The Indian Telecom Industry, pre-COVID and post-COVID

1. “Telecom’’stay in
touch..
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2. INDIANTELECOM INDUSTRY
Overview
 World’s second-largest telecommunications market.
 Subscriber base of 1.20 billion.
 Registered strong growth in the last decade and half.

3. WIRELESS AND RURAL SEGMENTS MARKET SHARE - GAINING

4. INTERNET USERS & DATA CONSUMPTION - INCREASING

5. TELECOM SECTOR REVENUE - FALLING
 Primarily due to tariff war and aggressive
pricing.
 Expected to grow at seven percent based
on stabilizing tariff war and increased
spending by subscribers.

7. INFLATION VS. TELECOM INDUSTRY
 The Supreme court has ordered Telecom
companies to pay their dues to the govt which are
approximately 1.4 trillion rupees.
 RBI requests for telecom industries to stagger their
payment of dues to the government.
 Vodafone Idea worst hit, has to pay 50,000 crore
rupees in dues, and has paid 35,000 crore rupees
so far.
 Thus, Telecom companies are set to increase tariffs
after a decade, could be Inflationary.
 Also, the Supreme court’s order on banks regarding

8. CONTRIBUTION TO GDP & FUTURE ESTIMATES

9. INVESTMENTS – TELECOM INDUSTRY
 In September 2020, Reliance Jio partnered with
22 foreign airlines for inflight internet
connectivity with plans starting at Rs. 499 (US$
6.76) per day.
 In September 2020, Airtel and Radware
partnered to offer cloud security services to
businesses in India with a investment of approx.
100 crores.
 India had over 500 million active internet users
(accessed Internet in the last one month) as of

10.  In June 2020, Jio Platforms Ltd. sold 22.38% stake worth Rs 1.04 trillion (US$ 14.75 billion) to
ten global investors in a span of eight weeks under separate deals, involving Facebook, Silver
Lake, Vista, General Atlantic, Mubadala, Abu Dhabi Investment Authority (ADIA), TPG Capital
and L. Catterton. This is the largest continuous fundraise by any company in the world.
 In April 2020, Vodafone Group Plc infused Rs 1,530 crore (US$ 217.05 million) in Vodafone
Idea as accelerated payment to help the company manage its operations.
 As of January 2020, more than 542 banks were permitted to provide mobile banking services
in India.
 As of August 2019, Jio's IoT platform was ready to be commercially available from January
2020.

11. EMPLOYMENT SCENARIO IN TELECOM INDUSTRY
 The telecom sector job is a major employment
sector.
 It has been helpful in producing jobs for many
other industries .
 Government’s job target in telecom when most
other sectors are talking about jobless growth.
 Many major telecom companies have been
established in India that need skilled technicians .
 Choosing a career in
telecommunications currently advices successful
employment future because of constantly

12. COVID-19 IMPACT - TELECOM INDUSTRY
-28
-47
-82
-87
-100
-80
-60
-40
-20
0
March April May June
Subscribers Decline
Subscribers Decline
 Telecom industry has lost 82 lakh subscribers during
the complete lockdown in April, and COVID-19
pandemic will continue to keep customer additions
under pressure, according to a report.
 The decline in subscriber base during April was
preceded by a loss of 28 lakh connections in March.

13. 19.1
55.3
0
10
20
30
40
50
60
Pre- Lockdown Post - Lockdown
Wired Broadband
Wired Broadband
 India's wired broadband penetration (19.1 million
connections) is abysmally low, as against total
base of 1.15 billion mobile subscribers and 643
million mobile broadband users, it pointed out
that with onset of the lockdown, the search for
term "broadband" rose three times compared to
the pre-lockdown level.
 The biggest losers were Bharti Airtel and Vodafone
Idea, it said, adding sector leader Reliance Jio
witnessed a growth in its base.
 Inability to pay back loans .

14. WHAT NEXT ??

16. Thank you….