INTRODUCTION

Telecommunication in india
India's telecommunication network is the second largest in the world based on
the total number of telephone users (both fixed and mobile phone). It has one of
the lowest call tariffs in the world enabled by the mega telephone networks and
hyper-competition among them. It has the world's third-largest Internet user-base.
According to the Internet And Mobile Association of India (IAMAI), the Internet
user base in the country stood at 190 million at the end of June, 2013. Major
sectors of the Indian telecommunication industry are telephony, internet and
television broadcast Industry in the country which is in an ongoing process of
transforming into next generation network, employs an extensive system of
modern network elements such as digital telephone exchanges, mobile switching
centres, media gateways and signalling gateways at the core, interconnected by a
wide variety of transmission systems using fibre-optics or Microwave radio
relay networks. The access network, which connects the subscriber to the core, is
highly diversified with different copper-pair, optic-fibre and wireless
technologies. DTH, a relatively new broadcasting technology has attained
significant popularity in the Television segment. The introduction of private FM
has given a fillip to the radio broadcasting in India. Telecommunication in India
has greatly been supported by the INSAT system of the country, one of the largest
domestic satellite systems in the world. India possesses a diversified
communications system, which links all parts of the country by telephone, Internet,
radio, television and satellite
Indian telecom industry underwent a high pace of market liberalisation and growth
since the 1990s and now has become the world's most competitive and one of the
fastest growing telecom markets. The Industry has grown over twenty times in just
ten years, from under 37 million subscribers in the year 2001 to over 846 million
subscribers in the year 2011 India has the world's second-largest mobile phone user
base with over 929.37 million users as of May 2012 It has the world's secondlargest Internet user-base with over 300 million as of June 2015.
The total revenue of the Indian telecom sector grew by 7% to 2832
billion (US$43 billion) for 201011 financial year, while revenues from telecom
equipment segment stood at 1170 billion (US$18 billion).
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Telecommunication has supported the socioeconomic development of India and

has played a significant role to narrow down the rural-urban digital divide to some
extent. It also has helped to increase the transparency of governance with the
introduction of e-governancein India. The government has pragmatically used
modern telecommunication facilities to deliver mass education programmes for the
rural folk of India.

Definition

What does Telecommunications mean?

Telecommunications refers to the exchange of information by electronic and
electrical means over a significant distance. A complete telecommunication
arrangement is made up of two or more stations equipped with transmitter and
receiver devices. A single co-arrangement of transmitters and receivers, called a
transceiver, may also be used in many telecommunication stations.
Telecommunications devices include telephones, telegraph, radio, microwave
communication arrangements, fiber optics, satellites and the Internet.
Telecommunications is also known as telecom.

Explain Telecommunications
Telecommunications is a universal term that is used for a vast range of
information-transmitting technologies such as mobile phones, land lines, VoIP and
broadcast networks.
In telecommunications, data is transmitted in the form of electrical signals known
as carrier waves, which are modulated into analog or digital signals for
transmitting information. Analog modulation such as that used in radio
broadcasting is an amplitude modulation. Digital modulation is just an updated
form of this.
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Telecommunications and broadcasting are administered worldwide by an agency of

the United Nations called the International Telecommunication Union (ITU). Most
countries have their own agencies for enforcing telecommunications regulations

