Evolution of GSM in India- smart card expo.ppt


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Evolution of GSM in India- smart card expo.ppt

  1. 1. Evolution of GSM in India T V Ramachandran, Director General September 13, 2005
  2. 2. Status of GSM Industry <ul><li>Cellular services started in India in 1995; GSM was the mandated standard. </li></ul><ul><li>Above Government decision proved to be beneficial for India as GSM has been established as the dominant standard. </li></ul><ul><li>As of August 2005, there were nearly 50 million GSM subscribers which constitutes 80% of the total cellular subs. </li></ul><ul><li>The month of July and August witnessed record growth in GSM subscriber addition of about 2 million. </li></ul><ul><li>75% of the new mobile subscribers in India choose GSM. </li></ul><ul><li>There are 83 state-of-the art Networks of GSM. </li></ul><ul><li>Roll out of services in more than 4,000 town & cities and more than 60,000 villages. </li></ul><ul><li>Total Private GSM Investments are over Rs 50,000 crores. </li></ul>GSM-Fixed Crossover achieved in April 2005.
  3. 3. GSM Growth Through the Years Year ended April Sub figures in million Several points of inflexion in the past, have given kick-start to improved cellular growth NTP’99 3 rd & 4 th Cellular CPP
  4. 4. Steeply falling tariffs have ensured affordable services to a large subs base Rates per minute have fallen by over 90% in the last seven years. Source: TRAI Study paper No 2/2005 Introduction of CDMA
  5. 5. GSM - the dominant standard in India GSM constitutes around 80% of the cellular market in India. Market share of GSM continues to rise steadily
  6. 6. GSM Increasing its Market Share Globally Indian GSM industry is in sync with the worldwide standards; worldwide GSM constitutes 75% of the subs base and 80% of the monthly additions. GSM Launch CDMA Launch
  7. 7. GSM Advantages <ul><li>GSM advantages over other cellular technologies are: </li></ul><ul><li>Dominant global market share of GSM gives benefits: </li></ul><ul><ul><li>Large number of infrastructure and handset vendor’s giving advantage in terms of price and other commercial terms. </li></ul></ul><ul><ul><li>Innovations ahead of CDMA e.g. single chip handsets. </li></ul></ul><ul><li>Widest choice of handsets with widespread sales and service distribution network. </li></ul><ul><li>Handset availability in all price segments and ongoing introduction of wide variety to meet customer requirements. </li></ul><ul><li>Easy subscription process (SIM based) </li></ul><ul><li>Widespread prepaid solutions </li></ul><ul><li>Seamless interoperability between networks and handsets. </li></ul><ul><li>Global footprint for international roaming including SMS, data and other value added services. </li></ul>
  8. 8. GSM Overall Efficiency <ul><li>For Operators </li></ul><ul><li>Economies of scale due to dominant market share: worldwide and India </li></ul><ul><li>Choice of multiple vendors </li></ul><ul><li>Capex optimisation </li></ul><ul><li>Lower subscriber acquisition cost </li></ul><ul><li>Seamless interoperability </li></ul><ul><li>For Subscribers </li></ul><ul><li>Low cost entry handsets </li></ul><ul><li>Wide choice and availability of handsets </li></ul><ul><li>International roaming </li></ul><ul><li>Easy subscription </li></ul>
  9. 9. Affordable Services for Common Man Mobile has fast moved from a class service to a mass service for the common man – fuelled by continuously falling tariffs and increased coverage. Connectivity for the farmers Better prices for the produce
  10. 10. Affordable Services for Common Man Affordability has made mobile services the key plank for economic development. Mandi Prices on the Move Kerala Fishermen Call in their Catch
  11. 11. NEW REVENUE OPPORTUNITIES – VAS Airtel Live portal with games, music, cricket, stock, news, easy charge facility, logos, range of voice activated services, games, missed call alerts, Airtel Live, Hello Tunes etc. Hutch Online Yahoo & MSN Messenger, Java based games, missed call alerts, logos, games, news, stock, range of voice activated services, Caller Tunes, etc. Idea Daily horoscopes, cellular jockey to send musical greeting cards, voice activated services, music, logos, news, stock, movies, cricket, games, jokes, Dialer Tones, etc. BPL Ringtones, logos, picture messages, send-a-song, mobile gaming, etc. Spice Ringtones, logos, picture messages,SMS Chat, mobile gaming, etc. Aircel Ringtones, logos, picture messages, games, music, etc. health tips ringtones mobile gaming
