Indian Telecom Industry Presentation 060109

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Indian Telecom Industry Presentation (January 6, 2009)

Indian Telecom Industry Presentation (January 6, 2009)

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  • 1. T e l e c o m m u n i c aT i o n s December 2008 www.ibef.org
  • 2. Te l e c o m i n D u sT Ry ov e Rview December 2008 contents • Telecom industry overview • Telecom an investment attracting sector • Regulatory Framework and its impact • emerging Trends in Telecom market • major Players in Telecom sector • Growth avenues  www.ibef.org
  • 3. Telecom inDusTRy oveRview www.ibef.org 
  • 4. Te l e c o m i n D u sT Ry ov e Rview December 2008 indian Telecom industry – a lucrative option Facts • Total telecom subscribers – 325.79 million (June 2008) • Tele density – 28.33 per cent (June 2008) • Quarterly addition of mobile subscribers (april–June 2008) – 25.80 million • Telecom subscribers annual growth rate (2007–08) – 44.79 per cent • one of the biggest telecom markets in the world • average Revenue Per user (aRPu) for Gsm (June 2008) – us$ 5.6 Source: Exchange rate as on 30 June 2008; Average exchange rate for the year 2007–08; Voice&Data;  www.ibef.org
  • 5. Te l e c o m i n D u sT Ry ov e Rview December 2008 indian Telecom industry – a lucrative option Facts • more Gsm subscribers than fixed line subscribers • Telecom equipment market (2007–08) – us$ 23,699 million • Handset market (2007–08) – us$ 5,962 million • expected mobile subscriber base (2010) – about 500 million (i.e., more than one phone for every household) Source: Exchange rate as on 30 June 2008; Average exchange rate for the year 2007–08; Voice&Data;  www.ibef.org
  • 6. Te l e c o m i n D u sT Ry ov e Rview December 2008 Telephony services (mobile and basic) and internet services dominate the indian telecom services • The indian telecom industry generated revenues Revenues of indian Telecom industry: 2002-10 of approximately us$ 32 billion in 2007–08 with a 2009-10 (e) 43 2006-07 growth rate of 60 per cent in 2007–08 over 2006–07. 20 2005-06 15 • it witnessed a caGR of approximately 29 per cent 11 2004-05 from 2002–03 to 2007–08. 10 2003-04 9 2002-03 • The caGR is expected to stabilise at 16 per cent 0 10 20 30 40 50 between 2007–08 and 2009–10. us$ billion Sources: Average exchange rate for the year 2007–08; TRAI Report  www.ibef.org
  • 7. Te l e c o m i n D u sT Ry ov e Rview December 2008 Telephony services (mobile and basic) and internet services dominate the indian telecom services • indian telecom services sector can be divided Telecom services in india predominantly into basic, mobile and internet Internet PMRTS services. it also comprises smaller segments, such as VSATs radio paging services,very small aperture Terminals Radio Paging GMPCS (vsaTs), Public mobile Radio Trunked services Basic Services (PmRTs) and Global mobile Personal communications Mobile Services by satellite (GmPcs). • The mobile services in india are growing more than basic wireline services. Source:TRAI  www.ibef.org
  • 8. Te l e c o m i n D u sT Ry ov e Rview December 2008 Private players account for highest subscriber base growth in the basic telephony services segment Basic Services market share of Basic services segments in india (2007–08) • Basic services include fixed wireline and wireless in local loop (wll-fixed). 12% • Fixed wireline services hold a major market share of 88 per cent in basic services. 88% n Fixed n WLL (F) Source:TRAI  www.ibef.org
  • 9. Te l e c o m i n D u sT Ry ov e Rview December 2008 Private players account for highest subscriber base growth in the basic telephony services segment • Government-owned Bharat sanchar nigam ltd. market share of wireline service operators in india (2007–08) (Bsnl) and mahanagar Telephone nigam ltd. (mTnl) are the two largest operators in the wire line 79 Bsnl 82 segment, whereas Bharti airtel ltd. is the leader in wireless segment. 9 mTnl 9 • mTnl has presence in Delhi and mumbai, whereas other 11 Private Bsnl covers the rest of the country. 9 Players 0 10 20 30 40 50 60 70 80 90 • Though private players, such as Bharti airtel and Percentage n As of 30 June, 2007 n As of 30 June, 2008 Reliance, have registered notable growth, Bsnl still dominates the segment in terms of wire line subscriber base. Source:TRAI  www.ibef.org
