Indian Telecom industry and its current status and future development plans, economic contribution , swot analyses.

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INDIAN TELECOM
INDUSTRY

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1. Introduction
2. Economic Contribution
3. Major Players
4. Govt. Rules & Regulations
5. SWOT Analysis
6. Suggestions & Conclusions
CONTENTS

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• Postal means of communication was the
only mean communication until the year
1850.
• In 1850 experimental electric telegraph
started for first time in India between
Calcutta (Kolkata) and Diamond Harbor
(southern suburbs of Kolkata, on the banks
of the Hooghly River).
•In 1851, it was opened for the use of the
British East India Company.
Subsequently construction of telegraph
started through out India. A separate
department was opened to the public in
1854.
Postmen running
with postalarticles
1850'spicturecalled
“dawk wallah”
O'Shaughnessy's
Indian "Reverser" or
Transmitter 1851

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•Dr.William O’Shaughnessy, who pioneered
the telegraph and telephone in India,
•In early1881, Oriental Telephone Company
Limited of England opened telephone
exchanges at Calcutta (Kolkata), Bombay
(Mumbai), Madras (Chennai) and Ahmedabad.
•On the 28th January 1882 the first formal
telephone service was established with a total
of 93 subscribers.
•From the year 1902 India drastically changes
from cable telegraph to wireless telegraph,
radio telegraph, radio telephone, trunk
dialing.
Dr. Williams
O’shaughnessy

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136 years since the first telephone call
136 years since the first
telephone call

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•Driven by wireless revolution, the Indian
telecommunications industry is one of the fastest
growing in the world.
•According to TRAI's report 'Telecom Sector in India: A
Decadal Profile', the tele-density has increased from 4.3
in March 2002 to 78.1 in February 2012.
•The share of telecommunication services (excluding
postal and miscellaneous services), as per cent of the
total gross domestic product (GDP), has increased
from 0.96 in 2000-01 to 3.78 in 2009 -10.
•Wherein the rural areas registered an increase from 1.2
in March 2002 to 38.5 in February 2012.

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•According to the same report, international
comparisons (among 222 countries) show
that India has the second largest number of
telephone subscribers in the world
accounting for 12 per cent of the world's total
telephone subscribers.
•India is today one of the largest telecom
markets in the world, with an addition of
more than 18 million subscribers every
month.
• Telecom sector has continued to emerge as
the prime engine of economic growth,
contributing to nearly 2% of the Indian GDP.

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GSM Services Operators
TTSL
Reliance
BSNL
TTSL – Tata Teleservices Ltd.MTNL – Mahanagar Telecom Nigam Ltd.
BSNL
MTNL
RELIANCE
COMM.
TTSL
BHARTI
AIRTEL
IDEA
VODAFONE
UNINOR
MTS
TATA
DOCOMO
AIRCEL

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MARKET COVER
(wire line)
MARKET COVER
(wireless)

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•The Government of India is focusing on improving rural tele-
density and broadband connectivity, effective expansion of the
networks with efficient utilization of scarce spectrum and ensuring
equal sharing of highly capital intensive infrastructure.
•TRAI, the telecom sector regulator, intends to create standards to
ensure quality of service for mobile phone companies which
deliver mobile data services to the users.
•TRAI has created nine parameters benchmarks including service
activation clause (that the service would be activated within three
hours with a 95 per cent success rate), drop rate (or the network's
inability to upload or download, should be below 2 per cent) etc.
•Considering the fact that roll out of 3G and 4G high-speed data
access services across the country will lead to quantum jump in
the number of mobile internet users.

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STRENGTH
1. Huge Customer potential
2. High Growth Rate:-
3. Allowed FDI limit ranging from 74% to 100:-
4. High return on Investment
5. Liberalization efforts by Govt.
6. Lower capital expenditure
7. Fastest growing telecom market
8. Forward looking approach of the government
9. Fast adaption of technology development i.e MNP, NGN,
3G,Broadband Wireless Access(BWA) & IPv6etc.
10. Establishment of decentralize unit of DoT like , Controller
of Communication Account (CCA) and telecom
Enforcement, Resource and Monitoring (TERM) Units
etc.

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WEAKNESS
1. Poor Telecommunication Infrastructure
Result : Large number of call drops
2. Late adopters of New Technology
3. Most competitive market
4. A market strongly regulated by Government
5. Difficult to enter because of requirement of huge
financial resources.
6. High cost of data hosting in India
7. Low profitability of telecom PSU’s
8. Low broadband penetration in the country
9. Comparatively slower growth of telecom services in
rural /remote areas.
10.Non availabilty of adequate spectrum

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OPPORTUNITY
1. The industry is expected to reach a size of
344,921 Crore (US$ 68.81 billion) by 2012 at a
growth rate of over 26 per cent, and generate
employment opportunities for about 10 million
people during the same period.
2. For developing a new comprehensive Telecom
Policy.
3. For accelerating the growth of Tele-density in
the country.
4. For creation of telecom infrastructure in rural
and remote areas by utilization of the USO
funds.
5. For huge broadband potential in the country.
6. For R&D, product development and

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1. Non availability of adequate spectrum for
telecom services.
2. Dependence on foreign telecom equipments
supplier.
3. Cyber threats on ICT networks, leading to
security concerns.
4. Obsolesce of existing network elements due
to fast changing telecom technologies.
Source : www.dot.gov.in
THREATS:

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LATEST SCENERIO 2012
•The telecom tower industry has been granted infrastructure
status by the Government of India, say news reports.
•According to TRAI, he telecom subscriber base in the country
increased from 951.34 million in March, 2012 to 965.52 million in
June, 2012. Subscriber additions from rural areas constituted a
large portion of this growth. Between March and June 2012, the
rural areas contributed to about 91.30 per cent of the total
additions to the country’s subscriber base.
As per TRAI data the gross revenue and adjusted gross revenue
of the telecom sector increased from
Rs 35.49 billion in previous quarter to Rs 52.51 billion for the
quarter ended June, 2012.
Aircel has entered a strategic partnership with NEC for software
as a service (SaaS). Aircel and NEC will be providing cloud
services solutions to customers under the brand name Business
Unplugged.

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•Bharti Airtel has made an investment of $150 million in its African operations,
say news reports.
• 6th National Telecom Awards 2012:
Best Broadband & Fixed Line Operator Bharat Sanchar Nigam Ltd.
•Best Quality Mobile Network Services Provider Bharti Airtel Ltd.
Ranking as per their total customer across the country.
1. bharti airtel -256 million customers.
2. reliance -150 million customers
3. idea cellular- 117 millions customer
Contd.

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Finding and suggestions
FINDINGS
1.Reducing the product and service
price.
2.New advertisement campaign.
3.Pressurizing the government to
make the policy tough for new
competitors.
4.New offer for current customer in
terms of price and service.
SUGGESTIONS
1. Since tele-density is still around
21% therefore telecom companies
have to try to those market which is
still untapped by the other telecom
companies.
2. Keep their technology up to date so
that they should always offer
something new to their existing
customer and also new customer.
3. Should provide better customer
service through better customer
relation so that old customer doesn't
left.
Source : www.ibef.org

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References:
1. http://www.telecomindiaonline.com/cmai-association-of-india-announced-the-
prestigious-6th-national-telecom-awards-2012.html
2. www.Ibef.org
3. www.trai.gov.in/