Telecom presentation

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  • Set up in 1997, the TRAI is responsible facilitating interconnection and technical interconnectivity between operators, regulating revenue sharing, ensuring compliance with license conditions, facilitating competition and settling disputes between service providers.
  • India boasts of more than 900 million telecom subscribers today and also has the second largest telecom network in the world, after China.
  • Telecom presentation

    1. 1. 2nd June, 201211 a.m. to 12 p.m.
    2. 2. HISTORYUntil the 1980s, under the Department of Posts and TelegraphsIn 1985, the Department of Posts and Telegraph was split up into theDepartment of Telecommunications (DoT) and the Department of Posts.On May 13, 1994, the government opened local basic and value-addedtelecommunications services to competition.Mobile services were introduced on a commercial basis in November 1994India was divided into 21 "Telecom Circles".In 1997, the Telecom Regulatory Authority of India (TRAI) was set up
    3. 3. LIBERALIZATION,REFORMS ANDCOMPETITIONMassive investments and explosion in supplyThe telecom policy of 1999 envisaged a tele-densityof 15 % by the year 2010.Over the past 10 years, India has registered thefastest growth (~ 30% CAGR)
    4. 4. TELE-DENSITY: S-CURVE90 8480 78.6670 70.560 52.85040 3730 26.220 18.2 12.810 8.95 7.1 3.5 4.3 5.10 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13E
    5. 5. PRESENTMore than 900 million telecom subscribersSecond largest telecom network in the world22 Telecom Circles15 Service providersPan India 3G Service4G Service in selected CitiesLowest mobile tariff in the worldMobile Number PortabilityFree RoamingOverall tele-density: 78.7 (urban teledensity is 168.84 and ruralteledensity is 38.04.
    6. 6. KEY PLAYERSBharti AirtelVodafoneBSNL/MTNLReliance Comunication (ADAG Group)Idea Celuler (Aditya Birla Group)Tata CommunicationUninorAircel
    7. 7. SUBSCRIBER MARKETSHARE TATA Others BhartiTeleservi 15% Airtel ces 20% 9% Idea RCOM 12% 17%BSNL+MT Vodafone NL 16% 11%
    8. 8. KEY PERFORMANCEINDICATORSTotal Subscriber BaseAverage Revenue Per User (ARPU)Minutes of Usage (MOU)Average Revenue Per Minute (ARPM)
    9. 9. SUBSCRIBER BASE Total number of wireless subscribers200,000180,000160,000140,000120,000100,000 Bharti Vodafone Essar 80,000 RCOM 60,000 Idea 40,000 20,000 0
    10. 10. ARPU ARPU (Rs.)300250200 Bharti150 Vodafone RCOM Idea100 50 0 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12
    11. 11. MOU MOU (Minutes/subscriber)600500400300 Bharti Vodafone Essar RCOM200 Idea100 0
    12. 12. ARPM ARPM (paise)605550 Bharti Vodafone Essar RCOM45 Idea4035 Q1FY10Q2FY10Q3FY10Q4FY10Q1FY11Q2FY11Q3FY11Q4FY11Q1FY12Q2FY12Q3FY12Q4FY12
    13. 13. WHO IS THE STAR OFTHE SECTOR?Financial PerformanceFinancial DisciplineDebt SustainabilityUser BaseBrand Power
    14. 14. CONCERNSExcess Competition/ Very Low TariffsStagnating Voice Revenue/Falling ARPUsHuge Investment RequirementHeavy Debt BurdenRegulatory InterferenceHigh Spectrum PricingLower Subscriber Additions
    15. 15. FUTURE GROWTHDRIVERSValue Added ServicesRising expenditure on communication activitiesSmart PhonesHeavy Data Usage (3G/4G)Rising Rural Service PenetrationShare of the working age population (15-58 years) in totalpopulation will grow from the current 55%to about 65%
    16. 16. VASCurrently account for only 10% of revenue (Expected to be30-40% by 2017)~50% OPMRs.158 bn in 2012 to Rs.500 bn by 2015Data Consumption (~ 60% of revenue)Mobile banking, mobile education, basic governanceservices, health information services, agriculture andentertainment
    17. 17. WHAT TO EXPECTGOING AHEAD?Underperformance to continue due to policy standstillsMargins will stabilizeConsolidation
    18. 18. THANK YOU

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