3. Privatization Of TelecommunicationsPrivatization Of Telecommunications
IndustryIndustry
Liberalization attempt in 1981 by then Prime Minister Indira Gandhi toLiberalization attempt in 1981 by then Prime Minister Indira Gandhi to
bring French Company Alcatel to India but was scrapped due to politicalbring French Company Alcatel to India but was scrapped due to political
pressurespressures
Privatization process started in 1992 wherein Government permittedPrivatization process started in 1992 wherein Government permitted
private players to provide Value Added Services (VAS) such as paging,private players to provide Value Added Services (VAS) such as paging,
cellular, data services and VSAT followed by Fixed Telephony Servicecellular, data services and VSAT followed by Fixed Telephony Service
The Telecom Sector received Rs. 59,796 crores of FDI from April 2000 toThe Telecom Sector received Rs. 59,796 crores of FDI from April 2000 to
January 2014 that represents 6% of the total FDI received by all theJanuary 2014 that represents 6% of the total FDI received by all the
sectors together.sectors together.
4.
5. Bharti Airtel:Bharti Airtel:
Bharti Airtel Limited is an Indian multinationalBharti Airtel Limited is an Indian multinational
telecommunications services company headquartered in Newtelecommunications services company headquartered in New
Delhi, India. It operates in 20 countries across South Asia, Africa,Delhi, India. It operates in 20 countries across South Asia, Africa,
and the Channel Islands.and the Channel Islands.
Founder: Sunil Bharati MittalFounder: Sunil Bharati Mittal
Vodafone:Vodafone:
Vodafone Group plc is a British multinational telecommunicationsVodafone Group plc is a British multinational telecommunications
company headquartered in London and with its registered office incompany headquartered in London and with its registered office in
Newbury, Berkshire.Newbury, Berkshire.
Founders: Ernest Harrison, Gerry WhentFounders: Ernest Harrison, Gerry Whent
IDEA:IDEA:
Idea Cellular is an Aditya Birla Group Company, India's first trulyIdea Cellular is an Aditya Birla Group Company, India's first truly
multinational corporation. Idea is a pan-India integrated GSMmultinational corporation. Idea is a pan-India integrated GSM
operator offering 2G and 3G services, and has its own NLD and ILDoperator offering 2G and 3G services, and has its own NLD and ILD
operationsoperations
Founders: Aditya Vikram Kumar Mangalam Birla, G. D. BirlaFounders: Aditya Vikram Kumar Mangalam Birla, G. D. Birla
6. Reliance:Reliance:
Reliance Communications Ltd. is an Indian Internet access andReliance Communications Ltd. is an Indian Internet access and
telecommunications company headquartered in Navi Mumbai,telecommunications company headquartered in Navi Mumbai,
India. Reliance Communications is the fourth largest telecomIndia. Reliance Communications is the fourth largest telecom
operator in India with 109.80 million subscribers as of Apriloperator in India with 109.80 million subscribers as of April
2015.2015.
Founders: Dhirubhai Ambani, Mukesh AmbaniFounders: Dhirubhai Ambani, Mukesh Ambani
BSNL:BSNL:
Bharat Sanchar Nigam Limited is an Indian state-ownedBharat Sanchar Nigam Limited is an Indian state-owned
telecommunications company headquartered in New Delhi,telecommunications company headquartered in New Delhi,
India.India.
CEO: Shri Anupam ShrivastavaCEO: Shri Anupam Shrivastava
7.
8. Current ScenarioCurrent Scenario
Particulars Subscribers (in millions)
Wireless 975.78
Wireline 26.27
Total 1,002.05
Particulars Teledensity
Urban Teledensity 148.90
Rural Teledensity 48.60
Total Teledensity 79.67
Subscriber base as on May 31, 2015
Teledensity as on May 31, 2015
Total Broadband Subscribers 104.96 million
Broadband subscribers as on May 31, 2015
Source: TRAI Report May 2015
9.
10.
