TELECOM INDUSTRY ANALYSIS

India's telecommunication network is the second largest in the world based on the total number of telephone users (both fixed and mobile phone) and is more than 165 years old.

Indian telecommunication industry are telephony, internet and television broadcast Industry in the country 

According to 2014 statistics

Revenue(Total) $33,350 millionTelephone Subscribers 970.97 millionFixed lines $27 millionMobile Phones 943.97 millionTeledensity 77.58%Rural density 46.09%

34.33

Africa – Seychelles

Americas – Argentina, Aruba, Bahamas, Barbados, Canada, Jamaica, Puerto Rico, United States of America

Asia- Japan, Korea (Rep.), Qatar, Singapore, Taiwan,UAE

Europe- Andorra, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Greenland, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxemburg, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Russia, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Ukraine, United Kingdom

Oceania- Australia, New Zealand

Countries with more than 100% teledensity

Telecom Regulatory Authority of India (TRAI)• Independent regulator of the telecommunications business in India.

• Established on February 20, 1997 by an Act of Parliament.

• TRAI Act was amended by an ordinance, effective 24 January 2000  to take over the adjudicatory and disputes functions of TRAI.

• Nurture an environment which will enable the quick growth of the telecommunication sector of the country.

• TRAI has regularly issued orders and directions on various subjects like tariff, interconnections, Direct To Home (DTH) Services and mobile number portability

• Efficient management of available spectrum.

Spectrum Auction• India’s biggest(in terms of amount) telecom spectrum auction ended on 25th March

• Lasted 19 days with 115 rounds of bidding

• Total value of bids is Rs 1,09,874 crore.

• In India GSM technology works in the frequency bands of 900 and 2100 MHz and CDMA Technology works in the 800 MHz band.

• Four bands That were bid of 800 Mhz, 900 Mhz, 1800 Mhz and 2100 Mhz

Economic benefits of Telecom Industry

The industry has attracted FDI worth US$ 16,994.68 million during the period April 2000 to January 2015, according to the data released by Department of Industrial Policy and Promotion (DIPP).

FDI upto 74% (49% under automatic route) is also permitted of the Following:-Radio Paging ServiceInternet Service Providers (ISP's)FDI upto 100% permitted in respect of the following telecom services:Infrastructure ; IT enabled servicesElectronic Mail; andVoice Mail

FDI in Telecom Sector

Internet in India started with launch of services by VSNL on 15 August 1995.They were able to add about 10,000 Internet users within 6 months. Next 10 years, less attractive with narrow-band connections having speeds less than 56 kbit/s(dial-up).

In 2004, the government formulated its broadband policy which defined broadband as "an always-on Internet connection with download speed of 256 kbit/s or above.

This bottleneck was removed in 2010 when the government auctioned 3G spectrum followed by an equally high profile auction of 4G spectrum that set the scene for a competitive and invigorated wireless broadband market.

 India is provided by both public and private companies using a variety of technologies and media including dial-up (PSTN), xDSL, coaxial cable, Ethernet, FTTH, ISDN, HSDPA (3G), WiFi, WiMAX, etc. at a wide range of speeds and costs. 

Internet in India

Source: Internet Live Stats (www.InternetLiveStats.com)

39%

India's Internet economy to reach Rs10 trillion by 2018: Report

• India’s Internet economy will grow to almost Rs.10 trillion by 2018, accounting for 5% of the country’s gross domestic product (GDP), according to a report by the Boston Consulting Group (BCG) and Internet and Mobile Association of India (IAMAI).

• Internet economy includes e-commerce services and products, advertising, online content, devices, connectivity, as well as private infrastructure and government spend in these areas.

• India’s Internet economy, which was about Rs.3.6 trillion in 2013, contributed 3.2% to the GDP, the largest among the developing countries and sixth largest globally.

• The report said while 60% of all Internet users were under 25 in 2013, by 2018, 54% of the Internet user base will be over 25 years of age.

• Public Wi-Fi as a bigger phenomenon

• Wearables in healthy lifestyle space and security apps for smartphones:

• LTE to become mainstream in India as well:

• Mobile Financial Services

Telecom in 2015

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