The telecom industry is a global industry that connects the world through the transfer of information over long distances using various technologies. It is a volatile sector impacted by regulatory issues, competition, and emerging technologies. Emerging markets are driving volume growth while developed markets see technological advancements. The Indian telecom market is the fastest growing in the world but faces challenges around regulations, infrastructure, and the digital divide. Moving forward, India needs transparent policies, adequate spectrum, reduced import duties, and manufacturing to fully connect to the global telecom industry.

1. Telecom Industry

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

3. IntroductionTelecom stands as one of the most essential elements of the business world in terms of “Connecting the World”Volatile SectorRegulatory discord Cut-throat competitionEmergence of Technologies Emergence of broadband & wireless technologies pose threat to carriers relying on aging infrastructureTo survive, telecom carriers need to consider various options Consolidation, Convergence,Costly Technological upgrades

4. Global Growth PatternsEmerging Markets Driving Volume GrowthLow Tariffs (ARPUs)Developed MarketsLow Subscriber BaseTechnological AdvancementsIndian Telecom depends on the global telecom industry for technology platforms & network management WhileIndian market size attracts telecom giants

5. Indian Telecom - ScenarioIndia – Fastest growing market in World – 190 mn subscribers4th largest mobile market growing at 6 mn Sub/month4th largest internet market, 3rd largest by 2007Voice Revenue dropping; PCOs - 4.5 mn @ CQGR of 7.22%Paying highest taxes and regulatory charges; Variable License feeOPPORTUNITIESData revenues – 8.5% of service revenue against world avg of 16.5%Content Services – Music/Video etcApplications – m Commerce/PVR TicketingTele-density – From 2% in 2000 to 15.44% in 2006TEMA target of $100 bn for equipments in next 3 yrsIT & ITES Industry – $35 bn with CAGR of 35%

6. Indian Telecom – Global ReachSource: Voice & Data

7. Indian Telecom - Global ConnectivitySubmarine Cable System Landingat Chennai, Mumbai, Cochin & TuticorinSMW 4MumbaiFLAGSMW 3i2iChennaiTICSMW 3SMW 4CochinSAFETuticorinBharat Lanka

8. International Bandwidth Growth - IndiaSource : TelegeographyConversion: 1 Gbps ~ 6.4 STM1

9. International Bandwidth UsageGbps*Source : TelegeographyThe above figure is for usage of bandwidth

10. China has more than 10 times of higher bandwidth usage as comparison to India Global Trends – Connecting WorldConvergence & MobilityPublic SafetyMobile Devices with voice, data & videoMobile Wireless BroadbandFibre to HomeMobile Police & Fire personnel devices Interoperable CommunicationsCommunicationsComputers & ITConsumer ElectronicsLaptops & Handheld PCs Entertainment major PC driver IP to & in the Home

11. VoIP handsets

12. Entertainment becomes Digital Mobile Personal Digital Devices prevail

13. Connecting India to the WorldENABLERSUnified LicensingTelecom Technologies - Internet/Wimax/VOIPReduced License Fees in Long Distance SectorOutsourcing Network Management to Global ManufacturersIndia - Telecom Equipment Manufacturing BaseConvergence - ICTFDI Relaxation in Telecom (26% to &74%) - $2.67 bn Aug,06Emergence of IT & ITES SectorConsolidation & Partnerships between Indian & Foreign Players viz. BT, AT&T , Aircel & MaxisTelecom has attracted significant FDI and technology which has resulted in huge benefits to the Indian Telecom Growth