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  • 1. INTRODUCTION OF TELECOMMUNICATION INDUSTRIESTelecommunication The telecommunications industry is responsible for radio, television, voicecommunications, and broadband services. The growth and innovation of the telecom industry hasenabled people to communicate across the globe and access endless amounts of information overthe internet. Broadband services are becoming faster and easier to access with fiber opticnetworks and wireless services like WiMax and CDMA. Many of the major telecom companieshave merged over the last 10 years in order to offer massive product and service portfolios, aswell as further capitalize on bundled media packages (triple play"). These new technologies andgrowth through mergers are enabling these companies to find new revenue sources and growthopportunities in a mostly mature market.There are two types of communication networks: circuit-switched networks and packet-switchednetworks. In circuit-switched networks a dedicated physical (digital or analogy) circuit between thecalling and called party is set up at the start of a call and released when the call has ended. Traditionaltelephone networks are circuit-switched networks and collectively form the switched-circuit network(SCN). Today these networks are used for speech and other purposes, such as facsimile, and are usuallyreferred to as telecommunication networks. Initially, all communication networks were circuit-switchednetworks. Data networks, consisting of a number of nodes connected by digital links, made theirappearance around 1970. In these networks, a call (or session) consists of a seriesof short data bursts (packets) followed by relatively long silent intervals. A physical circuit therefore doesnot have to be dedicated to a single data call but can be shared by several simultaneous calls. The Internetis an example of a data network. The terms “telecommunication network” and “data network” usuallyimply circuit-mode and packet-mode, respectively. However, advances in packet technology are making
  • 2. possible voice communication in data networks, in what is called convergence of voice and data. The long-term trend is toward packet communication for voice, video, and data, so the word “telecommunication” is also used sometimes to denote converged networks. The Indian telecom market is expected to grow three fold by 2012 & market size over US $ 8 billion. More over the government has set a target of 20 million broadband connections by 2010.The National Telecom Policy 1999 targets tele-density at 15 cent by 2010. This will entail an investment olt is expected that by the year 2010 there will be over 500 million subscribers in the Indian telecom market. Cellular subscriber base is projected to grow at a CAGR (Compounded Annual Growth Rate) of 48 per cent & expected to reach 88 million in 2012. Over 150% growth in telecom services is projected in 5 years. Indian will require large investments in network infrastructure & Indian expected to be fasted growing telecom market in the world. Since the project expected to reach 30-40% per year 250 subscribers by 2009-2010. Total estimate of investment opportunity of USS 22 billion expected over the next five years. Investment opportunity of $ 22 billion across many areas:  Telecom Devices and Software for Internet  Broadband and direct to home services  Gateway exchange  Set top box  Modem  Mobile handsets and consumer premise equipments  Gaming devices  EPABX  Telecom Software  Telecom Services for voice and data via a range of technologies. With the rapid growth of the telecom network, there are further opportunities to expand the telecom infrastructure and research and development.
  • 3. COMMUNICATION IN INDIAIndia is the world’s fastest growing Wireless market, with 752million mobile phone subscribers as ofFebruary, 2011. It is also the second largest telecommunications network in the world in terms ofnumber of wireless connections after China.The Indian Mobile Subscriber base has increased in size by a factor of more than one hundred since2001 when the number of subscribers in the country was approximately 5 million to 752 million by Feb2011.As the fastest growing telecommunications industry in the world, it is projected that India will have1.159 billion mobile subscribers by 2013. Further more, projection by several leading globalconsultancies indicates that the total number of subscribers in India will exceed the total subscribercount in the China by 2013. Furthermore, projections by several leading global consultancies indicatethat the total number of subscribers in India will exceed the total subscriber count in the china by 2013.The industry is expected to reach a size of Rs344, 921crore (US&74.85Billion) by 2012 at a growth rate ofover 26 per cent, and generate employment opportunities for about 10million people during the sameperiod. According o analysts, the sector would create direct employment for 2.8 million people and for 7million indirectly.In 2008-09 the overall telecom equipment in India stood at Rs.136, 833crore (US&29.69 billion) duringthe fiscal, as against Rs.115, 382crore (US&25.04 billion) a year before.Modern growth
