Evolution of GSM in India- Smart Card Expo

8/8/2019 Evolution of GSM in India- Smart Card Expo

1/21

Evolution of GSM in IndiaEvolution of GSM in India

T V Ramachandran, Director GeneralT V Ramachandran, Director General

September 13, 2005September 13, 2005


2/21

Status of GSM IndustryStatus of GSM Industry

Cellular services started in India in 1995; GSM was the mandated

standard.

Above Government decision proved to be beneficial for India as

GSM has been established as the dominant standard.

As of August 2005, there were nearly 50 million GSM subscribers

which constitutes 80% of the total cellular subs.

The month of July and August witnessed record growth in GSM

subscriber addition of about 2 million.

75% of the new mobile subscribers in India choose GSM.

There are 83 state-of-the art Networks of GSM.

Roll out of services in more than 4,000 town & cities and morethan 60,000 villages.

Total Private GSM Investments are over Rs 50,000 crores.

GSMGSM--Fixed Crossover achieved in April 2005.Fixed Crossover achieved in April 2005.


3/21

GSM Growth Through the YearsGSM Growth Through the Years

0

5

10

15

20

25

30

35

40

45

1997 1998 1999 2000 2001 2002 2003 2004 2005

Year ended April

Several points of inflexion in the past, have givenSeveral points of inflexion in the past, have given

kickkick--start to improved cellular growthstart to improved cellular growth

NTP99

3rd

& 4th

Cellular

CPP


4/21

Steeply falling tariffs have ensured affordableSteeply falling tariffs have ensured affordable

services to a large subs baseservices to a large subs base

6

0.41.6

0.44

2

3.58

14 14

13

51.53

6.5

3.581.881.2

0.88

33.31

0

2

4

6

8

10

12

14

16

1998 1999 2000 2001 2002 2003 2004 2005

Effectivechar

ge(in

sper

in)

0

10

20

30

40

50

60

obilesubscriberbase(in

illion)

Eff ective charge (in Rs. Per min) Subscriber Base (in mn)

rd th ellular

Operator

ntroduced

Lo ering of fro

to of sector

revenue

'

ates per inute have fallen by over in the lastseven years

Source: TRAI Study paper No 2/2005

Introduction

of CDMA


5/21

GSMGSM -- the dominant standard in Indiathe dominant standard in India

GSM constitutes around 80% of the cellular marketin India.

Market share of GSM continues to rise steadilyMarket share of GSM continues to rise steadily

0

10

20

30

40

50

60

2000 2001 2002 2003 2004 2005

Su

sinmn

GSM CDMA


6/21

GSM Increasing its Market Share GloballyGSM Increasing its Market Share Globally

Indian GSM industry is in sync with the worldwidestandards; worldwide GSM constitutes 75% of the

subs base and 80% of the monthly additions.

0

200

400

600

800

1000

1200

1400

1600

199

2

199

4

199

6

199

8

200

0

200

2

200

4

Sub

sinm

GSM CDMA

GSM

aunch

CDMA

aunch


7/21

GSM AdvantagesGSM Advantages

GSM advantages over other cellular technologies are:GSM advantages over other cellular technologies are:

Dominant global market share of GSM gives benefits:

arge number of infrastructure and handset vendors givingadvantage in terms of price and other commercial terms.

Innovations ahead of CDMA e.g. single chip handsets.

Widest choice of handsets with widespread sales and servicedistribution network.

Handset availability in all price segments and ongoingintroduction of wide variety to meet customer requirements.

asy subscription process SIM based

Widespread prepaid solutions

Seamless interoperability between networks and handsets.

Global footprint for international roaming including SMS, dataand other value added services.


8/21

GSM verall fficiencyGSM verall fficiency

For peratorsFor perators

conomies of scale due to

dominant market share:

worldwide and India Choice of multiple

vendors

Capex optimisation

ower subscriberacquisition cost

Seamless interoperability

For SubscribersFor Subscribers

ow cost entry handsets

Wide choice and

availability of handsets

International roaming

asy subscription


9/21

Affordable Services for Common ManAffordable Services for Common Man

Mobile has fast moved from a class service to a mass

service for the common man fuelled by continuously

falling tariffs and increased coverage.

Connectivity

for the

farmers

Better pricesfor the

produce


10/21

Affordable Services for Common ManAffordable Services for Common Man

Affordability has made mobile services the keyplank for economic development.

Mandi Prices

on the Move KeralaFishermenCall in their

Catch


11/21

N W R V NU PP RTUNITI SN W R V NU PP RTUNITI S VASVAS

Airtel

ive portal with games, music, cricket, stock,news, easy charge facility, logos, range ofvoice activated services, games, missed callalerts, Airtel ive, Hello Tunes etc.

Hutch

nline Yahoo & MSN Messenger, Java basedgames, missed call alerts, logos, games,

news, stock, range of voice activatedservices, Caller Tunes, etc.

Idea

Daily horoscopes, cellular jockey to sendmusical greeting cards, voice activatedservices, music, logos, news, stock, movies,cricket, games, jokes, Dialer Tones, etc.

BPRingtones, logos, picture messages, send-a-song, mobile gaming, etc.

