The document provides an overview of the Indian telecommunications sector, highlighting its rapid growth, which has made it the second largest network in the world with over 375 million subscribers as of early 2012. It details the historical context of the industry, key players like Reliance Communications and Airtel, and the significant investments expected in the sector. The document also addresses the challenges faced by the industry, the role of foreign investment, and the importance of government regulations in supporting telecom expansion in India.

2. Introduction
History
Introduction to Telecom Sector
Reliance Communication
Other Players of Telecom Industry
Analysis of Reliance Communication
Role of Government

4. Introduction
• Indian telecommunications network is second largest
network in the world after China with over 375 Million
subscribers
• India is also the fastest growing telecom market in the
world and has emerged as a major base for the telecom
industry
• The teledensity of the Country has increased from 18% in
2009 to 45% in December 2012.
• Thus Indian telecom sector has come a long way in
achieving its dream of providing affordable and effective
communication
• As a result common man today has access to this most
needed facility.

5. TELECOM SUBSCRIBER BASE IN INDIA
• The mobile sector has grown from around 10 million
subscribers in 2008 to reach 375 million by early 2012
registering an average growth of over 90%.
• Low tariffs coupled with falling handset prices have fuelled this
growth
• Foreign telecom companies have entered Indian market which
has still got huge potential (vodafone).
• Indian Telecom market is valued at around $100 billion
(Rs.400,000 crore).
• India’s rural telephone density has been languishing at around
1.9%.
• Telecom Subscribers to cross 1.5 billion by 2015 and 5
billion by 2020.

6. History
• Indian Telecommunications sector was
monopolized by BSNL
• In the year 1999, Government of India initiated a
number of changes in the telecommunications and
regulatory and policy department
• Hoped to facilitate an increase in
telecommunication penetration, which stood at
1.29% in 1995
• With an eye on telecommunication penetration of
15% by 2013

7. • Technical: “telecom in the real sense means
transfer of information between to distinct points
in space”
• Managerial: “telecom is a huge & varied bastion
of technologies ,companies ,services & politics
that is truly global in nature”

8. Different Services of Telecom Sector:

9. Competitive tariffs
 VAS applications on Device
 Spectrum management
 Broadband expansion in Rural
 Content Regulation of Data
 Reduce Circles to relax Roaming
 Alternate Technologies (Solar/Wind
for power back-up)
Challenges of Telecomm. Industry

10. Telecom sector now
• Total telephone subscriber base in the country reached
935.18 million
• Total Wireless subscriber base stood at 904.23 million
• Wire line subscription stood at 30.95 million
• Total Broadband subscriber base has reached to 14.81
million
• FDI in telecom sector during April-June 2012-13 stood
at US$ 8 million, as per the Department of Industrial
Policy & Promotion

11. • Huge investments of around US$ 112.6 billion in the
next five years plan (2012-2017).
• BSNL and MTNL are expected to make investments
of US$ 22.5 billion during the five years
• Private sector is expected to invest US$ 90 billion in
expanding their infrastructure,
• The Government has recently announced 74 per cent
of foreign direct investment (FDI) in DTH, and mobile
TV.

12. Telecommunication Tariffs in India, one
of the Lowest
0.23
0.22
0.19
0.17
0.16
0.11 0.11 0.11
0.09
0.05 0.05
0.04
0.03
0.02
0
0.05
0.1
0.15
0.2
0.25
Belgium
Italy
UK
France
Brazil
Philippines
Taiwan
Argentina
Malayasia
HongKong
Thailand
Pakistan
China
India
Series1

13. • P-Products
• P-Price
• P-Place
• P-Promotion
MARKETING
MIX
PRODUCTS
Cell Phone
PRICE
Lower end
segment to super
premium end
PLACE
Exclusive
showroom,
shopping
mall, chain
store
PROMOTIN
Print media,
mass media &
electronic
media

14. • Pre-paid
• Post-paid
• Wireless handheld value added services (VAS)
• Customer based pricing strategies
• Flexible pricing mechanism
• Wide and extensive presence and it provide services
in India
• Large scale print and video advertising
• Big celebrities like Anushka Sharma, M.S Dhoni,
Abhishek etc…

