Telecom IndustryConnecting the World
Telecom in the real sense means transfer of information
between two distant points in space
Telecom is a huge and varied bastion of technologies, companies, services and
politics that is truly global in nature
A Historical Perspective
World Telecom Evolution
The Indian Story
1851 First operational landlines were laid by
government neat Calcutta 1881
Telephone Service introduced into India 1883
Merger with postal System 1923
Indian Radio Telegraph Company formed
The Indian Story
1932 Merger of ETC & IRT Indian Radio &
Cable Communication Company 1947
Nationalization of Foreign Telecom Companies to form Posts, Telephone & Telegraph (PTT) India
1985 Department of Telecommunications
established
The Indian Story 1986
Conversion of DOT into two wholly state owned companies VSNL for international telecommunications & MTNL for service & metropolitan areas
1994 National Telecom Policy created with motto “Telecommunication for all
& Telecommunication within reach of all” 1995
Entry of GSM in India triggering telecom revolution
1997 Telecom Regulatory Authority of India created.
1883 Merger with postal System
1923 Indian Radio Telegraph Company formed
The Indian Story
1995 BPL Mobile services launched
1997 Telecom Regulatory Authority of India
formed in January 1999
NTP-99.National Telecom Policy with reformed goals set.
2000 1st October BSNL created.
The Indian Story
2003-04 Tele-density growth of 2% >50 yrs
growth 1948-98(1.92 %) achieved 2005
ILD & NLD annual license fees reduced from 15% to 6%.
2008 3G guidelines issued; spectrum
allocation through auction, foreign players allowed to bid.
The Indian Story
2009 TRAI announces rules & regulations to be
followed for Mobile Number Portability on 23rd Nov.
2010 BSNL becomes 1st country to launch
WIMAX service
Latest News : India to launch MNP from Nov 25th 2010….
User Centricity
Prime pillar for Telecommunication Development
Stakeholders in the Business
Value Parameters
Cheap Calling Services Network Coverage Customer Care DTH Programme Packages Internet Speeds offered Number Series offered Push mail services
Value Offerings
Corporate Solutions Solutions by Business Need
Office Centrex Voice Management Centralized High Speed Internet Virtual Private Networks Audio Conferencing IPLC
Solutions by Business Size Work From Home VPN DATA centre Infrastructure
VPN solutions for BFSI, Retail, Manufacturing, IT/ITES & Hospitality Industry.
Value Offerings
Personal Usage 3G Prepaid Mobile Postpaid Mobile Handsets Internet Home Phone Global Calling T.V.
Telecom Network Statistics
Worldwide
Top 10 Countries in terms of Mobile Phone Usage
Rank Country No. of Phones % of Population
- World 5,000,000,000 67.6
1 833,300,000 62.5
2 670,600,000 56.6
3 285,610,580 91
4 213,900,000 147.3
5 191,472,142 98.89
6 168,264,000 73.1
7 109,500,000 65.1
8 107,490,000 130.1
9 107,000,000 84.1
10 88,580,000 147.4
Top Mobile Operators by Number of Subscribers Worldwide in Millions
# Mobile Operator
Operating Regions
Mobile Subscribers
Date
1 China Mobile China 544.2 Apr-10
2 Vodafone EMEA, India, USA, Pacific
341 Mar-10
3 Telefonica Spain, Europe, Latin America
206.7 Mar-10
4 America Movil Latin America 201.1 Dec-09
5 Telenor Eastern Europe, SE Asia
179 Mar-10
6 China Unicom China 155.3 May-10
7 T-Mobile Europe, USA 150.2 Mar-10
8 Telia Sonera Europe, Asia 138.1 Feb-10
9 Bharti Airtel India 133.7 Mar-10
Top Mobile Operators by Number of Subscribers Worldwide in Millions# Mobile
OperatorOperating Regions
Mobile Subscribers
Date
10 Orange Europe, Africa, Caribbean
132.6 Dec-09
11 MTN Group Africa, India 116.0 Dec-09
12 Reliance Comm India 102.4 Mar-10
13 Etisalat UAE 100.0 Feb-10
14 MTS India, Russia, Eastern Europe
97.8 Dec-09
15 Orascom Telecom
Egypt, Middle East & Africa
96.0 Mar-10
16 Verizon Wireless USA 92.8 Mar-10
17 AT & T Mobility USA 87 Mar-10
