Analysis of Indian telecom sector, A thorough look at the journey of Indian telecom industry from its inception in the 80's to its humongous boom in the 2000's and the what the future holds.

1. POLICY ON TELECOM
REGULATION
MADE BY –
Akhil Kapoor – 3064
Snehaj – 3068
Sarin Sio – 3083
Yash Pant - 3093

3. • 1991-92 – PRIVATE PLAYERS ALLOWED IN
TELECOM
• 1994 - NATIONAL TELECOM POLICY FORMULATED
• 1997 – TRAI FORMULATED
• 1st OCT 2000 – BSNL CREATED AS PSU TO
PROVIDE SERVICES ACROSS INDIA `
THE JOURNEY SO FAR

4. NTP 1999
• Revenue Generation not main Objective
• Importance assigned to TRAI (Telecom Regulatory
Authority Of India)
• Revenue sharing arrangement (15% of Adjusted gross
revenue [AGR]) instead of fixed license fee, with effect
from August 01, 1999.
• Migration package offered to existing licensees (42
CMTS(Cellular Mobile Telecom Service, 6 Basic)

5. THE EXPLOSION

9. Increase In Competition

13. The Future of Telecom
• Rural Telecommunications
• 3G
• VAS – Value Added Services
– Data Transfers
– GPS
– Custom Downloads
– MMS

14. Growth Of VAS

16. Rural Telecom

18. SPECTRUM POLICY
• ALL FUTURE SPECTRUM ALLOCATIONS TO BE DONE ON
MARKET PRICES.
• SPECTRUM POOLING, SHARING AND TRADING TO BE
ALLOWED.
• PREPARE A ROADMAP FOR SPECTRUM AVAILABILITY
FOR THE NEXT 5 YEARS.
• FREE 300 MHZ OF AIRWAVES FOR COMMERCIAL
TELEPHONY BY 2017.

19. CONTD…
• RESERVATION OF SPECTRUM FOR
INDIGENEOUS DEVELOPMENT OF PRODUCTS
AND TECHNOLOGIES.
• ENACTMENT OF THE SPECTRUM ACT TO DEAL
WITH ALL THE ISSUES RELATED TO SPECTRUM
TRADING AND SPECTRUM IN GENERAL.
• LICENSE TO BE DELINKED FROM SPECTRUM.

20. MOBILE PERMITS
• FRAMING OF AN EXIT POLICY TO ALLOW NEW
ENTRANTS TO SURRENDER THEIR MOBILE PERMITS
AND AIRWAVES.
• ALLOWING SHARING OF NETWORKS AND REGULATE
VALUE ADDED SERVICES.
• TO PROVIDE CLEAR RULES FOR RENEWAL OF MOBILE
PERMITS.
• MOBILE PERMITS TO BE TECHNOLOGY NEUTRAL.

21. CONTD….
• TO INCREASE RURAL TELE-DENSITY TO FROM 35% TO
60% BY 2017 AND TO 100% BY 2020.
• TO MANUFACTURE 80% OF TELECOM NETWORKS
DOMESTICALLY.
• REDUCING CARBON FOOTPRINT OF TELECOM SECTOR.
• FACILITATING USE OF GREEN TECHNOLOGY TO POWER
TOWERS.

22. Broaaaad band
WHAT IT AIMS:
 TO PROVIDE BROADBAND ON DEMAND BY 2015.
 TO ACHIEVE A TARGET OF 175 MILLION BROADBAND
USERS BY 2017.
 TO PROMOTE R&D & PRODUCT DEVELOPMENT IN
TELECOM.
 BROADBAND SPEEDS TO BE REVISED TO 512 KBPS AND
FURTHER TO 2MBPS BY 2015.

23. FOR THE AAM AADMI…
• ROAMING CHARGES TO BE ABOLISHED.
• CONSUMERS CAN NOW USE MNP SERVICE EVEN
WHEN THEY SHIFT TO A NEW CITY WITHOUT PAYING
ROAMING CHARGES.
• STRENGTHENING OF GRIEVANCE REDRESSAL
MECHANISM.
• REGULATOR TO ENHANCE CONSUMER AWARENESS ON
SERVICES AND TARIFFS.

24. ETC….
• TO PUT IN PLACE LEGAL,REGULATORY AND
LICENSING FRAMEWORK FOR CONVERGENCE OF
SERVICES, NETWORKS AND DEVICES.
• MOVE TOWARDS AN UNIFIED LICENSE REGIME
THAT ALLOWS OPERATORS TO OFFER ANY
SERVICES.
• RELXATION OF M&A NORMS TO ALLOW
CONSOLIDATION.

25. CONTD……..
• PROMOTION OF TRAINING INSTITUTES IN RURAL
AND URBAN AREAS & COLLABORATION WITH
IIT’S.
• DoT TO LOOK AFTER LICENSING AND SPECTRUM
ALLOCATION AND MINISTRY TO FOCUS ON
POLICY MAKING.
• CREATION OF TELECOM FINANCE CORPORATION
TO FACILITATE INVESTMENT IN THE SECTOR.