History
The beginning

A microwave tower for short distance (~50 km) communication

The history of Indian telecom can be started with the introduction of telegraph. The
Indian postal and telecom sectors are one of the worlds oldest. In 1850, the first
experimental electric telegraph line was started between Calcutta and Diamond
Harbour. In 1851, it was opened for the use of the British East India Company. The
Posts and Telegraphs department occupied a small corner of the Public Works
Department, at that time.
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The construction of 4,000 miles (6,400 km) of telegraph lines was started in
November 1853. These connected Kolkata (then Calcutta) and Peshawar in the
north; Agra, Mumbai (then Bombay) through Sindwa Ghats, and Chennai (then
Madras) in the south; Ootacamundand Bangalore. William O'Shaughnessy, who
pioneered the telegraph and telephone in India, belonged to the Public Works
Department, and worked towards the development of telecom throughout this
period. A separate department was opened in 1854 when telegraph facilities were
opened to the public.
In 1880, two telephone companies namely The Oriental Telephone Company Ltd.
and The Anglo-Indian Telephone Company Ltd. approached the Government of
India to establish telephone exchange in India. The permission was refused on the
grounds that the establishment of telephones was a Government monopoly and that
the Government itself would undertake the work. In 1881, the Government later
reversed its earlier decision and a licence was granted to the Oriental Telephone
Company Limited
of
England
for
opening
telephone
exchanges
at Calcutta, Bombay, Madras and Ahmedabad and the first formal telephone
service was established in the country. On 28 January 1882, Major E. Baring,
Member of the Governor General of India's Council declared open the Telephone
Exchanges in Calcutta, Bombay and Madras. The exchange in Calcutta named the
"Central Exchange" had a total of 93 subscribers in its early stage. Later that year,
Bombay also witnessed the opening of a telephone exchange.

Further developments and milestones

Pre-1902 Cable telegraph

1902 First wireless
Island and Sandhead.

telegraph station

established

between Sagar

1907 First Central Battery of telephones introduced in Kanpur.

19131914 First Automatic Exchange installed in Shimla.

1927 Radio-telegraph system between the UK and India, with Imperial

Wireless Chain beam stations at Khadki and Daund. Inaugurated by Lord
Irwin on 23 July by exchanging greetings with King George V.
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1933 Radiotelephone system inaugurated between the UK and India.

1953 12 channel carrier system introduced.

1960

First subscriber
trunk
[citation needed]
between Lucknow and Kanpur.

1975

First PCM system

and Andheri telephone exchanges.

dialling route

commissioned

commissioned

between Mumbai City

1976 First digital microwave junction.

1979 First optical fibre system for local junction commissioned at Pune.

1980 First satellite earth station for domestic communications established

at Sikandarabad, U.P..

1983 First analogue Stored Programme Control exchange for trunk

lines commissioned at Mumbai.

1984 C-DOT established for indigenous development and production

of digital exchanges.

1995 First mobile telephone service started on non-commercial basis on 15

August 1995 in Delhi.

1995 Internet Introduced in India starting with Laxmi Nagar, Delhi 15

August 1995

Development of Broadcasting:
Radio broadcasting was initiated in 1927 but became state responsibility only in
1930. In 1937 it was given the name All India Radio and since 1957 it has been
called Akashvani. Limited duration of television programming began in 1959,
and complete broadcasting followed in 1965. The Ministry of Information and
Broadcasting owned and maintained the audio-visual apparatusincluding the
television channel Doordarshanin the country prior to the economic reforms of
1991. In 1997, an autonomous body was established in the name of Prasar
Bharti to take care of the public service broadcasting under the Prasar Bharti Act.
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All India Radio and Doordarshan, which earlier were working as media units under
the Ministry of I&B became constituents of the body
Pre-liberalisation statistics:
While all the major cities and towns in the country were linked with telephones
during the British period, the total number of telephones in 1948 numbered only
around 80,000. Post independence, growth remained slow because the telephone
was seen more as a status symbol rather than being an instrument of utility. The
number of telephones grew leisurely to 980,000 in 1971, 2.15 million in 1981 and
5.07 million in 1991, the year economic reforms were initiated in the country.
Liberalisation and privatisation
Liberalisation of Indian telecommunication in industry started in 1981 when Prime
Minister Indira Gandhi signed contracts with Alcatel CIT of France to merge with
the state owned Telecom Company (ITI), in an effort to set up 5,000,000 lines per
year. But soon the policy was let down because of political opposition. Attempts to
liberalise the telecommunication industry were continued by the following
government under the prime-minister-ship of Rajiv Gandhi. He invited Sam
Pitroda, a US-based Non-resident Indian NRI and a former Rockwell
International executive to set up a Centre for Development of Telematics(C-DOT)
which manufactured electronic telephone exchanges in India for the first time. Sam
Pitroda had a significant role as a consultant and adviser in the development of
telecommunication in India.
In 1985, the Department of Telecom(DoT) was separated from Indian Post &
Telecommunication Department. DoT was responsible for telecom services in
entire country until 1986 when Mahanagar Telephone Nigam Limited (MTNL)
and Videsh Sanchar Nigam Limited (VSNL) were carved out of DoT to run the
telecom services of metro cities(Delhiand Mumbai) and international long distance
operations respectively.
The demand for telephones was ever increasing and in the 1990s Indian
government was under increasing pressure to open up the telecom sector for
private investment as a part of Liberalisation-Privatisation-Globalisation policies
that the government had to accept to overcome the severe fiscal crisis and
resultant balance of payments issue in 1991. Consequently, private investment in
the sector of Value Added Services (VAS) was allowed and cellular telecom sector
7

