1. Presented By –Aayush KumarNeena NautiyalShruti MukherjeeArpit RastogiSantosh KumarRuchi Jain
2. The Indian telecommunications has been zooming up the growth curve at a feverish pace, emerging as one of the key sectors responsible for Indias resurgent economic growth. It is the fastest growing telecommunication market in the world, and with 281.62 million telephone connections (at the end of January 2008) is the third largest telecom market. India has achieved its target of reaching 250 million telephone subscribers by 2007, two months before target.
3. PESTEL analysis of any industry sector investigates the important factors that are affecting the industry and influencing the companies operating in that sector. PESTEL is an acronym for political, economic, social, technological, legal and environmental analysis. Political factors include government policies relating to the industry, tax policies, laws and regulations, trade restrictions and tariffs etc. The economic factors relate to changes in the wider economy such as economic growth, interest rates, exchange rates and inflation rate, etc.
4. Social factors often look at the cultural aspects and include health consciousness, population growth rate, age distribution, changes in tastes and buying patterns, etc. The technological factors relate to the application of new inventions and ideas such as R&D activity, automation, technology incentives and the rate of technological change. The industrys major service is the practice of law, which is providing legal services to individuals, businesses, government, and non profits which is Legal analysis. Environmental analysis of an industry studies whether the industry is working environmental friendly and following the ethics or not.
5. Political Analysis
6. Telecom reforms in India began in the 1980s with the launch of a “Mission Better Communication” program. Private manufacturing of customer premise equipment was allowed in 1984 and the Center for Development of Telematics (C-DOT) was established for the development of indigenous technologies. Private franchises were freely given for public call offices (PCOs) that offered local, domestic and international calling services. Two large corporate entities were spun off from the Department of Telecommunications, e.g. Mahanagar Telephone Nigam Limited (MTNL) for Delhi and Mumbai and Videsh Sanchar Nigam Limited (VSNL) for all international services.
7. The second phase of reform commenced with the general liberalization of the economy in the early 1990s and announcement of a New Economic Policy (NEP)-1991. 1991 telecom equipment manufacturing was de- licensed and value-added services were declared open to private sector. 1992 radio paging, cellular mobile and other value added services were opened to private sector. 1994 National Telecom Policy was announced and enhanced growth of private sector.
8. The most important landmark in telecom reforms came with the New Telecom Policy 1999 (NTP-99). There were major developments on the policy front post year 2000. Establishment of Bharat Sanchar Nigam Ltd (BSNL) (2000), privatisation of VSNL (2002). Increase in FDI limits from 49% to 74% (2005) and proposal for mobile number portability (2006) which paved way for the remarkable growth in the sector.
9. Economic analysis
10. The Indian Telecom industry has been playing an important role in the world economy and global revenues in 2008 were USD 4 trillion, expected to grow at a steep 11% p.a. CAGR over the next 2 years. Indias telecom service revenue was ~USD 30 billion in 2008, and Ernst and Young analysts believe it is projected to almost double to ~USD 55 billion by 2012. GDP contribution – 2%. Output per annum - ₹ 136,833crores per annum & Increasing 20% for every month.
11. Increase in disposable incomes. Greater network coverage. Greater affordability. Falling mobile phone prices. Falling call charges.
12. The Indian Telecom Industry manufacturing contributes about two-thirds of the total exports of the country. It has been estimated that manufacturing exports would increase from US$ 40 billion in 2002 to US$ 300 billion in 2015, simultaneously increasing its share in world manufacturing trade from 0.8 % to 3.5 %.
14. Change in lifestyle Fast-changing lifestyles are forcing telecom companies to enlarge the breadth and depth of their services. joint ventures in the entertainment sector to add more services. For instance, Verizon now offers Verizon FiOS, a basic fiber-optic service which includes digital television, voice and high-speed internet services.
15. The rural Indian consumer managed to remain an attractive proposition, especially in the demand for consumer goods and telecom services 3 lakh PCOs are providing community access in the rural areas. Further, Mobile Gramin Sanchar Sewak Scheme (GSS) � a mobile Public Call Office (PCO) service is provided at the doorstep of villagers.
16. Several areer paths lead to the Indian Telecom Industry. The telecom sector offers a variety of career options where there is room for everyone a degree holder or a diploma holder, a candidate with a part-time certification course or one with a full-time degree. The Certificate Courses for employment in the industry are: Certificate in Telecom Engineering. Certificate in Information Technology. Certificate in Computer Science. Certificate in Management Information Systems. Certificate in Computer Forensics.
17. Technology analysis
18. • Total spending on Research & Development• Focus of technological efforts• Productivity improvement
19. • Global system for mobile communication (Gsm)• Code division multiple access (Cdma)• Wireless local loop (WLL)• 3G Technology
20. Environmental Analysis
21. The strong growth of the telecom industry, and increased equipment obsolescence have caused a dramatic rise in the amount of electronic waste worldwide. Today, environmental issues have become one of the most important factors to be considered in the telecom industry. Operators are paying increasing attention to their environmental performance, and are cooperating more closely with telecom equipment manufacturers. China Mobile is one example. In December 2007, they launched the "Green Initiative" program, which aims to save energy and reduce emissions for its outsourcing system and complementary equipment.
22. International regulations on environmental protection, especially those for telecom operations and manufacturing, are widely recognized and followed. ISO 14004:2004 provides guidelines on the elements of an environmental management system and its implementation. The process includes choosing the proper products and networking solutions to reduce negative impact on the environment.
23. Legal analysis
24. “Telecommunications” falls under the legislativecompetence of the Union and not the States. Consequently the Legal framework governingTelecommunication Sector is within the control ofthe Union Government and the Parliament.In India Legal framework, covering telecomsector include various services like internet, radiopaging, voice mail, V sat communications, ECommerce, broadcasting services etc. Indian Legal framework with respect to telecominfrastructure is made up of five main acts
25. The Legal Framework isprovided by: The Indian Telegraph Act 1885.The Wireless Telegraphy Act 1933. The Telegraph Wires (Unlawful Possession) Act1950. The Cable Television Network (Regulation) Act1996.
26. The genesis of the Telecommunication RegulatoryAuthority of India (TRAI) lies in the bidding process for thegrant of cellular licenses. First major dispute, entered into by TRAI, was betweenitself and The Central Government.The question of grant or amendment of a license by theCentral Government acting in its capacity as the licensor fallsoutside the jurisdiction of the powers of TRAI.The TRAI Act which was amended and passed in 2000and the framework relating to the TRAI currently in forcehave been analyzed subsequently
27. According to the TRAI act amended in 2000, the functions ofthe original TRAI have now been divided between twoseparate bodies.The Telecom Regulatory Authority of India (TRAI).The Telecom Disputes Settlement and Appellate Tribunal.The Recommendatory and Regulatory functions are vestedwith the TRAI while dispute settlement functions are handledby the Appellate Tribunal