telecommunication in publec sector

8/7/2019 telecommunication in publec sector

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Communication

Revolution


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What we know aboutcommunication is not enough

LETS SEE THE DRASTICCHANGES IN THEFIELD OFCOMMUNICATION INSOME DIFFERENTWAY


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WO RLD ofC OMMUNI CAT ION


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Old Age Ways Of Communication


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T elephone


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M obileRevolution


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Internet Revolution


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Wh at isC OMMUNI CAT IO

N?

Communication is the

process of attempting to impart information from a sender to a receiver with the use of a medium.

Communication is defined as a process by which weassign and convey meaning in an attempt to create shared

understanding.


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History


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1851- introduction of telegraph

services. 1880-81 telephone serviceintroduced in India

1902- first wireless telegraphstation established

1907- first central battery of telephones introduced inKanpur.


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1913-1914 first Automaticexchange installed in Shimla.

1923- Formation of IndianRadio telegraph company.


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1947- nationalization of all

foreign telecommunicationcompanies to form PTT. 1979 1 st Optical fibre system 1980- 1 st Satellite earth station

established 1985- Dept. of

telecommunicationestablished as a regulator

1986- conversion of DoT into 2companies

1. VSNL and 2. MTNL


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1997 Telecom RegulatoryAuthority of India introduced

regulatory framework

2000- BSNL introduced

2007-2009-

Fastest growth in no. ofsubscribersFastest sale of millions of mobilephonesMost cheapest handsetintroduced and most affordablecolour phone


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B HARATSANCHAR NIGAM LTD.


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B SNL:COMPANYPROFILE

Born on 1st

October 2000 afterthe Corporatisation ofDoT(Department of Telecom).State-owned enterprise

HQ- New DelhiCMD- S.C.MishraEmployees- more than 3lakhs

Customers- more than 84million subscribersConnects length and breadthof INDIA except Delhi &Mumbai.


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BSNL ServicesOffered:

BSNL is an Integrated telecomservice provider which provides alltypes of telecom services.W ireline servicesW ireless local loop ( W LL) servicesGSM mobile servicesBroadband-Internet servicesNational long distance servicesInter-national long distance servicesIN-services viz prepaid calling cards


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B SNLACHIEVEMENTS:

W orlds 7 th largest

telecommunication Co.Enjoys 25% mkt share incellular mobile services and60% mkt share in ISP services.Largest 3G network in India.


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M ahanagar Telephone NigamLtd. ( M TNL)


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M TNL was set up on 1st April 1986, by

the Government of India; to offer basicservices in Delhi & M umbai

Over the yearsM

TNL has emerged asIndias leading & one of Asias largesttelecom operating companies

M TNL has a market share of about 12% in the Indian basic telecom serviceswith a customer base of over 4.7 M n.lines


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On November 7th, 2001, M TNL waslisted at the New York Stock Exchange


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Organizational structure

1854:A regular, separate department was opened,when telegraph facilities were thrown open to thepublic.

Dr. O'Shaughnessy was the first Superintendent ofElectric Telegraphs in India and later became the firstDirector General then A.Raja, and now Kapil Sibbal.1914: W orld W ar I, Postal Department and theTelegraph Department were amalgamated under asingle Director-General.1st April, 1950: In 1950 the number of TelephoneExchanges absorbed from princely states was 196.The installed capacity of these 196 exchanges was13,362 lines with 11,296 working connections .


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Organizational change

1981:Prime Minister Indira Gandhi signed contracts with ofFrance to merge with the state owned TelecomCompany (ITI), in an effort to set up 5,000,000 lines per year.

January 1985: two separate Departments for the Postsand the Telecommunications were created.

1986 : Mahanagar Telephone Nigam Ltd. (MTNL) wascreated.

1989:The Telecom Commission was constituted. January 1997: Telecom Regulatory Authority of India

(TRAI) was formed. 1st October 2000:Department created BSNL, a new entity

to operate services in different parts of the country as apublic sector unit.


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Regulatoryframework

1997 commitment made withW TO

Licensing to new localcellular service

Encouragement tocompetition

Tax concession & flexibility onexternal commercialborrowing


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Problems &Solutions


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P roblem 1:ARPU are going down

S olution:Extra service,Promotion(VAS,entertainment)Different offers etc


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P roblem 2:HR challenges in recruitment

S olution:Adapt globalization,Provide motivation,Attract highly talented people


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Problem 3:

Slow reform process

Solution:

Speed up in decision making


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Problem 4:

Network problem

Solution:Increase no of towers,Reduce distance between two towersUse latest technology for this


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Problem 5:

No of operators are increasing

Solution:

Provide user-friendly servicesIncrease customer satisfation


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Problem 6:

Lack of infrastructure in semi-rural and ruralareas

Solution:

Innovation in product/service

Rural services enhancement


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Problem 7:

Limited spectrum availability andinterconnection charges between the pvt andstate operator

Solution:

Increase the amount of spectrumRadio waveElectromagnetic bandwidth


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Problem 8:

Attrition and retention

Solution:

Offer best salary package at enrty levelIncentives


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VSNL was incorporated on April 1st 1986under the Indian companies act 1956.

