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OVERVIEW OF TELECOMSCENARIO IN INDIAincluding rapidly changing technology in the

telecom

K. Sridhara

Member (Technology)Department of Telecom

TDSAT SEMINAR 26 November 2006

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26 November 2006 Dept. of Telecom 2

Contents

Telecom Sector

Current Telecom scenario

Key Policy initiatives Technology development

Issues & challenges

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26 November 2006 Dept. of Telecom 3

Telecom Sector

Most vibrant sector with highest growth

rate more than 60 lakh customers are

added every month

Plethora of services

Easier access/ availability

Drastic reduction in tariff

World class service

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26 November 2006 Dept. of Telecom 4

Fixed & Mobile subscriber base (1982 onwards) (in millions)

2.15 2 .3 2 .4 7 2 . 672 .9 3 .1 7 3 .4 9 3 .8

4 . 17 4 . 59 5.07 5.816.8

8.039.8

11.9814.54

17.8

21.61

26.65

32.71

38.3341.48

42.58

45.9147.7 47.83

48.5

0.07 0 .3 4 0 .8 8 1.21.9

3.586.54

13

33.6

52.17

57.38

65.05

71.5

2.15 2 .3 2 .4 7 2 . 67 2 .9 3 .173 . 49 3 . 8 4 .17 4 .5 9 5.07

5.81 6.88.03 9.8

12.0514.88

18.68

22.81

28.55

36.29

44.87

54.48

76.16

98.08

105.08

112.88

120

0

20

40

60

80

100

120

140

Financial Year

SubscriberBase

inmillion

Fixed including

WLL(F)

Mobile inlcuding

CDMA

(CDMA+GSM)

Total

(Fixed+Mobile)

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Major classes of Services

Fixed Copper, Optical Fibre, Wireless

Mobile GSM and CDMA based

Narrow band Voice, Internet, Fax

Broad band High speed Internet, Video

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26 November 2006 Dept. of Telecom 6

Current Telecom Scenario

Total Number of Operators - Above 800

Access Service (Mobile & Fixed) - 138

National Long Distance - 13

International Long Distance - 8 ISPs, Infrastructure providers etc. - Above 650

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Mobile Growth and effective charge per minute

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Sep-05

Effectivecharge(in

Rs.

permin.)

0.00

6.00

12.00

18.00

24.00

30.00

36.00

42.00

48.00

54.00

60.00

66.00

Mobilesubscriberbase(inMillion)

FixedMobile (Rs./min)Mobile Subscriber base (Millions)

NTP '99

Telecom

Tariff Order

3rd & 4th

cellular

operator

WLL

introduce

CPP

introduced

Lowering of ADC

from 30% to 10%

of sector revenue

6.503.581.881.20

0.88

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Dept

.ofTelecom

9

Urban

&

RuralTelede

nsities

Mar-99

Sep-99

Mar-00

Sep-00

Mar-01

Sep-01

Mar-02

Sep-02

Mar-03

Sep-03

Mar-04

Sep-04

Mar-05

Sep-05

Mar-06

Sep-06

Urban

Rural

Total

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26 November 2006 Dept. of Telecom 10

Fall in STD Rates

Pre April 1999 38

April 1999 30

October 2000 24

January 2002 9

March 2003 4.80

April 2004 3.60 September 2004 2.40

March 2006 1

(Rs/min)

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Key Policy Initiatives/milestones

New Economic Policy (1991)

Opening up of Telecom service sector (Mobile

metros)

National Telecom Policy 1994 Telecom, key for development

Inadequacy of public resource to meet demand

Private sector to supplement Govt.

Provide world class telecom service at affordablecost

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26 November 2006 Dept. of Telecom 12

Key Policy initiatives (contd..)

Establishment of TRAI (1997)

New Telecom Policy (NTP 99) Transition from fixed license fee to revenue

share Introduction of free competition

Technology neutral licenses

Tariff rebalancing

Creation of BSNL (2000) Establishment of TDSAT (2000)

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26 November 2006 Dept. of Telecom 13

Key Policy initiatives (contd..)

Opening of National & International long

distance

Launching of mobile service by BSNL(2002)

Establishment of USO Fund

Broadband policy (2004)

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26 November 2006 Dept. of Telecom 14

Technology Trend

Optical fiber based wireline networks

Wireless networks

GSM,CDMA based mobile

VSAT based satelliteWiMax

Next Generation Networks

Voice , Data,Video convergence

Telecom networks increasingly softwareintensive

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Subscribers Wish List

VIRTUAL PRESENCE

Speak, Hear, See, Seek, Store Info

Instantaneously & Interactively

Perhaps feeling and sharing ambience

Seamlessly , Everywhere , Alwaysat

Affordable cost with Agreed Quality of Service

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Convergence

Scenario for Residences

Members of the same household are

On-line Simultaneously

Browsing Web

Watching, Downloading & Recording Video Digital Audio & Video Broadcast

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26 November 2006 Dept. of Telecom 17

Future Growth

Demand for Wireless based services.

Content rich services.

IP based technology to provide requisite

cost economics to achieve attractive

business cases.

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26 November 2006 Dept. of Telecom 18

CONTENT RICH TELECOM SERVICES

LOCATION BASED SERVICES, USINGDIGITAL MAPS.

VIRTUAL PRIVATE NETWORKS

VIDEO CONFERENCING.

e-EDUCATION e-MEDICINE

INTERACTION WITH GOVERNMENT

ENTERTAINMENT

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Issues to be addressed in the

Indian Scenario Unique Rural Scenario : low teledensity

Need for Spectrum re-farming & re-

allocation

Lack of Content in Local Languages

Confidence on e-Commerce

Network Security

Bridging Digital Divide

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The real Challenge !

How effectively can the:

Government with its policies

TRAI with regulation &

TDSAT with dispute resolution

can keep pace with the fastest growing

and complex Telecom sector

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26 November 2006 Dept. of Telecom 21

THANK YOU