INDIAN TELECOM INDUSTRY

By GROUP 9

GROUP MEMBER Rahul Singh Gaurav Kumar Ravindra Vishwakarma Manish Kumar Gupta Sumit Kumar Rahul Chawla

AN OVERVIEW The Indian telecom industry has

witnessed phenomenal growth. The Indian telecom services can be

divided predominantly into• Basic• Mobile• Internet services

FACTS ABOUT THE INDUSTRY Fifth largest telecom network in the world;

second largest among the emerging economies after China

On an average, about 6–7 million new users added per month, making India the world’s fastest growing wireless services market

The government promoting telecom manufacturing by providing tax benefits and establishing telecom specific Special Economic Zones

TELECOM HANDSET COMPANIES

The telecom companies are booming with the effect of the growing telecom industry

Large number of mobile handsets are been sold every year providing a growth for the handset industry

DIFFERENT TELECOM COMPANIES AIRTEL BSNL IDEA UNINOR VODAFONE MTNL AIRCEL TATA INDICOM TATA DOCOMO RELIANCE

MARKET SHARE OF DIFFERENT COMPANIES

Estimates of Mobile Operators’ Revenue No. of

mobile subscribers (in million)

Mobile ARPU per

year (Rs.)

Revenues from

mobile services (Rs. in billion)

GDP (Rs. in billion at

factor cost at current prices)

Mobile revenue as a percentage of

GDP

2005-06 90 4500 405 32000 1.3 2010-11 433 3600 1559 57600 2.7 2015-16 899 3600 3236 103680 3.1

Rapid increase in mobile subscriber base and mobile spending will have equally important implications for the government revenue particularly in the form of regulatory charges (license fee including universal service obligation and spectrum charges) and service tax.

STRENGTH WEAKNESS

OPPORTUNITY THREAT

• Huge Customer potential • High Growth Rate• Allowed FDI limit ranging from 74% to 100%

• High return on Investment• Liberalization efforts by Govt.• Lower capital expenditure

• Poor Telecommunication Infrastructure

• Late adopters of New Technology• Most competitive market• A market strongly regulated by Government.

• Difficult to enter because of requirement of huge financial resources.

WEAKNESS

• 3G Telecom services and 4G services• More Quality Service• Value added Services (VAS)• Boost to Telecom Manufacturing Companies

• Telecom Equipment Exports

• Telecommunication Policies • Declining ARPU (average Revenue per user)

• Partiality on the part of the Govt.• Content Piracy

Note: Future population of India is taken from the United Nations Population Division publication.

Future Mobile Subscriber Base in India

4

90

433

526

620

715

808

899

0

100

200

300

400

500

600

700

800

900

1000

2000-01 2005-06 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

No.

of

mob

ile s

ubsc

ribe

rs (

in m

illio

n)

It is projected that almost 350 million new mobile subscribers will be added between 2005-06 and 2010-11 and more than 450 million will be added between 2010-11 and 2015-16.

THANK YOU