  • 4. A large population, low telephony penetration levels, and a rise in consumers’ income and spendingowing to strong growth have helped make India the fastest- growing telecom market in the world. Thefirst operator in the state-owned incumbent BSNL was created by corporatization of the erstwhile Indiatelecommunication series, a government unit responsible for provision of telephony services.Subsequently, after the telecommunication policies were revised to allow private operators, companiessuch as Vodafone, Bharti Airtel, Tata indicom, Idea cellular, Aircel and loop mobile have entered thespace. See mobile operators in India. In 2008-09, rural India outpaced urban India in mobile growth rate.Bharti Airtel now is the largest telecom company in India.India’s mobile phone market is the fastest growing in the world, with companies adding some 18.98million new customers in Oct 2010.The total number of telephones in the country crossed the 742.12 million mark on Oct 31 st 2010.Theoverall tele-density has increased to 62.31% by Oct 31st 2010.In the wireless segment, 18.98 million subscribers were added in Oct 2010. The total wirelesssubscribers (GSM, CDMA &WLL (F)) base is more than 706.Introduction of the telephoneIn 1880, two telephone companies namely the oriental telephone company ltd. And the Anglo- Indiantelephone company ltd. approached the government of India to establish telephone exchanges in India.The permission was refused on the grounds that the establishment of telephones was a governmentmonopoly and that the government itself would undertake the work 1881, the government laterreversed its earlier decision and a licence was granted to the oriental telephone company limited ofEngland for opining telephone exchanges at Calcutta, Bombay, madras and Ahmadabad and the firstformal telephone service was established in the country. 28 January 1882 is a red letter day in thehistory of telephone in India. On this day major E.Baring, member of the governor general of India’scouncil declared open the telephone exchanges in Calcutta, Bombay and madras. The exchanges inCalcutta named “central exchange” was opened at third floor of the building at 7, council house street.
  • 5. The central telephone exchange had 93 numbers of subscribers. Bombay also witnessed the opening oftelephone exchange in 1882FUTHER DEVELOPEMENTA MOBILE PHONE TOWER1.1902-first wireless telegraph station establishes between sager islands and sand heads.2. 1907 first central battery of telephones introduced in Kanpur.3. 1913-1914 first automatic exchange installed shimla.4. 23 July 1927 radios telegraph system between the UK and India, with imperial wireless chain beamstations at khadki and daunt, inaugurated by Lord Irwin by exchanging greetings with King George V.5. 1933 radiotelephones system inaugurated between UK and India.6.1953 12 channel carrier system introduced.7.1960 First subscriber truck dialling route commissioned between Lucknow and Kanpur.8.1975 First PCM system commissioned between Mumbai city and andheri telephone exchange.9.1976 First digital microwave junction introduced.10. 1979 first optical fibre system for local junction commissioned at pune.11. 1980 first satellite earth station for domestic communication established at secunderabad, A.P.12. 1983 first analogy stored program control exchange for trunk lines Commissioned at Mumbai.
  • 6. 13.1984 C-DOT established for indigenous development and production of digital exchange.14. First mobile telephone services started on non commercial basis on 15august 1995in Delhi.OPPURTUNITIES FOR TELECOM INDUSTRIES:-According to the report presented by taking into account the statement of Indian ministry ofcommunication and information technology, the telecom opportunities in India has been growing by 20to 40 per cent every year since past 3 years. The telecom services in India have been recognized as aworld class tool for the socio-economic devolvement in India .India is knows to rank fourth in thetelecom industry in Asia after China, Japan, and South Korea and the telecom network in India is knowsto stand in the eighth position across the global.The tele-density has grown leaps and bounds in the past few years from 2.3 percent in1999 to4.8percent in 2002. The world average percentage for the telecom industry as against the Indianaverage is 7.5 times while the Asian average against the same was 4.5 times. The current market rangeof the telecommunication industry in India has been estimated to USD 8 billion and this is expected toundergo an accretion by the end.The growth witnessed by the telecom market in India has increased the number of opportunities for theindustry and this has been fuelled by the growing mobile sector, which has attained the consumer levelof 10 million by the end of December 2002 that was almost 100 in the year. This outstanding growth inthe mobile sector explains the advent of digital cellular technology and reduced tariffs as a consequenceof competitive pressures. The growth in cellular subscribers has surpassed the benchmark of subscriberbase. The telecom market has increased dramatically with the advent of wireless in local looptechnology.Telecommunication sector opportunities in India assure a transparent, safe, and secured ambiance forthe telecom market. Around 300 million population of highly consumable middle-class status that isadvantageous for the industry surrounds the telecom sector in India. This is because, in some of theIndian the possess land line telephones can be substituted by mobile phone that is very unlikedeveloped countries. Therefore, it adds up to growth in mobile sector in India.
