Recent trends in Indian Telecom IndustryPresented By :-Group 6•ROHIT KUMAR JAITLY (92)•PRAVEEN KUMAR (99)•SULAGNA DUTTA (93)•MONIKA BANSAL (119)•MOHIT ARORA (97)
Quick facts & figures India has the second largest number of telephone subscribers in the world accounting for 12 per cent of the world’s total telephone subscribers. Telecom sector contributes 2% to the total GDP of India. Mobile tariffs in India are the second lowest in the world after Bangladesh. Mobile phones accounts for nearly 96.60 % of the total telecom subscriptions. GSM continues to be the dominant technology for wireless phones with an 87.90 % share. As per department of telecom report dated Apr 11, 2012 ,telecom is the third major sector attracting FDI inflows after services and computer software sector & has attracted US$ 12,456 million from April 2000 to sep 2011. As per the Department of Industrial Policy & Promotion (DIPP) data , Foreign direct investment (FDI) in telecom sector during April-June 2012 stood at US$ 8 million. Mobile data traffic in India has increased by 54% between December 2011 and June 2012. The value of mobile banking transactions increased five-fold to US$ 206.75 million between January and May 2012 as against the same period a year ago.
YEA Telephones GROWTH IN TELEPHONE R Subscribers (in millions) SUBSCRIBERS OVER THE YEARS 1971 0.98 1981 2.15 1991 5.07 1999 22.80 2009 509.03 July 944.81 20121000800600 No.400 Of Tele…200 0 1971 1981 1991 1999 2009 2012
PAST…• 1850 - the first experimental electric telegraph live was started between Diamond Harbour and Kolkata.• 1881 - First license was granted to the Oriental Telephone company limited of England for opening Telephone exchanges at Calcutta, Madras, Bombay and Ahmadabad and the first formal Telephone Service was established in the country.• 1948 - total number of telephones were around 80,000.• 1960 - First subscriber trunk dialling commissioned between Kanpur and Lucknow.• 1995 - On 15th August 1995 first mobile telephone service started on non-commercial basis in Delhi.• 1995 - on 15th August 1995, Internet introduced in India starting with Delhi, Bombay, Pune, Calcutta, and Chennai.
CURRENT TRENDS INTELECOM INDUSTRY – BEYOND TELEPHONES ANDLONG DISTANCE CALLS LONG DISTANCE CALLS • 3G technology – High speed internet connectivity. • Mobile Number Portability – Same number across all service providers. • Mobile Value Added Services (MVAS) - game based applications, music downloads etc constitute 80% of MVAS revenues. • Growing Demand For Smart Devices – Smart phones, Tablets, Phablets, Android- the current rage in the market.
Contributors to steep growth of Telecom sector• Emergence of smart phones, GPS enabled sets, and 3G handsets.• Rolling out of 3G & other Broadband wireless services.• Penetration of mobile phones into rural India. As of 30th June 2012, urban Teledensity was 64.40% while rural Teledensity was 35.60%.• Rising number of Mobile based application in the form of mobile banking, m-commerce etc.• High end mobile phones & tablets treated as status symbol.
RISKS ASSOCIATED WITH TELECOM INDUSTRY1. Define new Key Performance Indicators.2. Ever rising competition.3. Tight CAPEX control.4. Lack of regulatory certainty on new market structures.5. Poorly formulated M&A and partnership strategy.
WHAT LIES AHEAD….???1. Rise in Cloud Computing2. Infrastructure Sharing and Consolidation3. WiMax Technology4. LTE Technology5. One Nation, One License Policy
FINAL WORD…• Though India is the fastest growing telecommunications market in the world, Govt. has to ensure that the incidences like 2G scam do not turn away the investors, especially the FDI contribution in this sector.• With a large population yet to have access to telecommunication and Teledensity still being 64.40% for urban areas & 35.60% for rural areas, significant growth opportunity for this sector exists, especially in rural areas where 3G & Wi-Fi are yet to make their impact.• With population mix moving favourably towards a younger age profile & rising disposable income of young professionals, catering to the needs of young India shall be the mantra for success.• Investors can look to capture the gains of the Indian telecom boom and diversify their operations outside to other developing & developed countries.
REFERENCES• http://indiamatic.com/threads/10-interesting- facts-about-india%E2%80%99s-telecom- industry.746/• Growth of Telecommunication Industry In India : A Major Player• http://www.businessreviewindia.in/technolog y/software/-telecom-industry--indias- success-story• http://voicendata.ciol.com/content/news/110 112601.asp• http://www.coai.com/statistics.php