Upload
sarah-phillips
View
218
Download
0
Tags:
Embed Size (px)
Citation preview
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
Wireless Technology – India
Dr. K. T. V. ReddyPrincipalPVPP college of Engineering, SionEmail: [email protected], [email protected]:www.pvppcoe.ac.in
Governing Council Member, IETE, India
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
Presentation Plan
1
5
Telecom Industry Overview
Emerging Trends in Telecom Market
3 Regulatory Framework and Its Impact
4
Telecom – Investment Attracting Sector2
Major Players in Telecom Sector
6 Growth Avenues
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
Background Relationship between telephony and economic
development is well recognized Teledensity has been a good indicator of economy Establishing quantitative relationship has not been easy From plain telephony to a converged technology
Telephone, computer, broadband, multimedia All Packet communication Cable TV Digital, virtual and mobile
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
Developing Countries Mixed picture Some highly motivated relatively smaller
countries have performed better than much larger (richer?) countries
Literacy, social and cultural factors Interest in ICT Dealing with diverse languages and scripts Poor basic infrastructure
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
Technology Advances Exceptionally favorable situation Moving to All Packet Networks ( ~ 4G) Mobile and Wireless Techs Very large bandwidths Rapid fall in costs Technology as commodity
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
Technology, some concerns Not quite user friendly yet Multiplicity of mutually incompatible
standard and protocols High costs Handling local languages and scripts Reliability and ruggedness
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
India Large Populations, vast area Over 60% still in rural areas, significant
illiteracyMore than 500,000 villages many still to be fully ‘served’
Large internal ‘digital divide’, disparities in living standards, lifestyle, etc.
ICT, a key for rapid development (self driven)
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
India, Some Positive Factors Large, younger, tech savvy population, not burdened by
history! Exceptional popularity of the cell phone Democracy,... may be chaotic! Extensive use of English Appearance of Roman script for Indian languages Satellite TV, Cable and Multimedia Mass market, needs new business model
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
The Indian Scenario Very slow growth till the 80s Faster and faster growth from 90s Impact of Privatization, the Internet, the cellphone and
affordability Cellphone as a multiservice device India has among the world's cheapest services 8+ million cellphones added every month! PCs and Broadband Internet
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion Digital Technology Starts a Revolution
in India in the 80s Digital (PCM) switching and transmission First digital switch in a village (Kittur) in 1986 IBM PC, CMOS Technology, HLL, etc. Demonopolization Privatization on a limited scale Nationwide network of payphones Low cost reliable international access from the remotest
area Ancillary industry Enlightened leadership
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion Present Situation
Currently 500 Million lines, 1000+ million lines in 2015
More than 80 million lines added every month Broadband DSL, slower growth still Widespread usage of Internet, large number of
ISPs, etc. 3G yet to pickup Attention to rural areas
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion The Impact in the80s
The first digital rural exchange in 1986 -The RAX Better facilities than most urban areas International dialing, etc. Economic impact study by National Institute of Bank
Management Pune There was significant increase in bank deposits Helped farmer in his business Awareness of new technology
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion Reasons for the success of RAX
Very innovative approach Very inexpensive Rugged Low power, can handle irregular power
supply Simple to use, maintain and manufacture Developed with village at the focus
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
90s and the rise of the Internet Mostly data networks Internet usage in academics and research Businesses, government, education... ‘Narrow’ band Relatively expensive bandwidth
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
The Convergence Cheaper bandwidths DSL based broadband to homes All services, voice, data, video on a common data pipe (IP) Cable TV for broadband delivery Digital Cinema Integration of all services Services with 100Mbps+ Wireless emerges as a key technology, WiFi, WiMax, etc. Cellphone as a very low cost transaction device
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
Benefits Digital divide still wide open Benefits have not yet reached the village Technology not yet affordable and
manageable in rural areas Expensive and not simple to use Lot remains to be done in application
development
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
The Very Positive Side! Key role in promoting India's IT industry Helped expansion of exports especially IT business Highly affordable broadband service Broadband IP (2Mbps) replacing the std telephone line Strong support for smaller businesses, SOHO, etc. Many new value added services New opportunities for innovation based on intelligent
integration of diverse technologies Technology supporting individual freedom and democratic
processes The chaotic, young India simply loves it! A self-driven process for development
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
Taking ICT to the Village Several interesting initiatives coordinated by Swaminathan
Foundation A knowledge centre in every village Many solutions driven by equipment suppliers, may not fully
match the needs The problem is not commercially attractive yet! Good potential but no significant impact yet Some problems with technology and affordability The application and the technology yet to get together fully The user may not be very comfortable yet More field work, pilot trials and innovation required
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion An Observation
A couple of months back, the securities firm CLSA came out with detailed analysis of the Indian IT industry which revealed that:
20-25% of India’s GDP expansion over the next 3-4 years will comefrom IT;
India’s IT exports will cross India’s oil imports from 2007/08onwards assuming that oil prices are at around $65 a barrel;
The IT industry –directly and indirectly—will pick up a third of theaddition to the urban labour force over the next three-four years.