26. To Gain Not to Gain
• THE BIGGEST BENEFIT TO THE CONSUMERS IS
THE REMOVAL OF ROAMING CHARGES AND
NATIONWIDE MNP.
• HOWEVER THIS MOVE ADVERSELY AFFECTS THE
OPERATORS WHO GAIN 5-7%OF THEIR REVENUES
FROM ROAMING CHARGES.
• IN THE LONG RUN THOUGH THEY STAND TO GAIN
FROM INCREASED VOICE AND DATA USAGE.

27. CONTD…
• FOR OPERATORS DE-LINKING OF NETWORKS
FROM SERVICE DELIVERY WILL ENABLE QUICKER
ROLL OUT OF SERVICES.
• NETWORK SHARING WILL REDUCE ENTRY
BARRIERS AS NEW PLAYERS NEED NOT INVEST IN
NETWORK BUILDING.
• EXISTING OPERATORS CAN ENHANCE REVENUE
BY UTLISING THEIR NETWORK ASSETS.

28. CONTD….
• THE PROPOSAL OF SPECTRUM BEING TRADED ON
MARKET PRICE MIGHT DRIVE UP THE COST OF
SPECTRUM.
• THIS COST COULD BE PASSED ON TO THE
CONSUMERS IN TERMS OF INCREASED TARIFFS.
• SPECTRUM SHARING HOLDS WELL FOR THE
ENTIRE INDUSTRY AND ENSURES OPTIMAL
UTILIZATION OF THE SPECTRUM.

29. CONTD…
• DESPITE BEING A HIGH GROWTH MARKET, TELECOM LAGS
BEHIND IN CREATION OF IPR.
• BY PROMOTING DOMESTIC MANUFACTURING SECTOR THIS
SCENARIO MIGHT CHANGE.
• ACCORDING TO TRAI ESTIMATE IN LAST 5 YEARS TELECOM
IMPORT GREW BY 24TIMES WHILE EXPORTS BY ONLY 7
TIMES.
• INCREASING DOMESTIC PRODUCTION CAN HELP CHANGE
THE TREND AND ALSO GENERATE EMPLOYMENT.

30. CONTD…
• CONVERGED SERVICES WILL BRING NEW USERS
ACROSS URBAN AND RURAL AREAS.
• THIS IS EXPECTED TO DRIVE END USER DEVICE
DEVELOPMENT AND REDUCE PRICES.
• SUBSCRIBERS CAN LOOK FORWARD TO QUALITY
VERNACULAR CONTENT.
• MOBILE DEVICE WILL BRIDGE THE DIVIDE IN ACCESS TO
EDUCATION, HEALTH & GOVERNANCE.

31. PuLLing Down….
• HOWEVER THE PROPOSED SPECTRUM ACT
HASN’T BEEN ELABORATED IN THE DRAFT.
• IMPLEMENTATION OF KEY REGULATION
CONTROLS DEPEND UPON THE SPECTRUM ACT.
• THE DRAFT IS ALSO SILENT ON THE EXISTING 2G
SPECTRUM AND HOW IT WLL BE TREATED UNDER
THE NEW LICENSE FRAMEWORK.

32. CONTD…
• THE DETAILS REGARDING THE M&A POLICY IS
STILL UNCLEAR.
• THE DRAFT POLICY ENSURES EASY EXIT
POINTS FOR NEW PLAYERS.
• M&A CAN HELP CONSOLIDATE THE CROWDED
TELECOM MARKET BUT WITH MORE DEFINITE
GUIDELINES.

33. Wake up Bodyguard lovely singh…
• THE DRAFT HIGHLIGHTS THE IDEA OF
CONVERGENCE OF TECHNOLOGIES.
• HOWEVER SECURITY CONCERNS RELATED TO
EXISTING PUBLIC SWITCHED TELECOM NETWORK
HAS NOT BEEN PROPERLY ADDRESSED.
• THE DRAFT ALSO NEEDS TO FOCUS MORE ON
EMERGING TECHNOLOGIES.

34. The Household fight…
• THE POLICY SHOULD LAY DOWN ROLES AND
RESPONSIBILITIES OF VARIOUS REGULATORY AGENCIES.
• A STRONG COMPILANCE AND MONITORING AGENCY IS
REQUIRED TO CONSTANTLY PERCEIVE THREATS.
• WAR BETWEEN DOT, TRAI & MR. OUTSIDER- TDSAT.
• THE TELECOM POLICY SHOULD ALSO CONSIDER
IMPLEMENTING A REGULATORY BODY TO MANAGE
COMMUNICATION INFRASTRUCTURE DURING
EMERGENCIES.

35. Election speeches & promises…
• THE PROPOSAL OF 80% OF TELECOM’S SECTOR
DEMAND TO BE MET DOMESTICALLY IS DIFFICULT TO
BE IMPLEMENTED IN ABSENCE OF A SUPPLY CHAIN.
• NEW BROADBAND SPEEDS THOUGH PROMISING BUT
STILL LOW WHEN COMPARED TO OTHER NATIONS.
• MORE CLARITY IS REQUIRED TO MAINTAIN THE
PRESENT TAX STRUCTURE ON MOBILE HANDSETS
UNDER THE UPCOMING GST REGIME.