32932654 telecom-industry-profile

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32932654 telecom-industry-profile

  1. 1. INTRODUCTION The Indian telecommunication industry, with about 600.69 million mobile phoneconnections as of February 2010, is the third largest telecommunication network in the worldand the second largest in terms of number of wireless connections of 563.73 million. TheIndian telecom industry is one of the fastest growing in the world and is projected that Indiawill have billion plus mobile users by 2015. Projection by several leading globalconsultancies is that India’s telecom network will overtake China’s in the next 10 years. Forthe past decade or so, telecommunication activities have gained momentum in India. Effortshave been made from both governmental and non-governmental platforms to enhance theinfrastructure. The idea is to help modern telecommunication technologies to serve allsegments of India’s culturally diverse society, and to transform it into a country oftechnologically aware people.EVOLUTION OF THE INDUSTRY AND MILESTONES
  2. 2. WIRELESS SERVICES IN INDIA The Mobile telecommunications system in India is the second largest in the world andit was thrown open to private players in the 1990s. The country is divided into multiplezones, called circles (roughly along state boundaries). Government and several privateplayers run local and long distance telephone services. Competition has caused prices to dropand calls across India are one of the cheapest in the world. The rates are supposed to go downfurther with new measures to be taken by the Information Ministry. The mobile service hasseen phenomenal growth since 2000. In September 2004, the numbers of mobile phoneconnections have crossed fixed-line connections. India primarily follows the GSM mobilesystem, in the 900 MHz band. Recent operators also operate in the 1800 MHz band. Thedominant players are Airtel, Aircel Uninor, Reliance Infocomm, Vodafone, Idea cellular andBSNL/MTNL. There are many smaller players, with operations in only a few states.International roaming agreements exist between most operators and many foreign carriers.Major players and their market shareWIRELINE SERVICES IN INDIALandline service in India is primarily run by BSNL/MTNL and Reliance Infocomm thoughthere are several other private players too, such as Touchtel and Tata Teleservices. Landlinesare facing stiff competition from mobile telephones. The competition has forced the landline
  3. 3. services to become more efficient. The landline network quality has improved and landlineconnections are now usually available on demand, even in high density urban areas. Thebreakup of wireline market share in India as of february 2010 is given below.MAJOR PLAYERS IN INDIAN TELECOMMUNICATION INDUSTRYBSNL Bharat Sanchar Nigam Limited (known as BSNL, India Communications CorporationLimited) is a state-owned telecommunication company in India. BSNL is the sixth largestcellular service provider, with over 57.22 million customers as of December 2009 and thelargest land line telephone provider in India. Its headquarters are at Bharat Sanchar Bhawan,Harish Chandra Mathur Lane, Janpath, New Delhi. It has the status of Mini Ratna, a statusassigned to reputed public sector companies in India.BSNL is Indias oldest and largest Communication Service Provider (CSP). Currently has acustomer base of 90 million as of June 2008. It has footprints throughout India except for themetropolitan cities of Mumbai and New Delhi which are managed by MTNL. As on March31, 2008 BSNL commanded a customer base of 31.55 million Wireline, 4.58 million CDMA-WLL and 54.21 million GSM Mobile subscribers. BSNLs earnings for the Financial Yearending March 31, 2009 stood at INR 397.15b (US$7.03 billion) with net profit of INR 78.06b(US$ 1.90 billion). BSNL has an estimated market value of $ 100 Billion. The company is
  4. 4. planning an IPO within 6 months to offload 10% to public in the Rs 300-400 range valuingthe company at over $100 billion.BHARTI Bharti Airtel formerly known as Bharti Tele-Ventures LTD (BTVL) is the largestcellular service provider in India, with more than 124 million subscribtions as of February2010. With this, Bharti is now world’s third-largest, single-country mobile operator andsixth-largest integrated telecom operator. It also offers fixed line services and broadbandservices. It offers its TELECOM services under the Airtel brand and is headed by SunilBharti Mittal. The company also provides telephone services and broadband Internet access(DSL) in top 95 cities in India. It also acts as a carrier for national and international longdistance communication services. The company has a submarine cable landing station atChennai, which connects the submarine cable connecting Chennai and Singapore.It is known for being the first mobile phone company in the world to outsource everythingexcept marketing and sales. Its network operations are provided by Ericsson, business supportby IBM and transmission towers by another company. Ericsson agreed for the first time, to bepaid by the minute for installation and maintenance of their equipment rather than being paidup front. This enables the company to provide pan-India phone call rates of Rs. 1/minute(U$0.02/minute).The businesses at Bharti Airtel have always been structured into three individual strategicbusiness units (SBUs) - Mobile Services, Airtel Telemedia Services & Enterprise Services.The mobile business provides mobile & fixed wireless services using GSM technology across23 telecom circles while the Airtel Telemedia Services business offers broadband &telephone services in 95 cities and has recently launched a Direct-to-Home (DTH) service,Airtel Digital TV.VODAFONE Vodafone Essar, formally known as Hutchison Essar is a cellular operator in Indiathat covers 23 telecom circles in India based in Mumbai. Vodafone Essar is owned byVodafone 67% and Essar Group 33%. It is the second largest mobile phone operator in termsof revenue behind Bharti Airtel, and third largest in terms of customers.