11. Source: Technopak
“A 10% increase in broadband
penetration increases the per capita
GDP by 1.38% in the developing
countries.” - World Bank
12. Pricing Strategies In TelecommunicationsPricing Strategies In Telecommunications
In telecommunications, people are provided services on the basis of pre-In telecommunications, people are provided services on the basis of pre-
payment or post-payment. Companies adopt several pricing strategies topayment or post-payment. Companies adopt several pricing strategies to
gain a considerable market share among various competitors and theygain a considerable market share among various competitors and they
are as follows:are as follows:
Penetration PricingPenetration Pricing
Price SkimmingPrice Skimming
Psychological PricingPsychological Pricing
Product Line PricingProduct Line Pricing
Captive Product PricingCaptive Product Pricing
Promotional PricingPromotional Pricing
Premium PricingPremium Pricing
14. Penetration Pricing:-Penetration Pricing:-
The price charged for products and services is set artificially low in order to gainThe price charged for products and services is set artificially low in order to gain
market share. Once this is achieved, the price is increased.market share. Once this is achieved, the price is increased.
Price Skimming:Price Skimming:
Price skimming sees a company charge a higher price because it has a substantialPrice skimming sees a company charge a higher price because it has a substantial
competitive advantage. However, the advantage tends not to be sustainable.competitive advantage. However, the advantage tends not to be sustainable.
The high price attracts new competitors into the market, and the priceThe high price attracts new competitors into the market, and the price
inevitably falls due to increased supply.inevitably falls due to increased supply.
Psychological Pricing:Psychological Pricing:
This approach is used when the marketer wants the consumer to respond on anThis approach is used when the marketer wants the consumer to respond on an
emotional, rather than rational basis.emotional, rather than rational basis.
For Example: Mobile recharge charges Rs49, Rs99 instead of Rs50 or Rs100For Example: Mobile recharge charges Rs49, Rs99 instead of Rs50 or Rs100
15. Product Line Pricing:
Where there is a range of products or services, the pricing reflects the benefits of
parts of the range.
For Example: BSNL sim card family combo packs
Captive Product Pricing:
Where products have complements, companies will charge a premium price since
the consumer has no choice.
For Example: CDMA Handsets, Set top boxes.
Promotional Pricing:
Pricing to promote a product is a very common application. There are many
examples of promotional pricing including approaches such as BOGOF (Buy One Get
One Free), money off vouchers and discounts.
For Example: BSNL Pyari Jodi Plan
16. Other Pricing StrategiesOther Pricing Strategies
There are two possible alternatives for pricing any telecommunication service:There are two possible alternatives for pricing any telecommunication service:
Socially desirable pricingSocially desirable pricing
This type of pricing strategy includes:This type of pricing strategy includes:
Charges customers as per their paying capabilityCharges customers as per their paying capability
Price of basic services should be low and not related to cost of processing servicesPrice of basic services should be low and not related to cost of processing services
Cost based pricingCost based pricing
This type of pricing strategy includes:This type of pricing strategy includes:
Pricing components include fixed charges(rentals), capital cost of infrastructure required toPricing components include fixed charges(rentals), capital cost of infrastructure required to
build networkbuild network
Variable charges like usage charges, recovery operation, maintenance, administrative andVariable charges like usage charges, recovery operation, maintenance, administrative and
inter-connection chargesinter-connection charges
19. Major Technological changes andMajor Technological changes and
challenges in telecommunicationschallenges in telecommunications
emerging technologies are
affecting industries and lifestyle
highlights the importance of
understanding the principles of
telecommunications, and,
hopefully, to inspire you to
"think telecom."
20. Changes….Changes….
An enormous amount of the activity drivingAn enormous amount of the activity driving
telecommunications has to do with the emergence oftelecommunications has to do with the emergence of
advanced applications. The following sections discussadvanced applications. The following sections discuss
some of the changes that are occurring in bothsome of the changes that are occurring in both
telecommunications, as well as some of the changestelecommunications, as well as some of the changes
expected in the next several years.expected in the next several years.
Incorporating Human Senses in TelecommunicationsIncorporating Human Senses in Telecommunications
The Emergence of Wearable'sThe Emergence of Wearable's
21. Incorporating Human Senses inIncorporating Human Senses in
TelecommunicationsTelecommunications
Telecommunications has allowed a virtual world to emerge.Telecommunications has allowed a virtual world to emerge.
The human mind acts on physical sensations in the course of itsThe human mind acts on physical sensations in the course of its
information processing; the senses of sight, sound, touch, andinformation processing; the senses of sight, sound, touch, and
motion are key to our perception and decision making.motion are key to our perception and decision making.