  12. 12. Revenues Form Value Added Services VAS Revenue composition for 2004 (in %) 8% 65% 27% VAS shows promising trends, share in total net service revenue increasing continuously Source: PWC Indian GSM Cellular Benchmarking Study 2004 VAS Revenue as % to Net Service Revenue
  13. 13. Potential of the Sector <ul><li>Private GSM subscriber base has the potential to reach 103 million subscribers by Dec’07 from the present level of 36 million in August’05. </li></ul><ul><li>Projected growth of private GSM sector is as given below: </li></ul>In Million This will contribute in a substantial manner to overall target of 250 mn telephone subs (fixed+mobile) by 2007 set by the Government 103 65 42 36 28 Private GSM Dec. 2007 (Projected) Dec. 2006 (Projected) Dec 2005 (Projected) August 2005 (Actual) Dec. 2004 (Actual) Year ending
  14. 14. Push Towards Next Generation <ul><li>India represents one of the most exciting opportunities for mobile services in the coming decade. </li></ul><ul><li>We are already providing 2G and 2.75G services. </li></ul><ul><li>The next big push would be the introduction of 3G services. </li></ul>Early and expeditious introduction of 3G services in India will hold the key to India’s mobile success and its future dominance in mobile telephony
  15. 15. 3G in India <ul><li>3G will be introduced in India by 2006. </li></ul><ul><li>3G upgradation for GSM is 3GSM (WCDMA). </li></ul><ul><li>In India GSM constitutes 80% of the total cellular market; this will form a ripe base for 3GSM (WCDMA). </li></ul><ul><li>Worldwide also 3GSM (WCDMA) drives the 3G growth. </li></ul>
  16. 16. GSM - Predominant Global Mobile Standard for 3G As of date, 3GSM subscribers have crossed 30 million , accounting for around 70% of the 3G market . GSM share continues to rise month after month
  17. 17. Benefits of 3G for India <ul><li>3G has a 4-5 times higher voice capacity than present 2G services. </li></ul><ul><ul><ul><li>An ideal platform to deliver low cost voice telephony to Indian consumers. </li></ul></ul></ul><ul><li>3G has hi-speed data capabilities </li></ul><ul><ul><ul><li>It will fulfill the content rich mobility experience for urban Indians. </li></ul></ul></ul><ul><li>3G will help in enhancing India’s competitiveness in the ITES / BPO segment. </li></ul><ul><li>Extremely effective tool in driving penetration of the huge addressable market in the rural areas. </li></ul><ul><li>3G will also enable achieving the broadband objectives of the Government. </li></ul>3G will integrate India and Indian consumer with the far reaching developments taking place across the world.
  18. 18. Mobile Broadband – The Next Frontier <ul><li>Mobile phone is fast becoming the dominant technology for voice communications. </li></ul><ul><li>Mobile phone is becoming less & less of a narrowband device as it evolves through 2G to 2.5G to 2.75G to 3G. </li></ul><ul><li>“ the mobile phone has moved beyond being a mere device to become a key “social object” present in every aspect of our daily lives ”. </li></ul><ul><li>Lara Srivastava, ITU </li></ul>3G probably provides the best ubiquity in broadband connectivity – always on, fast enough….
  19. 19. India’s Path to Mobile Broadband <ul><li>India’s path to Mobile Broadband must be through 3G in the WARC-92 identified Core Band of 1920-1980 MHz p/w 2110-2170 MHz because : </li></ul><ul><ul><ul><li>Only band globally harmonized for interference free co-existence of both GSM & CDMA </li></ul></ul></ul><ul><ul><ul><li>Equipment available for both technologies in this band </li></ul></ul></ul><ul><ul><ul><li>Majority of countries have opted for 3G in the Core Band </li></ul></ul></ul><ul><ul><ul><li>Japan & Korea live examples where GSM & CDMA are co-existing in the Core Band </li></ul></ul></ul><ul><li>India by choosing this globally adopted spectrum band will be able to avail of </li></ul><ul><ul><ul><li>Economies of scale – lower tariffs </li></ul></ul></ul><ul><ul><ul><li>Seamless roaming </li></ul></ul></ul><ul><ul><ul><li>Inter-operability </li></ul></ul></ul><ul><ul><ul><li>Interference free operations </li></ul></ul></ul><ul><li>India being a country where both GSM & CDMA co-exist must choose a 3G path which allows for the co-existence as well as future growth & development of both technologies </li></ul>
  20. 20. GSM has been the prime growth driver of Telecom services in India and would continue to be the same for new evolving technologies and will contribute to the growth and prosperity of the industry.
  21. 21. THANK YOU [email_address]
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