  5. 5. On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by LiKa Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications,Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The wholecompany was valued at USD 18.8 billion. The transaction closed on May 8, 2007. Despite theofficial name being Vodafone Essar, its products are simply branded Vodafone. It offers bothprepaid and postpaid GSM cellular phone coverage throughout India with good presence inthe metros.Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSMtechnology, offering voice and data services in 23 of the countrys 23 licence areas. It isamong the top three GSM mobile operators of India.RELIANCE Reliance Communications, formerly known as Reliance Infocomm, along withReliance Telecom and Flag Telecom, is part of Reliance Communications Ventures(RCoVL).Reliance Communications Limited founded by the late Shri Dhirubhai H Ambani(1932-2002) is the flagship company of the Reliance Anil Dhirubhai Ambani Group. TheReliance Anil Dhirubhai Ambani Group currently has a net worth in excess of Rs. 64,000crore (US$ 13.6 billion), cash flows of Rs. 13,000 crore (US$ 2.8 billion), net profit of Rs.8,400 crore (US$ 1.8 billion).The Equity Shares of RCOM are listed on Bombay StockExchange Limited and National Stock Exchange Limited. The Global Depository Receiptsand Foreign Currency Convertible Bonds are listed on Luxembourg Stock Exchange andSingapore Stock Exchange respectively.TATA TELESERVICES Tata Teleservices is part of the Tata Group. Tata Teleservices spearheads the Group’spresence in the telecom sector. Incorporated in 1996, Tata Teleservices was the first to launchCDMA mobile services in India with the Andhra Pradesh circle.The company acquired Hughes Telecom (India) Limited [now renamed Tata Teleservices(Maharashtra) Limited] in December 2002. With a total Investment of Rs 19,924 Crore, TataTeleservices has created a Pan India presence spread across 20 circles that includes AndhraPradesh, Chennai, Gujarat, J & K, Karnataka, Delhi, Maharashtra, Mumbai, North East,
  6. 6. Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh(E), Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh and West Bengal.Having pioneered the CDMA 3G1x technology platform in India, Tata Teleservices hasestablished 3G ready telecom infrastructure. It partnered with Motorola, Ericsson, Lucent andECI Telecom for the deployment of its telecom network.The company is the market leader in the fixed wireless telephony market with a totalcustomer base of over 3.8 million.Tata Teleservices’ bouquet of telephony services includes Mobile services, Wireless DesktopPhones, Public Booth Telephony and Wireline services. Other services include value addedservices like voice portal, roaming, post-paid Internet services, 3-way conferencing, groupcalling, Wi-Fi Internet, USB Modem, data cards, calling card services and enterprise services.Some of the other products launched by the company include prepaid wireless desktopphones, public phone booths, new mobile handsets and new voice & data services such asBREW games, Voice Portal, picture messaging, polyphonic ring tones, interactiveapplications like news, cricket, astrology, etc.Tata Indicom "Non Stop Mobile" allow pre-paid cellular customers to receive free incomingcalls.Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limited have asubscriber base of 36 million customers (as of April 2009) in more than 5,000 towns. TataTeleservices has also acquired GSM licenses for specific circles in India.Tata Telelservices is an unlisted entity. Tata Group and group firms own the majority of thecompany; NTT docomo holds 26% while investor C. Sivasankaran holds 8%.IDEA Idea Cellular is a wireless telephony company operating in all the 22 telecom circlesin India based in Mumbai. It is the 3rd largest GSM Company in India behind Airtel andVodafone and ahead of state run player BSNL.In 2000, Tata Cellular was a company providing mobile services in AP. When Birla-AT&Tbrought Maharashtra and Gujarat to the table, the merger of these two entities was a reality.Thus Birla-Tata-AT&T, popularly known as Batata, was born. In 2001, the Batata triumvirate