VSNL internet service limited providesintegrated Tele com and information

technology solution to corporate ,enterprises , offices, and home in India .

Its services includes high speedinternet , access, voice over internetprotocol, internet bandwidth, networking,managed data network .


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M inority Sale in 1991-92

It was the case of Public M onopoly

WTO Stipulations and loss of M onopoly

Need for a Strategic Partner

Strategic sale considered better thanminority sale


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B idding Process Starts

The companies which are interested inparticipating in bid were required tohave a net worth of R s. 2500 crores .

Tata bid R s 1439 crores, R eliance bid R s1347 crores.

After takeover, Tatas - 45%, Govt. - 26%


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Positive Side

Strong Financial Condition

Efficiency in management

R ecognized as Tata Group


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C onclusion

Strong Privatization of VSNL provided higher return on

governments asset formation.

B etter quality communications for thecitizens.

Strategic sale is good as it leads to lessconfusion among the governments roles as apolicy formulator and a service provider.


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INDIAN TELECOMINDUSTRY


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There are three types of players in telecom industry:1) State owned companies2) Private indian owned companies

3) Foreign invested companies


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STATE

OWNEDCOMPANIES

BSNL (Bharat Sanchar NigamLimited)

MTNL (Mahanagar TelephoneNigam Limited)

VSNL (Videsh Sanchar NigamLimited)


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PRIVATE INDIAN OWNEDCOMPANIES

Reliance Communication

Tata Teleservices Bharti Airtel


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FOREIGN

INVESTEDCOMPANIES

Vodafone Essar Idea Cellular B

PLM

obileSpice Communication


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Growth & FutureProspects

Telecom Sector in India


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500 million subscribers, with more than 120 millionadded in last 8 months.

Strong regulatory support

Increasing productivity Expected strong rural flavour

Growth in the Country


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New Frontiers for Growth1. 3G Technology

The much awaited 3G spectrum policywas unveiled by the DoT

Spectrum block reserved for state runoperators

Rich data services to the customers


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2. Telecom InfrastructureServices

Pilot shared towers were rolled out at differentlocations.

Benefits:Lower capital and operating expensesAccess to rural area without capexTower asset as an easier route of raising fund


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3 . Managed services On account of the rapidly growing subscriber

base, service providers find it difficult tomanage their infrastructure and network management operations.

In such cases, they completely or partiallyoutsource their infrastructure or network management operations.


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4. W iMAXOne of the most significant developments in wireless communication.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.It is estimated that India will have 1 3 million WiMAX subscribers by 2012.

Aircel is the pioneer in WiMAX technology in India.The state-owned player, B SNL, aims to connect 74,000 villages through

WiMAX.


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GrowthDrivers

1. Subscribers additions

2. Increasing consumer demands3. Declining mobile tariffs4. Reduction in handset cost

5. Growing rural market6. Medium of advertising7. Launch of 3G technology


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K PMG reportsstates

The regulatory & policyenvironment has played akey role in the developmentof Indian Telecom Sector &,with the initiatives like the 3Gspectrum auctions, will be an

important contributor tofuture growth


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Company wise Future prospect

1. BSNL BSNL plans to expand its customer base from

present 47 millions lines to 125 million lines andinfrastructure investment plan to the tune of Rs. 733crores in the next three years.


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2. MTNL MTNL is also making its entry in the field of M-

commerce , which will enable the customers totransact business with the help of his mobile phoneor similar hand held devices.

MTNL is adding nearly 450 more Base Transceiver Stations (BTS) in Delhi and Mumbai.


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3. VSNL VSNL is adding its capacity to meet the

overwhelming demand for connectivity to India inthe wholesale voice services domain.

The company is also offering flexible agreementsand charging methods to meet the growing

demands of the wholesale voice market


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4. BHARTI

Bharti Airtel company is planning to set up 3000more towers as part of enhancing their ruralcoverage and will now focus on rural and semi-urban areas.


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5. RELIANCE COMMUNICATION

The company plans to concentrate on mobilecontent services other than voice. It also plans to spend Rs 5 billion every year for the

next three years. This CAPEX will be used for network expansion of its CDMA business to over 4,500 towns

from the present 2,000 towns and expansion of itsGSM operations. The company also plans to launch international

data roaming facility in Canada, followed by LatinAmerica and then to Asian countries like Japan,

South Korea, China and other countries.


