Contribution Of Telecome To Aggregate Output


Published on

This Project was taken under Professor. AKN Prasad, Dean Operations at Welingkar

Published in: Business, Technology
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Contribution Of Telecome To Aggregate Output

  1. 1. Telecom Infrastructure’s contribution to Aggregate Output <ul><li>Assignment Presented by – </li></ul><ul><li>Abhinav Goyal </li></ul><ul><li>PGDM e Biz 2008-2010 </li></ul>
  2. 2. 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.
  3. 3. Reform thrust on independent regulation, competition and investment facilitation Pre-reform Partial Deregulation Further Deregulation Pre-1994 1994-1999 1999 - 2002 <ul><li>MTNL - Mumbai and Delhi; DTS elsewhere </li></ul><ul><li>No mobile service </li></ul><ul><li>NLD - DoT per/ BSNL ILD - VSNL </li></ul><ul><li>4 private fixed service providers with less than 1% market share </li></ul><ul><li>2 GSM mobile players in each circle </li></ul><ul><li>13 players start mobile service </li></ul><ul><li>Licenses converted to revenue sharing </li></ul><ul><li>Private sector share less than 5% in revenue terms </li></ul><ul><li>Competition in NLD and ILD </li></ul><ul><li>Licenses on Revenue share </li></ul><ul><li>4 mobile operators / circle </li></ul><ul><li>NTP 1999 </li></ul><ul><li>BSNL formed Cellone 2001 </li></ul><ul><li>Internet Telephony 2002 </li></ul><ul><li>FDI - 49 % </li></ul><ul><li>National Telecom Policy (NTP) 1994 </li></ul><ul><li>TRAI constituted 1997 </li></ul><ul><li>Calling Party Pays </li></ul><ul><li>CDMA launch </li></ul><ul><li>3-6 operators in each circle </li></ul><ul><li>Intra-circle merger guidelines </li></ul><ul><li>Unified Licensing </li></ul>Take-off 2002 onwards <ul><li>Broadband policy 2004 </li></ul><ul><li>FDI - 74% 2005 </li></ul>National Telecom Policy, 1994 New Telecom Policy, 1999 Unified Licensing Regime Government Regulations and policy
  4. 4. Independent regulation has been a critical factor in growth <ul><li>2002 </li></ul><ul><li>ILD opened to competition </li></ul><ul><li>Internet Telephony allowed. </li></ul><ul><li>Reduction in License fees </li></ul>2003 Calling Party Pays Regime Unified Access Licensing Reference Interconnect Order <ul><li>2004 </li></ul><ul><li>Intra-circle merger guidelines </li></ul><ul><li>Internet / broadband penetration </li></ul>Mature regulatory regime and an enabling policy framework already in place <ul><li>2005 </li></ul><ul><li>Unified Licensing </li></ul><ul><li>Quality of Service regulation </li></ul><ul><li>Rural Telephony </li></ul><ul><li>2006 </li></ul><ul><li>Number portability </li></ul><ul><li>Convergence </li></ul>TRAI’s recommendations Government Regulations and policy
  5. 5. FATHER OF TELECOMMUNICATION <ul><li>Mr. Sam Pitroda </li></ul><ul><li>Access as solution instead of teledensity as a problem </li></ul><ul><li>STD PCO boxes in India </li></ul><ul><li>Instant bill generation device </li></ul><ul><li>50 telecom patents and 10 m-commerce patents. </li></ul><ul><li>Working on advanced “e-Wallet system” </li></ul><ul><li>RAX – “Rural Automatic Exchange” small and robust switches that helped telephony in rural India. </li></ul>
  8. 8. 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%
  9. 9. Telecommunication modes- <ul><li>Voice and data transfer </li></ul><ul><li>Internet </li></ul><ul><li>Broadband </li></ul><ul><li>Video-conferencing </li></ul><ul><li>Bluetooth </li></ul><ul><li>Infrared </li></ul><ul><li>Satellite communication </li></ul><ul><li>GPS </li></ul><ul><li>Imaging/mapping </li></ul><ul><li>Pico-net </li></ul>
  10. 10. Telecom Application Industry <ul><li>Fixed Line & Mobile/wireless telephony </li></ul><ul><li>Satellite communication for research </li></ul><ul><li>Telemedicine </li></ul><ul><li>Internet </li></ul><ul><li>Robotics </li></ul><ul><li>Entertainment Industry </li></ul><ul><li>Education </li></ul><ul><li>Navigation, Imaging & mapping </li></ul><ul><li>Logistics </li></ul>
  11. 11. Players in Telecom <ul><li>Reliance Communication </li></ul><ul><li>Established in 2002 </li></ul><ul><li>Telecommunication at price of a postcard </li></ul><ul><li>Penetration improved from .25% to 5.7% </li></ul><ul><li>Rs 250 for a revolution </li></ul><ul><li>The only company to give both GSM and CDMA ntw </li></ul><ul><li>Fiber optic ntw of 80000 kms. </li></ul><ul><li>Empowering Indian villages - 4 lakh villages </li></ul><ul><li>Major impact - connection cum handset at Rs. 777 </li></ul><ul><li>Over 35 million subscribers, 10300 cities and towns covered </li></ul><ul><li>Voted as most trusted telecom brand - 2003 </li></ul><ul><li>90% of the handsets are data-enabled. Access to java applications Reliance mobile world </li></ul><ul><li>Value add through messaging, biz transactions etc to 100% cities. US only 1/7th of the cities have this luxury </li></ul>