  7. 7. agreed to merge its operations with the Rajeev Chandrasekhar promoted BPLCommunications. The merger could have brought in regions like Mumbai, Maharashtra,Kerala and Tamil Nadu, which seemed to be a perfect accompaniment to what it already had.This was critical with the bid for the fourth operator licence round the corner. However, theengagement with BPL was broken. Then Idea set sights on RPG’s operations in MadhyaPradesh which was successfully acquired, helping Batata have a million subscribers, and thelicence to be the fourth operator in Delhi was clinched. In 2004, Idea (the company had bythen been rechristened) bought over the Escorts group’s Escotel gaining Haryana, UttarPradesh (West) and Kerala — and licences for three more — UP (East), Rajasthan andHimachal Pradesh. By the end of that year, four million Indians were on the company’snetwork. In 2005, AT&T sold its investment in Idea, and the year after Tatas also bid goodbye to pursue an independent telecom business. And Idea was left only with one promoter,the AV Birla group when the company’s stock listed on the bourses in March 2007, itssubscriber base was 13 million with presence in 11 circles. In less than three years, thesubscriber numbers have more than quadrupled. The public issue was oversubscribed 50times and raised Rs 2,450 crore. In June 2008, Idea Cellular bought out BK Modi’s stake inSpice Communications for Rs 2,700 crore adding Punjab and Karnataka circles. Modi’s jointventure partner, Telekom Malaysia, invested Rs 7,000 crore for a 14.99% stake in Idea. Justaround then, Idea’s subsidiary, Aditya Birla Telecom sold a 20% stake to US-basedProvidence Equity Partners for over Rs 2,000 crore.The company has its retail outlets under the "Idea n U" banner. The company has also beenthe first to offer flexible tariff plans for prepaid customers. It also offers GPRS services inurban areas.Idea Cellular won the GSM Association Award for "Best Billing and Customer CareSolution" for 2 consecutive years.AIRCEL Aircel is a mobile phone service provider in India. It offers both prepaid and postpaidGSM cellular phone coverage throughout India. Aircel is a joint venture between MaxisCommunications of Malaysia and Apollo Hospital Enterprise Ltd of India. Maxis has a 74%stake in Aircel and the remaining 26% is with Apollo Hospitals. It is India’s fifth largestGSM mobile service provider with a subscriber base of over 27.7 million, as of October 31,
  8. 8. 2009. It has a market share of 12.8% among the GSM operators in the country. As on date,Aircel is present in 18 of the total 23 telecom circles (including Andhra Pradesh, Assam,Bihar & Jharkhand, Chennai, Delhi & NCR, Himachal Pradesh, Jammu & Kashmir,Karnataka, Kerala, Kolkata, Mumbai, North East, Orissa, Rest of Maharashtra & Goa, Rest ofTamil Nadu, Rest of West Bengal, Uttar Pradesh East, Uttar Pradesh West) and with licencessecured for the remaining 5 telecom circles, the company plans to become a pan-Indiaoperator by 2010. Additionally, Aircel has also obtained permission from Department ofTelecommunications (DoT) to provide International Long Distance (ILD) and National LongDistance (NLD) telephony services. It is also a category A ISP. It is also having the largestservice in Tamil Nadu.MTS INDIA MTS India, is a brand owned by Sistema Shyam TeleServices (SSTL). SSTL is a jointventure company between Sistema {LSE-SSA} of Russia and Shyam Group of India.Sistema is the majority share holder in this joint venture with a 73.71% equity stake, alongwith the Shyam Group, holding a 23.79% stake and the rest 2.5% being public partake. SSTLhas the spectrum to provide mobile telephony services in all the 48 circles across the country.Presently SSTL offers mobile telephony services in the Bihar-Jharkhand, Delhi, Haryana,Karnataka, Kerala, KolkataMaharashtra (Pune), Mumbai, Rajasthan, Tamil Nadu and West Bengal circles. In a recentdevelopment, SSTL tied up with Mobile TeleSystems OJSC of Russia to bring the globallyacclaimed telecom brand-MTS-to India. MTS is the 8th largest telecom brand in the worldand has recently been voted the 71st ranked brand out of the 100 top global brands in theworld by Millward Brown.
