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Cellular Industry in India<br />
Cellular Service Market<br />
Introduction<br />Cellular services launched in India during 1999<br />Cellular services split into two, namely<br />GSM <...
Highest minutes of usage<br />India has the lowest call tariffs in the world, and thus, the highest minutes of usage as we...
GSM v/s CDMA<br />GSM900 and 1800 spectrum<br />GSM subscriber base crosses the 200mn mark in ‘07-’08<br />Better roaming ...
GSM and CDMA subscribers comparison<br />
Market Players<br />Airtel<br />Vodafone <br />Idea Cellular <br />Reliance<br />Tata Indicom<br />BSNL<br />
Airtel<br />Bharti Tele-Ventures Ltd. (BTVL) aka BhartiAirtel<br />Co provides telephone and internet access over DSL in 1...
Vodafone<br />Vodafone Essar acquired 67%stake of Hutch for US$11.1bn<br />Voice Data Fone, providing voice and data servi...
Idea Cellular<br />First cellular co to launch background tones, group talk and a complete suite of mobile email services<...
Reliance<br />Reliance Infocomm, Reliance Telecom and Flag Telecom a part of Reliance Communications Ventures (RCoVL)<br /...
Tata Indicom<br />Incorporated in 1995 and is the first one to provide CDMA mobile services<br />In 2002, acquired Hughes ...
BSNL<br />First one to provide 3G services<br />India’s oldest and largest CSP and also largest PSU, market value $100bn<b...
Market Share and Growth<br />Major growth drivers – intl. and domestic long distance telephony services<br />According to ...
MOST (Mobile Operators Shared Tower) started infra-sharing in India with the concept of multi-technology (GSM & CDMA) and ...
Market Share of companies – July 2009<br />Airtel105177635<br /> Vodafone	 78680291 <br />BSNL	 50700367<br />Idea	 485168...
Marketing Strategies<br />Revenues used to reduce airtime tariffs, long distance calling prices and handset prices.<br />T...
Value Added Services<br />As per COAI, income from VAS was 10% of total income of service providers in 06-07<br />SMS	57%<...
3G Spectrum – The Latest Buzz<br />
3G technology<br />Supports diverse multimedia applications<br />Enables triple play and broadband services<br />Requires ...
Main highlight – video calling<br />Finance Ministry decided of reserve price to be Rs. 4040cr. In ‘08 but it has been rec...
Future Trends<br />Location based services<br />Mobile music will increase with better bandwidth<br />Migrattion to 3G wil...
TRAI<br />TRAI’s mission is to create and nurture conditions for growth of telecommunications in the country in a manner a...
COAI<br />The Cellular Operators Association of India (COAI) was constituted in 1995 as a registered, non-profit, non-gove...
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Cellular Industry In India

