The telecommunications sector in India is growing rapidly with total telephone subscribers reaching over 1.1 billion. Wireless subscriptions account for the vast majority at over 1.1 billion, growing at a CAGR of 19.61% between FY07-18. Tele-density has also increased sharply from 18.23% in FY07 to over 92% in FY18. Internet penetration is also rising fast with over 500 million subscribers as of June 2018. Data consumption is growing exponentially driven by affordable smartphones and lower data rates. Emerging trends include expansion to rural areas, adoption of green technologies, and growth of technologies like IoT and 5G.
Consumer barriers to mobile internet adoption in AsiaTuan Anh Nguyen
This research examines why more than 2 billion people in the region can access the internet but are holding back from doing so.
This includes data from six markets in the region: China, India, Indonesia, Philippines, Thailand and Vietnam with approximately 1,000 people in each country
Consumer barriers to mobile internet adoption in AsiaTuan Anh Nguyen
This research examines why more than 2 billion people in the region can access the internet but are holding back from doing so.
This includes data from six markets in the region: China, India, Indonesia, Philippines, Thailand and Vietnam with approximately 1,000 people in each country
Mobile Marketing Association, the global leading association for the mobile marketing industry, along with GroupM, world’s leading media investment group, today released its ‘Mobile Ecosystem and ad-Sizing Report’ 2018.
The Effect on the Telecom Industry and Consumers after the Introduction of Re...Dr. Amarjeet Singh
In the world of intense competition amongst all the
industries, the telecom industry also does not fail to stay
behind. With the belief that the customer is the king, each and
every company in India is willing to go to depths and cross
lines every day so that they can be that one brand that
customers look for. While choosing a Network, one looks for
various factors such as Network coverage, the call rates, the
internet plan offered and not to forget but the value-added
services as well. Satisfying the consumers in each of this aspect
is not an easy task. Based on the literature review and after
considering the questions we want to answer; the research
problem of the research paper is “The Effect on The
Consumers and Telecom Industry after the Introduction of
Reliance Jio.” The problem mainly focuses on how the telecom
industry was before and after Jio, what people believe and
perceive about Reliance Jio and what challenges the
competitors faced with the introduction of Jio. Based on the
research problem, these are some of the objectives of our
study,
1. To study the impact of Reliance Jio on the telecom
industry, the change in composition of industry,
change in market share and the reforms that were
undertaken
2. To identify the effect of Jio on common people and
consumer behavior
3. To identify the business strategy followed by Jio and
its Competitors
The methodology used in the research paper was s Single
Cross-Sectional Descriptive Design. With the objective and
design, the tool used for analysis were Mean, Standard
Deviation to compare and analyze the data, also test like the Ztest and Chi-Square Test were done to test the hypothesis.
Finally, the findings of the research paper concluded
that Jio disrupted the market to such a level forcing
competitors to exit or merge, amongst the consumers, the
respondents were eager to test the new competitor in the
market and thus the research witnessed a significant shift in
the network from other networks to Jio.
Through our research we recommend that
Consumers should try to shift to Jio, with their very low
monthly plans and Huge value-added services offered, which
the competitors are still not able to achieve, adds to the success
of Jio in India.
Detecting Financial Statement Manipulation in Selected Indian Telecom Compani...AJHSSR Journal
ABSTRACT : The Indian telecom sector, with 1.17 billion users and the second-largest market globally, is
experiencing exponential growth due to factors like affordable prices, accessibility, and government initiatives.
The introduction of 5G technology has accelerated this growth, with projections of 920 million mobile users by
2025 and an economic boost of $450 billion between 2023 and 2040. Financial statement manipulation poses a
significant challenge in the realm of corporate finance, potentially misleading investors and stakeholders. This
study delves into the intricate domain of financial statement analysis, focusing on five Indian telecom companies,
a sector pivotal to the nation's economic growth with a period of five years from 2018 to 2022. Employing the
renowned Beneish M-Score Model, this research endeavors to detect instances of financial statement manipulation
within the chosen telecom entities. This paper also explores a quantitative analysis using the Beneish M-score
model was used to investigate earnings manipulation within Indian telecom firms. The study highlights the
complexities of financial statement fraud in the telecom sector and the need for vigilance for sustainable growth
and investor confidence.
KEYWORDS: Financial Statement Manipulation, Beneish M-Score Model, Indian Telecom Companies,
Financial Fraud Detection, Earnings Manipulation, Not Earnings Manipulation
Six in ten people in Asia Pacific subscribed
to mobile services in 2015
At the end of 2015, 62% of the population in Asia
Pacific (2.5 billion individuals) subscribed to mobile
services. The region’s four dominant markets
– China, India, Indonesia and Japan – together
accounted for more than three-quarters of the
region’s total subscriber base. Growth rates in the
region are set to remain above the global average,
with Asia Pacific adding more than 600 million new
subscribers by 2020. The focus of growth will shift
to South and South-East Asia; India alone is set to
add just under 250 million new subscribers by the
end of the decade.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
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@Pi_vendor_247
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
The secret way to sell pi coins effortlessly.DOT TECH
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Telegram: @Pi_vendor_247
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
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@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
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A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
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Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
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An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
2. Table of Content
Executive Summary……………….….…….3
Advantage India…………………..….……..4
Market Overview …………………….……..6
Recent Trends and Strategies …………...17
Growth Drivers…………………….............22
Opportunities…….……….......……………31
Industry Associations……………...……...35
Useful Information……….......…………….37
3. For updated information, please visit www.ibef.orgTelecommunication3
EXECUTIVE SUMMARY
India has the second largest telecom network in the world.