Developments in sensory technologies and networks will allow aDevelopments in sensory technologies and networks will allow a
new genre of sensory reality to emerge, bridging the gapnew genre of sensory reality to emerge, bridging the gap
between humans and machines. One of the most significantbetween humans and machines. One of the most significant
evolutions occurring in computing and communications is theevolutions occurring in computing and communications is the
introduction of the human senses into electronic informationintroduction of the human senses into electronic information
streams.streams.
22.
23. The Emergence of Wearable'sThe Emergence of Wearable's
Xybernaut's Mobile
Assistant IV (MA-IV),
a wearable
computer, provides
its wearer with a full-
fledged PC A wrist
keyboard sports 60
keys.
Headgear suspended in front of
the eye provides a full-color VGA
screen, the size of a postage
stamp but so close to the eye
that images appear as on a 15-
inch monitor. A miniature video
camera fits snugly in a shirt
pocket.
24. Adapting to New TrafficAdapting to New Traffic
PatternsPatterns
In today's environment, telecommunications embodies fourIn today's environment, telecommunications embodies four
main traffic types, each of which has different requirements inmain traffic types, each of which has different requirements in
terms of network capacity, tolerance for delays—andterms of network capacity, tolerance for delays—and
particularly variations in the delay—in the network, andparticularly variations in the delay—in the network, and
tolerance for potential congestion and therefore losses in thetolerance for potential congestion and therefore losses in the
network:network:
25. Voice - ChallengesVoice - Challenges
There is yet a huge market to be served. VoiceThere is yet a huge market to be served. Voice
communications are typically referred to ascommunications are typically referred to as
beingbeing narrowbandnarrowband, meaning that they don't require a, meaning that they don't require a
large amount of network capacity.large amount of network capacity.
For voice services to be intelligible and easy to use,For voice services to be intelligible and easy to use,
delays must be kept to a minimum, however, so thedelays must be kept to a minimum, however, so the
delay factors in moving information from Point A todelay factors in moving information from Point A to
Point B have to be tightly controlled in order toPoint B have to be tightly controlled in order to
support real-time voice streams.support real-time voice streams.
26. Data- ChallengesData- Challenges
Data communications refers to the exchange ofData communications refers to the exchange of
digitized information between two machines.digitized information between two machines.
Depending on the application supported, theDepending on the application supported, the
bandwidth or capacity requirements can range frombandwidth or capacity requirements can range from
medium to high.medium to high.
As more objects that are visual in nature (such asAs more objects that are visual in nature (such as
images and video) are included with the data, thatimages and video) are included with the data, that
capacity demand increases. Depending again on thecapacity demand increases. Depending again on the
type of application, data may be more or less toleranttype of application, data may be more or less tolerant
of delays. Text-based exchanges are generally quiteof delays. Text-based exchanges are generally quite
tolerant of delays.tolerant of delays.
But again, the more real-time nature there is to theBut again, the more real-time nature there is to the
information type, as in video, the tighter the controlinformation type, as in video, the tighter the control
you need over the latencies.you need over the latencies.
27. Image-ChallengesImage-Challenges
Image communications requires medium to highImage communications requires medium to high
bandwidth—the greater the resolution required, thebandwidth—the greater the resolution required, the
greater the bandwidth required.greater the bandwidth required.
For example, many of the images taken in medicalFor example, many of the images taken in medical
diagnostics require very high resolution. Imagediagnostics require very high resolution. Image
traffic tolerates some delay because it includes notraffic tolerates some delay because it includes no
motion artefacts that would be affected by anymotion artefacts that would be affected by any
distortions in the network.distortions in the network.
28. Video-challengesVideo-challenges
Video communications, which are becomingVideo communications, which are becoming
increasingly popular and are requiring ever-greaterincreasingly popular and are requiring ever-greater
bandwidth, are extremely sensitive to delay. Thebandwidth, are extremely sensitive to delay. The
future is about visual communications.future is about visual communications.
We need to figure out how to make video availableWe need to figure out how to make video available
over a network infrastructure that can support it andover a network infrastructure that can support it and
at a price point that consumers are willing to pay.at a price point that consumers are willing to pay.
When our infrastructures are capable of supportingWhen our infrastructures are capable of supporting
the capacities and the delay limitations required bythe capacities and the delay limitations required by
real-time applications, video will grow by leaps andreal-time applications, video will grow by leaps and
bounds.bounds.