  • 10. Te l e c o m i n D u sT Ry ov e Rview December 2008 Reduction in tariffs have led to a constant reduction in the average Revenue Per user (aRPu). The gradual decline in aRPu, remains well supported by the increase in subscriber base. • The aRPu for Gsm service in india is much higher aRPu in india 10 than that for cDma service. The aRPu per month us$ per month 7.1 6.6 6.6 6.5 8 5.7 for Gsm services has declined from us$ 7.1 in June 6 4.9 4 4.4 2007 to us$ 5.6 in June 2008, while that for cDma 4.1 3.9 3.3 2 services have fallen from us$ 4.9 to us$ 3.2 during 0 Q2’07 Q3’07 Q4’07 Q1’08 Q2’08 the same period. Gsm cDma • The minutes of usage (mou) for Gsm has been rising as compared to that for cDma. The mous for cDma mou per subscriber per month in india service has declined from 462 in June 2007 to 354 in 600 505 mou (per subscriber per month) 493 464 June 2008, whereas that for Gsm has increased from 476 462 500 400 462 476 to 505 during the same period. 413 375 354 364 300 200 100 0 Q2’07 Q3’07 Q4’07 Q1’08 Q2’08 Gsm cDma Source: TRAI Report; and exchange rate as on 30 June 2007 and 30 June 2008, respectively 10 www.ibef.org
  • 11. Te l e c o m i n D u sT Ry ov e Rview December 2008 The mobile subscriber base in india is likely to reach 500 million by 2010. • The subscriber base grew to 325.79 millions on June Telecom subscriber Base in india 2008, registering a growth of approximately 45 per 2008 325.79 cent over last year. The subscriber base grew at a 2007 225.01 caGR of 43.6 per cent from June 2004 to June 08. 2006 153.42 104.22 2005 • Teledensity in india is still low in india as compared 76.53 2004 to that in some countries. as on June 2008, india had 0 50 100 150 200 250 300 350 a teledensity of 28.33 per cent as compared to the subscribers in million previous year’s figure of 19.86 per cent. Teledensity in india 30 28.33 25 19.86 Per cent 20 13.96 15 9.61 10 7.04 5 0 2004 2005 2006 2007 2008 Source:TRAI 11 www.ibef.org
  • 12. Te l e c o m i n D u sT Ry ov e Rview December 2008 Private players account for highest subscriber base growth in the basic telephony services segment • wireless services have led to a significant growth market share* of wireless** operators in india (as of June 2008) in the indian telecom industry. • currently, there are 12 players–Bharti airtel,vodafone, 1% 2% 1% Reliance, Tata Teleservices, idea, aircel, spice, Bsnl, 4% 24% mTnl, BPl, HFcl and shyam Telelink–active in 9% this segment. 9% • as compared with 2006–07, the subscriber base of most wireless service providers has increased leading to an increase in their revenues. 18% 15% • The subscriber base of Bharti airtel, a leader in this 17% market, increased from 42.70 million in 2006–07 to 69.38 million in 2007–08, followed by Reliance (50.79 n n Reliance n Voda fone Bharti million subscribers) and vodafone (49.20 million n n Idea n TATA BSNL n n Spice n MTNL Aircel subscribers). n Others Source:TRAI 1 www.ibef.org
  • 13. Te l e c o m i n D u sT Ry ov e Rview December 2008 india is one of the few countries in the world to have more Gsm subscribers than fixed-line subscribers. Gsm preferred to cDma segment by a large margin in indian mobile service market share (as on June 2008) terms of subscriber numbers. 26% 74% n CDMA n GSM Source:TRAI 1 www.ibef.org
  • 14. Te l e c o m i n D u sT Ry ov e Rview December 2008 Gsm preferred to cDma in number of additions to subscriber base • Bharti airtel has the largest market share in the Gsm segment. During 2007–08, out of the total subscriber base of 212.51 million, the private players accounted for more than 80 per cent, whereas, the public sector operators (Bsnl and mTnl) accounted for the remaining share (20 per cent). • Reliance communications dominates the indian cDma mobile services segment with a subscriber base of 42.71 million. market share Gsm service Providers market share cDma service Providers (as on June 2008) (as of June 2008) 0.38% 0.45% 0.15% 1% 2% 6.17% 2% 4% 6% 32.65% 13% 35.41% 57.44% 18% 23.5% n Bharti Airtel n Vodafone n BSNL n Reliance n Tata Teleservices n BSNL n Idea n Aircel n Reliance n MTNL n HFCL n Shyam Telelink n Spice n MTNL n BPL Source:TRAI 1 www.ibef.org
