Preview

The Telecom Sector in India

Good Essays
Open Document
Open Document
2046 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Telecom Sector in India
TELECOM SECTOR IN INDIA
August 2012

1. INDUSTRY OVERVIEW
1.1

Introduction
The Indian telecommunications industry is one of the fastest growing in the world.
Government policies and regulatory framework implemented by Telecom Regulatory Authority of India (TRAI) have provided a conducive environment for service providers. This has made the sector more competitive, while enhancing the accessibility of telecommunication services at affordable tariffs to the consumers. In the last two decades, the Indian Telecom Sector and mobile telephony in particular has caught the imagination of India by revolutionizing the way we communicate, share information; and through its staggering growth helped millions stay connected. This growth, however, has and continues to be at the cost of the Climate, powered by an unsustainable and inefficient model of energy generation and usage. Simultaneously, this growth has also come at significant and growing loss to the state exchequer, raising fundamental questions on the future business and operation model of the Telecom sector.
The telecom industry has witnessed significant growth in subscriber base over the last decade, with increasing network coverage and a competition-induced decline in tariffs acting as catalysts for the growth in subscriber base. The growth story and the potential have also served to attract newer players in the industry, with the result that the intensity of competition has kept increasing. The sector expected to witness up to US$ 56.3 billion investments and the market will cross the US$ 101 billion mark in five years.

1.2

Current Scenario
The Indian telecom sector has witnessed tremendous growth over the past decade. Today, the
Indian telecom network is the second largest in the world after China. A liberal policy regime and involvement of the private sector have played an important role in transforming this sector.
The total number of telephones has increased from 429.73 million

You May Also Find These Documents Helpful

  • Powerful Essays

    | Keen competition with big competitors as they account for the lion’s share of the market…

    • 1943 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Indian has achieved an overall teledensity of 67% and rural teledensity of 31%. Indian telecom industry is fast becoming an attractive destination for foreign investors and is experiencing consolidation of operations. It has witnessed several multi-billion dollar M&A deals ever since the telecom industry was opened to the private players in 1995.…

    • 1095 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Vodafone Ceo Interview, 2o13

    • 2513 Words
    • 11 Pages

    India has had this licence system for very long. So a lot of entrepreneurs have this feeling that once you get a licence, that's the way to make money. So a lot of investors and entrepreneurs thought that they need to get this licence. If anyone has studied the model in the rest of the world, you would realise that it is not true. Even in the most affluent countries in the world, there are typically no more than four or five operators and typically number five doesn't even survive. In India, when this opportunity came in 2008 or 2007, based on this drive of 'get me a licence and I will make money', all of them jumped onto it. But then, of course, everyone started to discover very quickly that this is a tough game to be in. It is typically a long-term capital investment. And since it is a sunk cost, you would have to generate some revenue. So pricing is not based on long-term cost recovery, it is based on the need to generate some cash flow, based on 'I need to pay my salaries next month'. So in the first few years, you saw these new operators really driving topline, very hard, at the cost of results. This simply doesn't work because these operators get customers only because tariffs are very low. And because they dropped the prices so low, it had a huge impact on the results of the telecom sector since everyone else also had to cut prices to compete. So profit-and-loss was destroyed by this wave of new licences. Then came the 3G auctions. All serious operators realised that you need 3G if you want to have a future in the business. But there were only three 3G slots available in most circles and that led to very intense…

    • 2513 Words
    • 11 Pages
    Good Essays
  • Powerful Essays

    Industry Profile Airtel

    • 3888 Words
    • 16 Pages

    The Indian telecommunication industry, with about 600.69 million mobile phoneconnections as of February 2010, is the third largest telecommunication network in the worldand the second largest in terms of number of wireless connections of 563.73 million. TheIndian telecom industry is one of the fastest growing in the world and is projected that Indiawill have 'billion plus' mobile users by 2015. Projection by several leading globalconsultancies is that India’s telecom network will overtake China’s in the next 10 years. Forthe past decade or so, telecommunication activities have gained momentum in India. Effortshave been made from both governmental and non-governmental platforms to enhance theinfrastructure. The idea is to help modern telecommunication technologies to serve allsegments of India’s culturally diverse society, and to transform it into a country oftechnologically aware people.…

    • 3888 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    India’s tele-density in January 2006 neared 12% with the subscriber base nearing the 130mn mark. During January 2006, record 5mn subscribers were added as against 4.92mn subscribers in December 2005. This strong growth could be attributed to lifetime validity cards launched by almost all operators. During the first 10 months of FY06, 31.41mn subscribers have been added. In the fixed segment, a total of 0.28mn subscribers were added during January 2006, taking the subscriber base of fixed line services to 49.21mn. In the mobile segment, total additions during the month summed up to 4.69mn with highest ever GSM additions of 3.52mn and CDMA additions of 1.17mn. During the first 10 months of FY06, 28.39mn subscribers have been added.…

