Cellular services started in India in 1995; GSM was the mandated standard.
Above Government decision proved to be beneficial for India as GSM has been established as the dominant standard.
As of August 2005, there were nearly 50 million GSM subscribers which constitutes 80% of the total cellular subs.
The month of July and August witnessed record growth in GSM subscriber addition of about 2 million.
75% of the new mobile subscribers in India choose GSM.
There are 83 state-of-the art Networks of GSM.
Roll out of services in more than 4,000 town & cities and more than 60,000 villages.
Total Private GSM Investments are over Rs 50,000 crores.
GSM-Fixed Crossover achieved in April 2005.
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
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
GSM - the dominant standard in India GSM constitutes around 80% of the cellular market in India. Market share of GSM continues to rise steadily
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
Economies of scale due to dominant market share: worldwide and India
Choice of multiple vendors
Lower subscriber acquisition cost
Low cost entry handsets
Wide choice and availability of handsets
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
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
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
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
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.
Projected growth of private GSM sector is as given below:
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