  12. 12. <ul><li>Challenged many accepted practices in telecom </li></ul><ul><li>Brought handset and service together </li></ul><ul><li>3 way conferencing, polyphonic ringtones, multimedia ready </li></ul><ul><li>Exclusive agreement with vendors - LG, Samsung </li></ul><ul><li>Challenged the charging of incoming calls concept - Calling Party Pays </li></ul><ul><li>High rental, free calls, shorter pulse </li></ul><ul><li>Voice mail, call waiting, call divert, dynamic locking etc - free of cost </li></ul><ul><li>Free usage of internet and other facilities - hooked the customer to the service </li></ul>
  13. 13. Other Players <ul><li>Vodafone </li></ul><ul><li>Airtel </li></ul><ul><li>Idea </li></ul><ul><li>Tata Teleservices </li></ul><ul><li>BSNL </li></ul><ul><li>MTNL etc.. </li></ul>
  17. 17. FDI and M&A <ul><li>283 M&A deals in August 2008, decrease of 17.1% </li></ul><ul><li>FDI in telecom from 49 per cent to 74 per cent , up to 100% in telecom equipment manufacturing </li></ul><ul><li>Hutchison Essar(Rs 30.1 Billion), SingTel – Bharti Televentures (Rs 10.9 Billion), and Idea Cellular – Singapore telecom – Telekom Malasiya – AT&T (Rs 17.5 Billion) </li></ul><ul><li>FDI in Mobile towering business. </li></ul>
  18. 18. Mobile Revolution <ul><li>BSNL launched Cellone on 19 th oct 2002 </li></ul><ul><li>Mobile subscription expected to touch 412.25 mn with a growth of 54% over July’08. </li></ul><ul><li>Airtel Rs 496 / Reliance Rs 777 </li></ul><ul><li>Growth 1.5 mn every month </li></ul><ul><li>Lowest call tariff. </li></ul><ul><li>Tele-density is proportionate to the increase in the growth of GDP and also Teledensity increases GDP 3 times. </li></ul><ul><li>Growth in call centres/Hence job increse </li></ul>
  19. 19. Continue…. <ul><li>Government giving tax holidays. </li></ul><ul><li>Revenue shared based license fee- National telecom policy 1999 </li></ul><ul><li>Received more than 50% FDI since 1993 </li></ul><ul><li>FDI increased to 74% </li></ul><ul><li>TRAI and TDSAT Telecom Dispute Settlement and Appellate Tribunal (TDSAT ) </li></ul><ul><li>ARPU Rs 250 /Rs 100 </li></ul><ul><li>Infrastructure Rs 2000-Rs3000 per User </li></ul><ul><li>Thus innovative business models needed. </li></ul><ul><li>Rural mobile revolution already begun </li></ul>
  20. 20. Latest Mobile Technologies <ul><li>3G Third Generation </li></ul><ul><li>4G </li></ul><ul><li>MNP Mobile number porability </li></ul><ul><li>IMS (IP multimedia sub-system) </li></ul><ul><li>It is an architectural framework for delivering (IP) multimedia to mobile users. </li></ul><ul><li>VSAT </li></ul><ul><li>EVDO : Evolution data only/a new wireless high speed technology/10 times faster to regular modem/ DTH players </li></ul>
  21. 21. 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
  22. 22. Ownership patterns at the bottom of the pyramid
  23. 23. 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%,
  24. 24. The impact of direct access to telecom on the efficiency of daily activities (mean response)
  25. 25. 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)
  26. 26. The impact of direct access to telecom on family and social relations (mean response)
  27. 27. The impact of direct access to telecom on the ability to communicate in an emergency (mean response)
  28. 28. CAREER PROSPECT IN TELECOM SECTOR <ul><li>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. </li></ul><ul><li>There is a huge demand for software engineers, mobile analysts, and hardware engineers for mobile handsets & the carrier, network technology. </li></ul><ul><li>There are ample opportunities for marketing people whose services are required to capture more and more customer base. </li></ul><ul><li>The emergence of advance technologies and the high growth rate of the industry hold a lot of promise to the jobseekers. </li></ul>
  30. 30. INDIA’S POSITION IN TELECOM SECTOR <ul><li>India is 4 th largest market in asia after china, japan and south korea. </li></ul><ul><li>Indian telecom network is 8 th largest in the world and 2 nd largest among emerging ecomomies. </li></ul><ul><li>Contribution of telecom sector in terms of revenue is 2.1 % of GDP as compared to 2.8% in developed economies. </li></ul>
  31. 31. From- Abhinav Goyal Devang Bhuta Dhananjay Patil Khyati Shah Ramya Lakshmi Vishal Jain
  32. 32. Bibliography <ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>