    • 2150 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Lte Evolution in India

    • 7468 Words
    • 30 Pages

    Next Steps for Telcos – – – – Customer Proposition Rollout Strategy Cost Savings Spectrum Policy…

    • 7468 Words
    • 30 Pages
    Powerful Essays
  • Powerful Essays

    Telcome Industry of Pakistan

    • 6299 Words
    • 26 Pages

    integrated silos because the local telephone industry was always thought to be naturally prone to…

    • 6299 Words
    • 26 Pages
    Powerful Essays
  • Good Essays

    The telecom industry of Bangladesh has entered a phase of growing competition. Even though Bangladesh is regarded as one of the poorest, and a heavily populated country, it has found a way to grow its telecommunications sector. A flourishing mobile telephony business has brought out many positive changes in the country's socio-economy.…

    • 1851 Words
    • 8 Pages
    Good Essays
  • Good Essays

    India's telecom sector has been one of the biggest success stories of market oriented reforms, and India is now amongst the fastest growing telecom markets in the world. Tele-density has increased from 12.7 per cent in March 2006 to 16.8 per cent in December, 2006. The total number of telephones has increased from 54.63 million on March 31, 2003 to 142.09 million on March 31, 2006 and 189.92 million on December 31, 2006. With this growth, the number of telephones is expected to reach 250 million by the end of 2007.…

    • 790 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Reliance Communications

    • 307 Words
    • 2 Pages

    We found out that globalisation has made telecommunication an integral part of the infrastructure of the Indian economy. The telecom sector in India has developed as a result of this. The telecom sector experienced a rapid growth over the past decade on account of regulatory liberalisation, structural reforms and competition, making telecom one of the major catalysts in India’s growth story. Much of this growth can be attributed to the growth in mobile telephony (number of mobile subscribers grew from 10 million in 2002 to 392 million in 2009) and the growth in the service and IT and ITeS sector. Telecom has emerged as a key factor for economic and consumer growth. The contribution of the sector to GDP is growing (more than doubled). Telecom is one of the fastest-growing industries in India (on an average 8 million wireless subscribers are added every…

    • 307 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Mobile Broadband in India

    • 2954 Words
    • 12 Pages

    50 Years of Growth, Innovation and Leadership Frost & Sullivan Whitepaper On Mobile Broadband in India – The Next Telecom Revolution TABLE OF CONTENTS 1. Introduction ......................................................................................................... 3 2. Why Mobile Broadband? ...................................................................................... 4 2.1 Advantage Mobile Broadband ...................................................................... 5 2.2 Availability Of Affordable Devices .............................................................. 5 2.3 Government Efforts To Increase Broadband Penetration ......................... 6 2.4 Social Impact ................................................................................................ 6 3. Market Potential…

    • 2954 Words
    • 12 Pages
    Good Essays
  • Powerful Essays

    It Strategy

    • 6707 Words
    • 27 Pages

    Indian Telecom sector, like any other industrial sector in the country, has gone through many…

    • 6707 Words
    • 27 Pages
    Powerful Essays
  • Powerful Essays

    Hr Policies

    • 2771 Words
    • 12 Pages

    A midst all the talk of slowdown in the Global world, telecom is one sector that has had a fairly good year in terms of subscriber additions and revenue growth in 2009. However, even as this gives some reason to cheer for the telecom incumbents, there are a few trends in key metrics of the companies that suggest increasing pressure on margins. After the telecommunication policies were revised to allow private operators, companies such as Bharti Telecom, Tata Indicom, Reliance MTNL, Idea, Vodafone and BPL have entered the space as Major Operators in India.…

    • 2771 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Certified that this comprehensive project report titled “A study on customer preference towards telecom network providers” is the bonafied work of Jatin Sharma (Enr. No. 127290592154) and Abhishek Dwivedy (127290592041) who carried out the research under my supervision. I also certify further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or a work was conferred on an earlier occasion on this or any other candidate.…

    • 13481 Words
    • 54 Pages
    Good Essays
  • Powerful Essays

    research proposal

    • 1358 Words
    • 5 Pages

    Telecom sector is growing industry in Pakistan and one of the best revenue generated industry in Pakistan. This report addresses the important issue of interconnection, the application and enforcement of which is widely recognized to be key to effective liberalization strategy, or often a key reason for failure. Now here is this more critical than in the area of rural telecommunications, where network costs are known to be high and where the traditional consensus has been that services cannot be rolled out without subsidies. In a liberalizing environment, the issue becomes even more critical. Rural areas must be better connected, but subsidies-even best-practice explicit subsidies applied in a so-called smart way-cannot cover all of the areas that will remain without service unless better means of incentivizing investment are explored.…

    • 1358 Words
    • 5 Pages
    Powerful Essays