  • 7. Few more telecommunication sector opportunities in India include introduction of internet telephonyservices, privatization of BSNL, and introduction of a number of international long distance servicessector. The opportunities in the Indian telecom sector in increasing at a massive pace with theintroduction of never and innovative schemes in various and at present the telecom sector in India isclaimed to be one of the major contributors in India’s flourishing economy.THEATS OF TELECOMMUNICATIN INDUSTRIES:-The telecommunication industry must plan its strategic responses to multiple economic scenarios.without adequate forethought on the spiralling ramification on economic downturns and diligence indetecting which scenario is upon them, telecom management terms will find their options for effectivecourse correction greatly constrained. Worse, some firms may fail or be forced into being acquired atdistressed prices. As the future economic reality unfolds, companies may face one of three scenarios: adeep, long –lasting recession; a deep, short –lived recession: or a shallow, short – lived recession.“The characteristics of the deep, loge –lasting recession scenario are elevated unemployment andmassive contraction in consumer spending, “says Dailey. “ this result in reduced enterprise spending ,abroad –based contraction of gross domestic product (GDP) and may be accompanied by inflation”Additionally, a deep long –lasting recession would almost certainly entail a protracted erosion of realestate values continued weakening of the dollar and sustained increases in oil prices. In this scenariotelecommunication services, as well as consumer electronics, enterprise information technology, themedia and entertainment sector would all see a decline.This valuable new research from Stratecast not only characterizes the deep, long- lasting recessionscenario, and appropriate strategies to deal with that scenario, but similarly assesses the deep, short-lives recession scenario, and the shallow, short-lived recession scenario.
  • 8. INTRODUCTION TO CDMACode Division Multiple Access (CDMA) is a radically new concept in wireless Communications. It hasgained widespread international acceptance by cellular radio system operators as an upgrade that willdramatically increase both their system capacity and the service quality. It has likewise been chosen fordeployment by the majority of the winners of the United States Personal Communications Systemspectrum auctions. It may seem, however, mysterious for those who arent familiar with it. This site isprovided in an effort to dispel some of the mystery and to disseminate at least a basic level ofknowledge about the technology.CDMA is a form of spread-spectrum, a family of digital communication techniques that have been usedin military applications for many years. The core principle of spread spectrum is the use of noise-like
  • 9. carrier waves, and, as the name implies, bandwidths much wider than that required for simple point-to-point communication at the same data rate. Originally there were two motivations: either to resistenemy efforts to jam the communications (anti-jam, or AJ), or to hide the fact that communication waseven taking place, sometimes called low probability of intercept (LPI). It has a history that goes back tothe early days of World War II.The use of CDMA for civilian mobile radio applications is novel. It was proposed theoretically in the late1940s, but the practical application in the civilian marketplace did not take place until 40 years later.Commercial applications became possible because of two evolutionary developments. One was theavailability of very low cost, high density digital integrated circuits, which reduce the size, weight, andcost of the subscriber stations to an acceptably low level. The other was the realization that optimalmultiple access communication requires that all user stations regulate their transmitter powers to thelowest that will achieve adequate signal quality.CDMA changes the nature of the subscriber station from a predominately analogy device to apredominately digital device. Old-fashioned radio receivers separate stations or channels by filtering inthe frequency domain. CDMA receivers do not eliminate analogy processing entirely, but they separatecommunication channels by means of a pseudorandom modulation that is applied and removed in thedigital domain, not on the basis of frequency. Multiple users occupy the same frequency band. Thisuniversal frequency reuse is not fortuitous. On the contrary, it is crucial to the very high spectralefficiency that is the hallmark of CDMA. Other discussions in these pages show why this is true.CDMA is altering the face of cellular and PCS communication by:· Dramatically improving the telephone traffic capacity· Dramatically improving the voice quality and eliminating the audible effects of multipath fading· Reducing the incidence of dropped calls due to handoff failures· Providing reliable transport mechanism for data communications, such as facsimile and internet traffic· Reducing the number of sites needed to support any given amount of traffic· Simplifying site selection· Reducing deployment and operating costs because fewer cell sites are needed· Reducing average transmitted power
  • 10. · Reducing interference to other electronic devices· Reducing potential health risksCommercially introduced in 1995, CDMA quickly became one of the worlds fastest growing wirelesstechnologies. In 1999, the International Telecommunications Union selected CDMA as the industrystandard for new "third-generation" (3G) wireless systems. Many leading wireless carriers are nowbuilding or upgrading to 3G CDMA networks in order to provide more capacity for voice traffic, alongwith high-speed data capabilities.1. INTRODUCTION TO SPREAD SPECTRUMABOUT GSM SERVICES:-GSM (Global system for mobile communications: originally from group special mobile) is the world’smost popular standard for mobile telephony system. The GSM association estimates that 80%of theglobal mobile market uses the standard.
