Telecom Infrastructure’s contribution to Aggregate Output
Assignment Presented by –
PGDM e Biz 2008-2010
Telecom growth in India has been divided into phases on the basis of policies that are being adopted by the Department of Telecommunications (DoT) of the Government of India (GOI). The Telecom Regulatory Authority of India (TRAI) reports show that the growth rate has exponentially increased during the phases from a negligible quantity to a significant number.
Reform thrust on independent regulation, competition and investment facilitation Pre-reform Partial Deregulation Further Deregulation Pre-1994 1994-1999 1999 - 2002
MTNL - Mumbai and Delhi; DTS elsewhere
No mobile service
NLD - DoT per/ BSNL ILD - VSNL
4 private fixed service providers with less than 1% market share
2 GSM mobile players in each circle
13 players start mobile service
Licenses converted to revenue sharing
Private sector share less than 5% in revenue terms
Competition in NLD and ILD
Licenses on Revenue share
4 mobile operators / circle
BSNL formed Cellone 2001
Internet Telephony 2002
FDI - 49 %
National Telecom Policy (NTP) 1994
TRAI constituted 1997
Calling Party Pays
3-6 operators in each circle
Intra-circle merger guidelines
Take-off 2002 onwards
Broadband policy 2004
FDI - 74% 2005
National Telecom Policy, 1994 New Telecom Policy, 1999 Unified Licensing Regime Government Regulations and policy
Independent regulation has been a critical factor in growth
ILD opened to competition
Internet Telephony allowed.
Reduction in License fees
2003 Calling Party Pays Regime Unified Access Licensing Reference Interconnect Order
Intra-circle merger guidelines
Internet / broadband penetration
Mature regulatory regime and an enabling policy framework already in place
Quality of Service regulation
TRAI’s recommendations Government Regulations and policy
CURRENT STATISTICS The position of the number of phones and the growth therein Additions in lakh The performance of various parameters during April 2007 and 2008 APRIL ‘07 APRIL ’08 GROWTH (%) 51.52 80.18 55.63% DESCRIPTION APRIL ’07 APRIL ‘08 WIRELINE PHONES (lakhs) -2.49 -2.03 WIRELESS PHONES (lakhs) 54.01 82.21 TELE DENSITY (%) 26.89%
It is an architectural framework for delivering (IP) multimedia to mobile users.
EVDO : Evolution data only/a new wireless high speed technology/10 times faster to regular modem/ DTH players
Socio-Economic Benefits of Telecom / ICT Access – An Overview • Economic Benefits – FDI, GDP, Government Revenues, Productivity gains, Employment generation, Consumer surplus • Social Benefits – Income generation • Employment • Increase in indirect income generation capacity • Saving on expenditure or transaction costs – Impact on poverty reduction
Ownership patterns at the bottom of the pyramid
Consumers have benefited through reduction in prices for both fixed and mobile services • current prices have come down to 20-30% of prices in 2003 • Mobile ownership at the “Bottom of the Pyramid” in India is as high as 9%,
The impact of direct access to telecom on the efficiency of daily activities (mean response)
The impact of direct access to telecom on the ability to earn more using the phone or save a certain expense that would have been incurred without the phone (mean response)
The impact of direct access to telecom on family and social relations (mean response)
The impact of direct access to telecom on the ability to communicate in an emergency (mean response)
With the coming of more and more projects such as setting up of new service bases, expansion of coverage areas, network installations, maintenance, etc , the telecom industry is going for high scale recruitments.
There is a huge demand for software engineers, mobile analysts, and hardware engineers for mobile handsets & the carrier, network technology.
There are ample opportunities for marketing people whose services are required to capture more and more customer base.
The emergence of advance technologies and the high growth rate of the industry hold a lot of promise to the jobseekers.