Indian Telecom Journey
Bigger hit than any Bollywood movie
Telecom India DailyTM
Topics
 The Journey so far!
 Where it stands today?
 What Next?
Telecom India DailyTM
Organizational changes
 1854:A regular, separate department was opened, when
telegraph facilities w...
Telecom India DailyTM
Organizational changes
 1981:Prime Minister Indira Gandhi signed contracts with of
France to merge ...
Telecom India DailyTM
Policy Changes
 1986:Department reorganized the Telecommunication Circles
with the Secondary Switch...
Telecom India DailyTM
Market Changes
 1985: First mobile telephone service started on non-
commercial basis in Delhi.
 1...
Telecom India DailyTM
Telecom Growth
Telecom India DailyTM
Topics
 The Journey so far!
 Where it stands today?
 What Next?
Telecom India DailyTM
Indian Telecom Statistics
Indian Telecom Statistics Oct 09
Total telephone subscriber base 525.65
Ov...
Telecom India DailyTM
Existing Operators
Service Providers Technology
Bharat Sanchar Nigam Limited (BSNL) GSM, CDMA & Fixe...
Telecom India DailyTM
New Players
Name Operation Started
Datacom Solutions Pvt. Ltd. Not Yet
Etisalat DB Telecom Pvt. Ltd....
Telecom India DailyTM
M & As (1998-2005)
Telecom India DailyTM
M & As (2005-2008)
Telecom India DailyTM
Market Statistics – 2008-09
Category
Revenue
(Bn)
Revenue
(Bn)
Growth
(%)
FY 2007-
08
FY 2008-
09
y-...
Telecom India DailyTM
New Initiatives
 Reasons for high growth are changes or initiatives taken in
the recent years.
1. O...
Telecom India DailyTM
Topics
 The Journey so far!
 Where it stands today?
 What Next?
Telecom India DailyTM
Market Forecast - 2012
 Total subscribers to reach 700 million.
 Wireless users will reach 640-650...
Telecom India DailyTM
Challenges for Operators
0
50
100
150
200
250
300
350
400
Jun'06 Sep'06 Dec'06 Mar'07 Jun'07 Sep' 07...
Telecom India DailyTM
Innovation will be key
 New Innovative ideas and
services will hold the key
for telecom operators t...
Telecom India DailyTM
Thanks!
 Sources
 DOT
 TRAI
 COAI & AUSPI
 Ernest & Young
 IMRB
 BDA
 Telecom India Daily (i...
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Indian telecom-journey (1)

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Indian telecom-journey (1)

  1. 1. Indian Telecom Journey Bigger hit than any Bollywood movie
  2. 2. Telecom India DailyTM Topics  The Journey so far!  Where it stands today?  What Next?
  3. 3. Telecom India DailyTM 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 Director General.  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 Exchanges absorbed from princely states was 196.  The installed capacity of these 196 exchanges was 13,362 lines with 11,296 working connections.
  4. 4. Telecom India DailyTM Organizational changes  1981:Prime Minister Indira Gandhi signed contracts with of France 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 and the Telecommunications were created.  1986 : Mahanagar Telephone Nigam Ltd. (MTNL) was created.  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 public sector unit.
  5. 5. Telecom India DailyTM 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 to increase the internet penetration in India. Broadband was define initially as 128 Kbps which was later changed to 256 kbps.
  6. 6. Telecom India DailyTM 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.
  7. 7. Telecom India DailyTM Telecom Growth
  8. 8. Telecom India DailyTM Topics  The Journey so far!  Where it stands today?  What Next?
  9. 9. Telecom India DailyTM Indian Telecom Statistics Indian Telecom Statistics Oct 09 Total telephone subscriber base 525.65 Over all Tele-density 44.87% Fixed-line user base 37.25 Wireless user base (GSM+CDMA+WLL(F)) 488.4 GSM Subscribers 355.25 CDMA Subscribers 133.15 Monthly additions (Wireline + Wireless) 16.62 Monthly additions (Wireline) -0.02 Monthly additions (Wireless) 16.67 Broadband subscribers 7.4
  10. 10. Telecom India DailyTM 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
  11. 11. Telecom India DailyTM New Players Name 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 licensed areas. 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
  12. 12. Telecom India DailyTM M & As (1998-2005)
  13. 13. Telecom India DailyTM M & As (2005-2008)
  14. 14. Telecom India DailyTM Market Statistics – 2008-09 Category 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 Radio Trunking 0.38 0.40 5.2 TOTAL 1305.61 1575.42 20.7 TelecomServicesPerformance2008-09 266.9 6 0.38 952.7 150 6.5 0.4 115.3 53.6 766.1 97.3 75 246.5 144.3 5.28.339.9-7.6 24.4 30 48.2 -200.0 0.0 200.0 400.0 600.0 800.0 1000.0 1200.0 Fixed line Wireless NLD ILD Broadband VSAT Radio Trunking Revenue(Bn) FY 2007-08 FY 2008-09 Growth %
  15. 15. Telecom India DailyTM 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 in India. 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 high tarrifs of 17 Rs/min in 1994 4. Reduction in Handset prices has made mobile a common weapon tool.
  16. 16. Telecom India DailyTM Topics  The Journey so far!  Where it stands today?  What Next?
  17. 17. Telecom India DailyTM 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.
  18. 18. Telecom India DailyTM Challenges for Operators 0 50 100 150 200 250 300 350 400 Jun'06 Sep'06 Dec'06 Mar'07 Jun'07 Sep' 07 Dec'07 Mar'08 Jun'08 Sep'08 Dec'08 Mar'09 Rs. GSMARPU CDMAARPU Falling ARPUDecline in Tariffs
  19. 19. Telecom India DailyTM Innovation will be key  New Innovative ideas and services will hold the key for telecom operators to generate revenue and sustain in this competitive market.  Convergence of Mobile, fixed line & internet will give rise to new services.  Fixed Line will be saved by Broadband, IPTV and VoIP services.  Mobile will see new technologies like 3G, 4G (LTE) and WiMAX. Mobile VAS will evolve with new technologies and an operator with good service portfolio will command the market
  20. 20. Telecom India DailyTM Thanks!  Sources  DOT  TRAI  COAI & AUSPI  Ernest & Young  IMRB  BDA  Telecom India Daily (internal research)  ……..open internet
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