  • 11. GSM is used by over 1.5 billion people across more than 212 countries and territories. This ubiquity means that subscribers can use their phones throughout the world, enabled byinternational roaming arrangements between mobile network operators. GSM differs from itspredecessor technologies in that both signalling and speech channels are digital, and thus GSM isconsidered a second generation 2G mobile phone system. this also facilitates the wide –spreadimplementation of data communication applications into the system.The GSM standard has been an advantage to both consumers, who may benefit from the ability to roamand switch carriers without replacing phone, and also to network operators, who can choose equipmentfrom many GSM equipment vendors.GSM also pioneered low cost implementation of the short message service (SMS) also called textmessaging, which has since been supported on other mobile phone standards as well. The standardincludes a worldwide emergency telephone number feature.For, Release 97 of the standard added packet data capabilities by means of general packed radioexample newer versions of the standard were backward compatible with the original GSM systemservice (GPRS).release 99 introduced higher speed data transmission using Enhanced data rate for GSMevolution (EDGE.)DEFINATION OF GSM:Gsm (global system for mobile communication) is a digital mobile telephony system that is widely usedin Europe and other parts of the world. GSM uses a variation of time division multiple access (TDMA)and is the most widely used of the three digital wireless telephony technologies (TDMA, GSM andCDMA).GSM digitizes and compresses data, than sends it down a channel with two other streams ofuser data, each in its own time slot. It operates at either the 900 MHz or 1800MHz frequency band.
  • 12. Mobile services based on GSM technology were first launches in Finland in 1991.today ,more than 690mobile networks provides GSM services across 213 countries and GSM represents 82.4%of all globalmobile connection .according to GSM world, there are now more than 2 billion GSM mobile phone usersworldwide. GSM world references china as “the largest single GSM market, with more than 370 millionusers, followed by Russia with 145 million, India with 83 million and the USA with 78 million users.”Since many GSM network operators have roaming agreements with foreign operators, users can oftencontinue to use their mobile phone when they travel to other countries, SIM cards (subscriber identitymodule ) holding home network access configurations may be switched to those will metered localaccess, significantly reducing roaming costs while experiencing no reductions in service.GSM together with other technologies is part of the evolution of wireless mobile telecommunicationthat includes high – speed circuit-switched data (HCSD), general packet radio system (GPRS), Enhanceddata GSM Environment (EDGE), and universal mobile telecommunication service (UMTS).HISTORY:-In 1982, the European conference of postal and telecommunication administrations (CEPT) created thegroup special mobile (GSM) to develop a standard for a mobile telephone system that could be usedacross Europe. in 1987, a memorandum of understanding was signed by 13 countries to develop acommon cellular telephone system across Erope.in 1989, GSM responsibility was transferred to theEuropean telecommunication standards institute and phase of the GSM specification were published in1990 .the first GSM network was launched in 1991 by radioing in Finland with joint technicalinfrastructure maintenance from Ericsson.by the end of 1993 , over a million subscribers were usingGSM phone networks being operated by 70 carriers across 48 countries.EVOLUTION OF GSM SERVICES-The explosive growth of global system for mobile (GSM) communication services over the last twodecades has changed mobile communication from a niche market to a fundamental constituent of theglobal telecommunication markets. GSM is a digital wireless technology standard based on the notion
  • 13. that users want to communicate wirelessly without limitations created by network or national borders.In a short period of time, GSM has become a global phenomenon. The explanation for its success is thecooperation and coordination of technical and operational evolution that has creates a virtuous circle ofgrowth built on three principles: interoperability based on open platforms, roaming and economies ofscale (GSM association, 2004) GSM standard are now adopted by more than 200 countries andterritories. It has become the main global standard for mobile communication 80 percent of all newmobile customers are on GSM networks .GSM has motivated wireless adoption to the extent thatmobile phone now globally outnumbers fixed – line telephones. In February 2004, more than I billionpeople, almost one in six of the world’s population, were using GSM mobile phone.Some developed European nations such as the United Kingdom, Norway, Finland, and Spain havepenetration levels of between 80 to 90 % with other European nation not far behind. However, thereare some countries such as Hong Kong and Italy that have a100% penetration level. the importance ofthe commissioned by a UK mobile operator establishes that the united kingdom’s mobile phone sectornow contributes as much to the UK gross domestic product as the total oil- and gas extraction industry(MM02,2004).Technical developments, competition, and deregulation have contribution to a strong growth in theadoption of mobile phones in the third world. In Africa recent research has shown that mobiletelephony has been extremely important in providing an African telecommunication infrastructure. Thenumber of mobile phone users on the African continent has increased by over 1000% between 1998 and2003 to reach a total of 51.8 million. mobile user numbers have exceeded those of fixed line, whichstood at 25.1 million at the end of 2003.the factors for success in this region include demand, sectorreform, the licensing of new competition, and the emergence of imported strategic investors (ITU, 2004)FOCUS: EVOLUTION OF GSM NETWORKS:Mobile communication can be divided into three distinct eras identified by an increase in functionalityand bandwidth, as illustrated in figures 1. These eras relate to the implementation of technologicaladvancements in the field. The industry in currently on the verge of implementing the thirdtechnological era and at the beginning of defining the step for the fourth era.