  9. 9. TELECOM POLICY ENIVIRONMENT IN INDIALiberalization The process of liberalization in the country began in the right earnest with theannouncement of the New Economic Policy in July 1991. Telecom equipment manufacturingwas de-licensed in 1991 and value added services were declared open to the private sector in1992, following which radio paging, cellular mobile and other value added services wereopened gradually to the private sector. This has resulted in large number of manufacturingunits been set up in the country. As a result most of the equipment used in telecom area isbeing manufactured within the country. A major breakthrough was the clear enunciation ofthe government’s intention of liberalizing the telecom sector in the National Telecom Policyresolution of 13th May 1994.National Telecom Policy 1994 In 1994, the Government announced the National Telecom Policy which definedcertain important objectives, including availability of telephone on demand, provision ofworld class services at reasonable prices, improving India’s competitiveness in global marketand promoting exports, attractive FDI and stimulating domestic investment, ensuring India’semergence as major manufacturing / export base of telecom equipment and universalavailability of basic telecom services to all villages. It also announced a series of specifictargets to be achieved by 1997.Telecom Regulatory Authority of India (TRAI) The entry of private service providers brought with it the inevitable need forindependent regulation. The Telecom Regulatory Authority of India (TRAI) was, thus,established with effect from 20th February 1997 by an Act of Parliament, called the TelecomRegulatory Authority of India Act, 1997, to regulate telecom services, includingfixation/revision of tariffs for telecom services which were earlier vested in the CentralGovernment.TRAI’s mission is to create and nurture conditions for growth of telecommunications in thecountry in manner and at a pace, which will enable India to play a leading role in emerging
  10. 10. global information society. One of the main objectives of TRAI is to provide a fair andtransparent policy environment, which promotes a level playing field and facilitates faircompetition. In pursuance of above objective TRAI has issued from time to time a largenumber of regulations, orders and directives to deal with issues coming before it andprovided the required direction to the evolution of Indian telecom market from a Governmentowned monopoly to a multi operator multi service open competitive market. The directions,orders and regulations issued cover a wide range of subjects including tariff, interconnectionand quality of service as well as governance of the Authority.The TRAI Act was amended by an ordinance, effective from 24 January 2000, establishing aTelecommunications Dispute Settlement and Appellate Tribunal (TDSAT) to take over theadjudicatory and disputes functions from TRAI. TDSAT was set up to adjudicate any disputebetween a licensor and a licensee, between two or more service providers, between a serviceprovider and a group of consumers, and to hear and dispose of appeals against any direction,decision or order of TRAI.New Telecom Policy 1999 The most important milestone and instrument of telecom reforms in India is the NewTelecom Policy 1999 (NTP 99). The New Telecom Policy, 1999 (NTP-99) was approved on26th March 1999, to become effective from 1st April 1999. NTP-99 laid down a clearroadmap for future reforms, contemplating the opening up of all the segments of the telecomsector for private sector participation. It clearly recognized the need for strengthening theregulatory regime as well as restructuring the departmental telecom services to that of apublic sector corporation so as to separate the licensing and policy functions of theGovernment from that of being an operator. It also recognized the need for resolving theprevailing problems faced by the operators so as to restore their confidence and improve theinvestment climate.Key features of the NTP 99 include: • Strengthening of Regulator. • National long distance services opened to private operators. • International Long Distance Services opened to private sectors.