  • 15. Te l e c o m i n D u sT Ry ov e Rview December 2008 various other services emerged by leveraging the telecom services industry Radio Paging Services Radio paging services were launched in india in 1995. These services, however, could not compete well with cellular services in general and sms technology in particular and is shrinking continuously. at present, all but four radio paging service providers have been marginalised in the indian market. Very Small Aperture Terminals (VSATs) at present, there are 9 vsaT service providers in india including Bsnl, Bharti airtel, Hughes communication and Hcl comnet. The number of subscribers of vsaT services increased on a quarterly basis by 8,473 to 89,868 in June 2008. The market for vsaT services registered a 10.41 per cent growth for the quarter ending June 2008. Hughes communication is the market leader, with a market share of 30 per cent, followed by Hcl comnet with 27 per cent. Source:TRAI 1 www.ibef.org
  • 16. Te l e c o m i n D u sT Ry ov e Rview December 2008 various other services emerged by leveraging the telecom services industry Public Mobile Radio Trunked Services (PMRTS) PmRTs services have been showing a negative growth. PmRTs’ subscriber base decreased by 2.99 per cent during the quarter ending June 2008. High license fee for this service leaves low margin for services providers, thereby inhibiting its growth. in india, 12 operators are offering this service to total of more than 35,000 subscribers. Global Mobile Personal Communication by Satellite (GMPCS) GmPcs2 services were launched in india in 1999. These services allow a subscriber to communicate with others from any point on earth through a hand-held terminal. moreover, the telephone number remains unchanged, irrespective of the subscriber’s location. iridium india Telecom limited is the pioneer in GmPcs services in india. The Government of india has restricted foreign equity participation in this segment to 74 per cent. Source:TRAI 1 www.ibef.org
  • 17. Te l e c o m i n D u sT Ry ov e Rview December 2008 Despite a slow penetration rate, internet services segment embodies huge growth potential in india • in india, there has also been significant growth in the internet subscribers: 2000-2008 subscriber base for wireless internet, which stood 14 internet subscriber (in million) at 75.97 million for the year 2007–08 with mobile 11.66 12 9.22 10 internet penetration at 1.8 per cent. more than 56 per 8 6.94 cent of indian mobile subscribers own a web-enabled 6 5.55 4.55 3.64 3.42 3.04 4 handset at present. 2 0 • The total number of internet subscribers increased at 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 a caGR of approximately 21.17 per cent from 2000– 01 to 2007–08. Source:TRAI 1 www.ibef.org
  • 18. Te l e c o m i n D u sT Ry ov e Rview December 2008 Despite a slow penetration rate, internet services segment embodies huge growth potential in india • The total number of internet subscribers grew from Top Five internet service Providers by market share (as on June 2008) 9.22 million in June 2007 to 11.66 million in June 2008, primarily attributed to an increase in broadband 4.84% subscriber base from 2.42 million in June 2007 to 4.38 7.07% million at the end of June 2008. 7.47% • Bsnl is the biggest player in this market with 5.94 million subscribers, followed by mTnl, Bharti airtel, 50.96% Reliance and sify Technologies. 16.49% • internet services can also be accessed through mobile phones (cDma and Gsm). Bharti airtel is the leader in wireless internet operators with a market share of approximately 24 per cent. n BSNL n MTNL n Bharti Airtel n Reliance n Sify Source:TRAI 1 www.ibef.org
