TELECOM INDUSTRY IN INDIA Presented By:Submitted To:Dr. Sandhir Sharma Group 10Chitkara Business School Gagandeep Singh Mohit Sharma Aman Mahajan Karun Sharma Kanika Dhawan Ashima Gupta
Well Postal means of communication wasthe only mean communication until theyear 1850. In 1850 experimental electric TELECOM INDUSTRYtelegraph started for first time in Indiabetween Calcutta (Kolkata) and DiamondIN INDIAHarbor (southern suburbs of Kolkata, onthe banks of the Hooghly River).In 1851, it was opened for the use of theBritish East India Company. Subsequentlyconstruction of telegraph started throughout India. A separate department wasopened to the public in 1854. Dr.WilliamO’Shaughnessy, who pioneered thetelegraph and telephone in India.
ESTABLISHMENT 1851 First operational landlines were laid by government near Calcutta 1881 Telephone services introduced into India. 1883 Merger with postal system. 1923 Indian radio telegraph company formed. 1932 Merger of ETC and IRT Indian radio and cable communication company
CONT.. 1947 Nationalization of foreign telecom companies to form posts, telephone & telegraph. 1985 Department of telecommunication established. 1986 Conversion of DOT into two wholly state owned companies VSNL for international telecommunications & MTNL for service & metropolitan areas. 1994 National telecom policy created with a motto
CONT.. 1995 Entry of GSM in india triggering telecom revolution. BPL mobile services launched. 1997 Telecom regulatory authority of india formed in January. 1999 NTP-99. national telecom policy with reformed goals set. 2000
CONT.. 2005 ILD & NLD annual license fees reduced from 15% to 6%. 2008 3G guidelines issued, spectrum allocation through auction, foreign players allowed to bid. 2009 TRAI announces rules & regulations to be followed for mobile number portability.
MAJOR PLAYERS OF TELECOMINDUSTRY & YEAR OF ESTABLISHMENT1) Bharti airtel-19852) BSNL-20003) Vodafone Essar-20074) Reliance communications-19995) Idea cellular-19956) Tata communications-19867) Tata teleservices-19968) Aircel-19999) MTNL-198610) TTML-1998
CONTD. Bharti Airtel is holding the lead position in India by recording a five per cent growth in the year 2011. The company is dealing with four major categories namely digital television, enterprise, telemedia and mobile. BSNL or Bharat Sanchar Nigam Limited is the oldest player in the telecom sector in India and they hold the pride of being the first to connect even remote villages through their telephone service. Vodafone Essar began its operations in the year 1994 and the company has operations all over India with more than 106.34 million customers.
CONTD. Idea Cellular is a part of Aditya Birla Group and they are the leading GSM Mobile service provider in India. They are offering both pre-paid and post paid mobile service. Tata Communications influence its domain expertise and advanced solutions across India and global network, with connectivity to more than 400 PoPs & 200 countries. Tata Teleservices hold the pride of being the first
CONTD. Aircel have earned the status of the leading mobile operator in the state of Tamil Nadu in India. The company has emerged as leader in the North Easter states of India within a short period of its launching. Mahanagar Telephone Nigam Limited or MTNL has grabbed a customer base of 8.06 million in Mumbai and Delhi. They have become the leaders in technology induction by converting its telephone exchange network into digital mode. TTML is another telecommunication company under the Tate group. The company has more than 6 lakh
TELECOM COMPANIES MARKETSHARE IN INDIA AS OF AUGUST2011
TELECOM COMPANIES MARKET SHARE ININDIA AS IN AUGUST Name of Total Sub Additions in % Market Sl. No. Company Figures Aug Share Bharti 171,846, 1 1,150,298 28.09% Airtel 824 Vodafon 144,144, 2 1,133,024 23.56% e Essar 031 98,441,7 3 IDEA 2,330,239 16.09% 14 90,622,2 4 BSNL 388,057 14.81% 19 59,191,6 5 Aircel 602,312 9.68% 61 27,738,1 6 Uninor 349,488 4.53% 54
MARKET LEADER As we see the above there are four major companies in telecom industry. Airtel, Reliance, Vodafone, Idea and BSNL. Airtel is a market leader with 28.09% market share and Vodafone on the 2nd place with 23.56% market share.
CHALLENGES FACED BY TELECOMINDUSTRY Unlike many countries where the allocation of spectrum is separate from the grant of license to provide service, in India licenses are still bundled with the allotment of a certain amount of spectrum. Limited spectrum availability and interconnection charges between the private and state operators.
CONTD. Lack of infrastructure in semi-rural and rural areas, which makes it difficult to make inroads into this market segment as service providers have to incur a huge initial fixed cost. One of the major challenge is the absence of a uniform approval process across the country for setting up telecom towers and other infrastructure.
CONTD. Multiple levies and high taxes on the set up of mobile towers. lack of reliable power for telecom towers and higher tariffs on telecom sites. This increases the dependence on diesel- fueled power sources, which is considered expensive and more harmful to the environment. Low penetration.
The prepaid services were terminated by DoT during September 2009 which was subsequently allowed in January 2010 on condition that all prepaid subscribers will be reverified by the operators. For new customers the guidelines have been further strengthened. Prepaid services in J&K and North East and Assam are renewed on yearly basis. The launch of 3G operations require huge funds for spectrum fee and also for network
IMPACT OF GLOBAL CRISIS As we know world economy is fighting with economic slow down. It seems something special about the telecom industry which renders it partially immune to the worst effect of the down turn. Total base of connection in world is 3.2 bln. Quarterly 3, 2011 Anticipated 177 million connection world wide but it could not cross 160 million mark.
CONTD. There is less impact of global crisis on Indian telecom industry as India became the 1st country in the world to have 10.4 million new connections in a month.