15. RELIANCE
COMMUNICATIONS
Type Public BSE: 532712
Industry Telecommunications
Founded 2004
Founder Dhirubhai Ambani
Headquarters Navi Mumbai, Maharashtra
Area served India
Key people
Anil Ambani (Chairman )
Satish Seth (MD)
Products
Wireless
Telephone
Internet
Television
Data Cards
Recharge Vouchers
Revenue Rs 22,948 crore (US$ 4.89 billion)
Operating
income
Rs 9,305 crore (US$ 1.98 billion)
Net income Rs 6,045 crore (US$ 1.29 billion)
Total assets Rs 102,207 crore (US$ 21.77 billion)
Total Equity Rs 1,032 crore (US$ 219.82 million)
Employees 31,884
Parent ADAG
1st Rank in CDMA Telecom Market of India with
Total Subscriber Base (Both GSM & CDMA) of
102.44 Million & Market Share in CDMA
Of 59.39 %.
6th Rank in Purely GSM Market with
Total Subscriber Base of 16.31 Million &
Market Share in GSM Market is of 3.87 %.
Reliance after 2002 when it sold its Reliance
Handset in only 500 Rs.
R-Com had launched a new tariff model for its
pre-paid customers, which offers Unlimited talk
time for a flat monthly fee.

16. • Reliance Communications is the flagship company of the Anil
Dhirubhai Ambani Group of companies.
• Reliance Mobile (formerly Reliance India Mobile), launched
on 28 December 2004, coinciding the joyous occasion of the
late Dhirubhai Ambani’s 70th birthday.
• Reliance Communications Limited provides integrated
converged telecommunications services to individual,
enterprise, and carrier customers in India and internationally.
• It has a strategic alliance with GetJar Inc., an applications
store, to offer catalog of approximately 65,000 free mobile
applications. BOTH GSM PLAYER
&
CDMA PLAYER
PAN in 23 Circles.

17. BE - Domain Study - Telecom 17

18. Reliance contribution in telecom
sector
• 2006 -Nokia and Reliance Communications Ltd have joined
hands to market the Nokia 1255 mobile handset in India at a
price of Rs 1,999.
• 2007-Reliance Communications rolled out a range of mobile
handsets priced at between Rs 777 and Rs 888, saving by hal
to one-third the existing entry level mobility costs in the country
• Reliance Communications Ltd has launched Money Transfer
through mobile phones across the country through it's tie-up
with ICICI Bank.
• 2009- Reliance Communications announced its partnership
with Microsoft for offering email support, chat, photo-sharing,
content back-up and other applications.
•

19. • On Nov 27 introduced one paisa per SMS for both
GSM and CDMA customers, triggering a war of tariffs
on data services from voice calls.
• 2010- Announced an unlimited internet access plans
called -Mobile Net Plan, of both post paid as well as
pre paid can access unlimited mobile internet at Rs
99 per month.
• A structural shift over the last few years has propelled
real GDP expansion to over 8 per cent in the last 4
years, with the last two years recording a growth rate
in excess of 9 per cent.

20. Reliance
• Unlimited FREE incoming
calls
• Free value added
services like voice mail,
call wait etc.
• Free text messaging
• Free Rworld data
applications
• Rconnect – Internet
through Mobile
Other Mobile
Services
• Charged Incoming calls
• Charged value added services
• Text messages were charged
• No data applications
• No provision for connecting to
the Internet

21. Other Players of Indian Telecom Industry
There are three types of players in telecom services:
• State owned companies (BSNL and MTNL)
• Private Indian owned companies (Reliance Communication, Tata Teleservices)
• Foreign invested companies (Vodafone Essar, Bharti Airtel, Idea )
I WANT ONLY
1 SIM CARD

22. 23%
19%
17%
13%
11%
10%
5% 1% 1%
Service Provider Market
Airtel
Reliance Communication
Vodafone
BSNL
Idea
Tata Indicom
Aircel
MTNL
Others(Loops,MTS etc)

23. • Bharti Airtel Limited, commonly known as Airtel, is an
Indian telecommunications services company
headquartered at New Delhi, India.
• Airtel is the world’s third largest mobile
telecommunications company with over 261 million
subscribers across 20 countries as of August 2012.
• It is the largest cellular service provider in India, with
186.41 million subscribers as of October 2012.
• Airtel is the third largest in-country mobile operator by
subscriber base, behind China Mobile and China Unicom.
• Airtel is the largest provider of mobile telephony and
second largest provider of fixed telephony in India,