  • 19. Te l e c o m i n D u sT Ry ov e Rview December 2008 The sales for Gsm-based handsets have been growing in india as compared to cDma-based handsets • The handset market in india, consisting of mobile and mobile Handset market in india fixed handsets, registered a growth of 33 per cent with 2007-08 5,761 the sales volume of 95.6 million over 2007–08. 2006-07 4,750 2005-06 3,231 • The expansion of wireless networks and an increase in 2004-05 1,966 subscriber base, both in urban and rural areas, led to a 2003-04 1,610 boost in the sale of mobile handsets across india. The 0 1,000 2,000 3,000 4,000 5,000 6,000 mobile handsets sale grew by 12 per cent and that of value us$ million fixed handsets declined by 41 per cent over 2007–08. • out of the total number of handsets sold in 2007–08, 68.3 million were based on Gsm technology and the remaining (27.3 million) on cDma. The sales for Gsm handsets grew by 34 per cent as compared to 28 per cent for cDma phones. Source:VoicenData.com,TRAI 1 www.ibef.org
  • 20. Te l e c o m i n D u sT Ry ov e Rview December 2008 nokia, sony ericsson, samsung, and Reliance mobile phones are most popular across the country • nokia continues to dominate the handsets market. market share of Gsm and cDma Handset manufacturers: 2006–07 its market share increased from 53.6 per cent in 1.20% 1.00% 2006–07 to 62.5 per cent in 2007–08. sony ericsson has the second highest market share (12.8 per cent) 3.50% 5.00% in 2007–08. 6.20% • lG, motorola, ZTe and Haier witnessed a decline in 6.20% their market share in 2007–08 as compared to that in 62.50% 2006–07. 12.80% n Nokia n Sony Ericsson n Samsung n LG n Motorola n ZTE n Huawei n Haier n Others Source:Voice & Data 0 www.ibef.org
  • 21. Telecom – an iDeal invesTmenT secToR www.ibef.org 1
  • 22. Te l e c o m – i n v e sT m e n T aTTR ac Tin G s ec ToR December 2008 india – an ideal investment Destination • world’s largest democracy • independent judiciary • skilled and competitive labour force • Fifth-largest telecom network in the world; second- largest among the emerging economies after china • on an average, approximately 8 million users are added per month, making india the world’s fastest growing wireless services market • liberal Foreign investment Regime: FDi limit increased from 49 per cent to 74 per cent; the rural telecom equipment market also open to large investments • among the countries offering the highest rates of return on investment Source:TRAI  www.ibef.org
  • 23. Te l e c o m – i n v e sT m e n T aTTR ac Tin G s ec ToR December 2008 india – an ideal investment Destination • The large untapped potential in india’s rural markets revealed by 9.21 per cent teledensity in rural markets as compared to the national level of 28 per cent. • The government promoting telecom manufacturing by providing tax sops and establishing telecom-specific special economic Zones • Fully repatriable dividend income and capital invested in telecom equipment manufacturing Source:TRAI  www.ibef.org
  • 24. Te l e c o m – i n v e sT m e n T aTTR ac Tin G s ec ToR December 2008 since india’s telecom sector trails that of other asian economies by about 10 years, growth is a certainty. • india is currently the second-largest mobile market in Proposed investments By Telecom companies the world in terms of mobile subscribers. in india (us$ Billion) • The indian telecom market generated revenues of BSNL 1.3 Idea 2.4 approximately us$ 32 billion in 2007–08. Further, Reliance 5.7 the industry is expected to register a caGR of Aircel 5 approximately 16 per cent from 2007-08 to 2009–10 Quippo Telecom Infrastructure 3 (QTIL) and scale to us$ 43 billion by 2010. Vodafone 6 • it is also expected that by 2012, fixed line revenues will reach us$ 12.2 billion and mobile revenues will reach us$ 39.8 billion. • several foreign companies are making large investments in india.. Source:TRAI  www.ibef.org
  • 25. ReGulaToRy FRamewoRk anD iTs imPacT www.ibef.org 
  • 26. ReG u l aTo Ry F Ra m e wo R k anD i T s i mPac T December 2008 Regulatory framework provides level-playing field for all operators • The Department of Telecommunications (DoT) of the Government of india is the main governing body for the industry • Telecom Regulatory authority of india (TRai) assists the Government of india to take timely decisions and introduce new technologies • The Telecom Disputes settlement and appellate Tribunal (TDsaT) was also established in the same year. Source: Regulate Online, Fitch Report and TRAI  www.ibef.org
