The document summarizes the history and development of the telecom industry in India. It discusses how the first telephone exchanges were established in major cities in 1881. The Department of Telecom was established in 1975 to oversee telecom services nationwide. In the 1990s, the sector was opened to private investment. Major reforms between 2000-2011 established an independent regulator and increased competition. Subscriber growth has increased dramatically, from 28.5 million in 2000 to over 943 million by 2012. The top telecom companies in India are discussed. Challenges facing the industry like subscriber growth, network issues, and regulatory policies are also summarized.

1. PRESENTED BY:
GROUP 1

2. Introduction
•In early 1881, Oriental Telephone Company Limited of England
opened telephone exchanges at Calcutta (Kolkata), Bombay
(Mumbai), Madras (Chennai) and Ahmedabad.
•On the 28th January 1882 the first formal telephone service was
established with a total of 93 subscribers.
•From the year 1902 India drastically changes from cable
telegraph to wireless telegraph, radio telegraph, radio telephone,
trunk dialing.
•In the year 1975 Department of Telecom (DoT) was responsible
for telecom services in entire country after separation from
Indian Post & Telecommunication.

3. • In 1990s the telecom sector was opened up by the Government for
private investment. In1995 TRAI (Telecom Regulatory Authority of
India) was setup.
• This reduced the interference of Government in deciding tariffs and
policy making.
• The Government of India corporatized the operations wing of DoT in
2000 and renamed Department of Telecom as Bharat Sanchar Nigam
Limited (BSNL).
• Decade later Mahanagar Telephone Nigam Limited (MTNL) was
chipped out of DoT to run the telecom services of Delhi and Mumbai

4. Overview of theTelecom Industry in
India• From 2001 to 2011, the total number of telephone subscribers has grown at a
Compound Annual Growth Rate (CAGR) of 35 per cent.
• The comparable rates in the 1980s and 1990s were 9 per cent and 22 per cent,
respectively.
• Demand side factors—ultra low cost of handsets, low tariffs and ultimately the
ease of using a phone—as well as supply side factors have made mobiles popular
in India.
The regulatory reforms in the telecom sector from 2000 to 2011 can be broadly
classified into the following three distinct phases.
• Phase 1 – 2000–2003: Telecom sectors were opened up to competition.
• Phase 2 – 2004–2007: Regulator encouraged competition and also set the stage
for future growth.
• Phase 3 – 2008–2011: More choices were brought in for consumers in terms of
technology and services.

5. The total number of telephone subscribers in India stood at 943.49 million in
February 2012 as against 28.53 million in April 2000.
India is the world’s fastest growing industry in the world in terms of number of
wireless connections after China, with 811.59 million mobile phone subscribers.
According to the world telecommunications industry, India will have 1.200
billion mobile subscribers by 2013.

7. SWOT Analysis onTelecom
Industries in India

8. PERCENTAGE OF GDP
India is 4th largest market in Asia after China, Japan and South
Korea.
India is the 5th largest in the world and 2nd largest among
emerging economies of Asia.
Contribution of telecom sector in terms of revenue is 2.1 % of
GDP as compared to 2.8% in developed economies.

9. Problems faced byTelecom
Industry
• Subscriber Growth
• Profit Margin
• Network
• Number of Operator
• MNP
• Spectrum Management
• TRAI directiveVAS
• Tax disputes with Govt.

10. LeadingTelecom Companies in India
1 | Airtel
• Bharti Airtel Limited is India’s largest telecom company .Founded by Sunil
Mittal in 1986 the company is fourth largest mobile operator in the world.
Products offered by company includes mobile commerce , 2G, 3G and 4G
wireless services, fixed line services, IPTV, high speed DSL broadband,
DTH and enterprise services.
2 | Reliance
• Reliance Communications a flagship company of Reliance Group was
established in 2004 and the company has more than 150 million subscribers.
The company’s product offerings include wireless, broadband, national and
international long distance services.

11. 3 | Vodafone
• Vodafone is a leading global telecommunications company with operations
in over 30 countries . Headquartered in London, the company ranks amongst
the top 4 telecom companies globally in terms of subscribers and revenues.
Company owns 45% of Verizon Wireless, the largest mobile telecom
company in the US measured by subscribers.
4| Idea
• An Aditya Birla Group Company with over 121 million customers . Idea is
India among of the top 5 telecom companies which is offering 2G and 3G
services with a traffic of about 1.5 billion minutes a day.

12. Conclusion
• Lower spectrum prices
• SpecialTax Benefit
• NewVAS services
• Government policy regarding tariffs
• Not only Pvt. Players dominant market
• Technology ofTower Industry

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