  11. 11. • Private telecom operators licensed on a revenue sharing basis, plus a one-time entry fee. Resolution of problems of existing operators envisaged. • Direct interconnectivity and sharing of network with other telecom operators within the service area was permitted. • Department of Telecommunication Services (DTS) corporatised in 2000. • Spectrum Management made transparent and more efficient.All the commitments made under NTP 99 have been fulfilled; each one of them, in letter andspirit, some even ahead of schedule, and the reform process is now complete with all thesectors in telecommunications opened for private competition.Internet Service Providers (ISPs) Internet service was opened for private participation in 1998 with a view to encouragegrowth of Internet and increase its penetration. The sector has seen tremendous technologicaladvancement for a period of time and has necessitated taking steps to facilitate technologicalingenuity and provision of various services. The Government in the public interest in general,and consumer interest in particular, and for proper conduct of telegraph and telecom serviceshas decided to issue the new guidelines (Details) for grant of licence of Internet services onnon-exclusive basis. Any Indian company with a maximum foreign equity of 74% is eligiblefor grant of licence.Broadband Policy 2004 Recognizing the potential of ubiquitous Broadband service in growth of GDP andenhancement in quality of life through societal applications including tele-education, tele-medicine, e-governance, entertainment as well as employment generation by way of high-speed access to information and web based communication; Government has announcedBroadband Policy in October 2004. The main emphasis is on the creation of infrastructurethrough various technologies that can contribute to the growth of broadband services. Thesetechnologies include optical fibre, Asymmetric Digital Subscriber Lines (ADSL), cable TVnetwork; DTH etc. Broadband connectivity has been defined as “ Always On” with theminimum speed of 256 kbps. It is estimated that the number of broadband subscribers wouldbe 20 million by 2010. With a view to encourage Broadband Connectivity, both outdoor and
  12. 12. indoor usage of low power Wi-Fi and Wi-Max systems in 2.4 GHz-2.4835 GHz band hasbeen delicensed. The use of low power indoor systems in 5.15-5.35 GHz and 5.725-5.875GHz bands has also been delicensed in January 05. The SACFA/WPC clearance has beensimplified. The setting up of National Internet Exchange of India (NIXI) would enablebringing down the international bandwidth cost substantially, thus making the broadbandconnectivity more affordable.The prime consideration guiding the Policy includes affordability and reliability ofBroadband services, incentives for creation of additional infrastructure, employmentopportunities, induction of latest technologies, national security and brings in competitiveenvironment so as to reduce regulatory interventions.By this new policy, the Government intends to make available transponder capacity forVSAT services at competitive rates after taking into consideration the security requirements.The service providers permitted to enter into franchisee agreement with cable TV networkoperators. However, the Licensee shall be responsible for compliance of the terms andconditions of the licence. Further in the case of DTH services, the service providers permittedto provide Receive-Only-Internet Service. The role of other facilitators such as electricityauthorities, Departments of ITs of various State Governments, Departments of Local SelfGovernments, Panchayats, Departments of Health and Family Welfare, Departments ofEducation is very important to carry the advantage of broadband services to the usersparticularly in rural areas.Target has been set for 20 million broadband connections by 2010 and providing Broadbandconnectivity to all secondary and higher secondary schools, public health institutions andpanchayats by 2010.In rural areas, connectivity of 512 KBPS with ADSL 2 plus technology (on wire) will beprovided from about 20,000 existing exchanges in rural areas having optical fibreconnectivity. Community Service Centres, secondary schools, banks, health centres,Panchayats, police stations etc. can be provided with this connectivity in the vicinity ofabove-mentioned 20,000 exchanges in rural areas. DOT will be subsidizing the infrastructurecost of Broadband network through support from USO Fund to ensure that Broadbandservices are available to users at affordable tariffs.
  13. 13. Tariff Changes The Indian Telecom Sector has witnessed major changes in the tariff structure. TheTelecommunication Tariff Order (TTO) 1999, issued by regulator (TRAI), had begun theprocess of tariff balancing with a view to bring them closer to the costs. This supplementedby Calling Party Pay (CPP), reduction in ADC and the increased competition, has resulted ina dramatic fall in the tariffs. ADC has been abolished for all calls w.e.f. 1st October 2008.• The peak National Long Distance tariff for above 1000 Kms. in 2000 has come down from US$ 0.67 per minute to US$ 0.02 per minute in 2009.• The International Long Distance tariff from US$ 1.36 per minute in 2000 to US$ 0.16 per minute in 2009 for USA, Canada & UK.• The mobile tariff for local calls has reduced from US$0.36 per minute in 1999 to US$ 0.009 - US$ 0.04 per minute in 2009.• The Average Revenue Per User of mobile is between US$ 5.06 - US$ 7.82 per monthForeign Direct Investment (FDI)• In Basic, Cellular Mobile, Paging and Value Added Service, and Global Mobile Personal Communications by Satellite, Composite FDI permitted is 74% (49% under automatic route) subject to grant of license from Department of Telecommunications subject to security and license conditions.• FDI upto 74% (49% under automatic route) is also permitted for the following: - · Radio Paging Service · Internet Service Providers (ISPs)• FDI upto 100% permitted in respect of the following telecom services: - · Infrastructure Providers providing dark fibre (IP Category I); · Electronic Mail; and · Voice Mail