Over the next three-four years, the IT industry will pick up around80-85% of India’s employable engineers.
One in seven income tax payers in the country will be a ITprofessional by 2010 up from the current one in ten.
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
Indian Telecom Industry FrameworkIndian Telecom Industry Framework
Indian Government Bodies Independent Bodies
Wireless Planning and Coordination (WPC)
Department of Telecommunications
Telecom Commission
Group on Telecom and IT (GoT-IT)
Telecom Regulatory Authority of India (TRAI)
Telecom Disputes Settlement and Appellate Tribunal (TDSAT)
Handles spectrum allocation and management
DoT – Licensee and frequency management for telecom
Exclusive policy making body of DoT
Handles ad hoc issues of the telecom industry
Independent regulatory body
Telecom disputes settlement body
Regulatory Framework provides level playing field for all operators
They formulate various policies and pass laws to regulate the telecom industry in India.
They undertake various research activities and monitor the quality of service provided in the Indian telecom industry. They also provide various recommendations to improve the status of telecom operations in India.
The Department of telecommunications (Government of India) is the main governing
body for the industry.
Telephone Regulatory Authority of India (TRAI) assists the Government of India
(GoI) to take timely decisions and introduce new technologies in the country.
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
Go-ahead to the CDMA technology
IND
IA
Private players were allowed in Value Added Services
National Telecom Policy (NTP) was formulated
1992
1994
1997
Independent regulator, TRAI, was established
NTP-99 led to migration from high-cost fixed license fee to low-cost revenue sharing regime
1999
2000
2002
BSNL was established by DoT
ILD services was opened to competition
Internet telephony initiated
Reduction of licence fees
2003
Calling Party Pays (CPP) was implemented
Unified Access Licensing (UASL) regime was introduced
Reference Interconnect order was issued
2004
Intra-circle merger guidelines were established
Broadband policy 2004 was formulated—targeting 20 million subscribers by 2010
2005
FDI limit was increased from 49 to 74 percent
Attempted to boost Rural telephony
2006
Number portability was proposed (pending)
Decision on 3G services (awaited)
2007
Department of Telecommunication (DoT) is the main body formulating laws and various regulations for the Indian telecom industry.
Various important regulations and laws have been passed in the Indian telecom industry post-liberalisation era
ILD – International Long Distance
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
0
4
8
12
16
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Cellu
lar
Tariff (
INR
per
min
ute
)
0
30
60
90
120
150
Num
ber
of S
ubscribers
(millio
ns)
Cellular Tariff Total Cellular Subscribers
NTP 99
Telecom Tariff Order
WLL
UASL, CPP
Lowering of ADC
Important regulations and their impact on the Indian telecom industry
Access Deficit Charges (ADC)
ADC makes it mandatory for a service provider at the caller’s end
to share a percent of the revenue earned with the service provider at
the receiver’s end in long-distance telephony. This subsidises the
infrastructure costs of the service provider enabling access at
receiver’s end, especially because rental for fixed-line services is
low. Revision in the ADC regime is expected to be followed by
further tariff reduction in telecom services.