were opened up for competition from private investments. It was during this period
that
the Narsimha
Rao-led
government
introduced
the National
Telecommunications policy (NTP) in 1994 which brought changes in the following
areas: ownership, service and regulation of telecommunications infrastructure. The
policy introduced the concept of telecommunication for all and its vision was to
expand the telecommunication facilities to all the villages in IndiaLiberalisation in
the basic telecom sector was also envisaged in this policy They were also
successful in establishing joint ventures between state owned telecom companies
and international players. Foreign firms were eligible to 49% of the total stake. The
multi-nationals were just involved in technology transfer, and not policy making
During this period, the World Bank and ITU had advised the Indian Government to
liberalise long distance services to release the monopoly of the state owned DoT
and VSNL and to enable competition in the long distance carrier business which
would help reduce tariff's and better the economy of the country. The Rao run
government instead liberalised the local services, taking the opposite political
parties into confidence and assuring foreign involvement in the long distance
business after 5 years. The country was divided into 20 telecommunication circles
for basic telephony and 18 circles for mobile services. These circles were divided
into category A, B and C depending on the value of the revenue in each circle. The
government threw open the bids to one private company per circle along with
government owned DoT per circle. For cellular service two service providers were
allowed per circle and a 15 years licence was given to each provider. During all
these improvements, the government did face oppositions from ITI, DoT, MTNL,
VSNL and other labour unions, but they managed to keep away from all the
hurdles.
In 1997, the government set up TRAI (Telecom Regulatory Authority of India)
which reduced the interference of Government in deciding tariffs and policy
making. The political powers changed in 1999 and the new government under the
leadership of Atal Bihari Vajpayee was more pro-reforms and introduced better
liberalisation policies. In 2000, theVajpayee government constituted the Telecom
Disputes Settlement and Appellate Tribunal (TDSAT) through an amendment of
the TRAI Act, 1997. The primary objective of TDSAT's establishment was to
release TRAI from adjudicatory and dispute settlement functions in order to
strengthen the regulatory framework. Any dispute involving parties like licensor,
licensee, service provider and consumers are resolved by TDSAT. Moreover, any
direction, order or decision of TRAI can be challenged by appealing in
8