  • 27. ReG u l aTo Ry F Ra m e wo R k anD i T s i mPac T December 2008 Indian Telecom Industry Framework WPC spectrum management TRAI independent Regulator DoT indian Telecom licensor and Frequency industry management for Telecom Framework TDSAT Disputes settlement Body GoT–IT Handles ad–hoc issues Integrated Fixed Line Private CDMA GSM Operators ILD Players Bsnl Reliance Hutch/vodafoneairtel/ vsnl TTsl Bhartiidea/spice mTnl Source: Regulate Online, Fitch Report and TRAI  www.ibef.org
  • 28. ReG u l aTo Ry F Ra m e wo R k anD i T s i mPac T Regulatory framework provides level-playing field for all operators Unified Access Licensing Regime (UALR) The establishment of the ualR (2003) eliminated the need for separate licences for different services. This regime allowed players to offer both mobile and fixed-line services under a single licence after paying an additional entry fee. The regime does not take into account the national and international long-distance services and internet access services. Between February and march 2008, DoT granted 120 new licences to provide unified access services to various companies, including Datacom solutions Pvt. ltd., aska Projects ltd., swan Telecom Pvt. ltd., loop Telecom Pvt. ltd. and s Tel ltd.  www.ibef.org
  • 29. ReG u l aTo u i c aTi o n Te l e c o m mRynF Ra m e wo R k anD i T s i mPac T December 2008 Regulatory framework provides level-playing field for all operators Universal Service Obligations (USO) The uso policy was implemented along with nTP ’99 to widen the reach of telephony services in rural india. all telecom operators are bound to contribute five per cent of their revenues to this fund. This system was put in place to bridge the wide gap between urban and rural teledensity, bringing it down from the current 31 per cent. initially, only basic service providers were under the purview of uso. later, its scope was expanded to include mobile services also. although it increases the cost burden for telecom companies, uso helps in building the telecommunication infrastructure in rural areas.  www.ibef.org
  • 30. ReG u l aTo Ry F Ra m e wo R k anD i T s i mPac T December 2008 important regulations and their impact on the indian telecom industry Unified Access Service License Regime (UASL) impact of Policy change on indian Telecom industry 16 250 cellular tariff (cents per minute) • The establishment of the ualR (2003) eliminated number of subscribers (million) 200 12 the need for separate licences for different services. 150 Telecom 8 Tariff order This regime allowed players to offer both mobile and 100 wll uasl wll 4 Removal of aDc cPP fixed-line services under a single licence after paying 50 lowering of aDc nTP’99 0 0 an additional entry fee. The regime does not take into 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 account the national and international long-distance Total cellular subscribers cellular Tariff services and internet access services. • Between February and march 2008, DoT granted 120 new licences to provide unified access services to various companies, including Datacom solutions Pvt. ltd., aska Projects ltd., swan Telecom Pvt. ltd., loop Telecom Pvt. ltd. and s Tel ltd.universal service obligation (uso) Source: Regulate Online, Fitch Report and TRAI 0 www.ibef.org
  • 31. Te l e c o m m u n i c aTi o n December 2008 important regulations and their impact on the indian telecom industry Universal Service Obligations (USO) The uso policy was implemented along with nTP ’99 to widen the reach of telephony services in rural india. all telecom operators are bound to contribute five per cent of their revenues to this fund. This system was put in place to bridge the wide gap between urban and rural teledensity, bringing it down from the current 31 per cent. initially, only basic service providers were under the purview of uso. later, its scope was expanded to include mobile services also. although it increases the cost burden for telecom companies, uso helps in building the telecommunication infrastructure in rural areas. 1 www.ibef.org