  • 14. FIRST GENERATION NETWORKS-The first generation 1G cellular system were the simplest communication networks deployed in the1980s. The first generation networks were based on analogue-frequency- modulation transmissiontechnology. Challenges faced by the operators included inconsistency. Frequent loss of signals, and lowbandwidth. The 1G network was also expensive to run due to a limited customer base.SECOND GENERARTION NETWORK:-The second – generation 2G cellular systems were the first to apply digital transmission technologies forvoice and data communication. The data transfer rate was in the region of 10s of kbps. Other examplesof technologies in 2G systems include frequency- division multiple access (FDMA), time – divisionmultiple access (TDMA), and code – division multiple access.The second – generation networks deliver high – quality and secure mobile voice, and basic dataservices such as fax and text messaging along with full roaming capability across the world.To address the poor data transmission rates of the 2G network, developments were made to upgrade2G networks without replacing the networks. These technological enhancements were called 2.5Gtechnologies and include networks such as general Packet Radio Service (GPRS). GPRS-enabled networksdeliver features such as always-on, higher capacity, Internet-based content and packet-based dataservices such as colour Internet browsing, e-mail on the move, visual communications, multimediamessages, and location-based services. Another complementary 2.5G service is Enhanced Data Rates forGSM Evolution (EDGE). This network upgrade offers similar capabilities as those of the GPRS network.Another 2.5G network enhancement of data services is high-speed circuit switched data (HSCSD). Thisallows access to novice services 3 times faster than conventional networks, which means subscribers areable to send and receive data from their portable computers at speeds of up to 28.8 Kbps; this iscurrently being upgraded in many networks to 43.2 Kbps. The HSCSD solution enables higher rates byusing multiple channels, allowing subscribers to enjoy faster rates for their 27 countries around theworld in Europe, Asia Pacific, South Africa and Israel (GSM, 2002) Internet, e-mail, calendar and file-transfer services. HSCSD is now available to more than 100 million customers across.
  • 15. Current Trend: Third-Generation NetworksThe most promising period is the advent of third-generation (3G) networks. These networks are alsoreferred to as the universal mobile telecommunications systems (UMTSs). The global standardizationeffort undertaken by the ITU is called IMT-2000. The aim of the group was to evolve today’s circuit-switched core network to support new spectrum allocations and higher bandwidth capability. Over 85%of the world’s network operators have chosen 3G as the underlying technology platform to deliver theirthird-generation services (GSM, 2004b). The implementation of the third generation of mobile systemshas experienced delays in the launch of services. There are various reasons for the delayed launch,ranging from device limitations, application and network related technical problems and lack ofdemand. A significant factor in the delayed launch that is frequently discussed in the telecommunicationliterature (Klemperer, 2002; Maitland, Bauer & Westervelds, 2002; Melody, 2000) is the extortionate feepaid for the 3G-spectrum license in Europe during the auction process. Most Technical problems alongwith device shortage have been overcome, but there are still financial challenges to be addressedcaused by the high start-up costs and the lack of a subscriber base due to the market saturation in manyof the countries launching 3G.GSM vs. CDMA GSM and CDMA are the two main competing network technologies deployed by cellularservice provider’s world over. GSM (Global System for Mobile Communications) originated in Europe in1990. The GSM Associations an international organization founded in 1987, dedicated to developing,providing and overseeing the worldwide wireless standard of GSM While CDMA (Code Division MultipleAccess)is a proprietary standard designed by Qualcomm Inc in United States and has been the dominantnetwork standard for North America and parts of Asia. It became an international standard in1995.However now, GSM networks have penetrated the United States and the CDMA networks havespread in other parts of the world. People of both the camps claim that their architecture issuer or tothe other.RESTRAINTS ON TELECOM SECTOR  Sluggish pace of reform process
  • 16.  Lack of infrastructure in semi-rural and rural areas, which make sit difficult to make inroads into this market segment Limited Spectrum availability