TDSAT. The government corporatised the operations wing of DoT on 1 October

2000 and named it as Department of Telecommunication Services (DTS) which was
later named as Bharat Sanchar Nigam Limited (BSNL). The proposal of raising the
stake of foreign investors from 49% to 74% was rejected by the opposite political
parties and leftist thinkers. Domestic business groups wanted the government to
privatise VSNL. Finally in April 2002, the government decided to cut its stake of
53% to 26% in VSNL and to throw it open for sale to private enterprises. TATA
finally took 25% stake in VSNL.
This was a gateway to many foreign investors to get entry into the Indian Telecom
Markets. After March 2000, the government became more liberal in making
policies and issuing licences to private operators. The government further reduced
licence fees for cellular service providers and increased the allowable stake to 74%
for foreign companies. Because of all these factors, the service fees finally reduced
and the call costs were cut greatly enabling every common middle-class family in
India to afford a cell phone. Nearly 32 million handsets were sold in India. The
data reveals the real potential for growth of the Indian mobile market. Many private
operators, such as Reliance Communications,Tata Indicom, Vodafone, Loop
Mobile, Airtel, Idea etc., successfully entered the high potential Indian telecom
market.
In March 2008 the total GSM and CDMA mobile subscriber base in the country
was 375 million, which represented a nearly 50% growth when compared with
previous year. As the unbranded Chinese cell phones which do not
have International Mobile Equipment Identity (IMEI) numbers pose a serious
security risk to the country, Mobile network operators therefore suspended the
usage of around 30 million mobile phones (about 8% of all mobiles in the country)
by 30 April. Phones without valid IMEI cannot be connected to cellular
operators. 56 years the average monthly subscribers additions were around 0.05 to
0.1 million only and the total mobile subscribers base in December 2002 stood at
10.5 millions. However, after a number of proactive initiatives taken by regulators
and licensors, the total number of mobile subscribers has increased rapidly to over
929 million subscribers as of May 2012.
India has opted for the use of both the GSM (global system for mobile
communications) and CDMA (code-division multiple access) technologies in
the mobile sector. In addition to landline and mobile phones, some of the
companies also provide the WLL service. The mobile tariffs in India have also
become the lowest in the world. A new mobile connection can be activated with a
9

monthly commitment of US$0.15 only. In 2005 alone additions increased to

around 2 million per month in 200304 and 200405.

Sectors
Major sectors of telecommunication industry in India are telephony, internet, Data
centers and broadcasting.
Telephony

Market share of major operators in India as on 29 February 2012

Market share of major operators in India as on 29 February 2012

The telephony segment is dominated by private-sector and two state-run
businesses. Most companies were formed by a recent revolution and restructuring
launched within a decade, directed by Ministry of Communications and
IT, Department of Telecommunications andMinister of Finance. Since then, most
companies gained 2G, 3G and 4G licences and engaged fixed-line, mobile and
internet business in India. On landlines, intra-circle calls are considered local calls
while inter-circle are considered long distance calls. Foreign Direct Investment
policy which increased the foreign ownership cap from 49% to 74%.Now it is
100%. The Government is working to integrate the whole country in one telecom
10

circle. For long distance calls, the area code prefixed with a zero is dialled first
which is then followed by the number (i.e., to call Delhi, 011 would be dialled first
followed by the phone number). For international calls, "00" must be dialled first
followed by the country code, area code and local phone number. The country code
for India is 91. Several international fibre-optic links include those to Japan, South
Korea, Hong Kong, Russia, and Germany. Some major telecom operators in India
include Airtel, Vodafone, Idea, Aircel, BSNL, MTNL, Reliance Communications,
TATA Teleservices, Infotel, MTS, Uninor, TATA DoCoMo, Videocon, Augere,
Tikona Digital

Fixed telephony
Until the New Telecom Policy was announced in 1999, only the Governmentowned BSNL and MTNL were allowed to provide land-line phone services
through copper
wire in
India
with MTNL operating
in Delhi and Mumbai and BSNL servicing all other areas of the country. Due to the
rapid growth of the cellular phone industry in India, landlines are facing stiff
competition from cellular operators. This has forced land-line service providers to
become more efficient and improve their quality of service. Land-line connections
are now also available on demand, even in high density urban areas. India has over
31 million main line customers.
Mobile telephony:
List of mobile network operators of India, List of countries by
number of mobile phones in use and List of mobile network
operators

11

Cellular phone tower atop the roof of a building

Typical signboards of STD booths (kiosks from where STD calls can be made) and
internet kiosks in India