  • 32. ReG u l aTo Ry F Ra m e wo R k anD i T s i mPac T December 2008 important regulations and laws passed DoT is the main body formulating laws and regulations for the indian telecom industry. ilD services intra-circle were opened to merger guidelines measures to number Bsnl was competition Private players independent were established boost rural portability established were allowed regulator, TRai, calling Party telephony was proposed by DoT Go-ahead in value added was established Pays (cPP) was (pending) to cDma services implemented technology 1994 1999 2002 2003 2004 2005 2008 internet 1992 1997 2000 2006 telephony unified access initiated Broadband Policy 2004 licensing (uasl) Reduction 3G policy was formulated— national regime was nTP-99 led FDi limit was of license announced, targeting 20 million Telecom introduced to migration subscribers by 2010 increased from 49 fees spectrum Policy from high-cost to 74 per cent auction Reference (nTP) was fixed licence awaited interconnect formulated fee to low- order was cost revenue issued sharing regime Source: TRAI; 2) Fitch Report ilD-international long Distance  www.ibef.org
  • 33. key TRenDs in THe Telecom inDusTRy www.ibef.org 
  • 34. em eR Gi nG T R e nD s i n T e l e com maRkeT December 2008 meRGeRs anD acQuisiTions (m&a) The market is witnessing several m&a activities that Recent Mergers and Acquisitions in the Indian are resulting in consolidations in the industry. This trend Telecom Industry has assisted companies in expanding their reach in Etisalat – Swan Telecom the indian telecom market to offer better services to emirates Telecommunications corp. acquired 45 per customers. cent stake in swan Telecom Pvt. ltd. by paying us$ 900 million. NTT DoCoMo – Tata Teleservices nTT Docomo, the Japanese phone company bought 26 per cent stake in Tata Teleservices by paying us$ 2.7 billion. RCom – Yipes Holdings Reliance communications ltd. acquired us-based yipes Holdings inc., a leading provider of ethernet services in us for us$ 300 million. Idea – Spice idea cellular acquired 48.2 per cent stake in spice communications in order to expand its services in Punjab. Source:TRAI and Grant Thornton India  www.ibef.org
  • 35. em eR Gi nG T R e nD s i n T e l e com maRkeT December 2008 FDi in the indian Telecom sector The indian government allows FDi of up to 74 per cent, FDi in Telecommunication sector subject to licensing and security requirements, in the 2008-09 (till July 08) 315 following categories: 2007-08 1261 2006-07 478 • Basic and cellular services 2005-06 624 • national/international long distance 2004-05 129 2003-04 116 • value-added services such as PmRTs and GmPcs 0 300 600 900 1200 1500 • Radio paging service us$ million • internet services (providing service gateway) • infrastructure providers (category-ii) Source:TRAI and Grant Thornton India  www.ibef.org
  • 36. em eR Gi nG T R e nD s i n T e l e com maRkeT December 2008 FDi in the indian Telecom sector The indian government allows FDi of up to 100 per cent in the following categories: • manufacturing of telecom equipment • internet services (not providing international gateways) • infrastructure providers providing dark fibre, right of way, duct space, tower (iP category-i) • electronic mail • voice mail Source:TRAI and Grant Thornton India  www.ibef.org
  • 37. GRowTH avenues www.ibef.org 
  • 38. GRowT H av e n u e s December 2008 india presents a host of opportunities for telecom companies G Services enterprise 3G Telecom services The indian government plans to auction the spectrum for 3G services by inviting bids from domestic as well wimaX Rural Telephony as foreign players. The 3G spectrum is among the major Growth avenues investment opportunities and is expected to attract infrastructure value added sharing services investments worth us$ 8–10 billion during 2008–11. virtual Private managed network services international and foreign players can enter this segment through joint-ventures with indian companies with a stake of not more than 74 per cent. They will also have to pay an additional entry fee of us$ 328 million to acquire unified services access licence (usal). companies such as aT&T and nTT Docomo are planning to enter in this sector. Source:TRAI, CII-Yankee Study  www.ibef.org