Total subscriber base in the country stood at 1,189.08 million, at the end of August 2018.
Second-largest
subscriber base
India has the second highest number of internet subscribers globally.
Total number of internet subscribers stood at 512.26 million by the end of June 2018.
Second-highest number
of internet users
Telecom penetration, also known as tele-density, has grown rapidly over the course of the past few years.
Tele-density grew from 18.23 per cent in FY07 to 92.84 per cent in FY18.
Rising penetration rate
Availability of affordable smartphones and lower rates of data are expected to drive growth in the Indian
telecom industry.
Affordability and lower
rates
Source: Telecom Regulatory Authority of India, Aranca Research
Notee: Telecom Regulatory Authority of India, Aranca Research
5. For updated information, please visit www.ibef.orgTelecommunication5
The government of India has introduced
Digital India programme under which all the
sectors such as healthcare, retail, etc. will
be connected through internet.
Also, with 70 per cent of the population
staying in rural areas and a telecom
penetration of 58.61 per cent as of August
2018, the rural market would be a key
growth driver in the coming years.
ADVANTAGE INDIA
India ranks second in terms of number of telecommunication
subscriptions, internet subscribers and app downloads*
globally.
Moreover, India is also one of the largest data consumers
globally. Total mobile data usage in the country grew
144 per cent year-on-year to 2,360 PB per month in
December 2017.^
Telecommunication ratings in the country
are expected to start rising within the
next two quarters (Q3 and Q4 2018-19),
providing higher pricing
power to incumbent players.
The government has been proactive in its
efforts to transform India into a global
telecommunication hub.
The Government of India unveiled the
National Digital Communications Policy,
2018 in September 2018. The policy aims
to attract US$ 100 billion worth of
investments and generate 4 million jobs in
the sector by 2022.
ADVANTAGE
INDIA
Source: Economic Times, TRAI, App Annie, Department of Telecommunications
Notes: *Combined iOS App Store, Google Play and third-party android, ^Nokia MBiT Index 2018
7. For updated information, please visit www.ibef.orgTelecommunication7
THE TELECOM MARKET SPLIT INTO THREE
SEGMENTS
Source: Aranca Research
Telecom
Mobile (wireless) Fixed-line (wireline)
Comprises
establishments
operating and
maintaining switching
and transmission
facilities to provide direct
communications via
airwaves
Internet services
Consists of companies
that operate and
maintain switching and
transmission facilities to
provide direct
communications through
landlines, microwave or
a combination of
landlines and satellite
link-ups
Includes Internet Service
Providers (ISPs) that
offer broadband internet
connections through
consumer and corporate
channels
8. For updated information, please visit www.ibef.orgTelecommunication8
TELECOM SUBSCRIBER BASE EXPANDS
SUBSTANTIALLY
205.86
300.49
429.72
621.28
846.32
951.34
898.02
933.00
996.49
1,058.86
1,194.58
1,206.22
1,189.08
18.23
26.22
36.98
52.74
70.89
78.66
73.32
75.23
79.38
83.36
92.98 92.84
91.11
0
10
20
30
40
50
60
70
80
90
100
0
200
400
600
800
1,000
1,200
1,400
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19*
Telephone Subscriber (in million) Teledensity
Source: Telecom Regulatory Authority of India
Note: CAGR - Compound Annual Growth Rate, FY19* - as of August 2018
India is currently the second largest telecommunication market and
has the second highest number of internet users in the world.
India’s telephone subscriber base expanded at a CAGR of 17.44 per
cent, reaching 1,206.22 million during FY07–18.
Tele-density (defined as the number of telephone connections for
every 100 individuals) in India, increased from 18.3 per cent in FY07
to 92.84 per cent in FY18.
Total telephone subscriber base and tele-density reached 1,189.08
million and 91.11 per cent, respectively, at the end of August 2018.
Visakhapatnam port traffic (million tonnes)Growth in total subscribers and tele-density
9. For updated information, please visit www.ibef.orgTelecommunication9
WIRELESS SEGMENT DOMINATES THE MARKET
54.48%
43.66%
1.60% 0.27%
Urban Wireless Rural Wireless Urban Wireline Rural Wireline
Source: Telecom Regulatory Authority of India
As of August 2018, total telephone subscriber base of India reached
1,189.08 million.