12

AIR Radio Tower

In August 1995, Chief Minister of West Bengal, Shri Jyoti Basu ushered in the
cellphone revolution in India by making the first call to Union Telecom Minister
Sukhram. Sixteen years later 4th generation services were launched in Kolkata.
With a subscriber base of more than 929 million, the Mobile telecommunications
system in India is the second largest in the world and it was thrown open to private
players in the 1990s. GSM was comfortably maintaining its position as the
dominant mobile technology with 80% of the mobile subscriber market, but
CDMA seemed to have stabilised its market share at 20% for the time being. By
May 2012 the country had 929 million mobile subscribers, up from 350 million
just 40 months earlier. The mobile market was continuing to expand at an annual
rate in excess of 40% coming into 2010.
The country is divided into multiple zones, called circles (roughly along state
boundaries). Government and several private players run local and long distance
telephone services. Competition has caused prices to drop and calls across India
are one of the cheapest in the world. The rates are supposed to go down further
with new measures to be taken by the Information Ministry. In September 2004,
the number of mobile phone connections crossed the number of fixed-line
connections and presently dwarfs the wireline segment by a ratio of around 20:1.
The mobile subscriber base has grown by a factor of over a hundred and thirty,
from 5 million subscribers in 2001 to over 929 million subscribers as of May 2012.
India primarily follows the GSM mobile system, in the 900 MHz band. Recent
operators also operate in the 1800 MHz band. The dominant players
are Airtel, Reliance Infocomm, Vodafone, Idea cellular and BSNL/MTNL. There
13

are many smaller players, with operations in only a few states.

International roaming agreements exist between most operators and many foreign
carriers. The government allowed Mobile number portability (MNP) which enables
mobile telephone users to retain their mobile telephone numbers when changing
from one mobile network operator to another. India is divided into 22 telecom
circles:

Telecom circle

Wireline
subscriber
base
in
million(May
2012)

Wireless
subscriber
base
in
million(May
2012)

Teledensity
(September
2014)[2]

Andhra Pradesh

2.33

66.6

81.06

Assam

0.20

14.6

50.41

Bihar & Jharkhand

0.56

62.97

47.66

Delhi

2.9

42.95

232.22

Gujarat & Daman

1.82
& Diu

54.32

93.34

Haryana

0.59

23.00

80.31

Himachal Pradesh

0.30

7.41

109.55

Jammu
Kashmir

0.20

6.57

69.98

and

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Telecom circle

Wireline
subscriber
base
in
million(May
2012)

Wireless
subscriber
base
in
million(May
2012)

Teledensity
(September
2014)[2]

Karnataka

2.48

56.63

94.20

3.18

34.51

95.96

1.18

25.25

73.0

Madhya Pradesh &

1.13
Chhattisgarh

53.30

57.04

Maharashtra & Goa

(including
2.64
Mumbai )

71.00

92.20 *

Mumbai*

3.0

35.93

Not available *

North East ^**

0.25

8.76

72.00

Orissa

0.40

26.27

63.41

Punjab

1.44

31.17

103.49

Kerala
Lakshadweep

&

Kolkata(including
West Bengal )

15

Telecom circle

Wireline
subscriber
base
in
million(May
2012)

Wireless
subscriber
base
in
million(May
2012)

Teledensity
(September
2014)[2]

Rajasthan

1.14

49.52

76.18

Tamil
Nadu(including
3.16
Chennai
since
2005)

78.96

114.71

Uttar Pradesh(East) 1.20

77.74

58.09(Combined)*

Uttar
Pradesh(West)
Uttarakhand

& 0.79

55.12

58.09(Combined)*

0.62

46.79

73.40 *

West
Bengal(including
Kolkata)***

Population statistics are available state-wise only.

