take the telecom sector to next level.

2004 : The policy for Broadband was defined with the aim toincrease the internet penetration in India. Broadband was

define initially as 128 Kbps which was later changed to 256

kbps.


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Market Changes

1985: First mobile telephone service started on non-

commercial basis in Delhi.

1994 : India was divided into 20 telecom circles and today we

have 23 circles categorized as Circle A, B & C. 1995: GSM entered India. Historic first cell phone-call was

made by Mobile Net-joint venture between Telstra (Australia)

& B.K. Modi group. First 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.


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Telecom Growth


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Topics

The Journey so far!


What Next?


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Indian Telecom Statistics

In d ia n T e l e co m S ta tis t ic s O c0

T o t a l t e lep ho ne s u b s c rib er b as e .00000

O v e r a ll T e le -d en s it y . %0000F ix ed -lin e u s er b a s e .0000

W i re l es s u s e r b a s e

( G S M + C D M A + W L L ( F )) .0000

G S M S u b s c rib e rs .00000

C D M A S u bs c ri be rs .00000

M o n th ly a d d it io n s ( W ire li

W i re l es s ) .0000

M o n th ly ad dit io ns (W i re l ine ) - .00 0

M o n th ly ad d it io ns (W i re l e s s ) .0000B ro a d b a n d s ub s c r ib e r s .00


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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


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New PlayersName Operation Started

Datacom Solutions Pvt. Ltd. Not Yet

Etisalat DB Telecom Pvt. Ltd. Not Yet

Loop Telecom Private Ltd. T.N., Orissa, Karnataka, Kerala

Reliance Communications Limited GSM service launched in all new licensedareas.

S Tel Ltd. Not Yet

Sistema Shyam Teleservices T. N., Kerala, Kolkata, West Bengal and Bihar.

Tata Teleservices Limited Chennai, Karnataka, Kerala, Orissa, T.N.,Andhra Pradesh

Unitech Wireless Pvt. Ltd. Not Yet


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M & As (1998-2005)


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M & As (2005-2008)


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Market Statistics 2008-09Category Revenue

(Bn)Revenue (Bn)Growth (%)

FY 2007-08 FY 2008-09 y-o-y

Fixed line 266.92 246.49 -7.6

Wireless 766.08 952.71 24.4

NLD 97.32 144.32 48.2

ILD 115.32 150.00 30

Broadband 53.59 75.00 39.9

VSAT 6.00 6.50 8.3

RadioTrunking

0.38 0.40 5.2

TOTAL 1305.61 1575.42 20.7

T e l e c o m S e r v i c e s P e r f 0 0

.000

.0

.999

00

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.00

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.000

.000

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.0000 0

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F ix e d l i n eW i r e l e s s N L D I L D B r o a d b a n dV S A T R a d i o

T ru n k in

Re

venue

Bn

F Y -0 0 0 00 0F Y -0 0 0 00 0G r o w t


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New Initiatives

Reasons for high growth are changes or initiatives taken in

the recent years.

1. One Indian Plan launched in 2006 heated up the price war inIndia.

2. New Licenses given by Government in 2008 added up in

ongoing competition 120 new licenses awarded.

3. Lowest tarrifs in the world with local calls reaching 10

paise/min and STD tarrifs dropping to 50 paise/min from hightarrifs of 17 Rs/min in 1994

4. Reduction in Handset prices has made mobile a common

weapon tool.


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Topics

The Journey so far!


What Next?


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Market Forecast - 2012

Total subscribers to reach 700 million.

Wireless users will reach 640-650 million.

Fixed line will dwindle around 45-50 million.

Telecom services revenue will reach 54 USD billion. Rural sector will be the key driver with potential of increasing

tele-density from 15 % today to 40% in coming years.

Data revolution to be fuelled by 3G & WiMAX with 25-30

million 3G subscribers and WiMAX touching user base of 8-10

million.

Internet users to reach 45 million; Broadband users to reach

25-30 million and Mobile internet users to reach 196 million.


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Challenges for Operators

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J u n '0 0S e p '0 0D e c '0 0M a r '9 9J u n '0 0S e p '0 0D e c '0 0M a r '9 9J u n '0 0S e p '0 0D e c '0 0M a r '9 9

s.

G S M A R P UC D M A

Falling ARPUDecline in Tariffs


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Innovation will be key

New Innovative ideasand services will hold thekey for telecom operatorsto generate revenue and

sustain in this competitivemarket. Convergence of Mobile,

fixed line & internet willgive rise to new services.

Fixed Line will be saved

by Broadband, IPTV andVoIP services.

Mobile will see newtechnologies like 3G, 4G(LTE) and WiMAX.

Mobile VAS will evolve with new technologies

and an operator with good service portfolio will

command the market


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Thanks!

Sources DOT

TRAI COAI & AUSPI

Ernest & Young

IMRB

BDA

Telecom India Daily (internal research)

..open internet

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