Out of the total, wireless subscriber base accounted for 98.13 per
cent or 1,166.90 million subscribers.
In the wireless segment, urban regions accounted for 55.51 per cent
share in the wireless telecom subscriptions in the country, while rural
areas accounted for the remaining 44.49 per cent share.
Visakhapatnam port traffic (million tonnes)Composition of telephone subscribers (FY19*)
Note: * - Up to August 2018
10. For updated information, please visit www.ibef.orgTelecommunication10
WIRELESS SUBSCRIPTIONS WITNESS ROBUST
GROWTH OVER THE YEARS
165.11
261.07
391.76
584.32
811.59
919.17
867.80
904.51
969.89
1,033.63
1,170.18
1,183.41
1,166.90
0
200
400
600
800
1,000
1,200
1,400
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19*
Source: Telecom Regulatory Authority of India
Note: CAGR - Compound Annual Growth Rate, ^CAGR is up to FY18, *As of August 2018
During FY07-18, wireless subscriptions in the country increased at a
CAGR of 19.61 per cent, with the number of subscribers reaching
1,183.41 million in FY18.
Wireless subscriptions at the end of August 2018 stood at
1,166.90 million.
Visakhapatnam port traffic (million tonnes)Wireless Subscription (in Million)
^CAGR 19.61%
11. For updated information, please visit www.ibef.orgTelecommunication11
WIRELESS TELE-DENSITY GROWS OVER THE YEARS
18.23
26.22
36.98
52.74
70.89
78.66
73.32
75.23
79.38
83.36
92.98
92.84
89.41
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19*
Source: Telecom Regulatory Authority of India
Note: tele-density - The number of telephone lines for every 100 people in a country, GSM - Global System for Mobile Communications, CDMA - Code Division Multiple Access, FY19* - as
of August 2018
The wireless segment’s tele-density surged from 14.6 per cent in
FY07 to 91.09 per cent in FY18. The figure stood at 89.41 per cent at
the end of August 2018.
As of end of August 2018, urban wireless tele-density had reached
156.48 per cent while rural wireless tele-density reached 58.25 per
cent.
Visakhapatnam port traffic (million tonnes)Wireless tele-density in India (%)
12. For updated information, please visit www.ibef.orgTelecommunication12
SURGING TELECOM REVENUES
32.05
33.02
33.32
37.64
41.69
39.14
38.79
41.69
40.29
40.93
39.49
8.71
0
5
10
15
20
25
30
35
40
45
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19*
Source: Telecom Regulatory Authority of India, Aranca Research
Note: CAGR - Compound Annual Growth Rate, FY – Indian Financial Year (April – March), FY19* - April-June 2018
Indian telecom sector’s gross revenue grew from US$ 32.05 billion in
FY08 to US$ 39.49 billion in FY18.
Gross revenue of the telecom sector stood at Rs 58,401 crore (US$
8.71 billion) during the first quarter of 2018-19.
Visakhapatnam port traffic (million tonnes)Telecom Sector Gross Revenue (US$ Billion)
13. For updated information, please visit www.ibef.orgTelecommunication13
STRONG GROWTH IN BROADBAND DRIVES
INTERNET ACCESS REVENUES
2.34
3.87
6.22
8.77
11.87
13.79
15.05
60.87
99.20
149.75
276.52
412.60
463.65
0
50
100
150
200
250
300
350
400
450
500
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19*
Note: CAGR - Compound Annual Growth Rate, ^CAGR is up to FY18, FY19* - up to August 2018, #Includes Mobile devices users and Fixed wireless subscribers
Total broadband subscriptions in the country increased at a CAGR of
60.03 per cent during FY07–18 to reach 412.60 million.
Subscriptions stood at 463.65 million, as of August 2018.
The number of wired broadband subscriptions stood at 18.02 million,
at the end of August 2018.
Wireless broadband subscribers# stood at 445.63 million, at the end
of August 2018.
Visakhapatnam port traffic (million tonnes)Broadband Subscriptions (in million)
^CAGR 60.03%
Source: Telecom Regulatory Authority of India;
14. For updated information, please visit www.ibef.orgTelecommunication14
9.27
11.09
13.54
16.18
19.67
22.86
164.81
251.59
302.35
342.65
422.19
493.96
512.26
0
100
200
300
400
500
600
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19*
NUMBER OF INTERNET SUBSCRIBERS INCREASING
AT A FAST PACE
Source: Telecom Regulatory Authority of India, Business Monitor International
The number of internet subscribers in the country increased at a
CAGR of 42.69 per cent during FY06-FY18 to reach 493.96 million in
2017-18. Internet subscriptions in India surpassed the 500-million
mark to reach 512.26 million by the end of June 2018.
The number of internet subscribers in the country is expected to
double by 2021 to 829 million. Overall IP traffic is expected to grow
4-fold at a CAGR of 30 per cent by 2021.