North east circle includes Arunachal Pradesh, Manipur, Meghalaya, Mizoram,
Nagaland, & Tripura
West Bengal circle includes Andaman-Nicobar and Sikkim

16

Internet
Internet censorship in India, List of Internet users by country and List of countries
by number of broadband Internet subscriptions
The history of the Internet in India started with launch of services by VSNL on 15
August 1995. They were able to add about 10,000 Internet users within 6 months.
However, for the next 10 years the Internet experience in the country remained less
attractive with narrow-band connections having speeds less than 56 kbit/s (dialup). In 2004, the government formulated its broadband policy which defined
broadband as "an always-on Internet connection with download speed of 256 kbit/s
or above." From 2005 onward the growth of the broadband sector in the country
accelerated, but remained below the growth estimates of the government and
related agencies due to resource issues in last-mile access which were
predominantly wired-line technologies. This bottleneck was removed in 2010 when
the government auctioned 3G spectrum followed by an equally high profile auction
of 4G spectrum that set the scene for a competitive and invigorated wireless
broadband market. Now Internet access in India is provided by both public and
private companies using a variety of technologies and media including dial-up
(PSTN), xDSL, coaxial cable, Ethernet, FTTH, ISDN, HSDPA (3G), WiFi,
WiMAX, etc. at a wide range of speeds and costs. As per IAMAI India will have
the world's second largest number of Internet users with over 300 million by
December 2014.
According to the Internet And Mobile Association of India (IAMAI), the Internet
user base in the country stood at 190 million at the end of June, 2013 As of
October, 2013 report, it is over 205 million. The number of broadband subscribers
at the end of May 2013 was 15.19 million. Cumulative Annual Growth rate
(CAGR) of broadband during the five-year period between 2005 and 2010 was
about 117 per cent. DSL, while holding slightly more than 75% of the local
broadband market, was steadily losing market share to other non-DSL broadband
platforms, especially to wireless broadband.
There were 161 Internet Service Providers (ISPs) offering broadband services in
India as of 31 May 2013. The top five ISPs in terms subscriber base were BSNL
(9.96 million), Bharti Airtel (1.40 million), MTNL (1.09 million), Hathway (0.36
million) and You Broadband (0.31 million). Cyber cafes remain the major source
of Internet access. In 2009, about 37 per cent of the users access the Internet from
17

cyber cafes, 30 per cent from an office, and 23 per cent from home. However, the
number of mobile Internet users increased rapidly from 2009 on and there were
about 274 million mobile users at the end of September 2010, with a majority
using 2G mobile networks.[41] Mobile Internet subscriptions as reported by
the Telecom Regulatory Authority of India (TRAI) in March 2011 increased to 381
million.
One of the major issues facing the Internet segment in India is the lower average
bandwidth of broadband connections compared to that of developed countries.
According to 2007 statistics, the average download speed in India hovered at about
40 KB per second (256 kbit/s), the minimum speed set by TRAI, whereas the
international average was 5.6 Mbit/s during the same period. In order to attend this
infrastructure issue the government declared 2007 as "the year of broadband".To
compete with international standards of defining broadband speed the Indian
Government has taken the aggressive step of proposing a $13 billion national
broadband network to connect all cities, towns and villages with a population of
more than 500 in two phases targeted for completion by 2012 and 2013. The
network was supposed to provide speeds up to 10 Mbit/s in 63 metropolitan areas
and 4 Mbit/s in an additional 352 cities. Also, the Internet penetration rate in India
is one of the lowest in the world and only accounts for 8.4% of the population
compared to the rate in OECD counties, where the average is over 50%. Another
issue is the digital divide where growth is biased in favour of urban areas;
according to 2010 statistics, more than 75 per cent of the broadband connections in
the country are in the top 30 cities. Regulators have tried to boost the growth of
broadband in rural areas by promoting higher investment in rural infrastructure and
establishing subsidized tariffs for rural subscribers under the Universal service
obligation scheme of the Indian government.
As of May 2014, the Internet was delivered to India mainly by 9 different undersea
fibres, including SEA-ME-WE 3, Bay of Bengal Gateway and Europe India
Gateway, arriving at 5 different landing points.