The Indian Market Scenario
Indian Telecom Providers
Indian Wireless Service Providers
Indian Wire line Service Provider Market Share
Trends & Patterns Observed
Survival of the Fittest
Telecom stands as one of the most essential elements of the business world in terms of “Connecting the World”
Volatile Sector Regulatory discord Cut-throat competition Emergence of Technologies
Emergence of broadband & wireless technologies pose threat to carriers relying on aging infrastructure
To survive, telecom carriers need to consider various options Consolidation, Convergence, Costly Technological upgrades
Global Growth Patterns
Emerging Markets Driving Volume Growth Low Tariffs (ARPUs)
Developed Markets Low Subscriber Base Technological Advancements
Indian Telecom depends on the global telecom industry for technology platforms & network management
WhileIndian market size attracts telecom giants
Rise of 3GBy end of 2010 there will be an estimated 5.3 billion cellular subscriptions including 930 million 3G subscriptions. In 2010 143 countries offering 3G services.
Slowdown in Mobile growthIn developed countries mobile market reaching saturation levels with marginal growth of 1.6% from 2009-2010. Developing world is increasing its share of mobile subscriptions from 53% of total mobile subscriptions at the end of 2005 to 73% at the end of 2010.
Internet StatsWorldwide Internet usage has doubled between 2005 & 2010. By the end of 2010, Internet user penetration in Africa will reach 9.6%, far behind both the world average (30%) and the developing country average (21%).
Trends to be observed in 2011The Most Significant Trend
Other Significant Trends in 2011
Local Landline Services suffer, bundled services pick up slack
3G Cellular Systems, Including EV-DO, Are Enhanced/HSPA+ Offers High Speed Competition to 4G
Chinese, Indian and African Cellphone Markets Skyrocket
VOIP Use Soars and Threatens To Revolutionize Telecom
Other Significant trends in 2011
Telecom Equipment Makers Face Intense Competition from Manufacturers in China
TV over IP—Telecom Companies Enter the Television Market
WiMAX Extends Wireless Range Far Beyond Wi-Fi
Global Trends – Connecting WorldConvergence & Mobility
Mobile Devices withvoice, data & video
Mobile WirelessBroadband
Fibre to Home Communications
Computers & IT
Consumer Electronics
Entertainment becomes Digital Mobile Personal Digital Devices prevail
Laptops & Handheld PCs Entertainment major PC driver IP to & in the Home VoIP handsets
Public Safety Mobile Police &
Fire personnel devices Interoperable Communications
Connecting India to the World
CHALLENGES
Regulatory Policies Lack of level playing field
Penetration Level Across the world and within India Seamless Roaming
Infrastructure Program Manufacture telecom equipment in India Passive Infrastructure Sharing
VoIP Value Added Services
Unutilized software capability Digital Divide
Non Availability of technology, equipment, network access for millions of poor
Indian Telecom – Way Forward to being Global
Transparent and truly technology-neutral Government policies Allow full range of private & Public Sector telco's to compete fairly and fully
Adequate spectrum in useable frequency bands advocated by the ITU to wireless service providers
Low regulatory restrictions over new services such as Push-to-talk, IP-enabled services, particularly Voice-Over IP (VoIP)
Ensure level playing field and “No” worse-off position for existing license holders
Duties on imported telecommunications and related equipment must be reduced to zero
To promote competition in IPLC
“Put in Right Policies” for technology multinationals to build business in consumer end user device segments like mobile, handset, PC’s and networking product manufacturing
Acquisitions with “Strategic” intent
Thank You
Vignesh Iyer Sagar Shah Saloni Mamodia