Unified Access Service License Regime (UASL)
Unified licensing marked the end of the license regime in the Indian telecom industry. It helped in aligning convergent technologies and
services. The establishment of the Unified Access Licensing Regime (2003) eliminated the need for different licenses for different
services. Players are now allowed to offer both mobile and fixed-line services under a single license after paying an additional entry fee.
This does not take into account national and international long-distance services and Internet access services.
Universal Service Obligation (USO)
The USO policy was laid along with NTP ’99 to widen the reach of telephony services in rural India. All telecom operators are bound to
contribute 5 percent of their revenues to this fund. This system was put in place to bridge the wide gap between urban and rural teledensity,
bringing it down from the current 31 percent. Initially, only basic service providers were under the purview of USO. Later, its scope was
expanded to include mobile services also. Although it increases the cost burden for the telecom companies, USO helps in building the
telecommunication infrastructure in the rural areas.
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
Vodafone purchased stake in Hutch from Hong Kong's Hutchison Telecom International for USD 11.08 billion.
Telekom Malaysia acquired a 49 percent stake in Spice Communications for USD 179 million.
Maxis Communications acquired a 74 percent stake in Aircel for USD 1.08 billion.
Ericsson to design, plan, deploy and manage Bharti Airtel network and facilitate their expansion in the rural areas, under a USD 2 billion contract.
116 129
680
521
100
300
500
700
2003–04 2004–05 2005–06 2006–07
FD
I (U
SD
milli
on)
Recent Deals in Telecom Sector
FDI in Telecom Sector
The Indian telecom industry has always attracted foreign investors. In
fact, the cumulative FDI inflow, during the August 1991 to March 2007
period, in the telecommunication sector amounted to USD 3,892
million. It is the third largest sector to attract FDI in India in the post-
liberalisation era.
FDI calculation takes into account radio paging, cellular mobile and
basic telephone services in the telecommunication sector.
FDI and other M&A activities increasing in number
Reliance Communications Limited has sold a five percent equity share capital of its subsidiary Reliance Telecom Infrastructure Limited to international investors across the US, Europe and Asia. The deal was worth USD 337.5 million.
The Indian telecom industry has a 74 percent FDI limit in the telecom
services segment.
The GoI has permitted 100 percent FDI in manufacturing of telecom
equipment in India.
Major trends in the telecom sector is increasing M&A activity, de-regulation of telecom policies and growing interest of international investors.
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
Basic Services Operators
BSNL
MTNL
Major Players in different segments of Indian telecom industry
Reliance
TTSL
GSM Services Operators
Airtel
Vodafone
Idea
Reliance
TTSL
BSNL
CDMA Services Operators
Reliance
Internet Services Operators
BSNL
MTNL
Reliance
TTSL
BSNL
Airtel
TTSL – Tata Teleservices Ltd.
MOBILE SERVICES
BSNL – Bharat Sanchar Nigam Ltd.
MTNL – Mahanagar Telecom Nigam Ltd.
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
Emerging technologies – 3G and WiMax to assist in penetration of telecom services in India
WiMAX has been one of the most significant developments in wireless communication in the recent past. Since
this mode of communication provides network access in inaccessible locations at a speed of more than 4 Mbps, it
is expected to be a major factor in driving telecom services in India, especially wireless services. Thus, it will
lead to the increased use of telecom services, Internet, value-added services and enterprise services. WiMAX is
expected to accelerate economic growth and assist in providing better education, healthcare and entertainment
services. It is estimated that India will have 13 million WiMAX subscribers by 2012. Aircel is the pioneer in WiMAX technology in India. The state-owned player, BSNL, aims to connect 74,000 villages through WiMAX. Bharti, Reliance and VSNL have acquired licenses in the 3.3GHz range to utilise the opportunities offered by this
domain.
The Indian government plans to auction the spectrum for 3G services by inviting bids from domestic as
well as foreign players, and creating a competitive environment that offers better services to
consumers. Therefore, the 3G spectrum is among the major investment opportunities and growth
drivers of the telecom industry. The immense potential for 3G is reflected by the 30–40 percent annual growth in Value-Added
Services. Cell phone manufacturers are striving to develop USD 100 priced 3G handsets for the Indian market. India expects to replicate its 2G growth in 3G services.