Visakhapatnam port traffic (million tonnes)Internet subscriptions (in Million)
^CAGR 42.69%
Note: CAGR - Compound Annual Growth Rate; BSNL - Bharat Sanchar Nigam Ltd, IP – Internet Protocol, ^CAGR is up to FY18, FY19* - as of end of June 2018
15. For updated information, please visit www.ibef.orgTelecommunication15
4,206,415
5,430,046
6,521,893
8,067,633
10,418,076
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
Q1FY18
Q2FY18
Q3FY18
Q4FY18
Q1FY19
EXPONENTIAL GROWTH IN DATA CONSUMPTION
Source: Telecom Regulatory Authority of India, Lok Sabha
Visakhapatnam port traffic (million tonnes)Total Wireless Data Usage (in Terabytes)
Note: CAGR - Compound Annual Growth Rate
India holds the distinction of being the largest consumer of mobile
data globally.
Data consumption in the country has witnessed exponential growth
over the course of the past few years.
Total wireless data usage in India grew at a 147.67 per cent year-on-
year to 10,418,076 terabytes during the first quarter of FY19.
16. For updated information, please visit www.ibef.orgTelecommunication16
EMERGENCE OF TOWER INDUSTRY
Source: Aranca Research
A surge in the subscriber base has necessitated network expansion covering a wider area, thereby creating a need for significant investment in
telecom infrastructure
To curb costs and focus on core operations, telecom companies have been segregating their tower assets into separate companies. For example:
Reliance Communications has decided to finalise a deal to sell its stake in Reliance Infratel. The value of the deal is around US$3.68 billion
Creating separate tower companies has helped telecom companies lower operating cost and improve capital structure; this has also provided an
additional revenue stream
Inspired by the success seen by Indian players in towers business, most of the operators around the world are replicating the model
Rising
competition
Higher
operating
cost and
debt burden
Focus on
tower
sharing to
reduce
costs
Segregation
of towers
into
separate
companies
Emergence of Tower Industry
18. For updated information, please visit www.ibef.orgTelecommunication18
NOTABLE TRENDS IN THE INDIAN TELECOM SECTOR
… (1/2)
The green telecom concept is aimed at reducing carbon footprint of the telecom industry through lower
energy consumption
The Government of India’s National Digital Communication Policy, released in September 2018, envisages
strengthening of mobile tower industry by promoting and incentivising deployment of solar and green energy
for telecom towers.
Green Telecom
Source: Aranca Research
There are over 62,443 uncovered villages in India; these would be provided with village telephone facility with
subsidy support from the government’s Universal Service Obligation Fund (thereby increasing rural tele-
density)
As of June 2018, the rural subscriber base accounted for 44.16 per cent of the total subscriber base, thereby
fuelling growth across the sector
Expansion to Rural
Markets
The most significant recent developments in wireless communication include BWA technologies such as
WiMAX and LTE
In March 2018, Bharti Airtel its VoLTE services in Kolkata while Vodafone launched VoLTE services in Jaipur
and Jodhpur.
As of June 2018, BSNL is expected to launch its 5G services by 2020.
Emergence of BWA
Technologies
IoT is the concept of electronically interconnected and integrated machines, which can help in gathering and
sharing data. The Indian Government is planning to develop 100 smart city projects, where IoT would play a
vital role in development of those cities.
Reliance Jio has partnered with Samsung Electronics to set up a nationwide Internet of Things (IoT) network.
As of May 2018, trials for the service have already begun at a few locations.
Internet Of Things (IOT)
Notes: BWA - Broadband Wireless Access, TRAI - Telecom Regulatory Authority of India
19. For updated information, please visit www.ibef.orgTelecommunication19
NOTABLE TRENDS IN THE INDIAN TELECOM SECTOR
… (2/2)
Vodafone India and Idea have merged into Vodafone idea.
Airtel’s acquisition of Tata Teleservices’ mobile business was given approval by Competition Commission of
India (CCI) in November 2017. As of May 2018, the deal is awaiting multiple regulatory approvals including
those from National Company Law Tribunal and Department of Telecommunications.
Consolidation
Source: ’Searching for New Frontiers of growth: Indian Banks’- PwC, Aranca Research, Reserve Bank of India
In 2017, Vodafone disclosed its plans to invest US$1,310 million to upgrade and expand Vodafone India
network coverage and US$655 million to upgrade its technology centre
The new National Digital Communications Policy 2018 has envisaged attracting investments worth US$ 100
billion in the telecommunications sector by 2022.
Rising investments
As part of the recent outsourcing trend, operators have outsourced functions such as network maintenance,
IT operations and customer service
Outsourcing non-core
activities
The number of mobile wallet transaction increased 5 per cent month-on-month to 325.28 million in July 2018.
In March 2017, the government set a target of achieving 25 billion digital transactions for banks with the help
of PoS machines, transactions enabled and merchants, which have been added in firms
As of May 2018, nearly 400 banks have been permitted to provide mobile banking services in India.
Mobile banking
Notes: NPCI - National Payment Corporation of India
Reliance Jio Infocomm is going to expand its optical fibre network to over 1,100 cities under its JioGigaFiber
brand. The network is undergoing beta trials as of July 2018.
