Telecom industry


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Telecom industry

  1. 1. Telecom Industry<br />
  2. 2. Telecom in the real sense means transfer of information between two distant points in spaceTelecom is a huge and varied bastion of technologies, companies, services andpolitics that is truly global in nature<br />
  3. 3. Introduction<br />Telecom stands as one of the most essential elements of the business world in terms of “Connecting the World”<br />Volatile Sector<br />Regulatory discord <br />Cut-throat competition<br />Emergence of Technologies <br />Emergence of broadband & wireless technologies pose threat to carriers relying on aging infrastructure<br />To survive, telecom carriers need to consider various options <br />Consolidation, <br />Convergence,<br />Costly Technological upgrades<br />
  4. 4. Global Growth Patterns<br />Emerging Markets <br />Driving Volume Growth<br />Low Tariffs (ARPUs)<br />Developed Markets<br />Low Subscriber Base<br />Technological Advancements<br />Indian Telecom depends on the global telecom industry for technology platforms & network management <br />While<br />Indian market size attracts telecom giants<br />
  5. 5. Indian Telecom - Scenario<br />India – Fastest growing market in World – 190 mn subscribers<br />4th largest mobile market growing at 6 mn Sub/month<br />4th largest internet market, 3rd largest by 2007<br />Voice Revenue dropping; <br />PCOs - 4.5 mn @ CQGR of 7.22%<br />Paying highest taxes and regulatory charges; Variable License fee<br />OPPORTUNITIES<br />Data revenues – 8.5% of service revenue against world avg of 16.5%<br />Content Services – Music/Video etc<br />Applications – m Commerce/PVR Ticketing<br />Tele-density – From 2% in 2000 to 15.44% in 2006<br />TEMA target of $100 bn for equipments in next 3 yrs<br />IT & ITES Industry – $35 bn with CAGR of 35%<br />
  6. 6. Indian Telecom – Global Reach<br />Source: Voice & Data<br />
  7. 7. Indian Telecom - Global Connectivity<br />Submarine Cable System Landing<br />at Chennai, Mumbai, Cochin & Tuticorin<br />SMW 4<br />Mumbai<br />FLAG<br />SMW 3<br />i2i<br />Chennai<br />TIC<br />SMW 3<br />SMW 4<br />Cochin<br />SAFE<br />Tuticorin<br />Bharat Lanka<br />
  8. 8. International Bandwidth Growth - India<br />Source : Telegeography<br />Conversion: 1 Gbps ~ 6.4 STM1<br />
  9. 9. International Bandwidth Usage<br />Gbps<br />*Source : Telegeography<br /><ul><li>The above figure is for usage of bandwidth
  10. 10. China has more than 10 times of higher bandwidth usage as comparison to India </li></li></ul><li>Global Trends – Connecting WorldConvergence & Mobility<br />Public <br />Safety<br />Mobile Devices with<br /> voice, data & video<br />Mobile Wireless<br /> Broadband<br />Fibre to Home<br /><ul><li>Mobile Police &</li></ul> Fire personnel<br /> devices<br /><ul><li> Interoperable</li></ul> Communications<br />Communications<br />Computers <br />& IT<br />Consumer <br />Electronics<br /><ul><li>Laptops & Handheld </li></ul> PCs<br /><ul><li> Entertainment major </li></ul> PC driver<br /><ul><li> IP to & in the Home
  11. 11. VoIP handsets
  12. 12. Entertainment</li></ul> becomes Digital<br /><ul><li> Mobile Personal</li></ul> Digital Devices<br /> prevail<br />
  13. 13. Connecting India to the World<br />ENABLERS<br />Unified Licensing<br />Telecom Technologies - Internet/Wimax/VOIP<br />Reduced License Fees in Long Distance Sector<br />Outsourcing Network Management to Global Manufacturers<br />India - Telecom Equipment Manufacturing Base<br />Convergence - ICT<br />FDI Relaxation in Telecom (26% to &74%) - $2.67 bn Aug,06<br />Emergence of IT & ITES Sector<br />Consolidation & Partnerships between Indian & Foreign Players viz. BT, AT&T , Aircel & Maxis<br />Telecom has attracted significant FDI and technology which has resulted in huge benefits to the Indian Telecom Growth <br />
  14. 14. Connecting India to the World<br />CHALLENGES<br />Regulatory Policies<br />Lack of level playing field<br />Penetration Level<br />Across the world and within India<br />Seamless Roaming <br />Infrastructure Program<br />Manufacture telecom equipment in India<br />Passive Infrastructure Sharing<br />VoIP <br />Value Added Services<br /> Unutilized software capability <br />Digital Divide <br />Non Availability of technology, equipment, network access for millions of poor<br />
  15. 15. Indian Telecom – Way Forward to being Global<br />Transparent and truly technology-neutral Government policies <br />Allow full range of private & Public Sector telco's to compete fairly and fully<br />Adequate spectrum in useable frequency bands advocated by the ITU to wireless service providers <br />Low regulatory restrictions over new services such as Push-to-talk, IP-enabled services, particularly Voice-Over IP (VoIP)<br />Ensure level playing field and “No” worse-off position for existing license holders<br />Duties on imported telecommunications and related equipment must be reduced to zero <br />To promote competition in IPLC<br />“Put in Right Policies” for technology multinationals to build business in consumer end user device segments like mobile, handset, PC’s and networking product manufacturing<br />Acquisitions with “Strategic” intent<br />
  16. 16. Thank You<br />