In this presentation I have explained about telecommunication in India. topics covered are as under Telecom Industry Overview Major Players in Telecom Sector Emerging Trends in Telecom Market Growth Avenues Role of Cost & Management Accountant in Telecom sector Q & A session. http://www.airtel3gplans.com/airtel-3g-plans/all-airtel-3g-plans-details/

1. Telecommunication
in
India
Akshat Goel
http://www.airtel3gplans.com

2. Telecom Industry Overview
Major Players in Telecom Sector
Emerging Trends in Telecom Market
Growth Avenues
Role of Cost & Management Accountant in
Telecom sector
Q & A session.
http://www.airtel3gplans.com

4. Telecom Industry Overview
 Investments over Rs. 150,000 crores
 Mobile subscriber base of ~ 584 million as of Mar 2010

Adding @ 12-15 million every month
 Rural subscriber base served by private GSM operators > 130 million by Mar 2010

Growing @ around 4-5 million every month, i.e. nearly 40% of the GSM subscriber
adds are from the rural areas
 Lowest Mobile tariffs and one of the lowest ARPU (Average revenue Per User) in the world

GSM ARPU (Dec’09) of ~ Rs. 144/sub/month
 One of the highest GSM MoU (Minutes of Use) globally - ~411/sub/month (Dec’09)

6. India is world’s second largest wireless market
600
584
wireline
wireless
400
200
37
0
2002
2003
2004
2005
2006
2007
2008
2009
Mar-10
India accounts for the highest mobile subscriber additions globally. It is the
fastest growing market in the world.

7. Mobile Tariffs in India one of the Lowest
0.25
0.23
0.22
0.2
0.19
0.17
0.16
0.15
0.11
0.11
0.09
0.03
0.02
India
0.04
China
0.05
Pakis tan
Malayas ia
Argentina
Taiwan
Philippines
Brazil
France
UK
Italy
0
Hong Kong
0.05
0.05
Thailand
0.1
Belgium
USD
0.11

8. Major Players in different segments of Indian telecom industry
Basic Services Operators
MOBILE SERVICES
GSM Services Operators
BSNL
Airtel
MTNL
Vodafone
Reliance
Idea
TTSL
Reliance
BSNL
Internet Services Operators
TATA DOCOMO
BSNL
CDMA Services Operators
MTNL
Reliance
Reliance
TTSL
TTSL
BSNL
Airtel
MTNL – Mahanagar Telecom Nigam Ltd.
BSNL – Bharat Sanchar Nigam Ltd.
TTSL – Tata Teleservices Ltd.

9. CDMA vs GSM
• GSM (Global System for Mobile Communication)
cheaper & wide variety of handsets.
74% market share
Frequency is less ( 900 & 1800 mhz)
• CDMA (Code Division Multiple Access)
Based on a spread-spectrum technology
Low acceptability & few variety of handsets
Frequency is higher as compared to GSM

10. Market Share
5% 2%
AirTel
22%
9%
BSNL/MTNL
10%
Reliance
18%
16%
Vodafone
Tata
17%
Idea
Aircel
Other operators
Highly competitive market place, new licenses waiting

11. Emerging Trends in Telecom
• More no of operators (12 to 14) leading to fierce & cut throat
competition
• Margins are declining
• Break Even period is getting delayed
• Stringent Regulatory norms
• Non-roll out of services by some operators who bought the
spectrum
• More no of players in the industry , will lead to consolidation.
• DoT reviewing the current trends and relaxing norms on exit
clause for the operators who bought spectrum and not able to
rollout the services (Refer Economic Time 30th August 2010)

12. Growth avenues








Lot of scope for rural penetration
Low cost of handsets
Dual SIM hand set
Value-Added Services (VAS) Market is expected to reach 13% by
2013 from current level of 8 to 10%.
Mobile commerce, Mobile TV, Stock Trading, Internet Access.
3G services
Tele-medicine
Manufacturing of a vast range of telecom equipment

13. Bottlenecks for Indian Telecom Industry
 Slow
reform process.
 Low rural penetration 18% against 80% in Urban area.
 Huge initial cost to make inroads and delayed break-even .
 Limited spectrum availability
 interconnection charges between operators.

14. Role of Management Accountant

Cost & Management Audit

Resource planning and cost control using various costing tools.

Strategic decision making in business operations

Financial planning & treasury management.

Project management & consultancy

Developing system & process.

Developing Management Information Systems (MIS)

In Telecom:

Accounts dept,

Business Finance,

Business planning & analytics

Revenue Assurance,

Billing Team etc.

15. To achieve success in professional life you should have

Integrity & Hard Work

Knowledge of the domain

Technical skills ( Computer , Excel,SAP,PPT etc.)

Business Acumen

Customer focus

Result orientation

Initiative with speed

Positive attitude

Willingness to learn

16. Thank you