Bharti Airtel is planning to launch 6,000 new sites and 2,000 km of optical fiber in Gujarat in 2018-19.
Investments in optical
fibre network
20. For updated information, please visit www.ibef.orgTelecommunication20
Players differentiate themselves by providing different services to customers.
Bharti Airtel has already partnered with Amazon Prime and Hotstar and is expected to tie up with Netflix to
offer free subscription to Netflix’s content on its mobile customers.
Differentiation
Players are using innovative marketing strategies to succeed in this sector. For example,
• In August 2015, Idea Cellular launched new campaign “Get idea and dance”
• Airtel launched new ad campaign “Airtel myPlan Family”
Marketing strategy
STRATEGIES ADOPTED
Source: Company websites, Aranca Research
Notes: CDMA – Code Division Multiple Access, GSM - Global System for Mobile Communication
Players have reduced the number of plans on offer and now offer a limited number of simple tariff plans
along with particular marquee plans.
This has simplified choosing plans for customers and customers can choose the best deals for themselves.
Reduced number of
plans
Players price their products very carefully due to the price sensitive nature of customers and high
competition in the sector.
Pricing strategy
21. For updated information, please visit www.ibef.orgTelecommunication21
KEY COMPANIES IN THE MARKET
Company Ownership Presence
Mahanagar Telephone Nigam Ltd (MTNL)
Government (56.3 per cent), Life
Insurance Corporation (18.8 per cent)
Fixed-line and mobile telephony (in
Delhi and Mumbai), data and Internet
Bharat Sanchar Nigam Ltd (BSNL)
Government
(100 per cent)
Fixed-line and mobile telephony (GSM
– outside Delhi and Mumbai), data and
Internet in 22 circles
Bharti Airtel
Bharti Group (45.48 per cent), Pastel
Ltd (14.79 per cent), Indian Continent
Investment (6.65 per cent)
Broadband and mobile (GSM) in
22 circles
Vodafone India
Vodafone (84.5 per cent), Piramal
Enterprises (11.0 per cent)
Broadband and mobile (GSM) in
22 circles
Source: Companies’ websites, Bloomberg
23. For updated information, please visit www.ibef.orgTelecommunication23
SECTOR BENEFITS FROM RISING INCOME, GROWING
YOUNG POPULATION
Note: FDI - Foreign Direct Investment, MOU - Minutes of Use per month and per subscriber, M&A - Mergers and Acquisitions
Growing demand
Inviting Resulting in
Growing demand Policy support
Increasing
investments
Higher real
income and
changing lifestyles
Growing young
population
Relaxed
FDI Norms
Higher FDI inflows
Increasing M and
A activity
Increasing MOU
and data usage
Encourages
firms to expand
to rural areas
Reduction in
license fee
24. For updated information, please visit www.ibef.orgTelecommunication24
RISING INCOME AND GROWING RURAL MARKET
FUELS DEMAND FOR TELECOM SERVICES
1,481.56
1,485.60
1,610.36
1,638.76
1,749.16
1,982.70
2,134.75
2,334.14
2,538.82
2,762.31
3,006.54
3,273.850
500
1,000
1,500
2,000
2,500
3,000
3,500
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Source: IMF World Economic Outlook Database April 2018
Incomes have risen at a brisk pace in India and will continue rising given the country’s strong economic growth prospects.
GDP per capita of India is expected to grow at a CAGR of 7.47 per cent from US$ 1,481.56 in 2012 to US$ 3,273.85 in 2023.
Increasing income has been a key determinant of demand growth in the telecommunication sector in India
The emergence of an affluent middle class is triggering demand for the mobile and internet segments
A young, growing population is aiding this trend (especially demand for smart phones.
GDP per capita at current prices* (US$)
Notes: CAGR - Compound Annual Growth Rate, *Estimates after 2013, ^Data for 2005, 2006 and 2025 is from BCG, for 2017 from IBM-Kalaari Capital and for 2018 from Redseer Consulting
1.5% 2.0% 2.6% 2.9% 5.0%3.0% 6.0% 6.4% 7.3%
11.0%8.0%
15.0% 15.0% 16.2%
20.0%
42.0%
45.0% 45.3%
46.0%
46.0%
44.0% 31.0% 30.7% 27.6% 18.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2016 2017 2018 2025F
Elite(>US$ 30800) Affluent(US$ 15400-30800)
Aspirers(US$ 7700-15400) Next billion(US$ 2300-7700)
Strugglers(<US$ 2300)
209.10 266.50 304.80267 271.5
Indian residents shifting from low to high income groups (%)
Million Household, 100%^
25. For updated information, please visit www.ibef.orgTelecommunication25
STRONG POLICY SUPPORT CRUCIAL TO THE
SECTOR’S DEVELOPMENT … (1/3)
In August 2017, TRAI directed operators to have a call-drop rate of not greater than 2 per cent.