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
Huge Potential of Indian Broadband Markets
S-Curve in Addressable MarketIndian Broadband Subs Penetration
S-Curve in Addressable Market: affordable population excluded population under poverty line and below 15 years old
India 30%10%
Start-up Period
Fastest growth period
Saturation Period
90%
50%Key Point
India 0.45%
Broadband markets is still in its infancy stage with low penetration rate.Broadband markets is still in its infancy stage with low penetration rate.
A big gap with other developing/developedA big gap with other developing/developed countries anticipates a huge countries anticipates a huge
potential.potential.
0.04% 0.10% 0.45% 0.56%3.63% 4.82% 6.24%
22.34%23.53%
31.98%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Broadband Subs Penetration
Source: TRAI
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
Hype Cycle for Wireless networking Infrastructure
Source: Gartner
For a new technology, people are usually keen on the advantages. Their overenthusiasm generates the peak of inflated expectations.
When the new technology is put into commercial use, people find that there is a variety of limits. Thus the trough of disillusionment occurs.
The new technology enters the stage of practical application and enjoys stable development in line with the commercial law.
WiMAX 16e is entering the stage of practical application. In the following years, WiMAX 16e will see broad application throughout the world. 16e+ is available at the end of 2010, WiMAX is about 3 years ahead of LTE in the Product chain.
EV-DO Rev. B
Innovation Trigger
Peak of Inflated
Expectations
Trough of Disillusionment
Slope of Enlightenment
Plateau of Productivity
Time
Expectations
Years to Mainstream Adoption:
less than 2 years
2 to 5 years
5 to 10 times
more than 10 years
obsolete before plateau
WiMAX 16e
HSPA
TD-SCDMA
WiFi
LTE
Cloud Computing
M2M
HSPA+WCDMA
WiMAX is entering the stage
of practical application
WiMAX 16mLTE-Advance
WiMAX 16e+
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
SSS, ACT2012
Indian Telecom Statistics
Indian Telecom Statistics Oct 09Total telephone subscriber base 525.65Over all Tele-density 44.87%Fixed-line user base 37.25Wireless user base (GSM+CDMA+WLL(F)) 488.4GSM Subscribers 355.25CDMA Subscribers 133.15Monthly additions (Wireline + Wireless) 16.62Monthly additions (Wireline) -0.02Monthly additions (Wireless) 16.67Broadband subscribers 7.4
April 10, 2023
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
SSS, ACT2012
Existing Operators
Service Providers Technology
Bharat Sanchar Nigam Limited (BSNL) GSM, CDMA & Fixed Line
Bharti Airtel Limited (Airtel) GSM & Fixed Line
Reliance Communications Limited (RCOM) GSM, CDMA & Fixed Line
Vodafone Essar Limited (Vodafone-Essar) GSM
Idea Cellular Limited (Idea) GSM
Tata Teleservices Limited (TTSL) GSM, CDMA & Fixed Line
Tata Teleservices Maharashtra Limited (TTML) CDMA & Fixed Line
Mahanagar Telephone Nigam Limited (MTNL) GSM, CDMA & Fixed Line
Aircel Cellular Limited (Aircel) GSM
Reliance Telecom GSM
Loop Mobile Limited (Loop mobile) GSM
HFCL Infotel Limited (HFCL) CDMA & Fixed Line
April 10, 2023
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
SSS, ACT2012
Thanks! Sources DOT TRAI COAI & AUSPI Ernest & Young IMRB BDA Telecom India Daily (internal research) ……..open internet
April 10, 2023
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
Conclusion India has benefited immensely from ICT It has given an opportunity of rapid
economic and social development
April 10, 2023 SSS, ACT2012
drk
tvre
dd
y@gm
ail.c
om,
Pri
nci
pal
, P
VP
P C
olle
ge o
f C
olle
ge o
f E
ng i
nee
rin
g,S
ion
inee
rin
g,S
ion
Thank You !
April 10, 2023 SSS, ACT2012