24. BHARTI AIRTEL
Type Public (BSE: 532454)
Industry Telecommunications
Founded 7 July 1995
Founder Sunil Bharti Mittal
Headquarters New Delhi, India
Area served Worldwide
Key people
Sunil Mittal
(Chairman) & (MD)
Sanjay Kapoor (CEO)
Products
Wireless
Telephone
Internet
Satellite television
Revenue ▲ US$ 7.254 billion (2009)
Operating income ▲ US$ 2.043 billion (2009)
Net income ▲ US$ 1.662 billion (2009)
Total assets ▲ US$ 11.853 billion (2009)
Employees 25,543 (2009)
Parent
Bharti Enterprises (64.76%)
SingTel (30.5%)
Vodafone (4.4%)
1st Rank in Telecom Market of India with Subscriber Base of 127.6 Million
& Market Share Of 30.25 % ( TRAI , GSM Subscriber Base March 2010 Report )
Bharti is now the world's third-largest, single-
country mobile operator and Fifth-largest integrated
telecom operator.
GSM PLAYER- PAN 23 CIRCLES
Bharti ‘s Famous “Minute Factory Model” combined
with a low cost structure.
Bharti Airtel an integrated Telecom Service Provider.
“Work is Love , not Stress “
- Sunil Bharti Mittal

25. • IDEA Cellular is part of the Aditya Birla Group,
India's first truly multinational corporation.
• A leading GSM mobile services operator with
over 38 mn subscribers.
• A brand known for their many firsts, IDEA is the
only operator to launch General Packet Radio
Service (GPRS) and EDGE in the country.
• Idea Cellular Limited was incorporated in 1995,
and now ranks third in terms of all-India
wireless revenue market share at 13.6 per cent.
• Idea ranks second with 23.6 per cent revenue
market share.

26. IDEA CELLULAR
Type
Public
BSE: 532822
NSE: 532822
Industry Telecommunications
Founded 1995
Headquarters Santa Cruz East, Mumbai, India
Key
people
Kumar Mangalam Birla (Chairman)
Sanjeev Aga (MD)
Rajat Mukharjee (VP Corporate
Affairs)
Products Mobile
Parent
Aditya Birla Group (49.05%)
Axiata Group Berhad (15%)
Providence Equity (10.6%)
GSM PLAYER PAN IN ALL 23 CIRCLES
3RD Rank in Telecom GSM Market of India with Subscriber Base of 63.82 Million &
Market Share of 15.13 % in GSM Market. ( TRAI ,March 2010 Report )

27. • Vodafone was formed in 1983 as a joint venture between
Racal Electronics (a UK electronics firm) and Millicom (a
US telecom company).
• Vodafone Essar in India is a subsidiary of Vodafone
Group and commenced operations in 1994 when its
predecessor Hutchison Telecom acquired the cellular
license.
• Vodafone Essar, under the Hutch brand, has been
named the ‘Most Respected Telecom Company’, the
‘Best Mobile Service in the country’ and the ‘Most
Creative and Most Effective Advertiser of the Year’.
• Vodafone has partnered with the Essar Group as its
principal joint venture partner for the Indian market.

28. Vodafone Essar
Type Limited
Industry
Mobile
telecommunications
Predecessor Hutchison Essar
Founded 1994
Headquarters Mumbai, Maharashtra
Products
Mobile networks,
Telecom services, Etc.
Owner(s)
Vodafone Group (67%)
Essar Group (33%)
Employees 10,000
2nd Rank in Telecom GSM Market of India with Subscriber Base of 100 Million &
Market Share of 23.91 %. ( TRAI ,March 2010 Report )
GSM PLAYER PAN in 23 Circles
Vodafone ZOOZOO Magic

30. S : Strengths
• Highly focused on Indian Telecom Market.
Leadership in fast growing cellular segment
• Huge network coverage
• Proactive & innovation service
• Strong Financials
• Reliance is another name of “trust “&”ethics”
• highly successful in minds of common man

31. • No separate strategy for rural market
• Distribution channel is not accurately categorized
• No free local calls & STD calls packs offered by it
• Small players giving strong competition in different
segmentation like call rates, GPRS,SMS Packs,
Broadband Internet other VAS
• Customer lists not tested
• Some gaps in range for certain sectors
• Customer services staff need training

32. • Could develop new products
• Local competitors have poor products
• Profit margins will be good
• End-users respond to new ideas
• Can surprise competitor
• Environmental effects would favor large competitors
• Market demand very seasonal
• New scheme draw away the attention of customer
from the original product
• Poor advertisement doesn’t attract the customer in
the competitive market

33. • Build the National Infrastructure
• Make Metro cities Wi-Fi enabled
• Establish a regulatory framework for carriage and
content of telecommunication
• Establish a single regulatory and licensing authority
Develop ultra economy plans for poor people; to
whom subscriber caller tune is still a luxury
Educate customers about the benefits of value added
service
Customer care services provided to the active
customer’s should be more efficient towards the
problem solution
Role of Government :

34. Presented by:
• Ankur 892
• Krishna 918
• Siddharth 906
• Madhusudan 876
• Hatim 878
• Sapna 908
• Harshika 877