The policy measures of TRAI have had positive impact. Call-drops in the country have decreased from 0.94
per cent in 2016 to 0.52 per cent in March 2018.
To compensate the
consumers in case of
call drop
Source: TRAI, Aranca Research
In 2015, Telecom Regulatory Authority of India made regulations to amend the Standards of quality of
wireline (telephone service) and cellular mobile telephone services. These regulations has been laid down to
ensure better and effective compliance with the quality of service regulations and to protect the interest of the
customers
Standards of quality
wireline and wireless
services
FDI cap in the telecom sector has been increased to 100 per cent from 74 per cent; out of 100 per cent, 49
per cent will be done through automatic route and the rest will be done through the FIPB approval route
FDI of up to 100 per cent is permitted for infrastructure providers offering dark fibre, electronic mail and voice
mail
Relaxed
FDI norms
Notes: FDI - Foreign Direct Investment, FIPB - Foreign Investment Promotion Boar
In May 2017, Microsoft India signed a Memorandum of Understanding with the Telcom Sector Skill Council
(TSSC) to encourage skill development through “Project Sangam”.
In a major push for Prime Minister Narendra Modi's 'Skill India' mission, Microsoft's Indian-born CEO Satya
Nadella launched a Cloud hosted platform named as "Project Sangam" to help the government not only train
but also assist people get jobs via professional networking website LinkedIn, which was acquired by the
company last year.
Skill Development
26. For updated information, please visit www.ibef.orgTelecommunication26
In February 2018, TRAI passed the Telecommunication Tariff (63rd amendment) order, according to which,
telecom firms are free to give promotional offers to customers as long as the offers are transparent, non-
predatory and non-discriminatory.
STRONG POLICY SUPPORT CRUCIAL TO THE
SECTOR’S DEVELOPMENT … (2/3)
Telecommunication
Tariff Order
Source: TRAI, Aranca Research
The Department of Information Technology intends to set up over 1 million internet-enabled common service
centres across India as per the National e-Governance Plan
On 8th August 2016, the Telecom Regulatory Authority of India (TRAI) made the 10th amendment to the
TCPR (Telecom Consumers Protection Regulations) permitting telecom companies to offer data packs
having maximum validity of 365 days
Set up internet
connections
In January 2015, the Government of India recommended reduction in license fees of telecom operators by 6
per cent, telecom operators currently pay 8 per cent of adjusted gross revenue as licence fee
The issuance of several international and national long-distance licenses has created opportunities and
attracted new companies into the market
Reduction in license
fees
Notes: USOF - Universal Service Obligation Fund; OFC - Optical Fibre Cable, WiMAX - Worldwide Interoperability for Microwave Access Telecommunications
In May 2017, the central government announced the Phased Manufacturing Programme (PMP) to promote
domestic production of mobile handsets. This initiative will help in building a robust indigenous mobile
manufacturing ecosystem in India, and incentivise large scale manufacturing.
Make in India
27. For updated information, please visit www.ibef.orgTelecommunication27
STRONG POLICY SUPPORT CRUCIAL TO THE
SECTOR’S DEVELOPMENT … (3/3)
The USOF is expected to extend financial support to operators providing services in rural areas and
encourage active infrastructure sharing among operators
Financial support
Source: TRAI, Aranca Research
The prescribed limit on spectrum would be increased from 6.2MHz to 2x8 MHz (paired spectrum) for GSM
technology in all areas other than Delhi and Mumbai, where it will be 2x10MHz (paired spectrum)
Telecom players can, however, obtain additional frequency; there will be an auction of spectrum subject to
the limits prescribed for the merger of licenses
In January 2018, the government revised cap on spectrum holding from 25 per cent to 35 per cent.
Enhanced spectrum limit
In 2015, telecom authority issued this order mandating every DTH operator to specify the tariff for supply and
installation of the customer premises equipment. DTH operator should specify the refundable security
deposit, installation charges, monthly rental charge and activation
Telecommunication
amendment order for
broadcasting and cable
services
Notes: USOF - Universal Service Obligation Fund; OFC - Optical Fibre Cable
In October 2018, India held the second edition of the Indian Mobile Congress. The conference brought
together more than 5,000 delegates and 50,000 visitors.
Global and local industry leaders such as Samsung, Intel, Ericsson, Nokia, Airtel, Reliance Jio and Vodafone
participated in the event, apart from others.
