Overview of Telecom Industry ( Bc )

8/3/2019 Overview of Telecom Industry ( Bc )

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5/1/12

TELECOM INDUSTRY

IN

INDIA





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MARKET SHARE OF PUBLIC ANDPRIVATE PLAYERS

The public players and the private playersshare the fixed line and the mobilesegments.

Currently the public players have morethan 60% of the market share

Bharti airtel has the largest customer basewith 31% market share, followed byvodafone and bsnl with each holding 22%market share.



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Contd….

Ø Recognized the world over as animportant tool for socio-economicdevelopment for a nation.

Ø Undergone a major process of transformation through significant policyreforms, particularly beginning with theannouncement of NTP 1994 and was re-

emphasized and carried forward under NTP 1999.



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FUTURE PROSPECT OF TELECOMSECTOR

Telecom sector targets announced by Government of India :-

500 million subscribers by 2015

20 million broadband subscribers by 2015.

Ø India is expected to become a manufacturing hub for telecom

equipment.

Ø The Indian telecom market is expected to grow three fold by 2015 & market

size over US $ 8 billion.

Ø It is expected that by the year 2015 there will be over 500 million

plus subscribers in the Indian telecom market.

Ø Over 150% growth in telecom services is projected in 5 years. India

will require large investments in network infrastructure.



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CAREER PROSPECT IN TELECOMSECTOR

With thecoming of

more and

more


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Current Scenario in Telecom Industry

Ø India is 4th largest market in Asia after China, Japanand South Korea.

Ø India is the 5th largest in the world and 2nd largest

among emerging economies of Asia.

Ø Contribution of telecom sector in terms of revenue is2.1 % of GDP as compared to 2.8% in developed

economies.



REFORMS IN TELECOM SECTOR

C Reforms in telecom sector began in 1980with telecom manufacturing being openedfor private sector followed by nationaltelecom policy(NTP) in 1994 and 1999.

C In 1990 telecom revolution in manycountries which resulted in better qualityof service with lower tariff rates forceIndian policy makers to open up telecomsector for private players.



POLICY REFORM

3 Phases

Phase - 2Phase - 1 Phase - 3



Phase-1

Ø The decade of 1980's saw private sector being allowed in telecommunicationsequipment manufacturing.

Ø Mahanagar Telephone Nigam Limited(MTNL) and Videsh Sanchar NigamLimited (VSNL) were formed.

Ø A telecom commission was set up to givefocus to telecommunications policy

formation



Phase - 2

Ø In 1990s, telecommunications sector also benefitedfrom the general opening up of the economy.

Ø NTP 1994 was the first attempt to give a comprehensive

roadmap for the Indian telecommunications sector.Ø Availability of telephones on demand (targeted by

1997).

Ø Universal service covering all villages and one pco per 500 persons in urban areas at the earliest (targeted to beachieved by 1997).

Ø Telecom services at affordable and reasonable prices.



Phase -3

Ø NTP 1999 brought in the third generationsof reforms in the IndianTelecommunications sector.

Ø FDI increase from 49% to 74%.Ø Internet telephony in 2002.

Ø Launch of CDMA technology.

Ø 3-6 operator in each circle.

Ø Intra circle merger guidelines.

Ø Broadband policy 2004.



MAJOR PLAYERS

SERVICE PROVIDER NO. OF CDMASUBSCRIBER

NO.OF GSM SUBSCRIBER

RELIANCE 2.7 CR

TATA 1.07 CR

AIRTEL 3.37 CR

MTNL 24 LAKHS

BSNL 2.44 CR

VODAFONE 2.44 CR

IDEA 1.3 CR

SPICE 25 LAKHS

BPL 10 LAKHS

AIRCEL 48 LAKHS



Fall in STD & ISD Rates

(Rs/min)

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



By :

Rumil Johri , Kartik Paniya , Palak Mehta ,Gaurav Surnot ,Gaurav Choudhry ,Vaibhav Trivedi , Agima Chaturvedi , Kajal

Patni & Megha Aggarwal ,

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Overview of Telecom Industry ( Bc )