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MACROECONOMIC FACTORS
AFFECTING
TELECOM INDUSTRY
GROUP 6
SHIREEN IFTKHAR AHMED 19DM196
SHAMLI SHARMA 19DM190
SONALI JINDAL 19DM220
SIMRAN PANDIT 19DM214
SHRUTI GUPTA 19DM238
V.M SAI CHARAN REDDY
• Total subscriber base in the country stood at 1,192.04 million(OCT
2018)
Second-largest
subscriber base
• Tele-density grew from 18.23 per cent in FY07 to 92.84 per cent in
FY18.
Rising penetration rate
• Internet subscribers stood at 560.01 million, at the end of
September 2018
Second-highest number
of internet users
• Tele-density grew from 18.23 per cent in FY07 to 92.84 % in FY18.
• Drive growth in the Indian telecom industry
Affordability and lower
rates
THE TELECOM MARKET SPLIT INTO THREE SEGMENTS
Mobile (wireless)
Comprises
establishments
operating and
maintaining switching
and transmission
facilities to provide
direct
communications via
airwaves .
Fixed-line (wireline)
Consists of
companies that
operate and
maintain switching
and transmission
facilities to provide
direct
communications
through landlines,
microwave or a
combination of
landlines and
satellite link-ups.
Internet services
Includes Internet
Service Providers
(ISPs) that offer
broadband internet
connections through
consumer and
corporate channels
MACROECONOMIC
FACTORS AFFECTING
TELECOM INDUSTRY
POPULATION
DECLINING TARRIFS
INCREASING
AFFORDABILITY
POLICY AND
REGULATIONS
TECHNOLOGICAL
ADVAMCEMENT
MARKET LIBERALISATION
The Supreme Court verdict
• Supreme Court cancelled all 122 licenses • Government
auctions cancelled licenses in consultation with TRAI •
Supreme Court said “Auction is not the only method
unless the resource gives huge profit to a company”
Reframing of licenses
• Starting from 2012, license allocation only through
auction • Apply for license separately and purchase
spectrum separately • Existing mobile operators has to
surrender their licenses and should apply for fresh licence
and spectrum
2G Spectrum Auctions in ’12 & 13
• Due to high auction reserve price, in 2012 and 2013 the
auction got lukewarm response. • In 2013, no bidders for
1200 MHZ and 900 MHZ spectrum. MTS was the only
bidder for 800 MHZ. • The eight bidders applied to
participate in the 2014 auction after the government
sharply cut auction reserve prices.
After effects of Supreme Court's verdict
• Batelco The Bahrain telecommunications company
quits India • Telenor terminates agreement and sues
Unitech • Etisalat sues Shahid Balwa and Vinod
Goenka • Loan money of Banks is stuck.
INCREASED
DEMAND
FOR 4G
PHONES
AND SIMS
BIGGEST
CAPTURE
IN
SHORTES
T TIME
CONNECTED
THE WORLD
WITH
TECHNOLOGY
LOW
PRICES
FOR THE
SERVICES
BOUGHT
REVOLUTION
IN MARKET
EFFECTS OF JIO ON TELECOM
INDUSTRY
REDUCE SALE
OF SIMS
(AIRTEL,IDEA)
DECREASED THE
QUALITY SERVICEINCREASED
NUMBER OF
PORTABILITIES VODAFONE
AND IDEA
MERGER
DECREASED
FURTHER R&D
IS THE TELECOM MARKET HEADING
TOWARDS DUOPOLY?
VERDICT GIVEN BY THE SUPREME
COURT
1.
• The supreme court of India gave its verdict after 14 years
• 15 Telecom companies will have to pay Rs. 92000 crores
2.
• Adjusted Gross Revenue
• Companies will pay a fixed % of AGR as fees.
3.
• Revenue & expense: IUC
• Impact of verdict on Vodafone-Idea
Macroeconomic factors  effecting telecom

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Macroeconomic factors effecting telecom

  • 1. MACROECONOMIC FACTORS AFFECTING TELECOM INDUSTRY GROUP 6 SHIREEN IFTKHAR AHMED 19DM196 SHAMLI SHARMA 19DM190 SONALI JINDAL 19DM220 SIMRAN PANDIT 19DM214 SHRUTI GUPTA 19DM238 V.M SAI CHARAN REDDY
  • 2. • Total subscriber base in the country stood at 1,192.04 million(OCT 2018) Second-largest subscriber base • Tele-density grew from 18.23 per cent in FY07 to 92.84 per cent in FY18. Rising penetration rate • Internet subscribers stood at 560.01 million, at the end of September 2018 Second-highest number of internet users • Tele-density grew from 18.23 per cent in FY07 to 92.84 % in FY18. • Drive growth in the Indian telecom industry Affordability and lower rates
  • 3. THE TELECOM MARKET SPLIT INTO THREE SEGMENTS Mobile (wireless) Comprises establishments operating and maintaining switching and transmission facilities to provide direct communications via airwaves . Fixed-line (wireline) Consists of companies that operate and maintain switching and transmission facilities to provide direct communications through landlines, microwave or a combination of landlines and satellite link-ups. Internet services Includes Internet Service Providers (ISPs) that offer broadband internet connections through consumer and corporate channels
  • 4. MACROECONOMIC FACTORS AFFECTING TELECOM INDUSTRY POPULATION DECLINING TARRIFS INCREASING AFFORDABILITY POLICY AND REGULATIONS TECHNOLOGICAL ADVAMCEMENT MARKET LIBERALISATION
  • 5. The Supreme Court verdict • Supreme Court cancelled all 122 licenses • Government auctions cancelled licenses in consultation with TRAI • Supreme Court said “Auction is not the only method unless the resource gives huge profit to a company” Reframing of licenses • Starting from 2012, license allocation only through auction • Apply for license separately and purchase spectrum separately • Existing mobile operators has to surrender their licenses and should apply for fresh licence and spectrum 2G Spectrum Auctions in ’12 & 13 • Due to high auction reserve price, in 2012 and 2013 the auction got lukewarm response. • In 2013, no bidders for 1200 MHZ and 900 MHZ spectrum. MTS was the only bidder for 800 MHZ. • The eight bidders applied to participate in the 2014 auction after the government sharply cut auction reserve prices. After effects of Supreme Court's verdict • Batelco The Bahrain telecommunications company quits India • Telenor terminates agreement and sues Unitech • Etisalat sues Shahid Balwa and Vinod Goenka • Loan money of Banks is stuck.
  • 6. INCREASED DEMAND FOR 4G PHONES AND SIMS BIGGEST CAPTURE IN SHORTES T TIME CONNECTED THE WORLD WITH TECHNOLOGY LOW PRICES FOR THE SERVICES BOUGHT REVOLUTION IN MARKET EFFECTS OF JIO ON TELECOM INDUSTRY REDUCE SALE OF SIMS (AIRTEL,IDEA) DECREASED THE QUALITY SERVICEINCREASED NUMBER OF PORTABILITIES VODAFONE AND IDEA MERGER DECREASED FURTHER R&D
  • 7. IS THE TELECOM MARKET HEADING TOWARDS DUOPOLY?
  • 8. VERDICT GIVEN BY THE SUPREME COURT 1. • The supreme court of India gave its verdict after 14 years • 15 Telecom companies will have to pay Rs. 92000 crores 2. • Adjusted Gross Revenue • Companies will pay a fixed % of AGR as fees. 3. • Revenue & expense: IUC • Impact of verdict on Vodafone-Idea