India is 4 th largest market in Asia after China, Japan and South Korea.
India is the 5 th largest in the world and 2 nd largest among emerging
economies of Asia.
Contribution in terms of revenue is 2.1 % of GDP as compared to 2.8% in
India is the leading SMS user, followed probably by Philippine
World’s fastest Growing Telecom Market - 8 Million plus subscriber addition
Fastest sale of a million mobile phones – 1 Week
World’s cheapest mobile handset made in India – US$17.2 Now plans web
enabled phone at $12.
World’s Most affordable color phone made in India – US$27.42
Third largest in the world after China and US- soon to overtake US tele-
density 23.21 %.
INDIA Private players were allowed in Value Added Services National Telecom Policy (NTP) was formulated 1994 1997 Independent regulator, TRAI, was estd NTP-99 led to migration from high-cost fixed license fee to low-cost revenue sharing regime 1999 2000 2002 BSNL was estd by DoT
ILD services was opened to competition
Go-ahead to the CDMA technology
Internet telephony initiated`
Reduction off licence fees
Calling Party Pays (CPP) was implemented
Unified Access Licensing (UASL) regime was introduced
Intra-circle merger guidelines were estd.
Broadband policy 2004 was formulated —targeting 20 mn subscribers by 2010.
Attempted to boost Rural telephony.
FDI limit increased from 49 to 74%.
2006 Number portability was proposed (pending) Decision on 3G services (awaited) 2007 EVOLUTION OF TELECOM SECTOR 1992
METRO Circles Gujarat Rajasthan Maharashtra Orissa Andhra Pradesh Karnataka Tamil Nadu Kerala Madhya Pradesh Uttar Pradesh E Bihar West Bengal Punjab Himachal Pradesh Haryana Jammu & Kashmir Uttar Pradesh W CHENNAI MUMBAI DELHI KOLKATA C Circles B Circles A Circles
CLASSIFICATION OF TELECOM SECTOR Fixed line telephony Mobile Telephony Internet Telecom equipments
BSNL and MTNL account for 90% revenue for basic services.
25 private companies for providing cellular services in 19 telecom circles and 4 metro cities, covering 1500 towns across the country.
There is no restriction on the number of internet companies and more than 185 companies are operational.
Growth in the telecom equipment market resulted in increasing demand for telecom services.
Private sector available in 18 circles and collectively account for 10% of revenue. Presently, there are five private service operators in each area, and a state operator
Growing demand of corporate for applications such as electronic commerce, Internet leased lines, ISDN, VPN etc is driving the growth of the internet services market.
Key players like BSNL, BHARTI, RELIENCE, TATA, BPL and HUTCHISON will drive equipment market growth.
Established in 2002, Reliance Communication is the wholly owned
subsidiary of Anil Dhirubhai Ambani Group of Companies.
Offers prepaid and postpaid mobile services with R-world and fixed line
services with broadband services.
In 673 cities, Reliance Communications offers a wide range of telephony
With an optical fiber network of 80,000 kms, the company aims at providing
best services to its customers.
Recently Reliance has entered in the GSM technology
Aircel is the leading mobile operator company in TamilNadu. The company reached this landmark within 18 months after its operations started in 1999.In December 2003 it also launched itself commercially in Chennai soon established itself as a market leader. The fastest growing telecom operator company in India has now decided to spread its wings in the whole Indian Telecom market till by 2009.The 10 million customer owing company has emerged as a market leader in Assam and in the North-Eastern India within 18 months. AIRCEL
Better connectivity and voice quality at competitive price .
CONCLUSION In this changing landscape the winner will be those competition that understand consumers need focusing on usability and actually giving control back to user. The looser will be one that focus on overly technical product differentiation that the majority of consumer will not understand and therefore not use it. Future strategy which make one to be leader in the market are more competitive tariff plans should be launch. More VAS should be provided. Focussing on the Rural market.