Indian Mobile Congress
28. For updated information, please visit www.ibef.orgTelecommunication28
NATIONAL DIGITAL COMMUNICATIONS POLICY - 2018
Source: National Digital Communications Policy, 2018
Note: Mbps – Mega bits per second, Gbps – Giga bits per second
National Digital
Communications Policy,
2018
Connect India Propel India Secure India
Provide Universal broadband
connectivity at 50Mbps to every
citizen
Provide 1 Gbps connectivity to
all Gram Panchayats of India by
2020 and 10 Gbps by 2022
Enable fixed line broadband
access to 50 per cent of
households
Achieve ‘unique mobile
subscriber density’ of 55 by 2020
and 65 by 2022
Ensure connectivity to all
uncovered areas
Attract investments worth US$
100 billion in digital
communications sector
Increase India’s contribution to
global value chains
Creation of innovation led start-
ups in digital communications
sector
Train/ Re-skill 1 Million
manpower for building New Age
Skills
Accelerate transition to Industry
4.0
Establish a comprehensive data
protection regime for digital
communications
Ensure net neutrality principles
are upheld
Develop and deploy robust
digital communication network
security frameworks
Build capacity for security testing
and establish appropriate
security standards
Address security issues relating
to encryption and security
clearances
29. For updated information, please visit www.ibef.orgTelecommunication29
FOREIGN INVESTMENTS FLOWING IN … (1/2)
Source: Department of Industrial Policy and Promotion (DIPP)
FDI inflows into the telecom sector during April 2000 – June 2018
totalled to US$ 31.75 billion.
During this period, FDI into the sector accounted for a share of
nearly 8.15 per cent of total FDI inflows into the country.
Visakhapatnam port traffic (million tonnes)
FDI inflows in telecommunication in April 2000-June 2018
(US$ billion)
1.96
0.30
1.31
2.90
1.32
5.56
6.21
1.59
10.59
31.75
5.00
10.00
15.00
20.00
25.00
30.00
35.00
FY01-FY11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19*
FY01-FY19*
Note: * - Upto June 2018
30. For updated information, please visit www.ibef.orgTelecommunication30
FOREIGN INVESTMENTS FLOWING IN … (2/2)
Source: Thomson Banker, Deal Tracker, Grant Thornton, Aranca Research
Vodafone India and Idea Cellular have merged into ‘Vodafone Idea’ to become India’s largest telecom company, as of September 2018.
Target Acquirer Acquisition price (US$ million) Division acquired
Bharti Airtel Singtel (2018) 411.02
Increase in stake to 48.90 per
cent
Ascend Telecom
Infrastructure Pvt. Ltd.
IDFC Alternatives (2017) 54.29 33 per cent stake
Telenor Bharti Airtel (2017) N/A Infrastructure and Contracts
Bharti Airtel's operations in
Burkina Faso and Sierra Leone
Orange SA (2016) 900 100 per cent stake
MTS Reliance Communication (2015) 736.98 8 – 10 per cent stake
Augere Wireless Bharti Airtel (2015) 21.3 100 per cent stake
Bharti Airtel SingTel(2013) 302
Increases stakes to 32.34 per
cent
Bharti Airtel Qatar Foundation Endowment(2014) 1,260 PE deal – 5 per cent stake
Vodafone India Ltd
Vodafone International Holdings
(2014)
1,641 Increases stakes to 100 per cent
Ascend Telecom Ascend Telecom Infrastructure Pvt Ltd 54.29 33 per cent stake
Foreign investment in India
Notes: M&A - Merger and Acquisition, PE - Private Equity
32. For updated information, please visit www.ibef.orgTelecommunication32
OPPORTUNITIES ACROSS SEGMENTS IN THE
INDUSTRY … (1/2)
The number of wireless subscribers in
India reached around 1.17 billion, by
August 2018
Of the total wireless subscribers,
around 55.51 per cent subscribers are
from urban areas and the rest (44.29
per cent), from rural areas
Increasing mobile subscribers
By August 2018, rural tele-density
reached 58.61 per cent, growing from
43.05 per cent as of March 2016
Rural wireless tele-density in the
country increased to 58.25 per cent by
August 2018 from 50.88 per cent as of
March 2016.
Untapped rural markets
Internet penetration is expected to
grow steadily and is likely to be
bolstered by government policy
Number of broadband subscribers
reached 463.65 million at the end of
August 2018
To encourage cash economy, Indian
government announced to provide free
Wi-fi to more than 1000 gram
panchayats.
Rising internet penetration
Source: KPMG, TRAI, Aranca Research
33. For updated information, please visit www.ibef.orgTelecommunication33
OPPORTUNITIES ACROSS SEGMENTS IN THE
INDUSTRY … (2/2)
TRAI has made several
recommendations for the
development of telecom
infrastructure, including tax
benefits and recognising
telecom infrastructure as
essential infrastructure
Development of telecom
infrastructure
The Indian Mobile Value-
Added Services (MVAS)
industry is expected to row
at a CAGR of 18.3 per cent
during the forecast period
2015–2020 and reach US$
23.8 billion by 2020.
Growth in MVAS and cloud
computing
Telecom equipment market
was estimated to be US$ 20
billion in FY16*
It is anticipated to reach
US$ 30 billion by 2020
Under Digital India
programme, ‘every Indian
has a smartphone by 2019’
programme implemented
India’s smartphone
shipments grew 14 per cent
year-on-year to a total of
124 million units in 2017.
