The document summarizes the telecom sector in India. It states that India has the second largest telecom market in the world. As of April 2016, there were over 1 billion mobile subscribers in India, with urban areas having higher teledensity than rural areas. The sector contributes significantly to India's GDP. The market has grown due to liberal government policies and the sector is expected to generate millions of jobs. The entry of Reliance Jio in 2016 with cheap 4G plans disrupted the market, gaining over 35 million subscribers quickly and forcing other operators to lower prices. However, Jio also faced issues like call drops due to actions of other operators, which led to regulatory interventions. A large spectrum auction was held in 2016.

1. TELECOM SECTOR
IN INDIA
Presented by :
SoumilAgarwal (J001)
Abhishek Jain (J009)
Aayush Maheshwari (J015)
Rohan Nagpal (J019)

2. Brief Introduction
■ India – second largest telecom market in the world
■ Telecom Regularity Authority of India (TRAI) – Regulator of telecom sector in India
■ In FY 2013-14, telecom sector contributed in GDP - ₹4.29 lakh crore (US$64 billion)
■
■ There are various telecom service providers, private as well as public sector
undertaking (PSU).
0
200
400
600
800
1000
1200
Total Mobile Fixed Line
1059.29 1034.25
25.04
inMillions
SubscribersApril '16
0
20
40
60
80
100
120
140
160
Overall Urban Rural
83.32
153.14
51.67
inPercentage
TeledensityApril '16
According to the TRAI Press Release No. 49/2016, here is the
highlights of telecom subscription data as on 30th April, 2016.

3. Growing Market
■ One major factor of growing market – Government liberal and reformist policies
■ According to BRICS –
• Market is likely to grow by 10.3 per cent per year in order to reach US $103.9 billion by 2020
• Sector is also expected to generate over 4 million direct and indirect jobs over a span of next 5
years
■ According to DIPP (Department of Industrial Policy and Promotion) –
• Industry has also attracted FDI worth US $18.38 billion between 2000 April and 2016 March
■ Growth in number of 4G enables smartphones shipped to India - the figure went up from 32 per
cent of 100 million in 2015 to about 72 per cent of the 120 million this year.
■ On September 1st , 2016, world’s biggest startup with investment of ₹1,50,000 crores, Reliance
Jio Infocomm Limited (RJIL) was launched by the Chairman Mr. Mukesh Ambani.
■ Jio has created vast employment and it has nearly 50,00,000 family members across India
■ Jio also launched its own 4G enabled smartphones in the branding name LYF with prices starting
from ₹2,999 to ₹5,999

4. Impact of Jio on other Operators
1. During the launch
of Jio • Cheapest 4G tariff plans
• Free 3 months introductory period offer
• Free subscription to Jio apps worth ₹15,000 per
year
• FreeVoice Calls for lifetime
• Largest 4G network
• Target to achieve 90% Indian population by
March 17
■ 2. Goldman Sachs, leading global investing firm expects Jio to garner 35 million subscribers over the next two
years, with data volume growth for incumbents slowing to 50 percent in FY17 from 70 percent in FY16.
■ 3. KINSITE, Kotak Institutional Equities’ Network, lowered their FY17-18 Ebitda (operating profit) by 3-5% for
Bharti Airtel and by 2-4% for Idea Cellular and earnings estimates by 9-16% for Bharti Airtel and by 13-19% for
Idea cellular.

5. ■ 4. Other Operators are
merging together
Impact of Jio on other Operators
■ 5.With the cheapest tariff plans, Jio has pressurized other incumbents to lower the prices of their tariff
plans as customer will choose the cheapest plan.
Airtel andVodafone also launched plans in competition of Jio which offering more data in less money.

6. Impact of other Operators on Jio
Source: http://www.ibtimes.co.in/reliance-jio-accuses-airtel-vodafone-idea-rejecting-
mnp-requests-693913
1. Call Failures 2. MNP Rejections
Source: http://economictimes.indiatimes.com/news/economy/policy/jio-call-drop-rate-is-
unacceptable-says-trai/articleshow/54534086.cms

7. Impact of other Operators on Jio
3. Jio and BSNL Deal
Source: http://economictimes.indiatimes.com/news/economy/policy/jio-call-drop-rate-is-unacceptable-says-trai/articleshow/54534086.cms

8. TRAIActions
Source: http://gadgets.ndtv.com/telecom/news/call-drops-trai-to-issue-notice-to-warring-telecom-
operators-1466653
■ Due to higher call failures between Jio and other operators,
TRAI issued notice to warn telecom operators.
■ Chief Justice of Delhi High Court ordered a penalty order to
three incumbent operators.
1.
2.
Source: http://www.ndtv.com/india-news/fine-airtel-vodafone-idea-rs-
9-900-crore-for-jio-call-drop-former-high-court-justice-1466813

9. India’s Largest Spectrum
Auction
Source: http://economictimes.indiatimes.com/news/company/corporate-trends/indias-
biggest-ever-spectrum-auction-kicks-off-today/articleshow/54617881.cms
Source: http://indianexpress.com/article/technology/tech-news-technology/spectrum-
auction-reliance-jio-airtel-idea-vodafone-3059467/
1.
2.

10. THANKYOU