Spice

Ringtones, logos, picture messages,SMSChat, mobile gaming, etc.

Aircel

Ringtones, logos, picture messages, games,music, etc.

healthtips

ringtones

mobile gaming


12/21

Revenues Form Value Added ServicesRevenues Form Value Added Services

Postpaid Prepaid Total

VAS Revenue as to Net

Service Revenue

VAS Revenue composition for

in

VAS shows promising trends, share in total net service

revenue increasing continuously

Source: PWC Indian GSM Cellular Benchmarking Study 2004

S M S Cl ip Ot her s


13/21

Potential of the SectorPotential of the Sector

Private GSM subscriber base has the potential toreach 103 million subscribers by Dec07 from the

present level of 36 million in August05.

Projected growth of private GSM sector is as

given below:

Year ending Dec. 2004

Actual

August 2005

Actual

Dec 2005

Projected

Dec. 2006

Projected

Dec. 2007

Projected

Private GSM 28 36 42 65 103

In Million

This will contribute in a substantial manner to overallThis will contribute in a substantial manner to overall

target of 250 mn telephone subs fixed+mobile bytarget of 250 mn telephone subs fixed+mobile by

2007 set by the Government2007 set by the Government


14/21

Push Towards Next GenerationPush Towards Next Generation

India represents one of the most exciting

opportunities for mobile services in the coming

decade.

We are already providing 2G and 2.75G services.

The next big push would be the introduction of

3G services.

arly and expeditious introduction of 3G services inarly and expeditious introduction of 3G services in

India will hold the key to Indias mobile successIndia will hold the key to Indias mobile success

and its future dominance in mobile telephonyand its future dominance in mobile telephony


15/21

3G in India3G in India

3G will be introduced in India by 2006.

3G upgradation for GSM is 3GSM WCDMA .

In India GSM constitutes 80% of the total cellular

market; this will form a ripe base for 3GSMWCDMA .

Worldwide also 3GSM WCDMA drives the 3G

growth.


16/21

GSMGSM -- Predominant Global Mobile StandardPredominant Global Mobile Standard

for 3Gfor 3G

3

3

r

Ma

n l

Se

to e a

neb

Mar r

Ma

n l

3GSM (WCDMA)

CDMA 2000 1xEVDO

s of date,s of date, 3GSM s bs ribers ha e rossed 3 million3GSM s bs ribers ha e rossed 3 million,,

a o ntin for aro nda o ntin for aro nd 7 % of the 3G market7 % of the 3G market.. GSM shareGSM share

ontin es to riseontin es to rise month after monthmonth after month


17/21

Benefits of 3G for IndiaBenefits of 3G for India

3G has a 4-5 times higher voice capacity than present 2Gservices.

An ideal platform to deliver low cost voice telephonyto Indian consumers.

3G has hi-speed data capabilities

It will fulfill the content rich mobility experience forurban Indians.

3G will help in enhancing Indias competitiveness in theIT S / BP segment.

xtremely effective tool in driving penetration of the huge

addressable market in the rural areas.

3G will also enable achieving the broadband objectives ofthe Government.

33GG willwill integrateintegrate IndiaIndia andand IndianIndian consumerconsumer withwith thethe farfar

reachingreaching developmentsdevelopments takingtaking placeplace acrossacross thethe worldworld..


18/21

Mobile BroadbandMobile Broadband The Next FrontierThe Next Frontier

Mobile phone is fast becoming the dominant technologyfor voice communications.

Mobile phone is becoming less & less of a narrowband

device as it evolves through 2G to 2.5G to 2.75G to 3G.

the mobile phone has moved beyond being a mere

device to become a key social object present in every

aspect of our daily lives.

ara Srivastava, ITU

33GG probablyprobably providesprovides thethe bestbest ubiquityubiquity inin broadbandbroadband

connectivityconnectivity alwaysalways on,on, fastfast enoughenough..


19/21

Indias Path to Mobile BroadbandIndias Path to Mobile Broadband

Indias path to Mobile Broadband must be through 3G in theWARC-92 identified Core Band of 1920-1980 MHz p/w 2110-2170MHz because :

nly band globally harmonized for interference free co-existence of both GSM & CDMA

quipment available for both technologies in this band

Majority of countries have opted for 3G in the Core Band Japan & Korea live examples where GSM & CDMA are co-

existing in the Core Band

India by choosing this globally adopted spectrum band will be ableto avail of

conomies of scale lower tariffs

Seamless roaming

Inter-operability

Interference free operations

India being a country where both GSM & CDMA co-exist mustchoose a 3G path which allows for the co-existence as well as

future growth & development of both technologies


20/21

GSM has been the prime growth driverGSM has been the prime growth driver

of Telecom services in India and wouldof Telecom services in India and would

continue to be the same for newcontinue to be the same for new

evolving technologies and willevolving technologies and will

contribute to the growth and prosperitycontribute to the growth and prosperity

of the industry.of the industry.


21/21

THANK Y UTHANK Y [email protected]@coai.in

Date post:	09-Apr-2018
Category:	Documents
Upload:	sagar-mane
View:	217 times
Download:	0 times

Evolution of GSM in India- Smart Card Expo

Documents