Smartphone shipments
during the first quarter of
2018 stood at 30 million
units.#
Telecom equipment market
In order to overcome the
cash related problems being
faced by people, due to
demonetisation, Paytm
launched a service through
which consumers and
merchants can pay and
receive money instantly,
without an internet
connection
This has enabled non-
smartphone users to go
cashless
Growing Cashless
Transactions
Source: Press Information Bureau, Government of India, Aranca Research
Notes: VAS - Value-Added Services, NTP - National Telecom Policy, FY16* - as per latest data available
34. For updated information, please visit www.ibef.orgTelecommunication34
MOBILE APPLICATION MARKET: FAST GROWING
SEGMENT
6.51
12.07
18.11
37.20
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
2016
2017
2018F
2022F
Source: Gartner, Deloitte, Assorted News Articles, App Annie, Aranca Research
In 2017, India overtook USA to become the second largest market in
terms of number of app downloads.
App downloads in the country increased from 6.51 billion in 2016 to
12.07 billion in 2017.
Moreover, during the first quarter of 2018, India became the world’s
fastest-growing market for mobile applications. The country
remained as the world’s fastest growing market for Google Play
downloads in the second and third quarter of 2018.
App downloads in India are expected to increase to 18.11 billion in
2018F and 37.21 billion in 2022F.
The segment’s growth is expected to be driven by increasing mobile
connections and availability of low-range smartphones
Over 100 million apps are downloaded every month across different
platforms such as iOS, Blackberry, Nokia and Android
Visakhapatnam port traffic (million tonnes)App downloads^ in India (in billions)
Notes: F – Forecast, *As per latest data available, ^Combined iOS App Store, Google Play and third-party android
36. For updated information, please visit www.ibef.orgTelecommunication36
INDUSTRY ORGANISATIONS
Address: B-601, Gauri Sadan 5, Hailey Road, New Delhi – 110 001,
India
Tel: 91 11 23358585
Fax: 91 11 23327397
Website: http://www.auspi.in/
Association of Unified Telecom Service Providers of India
(AUSPI)
Address: 601, Nirmal Tower, 26, Barakhamba Road, Connaught Place,
New Delhi – 110 001, India
Tel.: 91 11 43565353 / 43575353
Fax: 91 11 43515353
E-mail: info@acto.in
Website: www.acto.in
Association of Competitive Telecom Operators (ACTO)
Address: F-36, Basement, East of Kailash, New Delhi – 110 065, India
Tel: 91 11 46570328
E-mail: kalyan@iamai.in
Website: www.iamai.in
Internet and Mobile Association of India (IAMAI)
Address: 14, Bhai Vir Singh Marg, Sector 4, Gole Market, New Delhi –
110001, India
Tel: 91 11 2334 9275
E-mail: contact@coai.in
Website: www.coai.com
Cellular Operators Association of India
38. For updated information, please visit www.ibef.orgTelecommunication38
APPENDIX
BMI telecoms business environment ratings
Industry rewards: it considers average revenue per users, number of subscribers, subscriber growth, and number of operators
Country rewards: it considers urban/rural split, age range, GDP per capita, US$
Industry risks: it considers regulatory independence
Country risk: it rates the country on short-term external risk, policy continuity, legal framework corruption
Telecom ratings: overall rating of the above indicators
39. For updated information, please visit www.ibef.orgTelecommunication39
GLOSSARY
BWA: Broadband Wireless Access
CAGR: Compound Annual growth rate
DoT: Department of Telecommunication
FDI: Foreign Direct Investment
FTTH: Fibre To The Home
FY: Indian Financial Year (April to March)
IMF: International Monetary Fund
INR: Indian Rupee
IPTV: Internet Protocol Television
M&A: Mergers and Acquisitions
MoU: Minutes of Use per month and per subscriber
MPEG: Moving Picture Experts Group
OFC: Optical Fibre Cable
TRAI: Telecom Regulatory Authority of India
USOF: Universal Service Obligation Fund
US$: US Dollar
VAS: Value-Added Services
WiMAX: Worldwide Interoperability for Microwave access telecommunications
Wherever applicable, numbers have been rounded off to the nearest whole number
40. For updated information, please visit www.ibef.orgTelecommunication40
EXCHANGE RATES
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year INR INR Equivalent of one US$
2004–05 44.95
2005–06 44.28
2006–07 45.29
2007–08 40.24
2008–09 45.91
2009–10 47.42
2010–11 45.58
2011–12 47.95
2012–13 54.45
2013–14 60.50
2014-15 61.15
2015-16 65.46
2016-17 67.09
2017-18 64.45
Q1 2018-19 67.04
Q2 2018-19 70.18
Year INR Equivalent of one US$
2005 44.11
2006 45.33
2007 41.29
2008 43.42
2009 48.35
2010 45.74
2011 46.67
2012 53.49
2013 58.63
2014 61.03
2015 64.15
2016 67.21
2017 65.12
Source: Reserve Bank of India, Average for the year
41. For updated information, please visit www.ibef.orgTelecommunication41
DISCLAIMER
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This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the
information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a
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Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do
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