  14. 14. Subject to the conditions that such companies would divest 26% of their equity in favor ofIndian public in 5 years, if these companies were listed in other parts of the world.• In telecom manufacturing sector 100% FDI is permitted under automatic route.• The Government has modified method of calculation of Direct and Indirect Foreign Investment in sector with caps and have also issued guidelines on downstream investment by Indian Companies.• Guidelines for transfer of ownership or control of Indian companies in sectors with caps from resident Indian citizens to non-resident entities have been issuedInvestment Opportunities and Incentives An attractive trade and investment policy and lucrative incentives for foreigncollaborations have made India one of the world’s most attractive markets for the telecomequipment suppliers and service providers.• No industrial license required for setting up manufacturing units for telecom equipment.• Automatic approval of 100 percent foreign equity, technology fee up to US $ 2 million, royalty up to 5 percent for domestic sales and 8 percent for exports in telecom manufacturing projects.• Foreign equity of 74% (49 % under automatic route) permitted for telecom services - basic, cellular mobile, paging, value added services, NLD, ILD, ISPs - and global mobile personal communications by satellite.• Full repatriability of dividend income and capital invested in the telecom sector.Opportunities India offers an unprecedented opportunity for telecom service operators, infrastructurevendors, manufacturers and associated services companies. A host of factors are contributingto enlarged opportunities for growth and investment in telecom sector:• An expanding Indian economy with increased focus on the services sector• Population mix moving favorably towards a younger age profile
  15. 15. • Urbanization with increasing incomesInvestors can look to capture the gains of the Indian telecom boom and diversify theiroperations outside developed economies that are marked by saturated telecom markets andlower GDP growth rates.Inflow of FDI into India’s telecom sector during April 2000 to March 2009 was about Rs275,444 million. Also, more than 8 per cent of the approved FDI in the country is related tothe telecom sector.3G & Broadband Wireless Services (BWA) The government has in a pioneering decision, decided to auction 3G & BWAspectrum. The broad policy guidelines for 3G & BWA have already been issued on 1stAugust 2008 and allotment of spectrum has been planned through simultaneously ascendinge-auction process by a specialized agency. New players would also be able to bid thus leadingto technology innovation, more competition, faster roll out and ultimately greater choice forcustomers at competitive tariffs. The 3G will allow telecom companies to offer additionalvalue added services such as high resolution video and multi media services in addition tovoice, fax and conventional data services with high data rate transmission capabilities. BWAwill become a predominant platform for broadband roll out services. It is also an effectivetool for undertaking social initiatives of the Government such as e-education, telemedicine, e-health and e-Governance. Providing affordable broadband, especially to the suburban andrural communities is the next focus area of the Department.BSNL & MTNL have already been allotted 3G & BWA spectrum with a view to ensuringearly roll out of 3G & WiMax services in the country. They will pay the same price for thespectrum as discovered through the auction. While, Honbl’e Prime Minister launched theMTNL’s 3G mobile services on the inaugural function of ‘India Telecom 2008’ held on 11thDecember 2008, BSNL launched its countrywide 3G services from Chennai, in the southernTamil Nadu state on 22nd February 2009.
  16. 16. Mobile Number Portability (MNP) Mobile Number Portability (MNP) allows subscribers to retain their existingtelephone number when they switch from one access service provider to another irrespectiveof mobile technology or from one technology to another of the same or any other accessservice provider. The Government has announced the guidelines for Mobile NumberPortability (MNP) Service Licence in the country on 1st August 2008 and has issued aseparate Licence for MNP service w.e.f. 20.03.2009. The Department of Telecommunication(DoT) has already issued licences to two global companies (M/s Syniverse Technologies Pvt.Ltd. and M/s MNP Interconnection Telecom Solutions India Pvt. Ltd.) for implementing theservice.MNP is to be implemented in Delhi, Mumbai, Maharashtra & Gujarat service areas of Zone –1 and Kolkata, Tamil Nadu including Chennai, Andhra Pradesh & Karnataka service areas ofZone - 2 within six months of the award of the licence i.e. by 20.09.2009 and in rest of theservice areas within one year of the award of the licence i.e. by 20.03.2010. • Quadrupling production in 2010. • Achieving exports of 10 billion during 11th Five year plan.7. Research & Development • Pre-eminence of India as a technology solution provider. • Comprehensive security infrastructure for telecom network. • Tested infrastructure for enabling interoperability in Next Generation Network. • Doubling the telecom equipment R&D by 2010 from present level of 15%.

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