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6. TATA TELESERVICES The company is also expanding its footprint, and

has paid Rs. 4.17 billion to DoT for 11 new licensesunder the IUC (interconnect usage charges)

regime.


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7. Vodafone

Vodafone Essar is expecting to touch over 35 millioncustomers across 400,000 shops and thousand ofown employees along with employees of itsbusiness associates.


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8. IDEA Idea also plans to enter rural and neglected circles

as a strategy to gain subscribers. Other advancements in the telecom industry will

help it cut costs - use of e-mail to send bills tocustomers; sharing cell sites; smaller base

transmission stations that will mean lesser infrastructure requirements and expenses andindependent tower operators.

Along with its plan to go for a national longdistance license, it will also look at international long

distance in the near future.


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CONCLUSION

Played major role indevelopment of theeconomy

Newer market of rural area Services:

1. Voice service key driver for development

2. Broadband open for newer market

3. Mobile VAS benefits to allsection

Positive upcoming regulationsby govt.


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Growth & FutureProspects

Telecom Sector in India


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500 million subscribers, with more than120 million added in last 8 months.

Strong regulatory support Increasing productivity Expected strong rural flavour

Growth in the Country


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New Frontiers for Growth

1. 3G Technology The much awaited 3G

spectrum policy wasunveiled by the DoT

Spectrum block reserved for state run operators

Rich data services to thecustomers


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3 . Managed services

On account of the rapidlygrowing subscriber base,service providers find it

difficult to manage their infrastructure and network management operations.

In such cases, theycompletely or partiallyoutsource their infrastructureor network managementoperations.


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4. W iMAXOne of the most significant developments in wireless communication.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.It is estimated that India will have 1 3 million WiMAX subscribers by 2012.

Aircel is the pioneer in WiMAX technology in India.The state-owned player, B SNL, aims to connect 74,000 villages through

WiMAX.


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GrowthDrivers

1. Subscribers additions2. Increasing consumer

demands3. Declining mobile tariffs4. Reduction in handset cost5. Growing rural market6. Medium of advertising7. Launch of 3G technology


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K PMG reportsstates

The regulatory & policyenvironment has played akey role in the developmentof Indian Telecom Sector &,with the initiatives like the 3Gspectrum auctions, will be an

important contributor tofuture growth


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Company wise Future prospect

1. BSNL BSNL plans to expand its customer base from

present 47 millions lines to 125 million lines andinfrastructure investment plan to the tune of Rs. 733crores in the next three years.


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2. MTNL MTNL is also making its entry in the field of M-

commerce , which will enable the customers totransact business with the help of his mobile phoneor similar hand held devices.

MTNL is adding nearly 450 more Base Transceiver Stations (BTS) in Delhi and Mumbai.


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3. VSNL VSNL is adding its capacity to meet the

overwhelming demand for connectivity to India inthe wholesale voice services domain.

The company is also offering flexible agreementsand charging methods to meet the growing

demands of the wholesale voice market


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5. RELIANCE COMMUNICATION The company plans to concentrate on mobile

content services other than voice. It also plans to spend Rs 5 billion every year for the

next three years. This CAPEX will be used for network expansion of its CDMA business to over 4,500 towns

from the present 2,000 towns and expansion of itsGSM operations. The company also plans to launch international

data roaming facility in Canada, followed by LatinAmerica and then to Asian countries like Japan,

South Korea, China and other countries.


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6. TATA TELESERVICES The company is also expanding its footprint, and

has paid Rs. 4.17 billion to DoT for 11 new licensesunder the IUC (interconnect usage charges)

regime.


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7. Vodafone

Vodafone Essar is expecting to touch over 35 millioncustomers across 400,000 shops and thousand ofown employees along with employees of itsbusiness associates.


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8. IDEA Idea also plans to enter rural and neglected circles

as a strategy to gain subscribers. Other advancements in the telecom industry will

help it cut costs - use of e-mail to send bills tocustomers; sharing cell sites; smaller basetransmission stations that will mean lesser infrastructure requirements and expenses andindependent tower operators.

Along with its plan to go for a national longdistance license, it will also look at international long

distance in the near future.


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CONCLUSION

Played major role indevelopment of theeconomy

Newer market of rural area Services:

1. Voice service key driver for development

2. Broadband open for newer market

3. Mobile VAS benefits to all

section Positive upcoming regulations

by govt.


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h k


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From Kashmir to KanyakumariEmpowering and Integrating

The Indian Telecommunication Industry


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Thank You

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telecommunication in publec sector