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Cellular Industry In India

  1. 1. Cellular Industry in India<br />
  2. 2. Cellular Service Market<br />
  3. 3. Introduction<br />Cellular services launched in India during 1999<br />Cellular services split into two, namely<br />GSM <br />CDMA<br />23 circles in India ,grouped under Metro, A, B and C.<br />Metro circle makes up to 20.7% of the total cellular usage in India.<br />
  4. 4. Highest minutes of usage<br />India has the lowest call tariffs in the world, and thus, the highest minutes of usage as well.<br />
  5. 5. GSM v/s CDMA<br />GSM900 and 1800 spectrum<br />GSM subscriber base crosses the 200mn mark in ‘07-’08<br />Better roaming accessibility<br />CDMA uses 1800 MHz frequency band<br />Better call quality and surfing speed<br />Call costs cheaper<br />GSM<br />CDMA<br />
  6. 6. GSM and CDMA subscribers comparison<br />
  7. 7. Market Players<br />Airtel<br />Vodafone <br />Idea Cellular <br />Reliance<br />Tata Indicom<br />BSNL<br />
  8. 8. Airtel<br />Bharti Tele-Ventures Ltd. (BTVL) aka BhartiAirtel<br />Co provides telephone and internet access over DSL in 14 circles. <br />Submarine cable landing station at Chennai<br />Airtel services include mobile services (GSM), broadband and telephone services, long-distance services and enterprise services.<br />Vodafone and SingTel holding Airtel stakes<br />Signed MoU with Nokia-Siemens for $9mn expansion of mobile and fixed network.<br />
  9. 9. Vodafone<br />Vodafone Essar acquired 67%stake of Hutch for US$11.1bn<br />Voice Data Fone, providing voice and data services over mobile phones<br />Operates in 25 countries across 5 continents and 40 partner networks with over 200 mn customers worldwide<br />Rapid increase in revenue by 50% with an avg. of 1.5mn net additions per month<br />Among the fastest growing cellular service cos. of India<br />Earned profits of about £6756mn as on March ‘09<br />
  10. 10. Idea Cellular<br />First cellular co to launch background tones, group talk and a complete suite of mobile email services<br />Initially started as a merger of Tata Cellular and Birla AT&T Communications in 1995<br />The co had a split with the Tata taking an exit from the co for Rs.44.06bn<br />Launched 3 more circles, Rajasthan, Himachal Pradesh and UP (East)<br />Acquisition of Escotel in 2004 covered Maharashtra, Goa, Gujarat, AP, MP, Chattisgarh, UP (West), Haryana, Kerala and Delhi.<br />
  11. 11. Reliance<br />Reliance Infocomm, Reliance Telecom and Flag Telecom a part of Reliance Communications Ventures (RCoVL)<br />Reliance Infocomm uses CDMA2000 technology<br />Reliance telecom-GSM services in 340 towns within 8 circles<br />CDMA services cover 19 states, almost 65% of India<br />Provides both wireless and wireline services as well as convergent digital network<br />
  12. 12. Tata Indicom<br />Incorporated in 1995 and is the first one to provide CDMA mobile services<br />In 2002, acquired Hughes Telecom (I) Ltd and launched Talk World plan in 2007<br />With total investment of Rs. 19924 Cr. Operates in 20 circles in India<br />Partnership with Motorola, Ericsson, Lucent and ECI Telecom for reliable and advanced network<br />Leader in fixed wireless telephony with 3.8mn customer base <br />Includes wireless desktop phones, public phone booths, voice and data services<br />
  13. 13. BSNL<br />First one to provide 3G services<br />India’s oldest and largest CSP and also largest PSU, market value $100bn<br />Provides services like wireline, CDMA mobile, GSM mobile, internet, broadband, carrier service, etc.<br /> World’s 7th largest Telecommunications Co<br />
  14. 14. Market Share and Growth<br />Major growth drivers – intl. and domestic long distance telephony services<br />According to Unified Licensing Policy 15% of operator revenue goes to the govt.<br />India’s cellular market has grown rapidly since last few years and is poised to be the 2nd largest network globally by 2012<br />Almost 80% of the cellular subscriber base from pre-paid segment<br />Avg. growth rate is about 85% p.a.<br />
  15. 15. MOST (Mobile Operators Shared Tower) started infra-sharing in India with the concept of multi-technology (GSM & CDMA) and multi operators (upto 6 operators) sharing a single tower.<br />Several Indian firms gaining a foothold in the global market.<br />
  16. 16. Market Share of companies – July 2009<br />Airtel105177635<br /> Vodafone 78680291 <br />BSNL 50700367<br />Idea 48516824<br />Aircel 23101900<br /> Reliance 12840939<br />MTNL 4332631<br />Loop 2350537 <br />Total 325701124 <br />
  17. 17. Marketing Strategies<br />Revenues used to reduce airtime tariffs, long distance calling prices and handset prices.<br />This reduction in airtime tariffs increases the demand for cellular services.<br />Cos focusing on rural areas for more connections.<br />Increasing VAS provided by different cellular cos<br />Other promotional strategies include – celebrity endorsements, loyalty rewards, creative ads, business solutions, talktime schemes, etc.<br />Target market of cellular cos being the youth as it is the fastest growing segment of all. <br />
  18. 18. Value Added Services<br />As per COAI, income from VAS was 10% of total income of service providers in 06-07<br />SMS 57%<br />Caller line idntification 6%<br />Other VAS 19%<br />Ring tones 7%<br />Content download 6%<br />GPRS 5%<br />VAS supplied by mobile network operators or VASP/CP<br />Many national and intl investors ready to invest in this segment of telecom market. <br />
  19. 19. 3G Spectrum – The Latest Buzz<br />
  20. 20. 3G technology<br />Supports diverse multimedia applications<br />Enables triple play and broadband services<br />Requires huge bandwidth (15-20 MHz)<br />Providing high-speed internet, fast downloading and video calling.<br />More than 60 3G networks present across 25 countries.<br />Transfers both voice data and non-voice data<br />BSNL and MTNL spectrums allotted immediately and private cos to get spectrum allocations by 2009<br />
  21. 21. Main highlight – video calling<br />Finance Ministry decided of reserve price to be Rs. 4040cr. In ‘08 but it has been recently brought down by DoT to Rs. 3500cr.<br />Metro & Circle A Rs. 160cr.<br />Circle B Rs. 80cr.<br />Circle C Rs. 30cr.<br />Govt. to earn about Rs. 30k-40k cr. for 4 spectrum blocks<br />
  22. 22. Future Trends<br />Location based services<br />Mobile music will increase with better bandwidth<br />Migrattion to 3G will increase ARPU<br />Mobile commerce might be developed further<br />Mobile email will be driven by enterprises<br />Stocks on mobile will see an uptake<br />
  23. 23. TRAI<br />TRAI’s mission is to create and nurture conditions for growth of telecommunications in the country in a manner and at a pace which will enable India to play a leading role in emerging global information society.<br />Objective of TRAI - to provide a fair and transparent policy environment. In pursuance of above objective TRAI has issued from time to time a large number of regulations, orders and directives to deal with issues coming before it and provided the required direction to the evolution of Indian telecom market from a Government owned monopoly to a multi-operator multi-service open competitive market. The directions, orders and regulations issued cover a wide range of subjects including tariff, interconnection and quality of service as well as governance of the Authority.<br />
  24. 24. COAI<br />The Cellular Operators Association of India (COAI) was constituted in 1995 as a registered, non-profit, non-governmental society dedicated to the advancement of communication, particularly modern communication through Cellular Mobile Telephone Services. With a vision to establish and sustain a world-class cellular infrastructure and facilitate affordable mobile communication services in India, COAI&apos;s main objectives are to protect the common & collective interests of its members.<br />

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