  • 39. GRowT H av e n u e s December 2008 india presents a host of opportunities for telecom companies Worldwide Interoperability for Microwave Access (WiMax) wimax has been one of the most significant developments in wireless communication in the recent past. since this mode of communication provides network access in inaccessible terrains at a speed of more than 4 mbps, it is expected to be a major factor in driving telecom services in india, especially the wireless services. Thus, it will lead to the increased use of telecom services, internet, value added services and enterprise services. Source:TRAI, CII-Yankee Study  www.ibef.org
  • 40. GRowT H av e n u e s December 2008 india presents a host of opportunities for telecom companies Managed Service managed service is another segment that is attracting telecom companies. on account of the rapidly growing subscriber base, service providers find it difficult to manage their infrastructure and network. in such cases, they completely or partially outsource their infrastructure or network management operations. Virtual Private Network virtual Private network is a private data network that provides connectivity within closed user groups (cuG) via public telecommunication infrastructure. it is similar to leasing/owning lines and yet getting exclusive access. Source:TRAI, CII-Yankee Study 0 www.ibef.org
  • 41. GRowT H av e n u e s December 2008 india presents a host of opportunities for telecom companies Enterprise Telecom Services Telecom service providers are increasingly targeting enterprises by providing them dedicated services. some of the key services include voiP, dedicated telecom communication systems; iT infrastructure-enabled unified communication services, etc. This segment is expected to witness major developments as the demand for enhanced telecom infrastructure is increasing along with the growth in the information and communication technology (icT) industry. Source:TRAI, CII-Yankee Study 1 www.ibef.org
  • 42. GRowT H av e n u e s December 2008 india presents a host of opportunities for telecom companies Value-Added Services value-added services in india (2007–08) The vas industry in india generated revenue of us$ 4% 1.2 billion in 2007–08 and is expected to reach us$ 4.0 10% billion by 2015. 17% major growth drivers for vas in india 44% • increasing focus on localisation and availability of content in local languages 25% • Development of m-commerce applications, such as booking tickets and making bill payments n Person to Person SMS n Ringtone Download n Person to Application & Application to Person SMS • availability of mobile Tv and development of shows, n Games & Data n Others (MMS etc.) films, etc., for the same Source:TRAI, CII-Yankee Study and IMRB Report  www.ibef.org
  • 43. GRowT H av e n u e s December 2008 india presents a host of opportunities for telecom companies • availability of complete subscriber data has helped in reaching niche audience leading to a growth in advertising revenue through m-marketing • Development of video-based applications, such as video sms and podcasts Source:TRAI, CII-Yankee Study and IMRB Report  www.ibef.org
  • 44. GRowT H av e n u e s December 2008 value-added services and Rural Telephony hold large market potential in india Rural Telephony urban-Rural Disparity in india 60 • under the Bharat nirman Programme, the 57.7 50 49 government will invest us$ 2 billion, from 2008 Teledensity (%) 40 38 to 2009, to set up about 100,000 community 30 26.2 service centres in rural areas to provide broadband 28.3 21.3 20 19.9 connectivity. 14.3 12.2 12.9 10.4 10 9.1 9.2 7.0 5.1 8.2 4.3 3.6 • with the teledensity in rural areas at less than 10 per 5.0 2.9 1.5 1.9 1.7 1.2 1.7 0.9 0.7 0 cent against the national teledensity of approximately 2000 2001 2002 2003 2004 2005 2006 2007 2008 urban Rural Total 28 per cent, there seems to be huge untapped potential for mobile phone penetration in rural india. Source:TRAI, CII-Yankee Study and IMRB Report  www.ibef.org
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