Network neutrality

Main article: Net neutrality in India

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As of 2015, India had no laws governing net neutrality and there have been
violations of net neutrality principles by some service providers. While
the Telecom Regulatory Authority of India (TRAI) guidelines for the Unified
Access Service license promote net neutrality, they are not enforced.
The Information Technology Act, 2000 does not prohibit companies from throttling
their service in accordance with their business interests.
In March 2015, the TRAI released a formal consultation paper on Regulatory
Framework for Over-the-top (OTT) services, seeking comments from the public.
The consultation paper was criticised for being one sided and having confusing
statements. It was condemned by various politicians and internet users. By 18 April
2015, over 800,000 emails had been sent to TRAI demanding net neutrality.

Ecommerce Industry in India statistics

No. of Indian consumers who purchased something online in 2014: 40 Million
No. of Indian consumers who are expected to purchase something online in
2015: 65 Million
Indian ecommerce Industry in 2014: $22 Billion
Indian ecommerce Industry in 2018: $86 Billion

Mobile Internet Users

No. of Internet users in India in 2014: 300 Million
Mobile Internet users in India now: 203 Million
Ecommerce sales through mobile phone in India in 2014: 41%

Wireless Internet

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2nd Generation Internet is the most prevalent in India in the Past Decade. Wireless
ISPs in India use both CDMA and Edge technologies for 2G.
India's wireless Internet frequencies are

2G : GSM 900 MHz, GSM 1800 MHz

3G : UMTS 2100 MHz

4G : TD-LTE 2300 MHz, FD-LTE 1800 MHz

Data centres

BSNL Internet Data Centers, in collaboration with Dimension Data

Trimax IT Infrastructure & Services Limited - Tier III data centers in
Mumbai and Bengaluru

Airlive Broadband

Sify Technologies Limited

CtrlS Datacenters Ltd

Tata Communications Limited

Netmagic Solutions

Reliance Datacenter

Web Werks IDC

Net4 Datacenter

RackBank Datacenter

GPX Global Systems Inc.

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Broadcasting
Main articles: Media of India, Television in India and List of Indian television
stations

INSAT-1B satellite: Broadcasting sector in India is highly dependent on

INSAT system.
Television broadcasting began in India in 1959 by Doordarshan, a state run
medium of communication, and had slow expansion for more than two decades
The policy reforms of the government in the 1990s attracted private initiatives in
this sector, and since then, satellite television has increasingly shaped popular
culture and Indian society. However, still, only the government
owned Doordarshan has the licence for terrestrial television broadcast. Private
companies reach the public using satellite channels; both cable television as well as
DTH has obtained a wide subscriber base in India. In 2012, India had about 148
million TV homes of which 126 million has access to cable and satellite services.
Following the economic reforms in the 1990s, satellite television channels from
around the worldBBC, CNN, CNBC, and other private television channels
gained a foothold in the country.[15] There are no regulations to control the
ownership of satellite dish antennas and also for operating cable television systems
in India, which in turn has helped for an impressive growth in the viewership. The
growth in the number of satellite channels was triggered by corporate business
houses such as Star TV group and Zee TV. Initially restricted to music and
entertainment channels, viewership grew, giving rise to several channels
in regional languages, especially Hindi. The main news channels available were
CNN and BBC World. In the late 1990s, many current affairs and news channels
sprouted, becoming immensely popular because of the alternative viewpoint they
21

offered compared to Doordarshan. Some of the notable ones are Aaj Tak (run by
the India Today group) and STAR News,CNN-IBN, Times Now, initially run by
the NDTV group and their lead anchor, Prannoy Roy (NDTV now has its own
channels, NDTV 24x7, NDTV Profit and NDTV India). Over the years,
Doordarshan services also have grown from a single national channel to six
national and eleven regional channels. Nonetheless, it has lost the leadership in
market, though it underwent many phases of modernization in order to contain
tough competition from private channels
Today, television is the most penetrative media in India with industry estimates
indicating that there are over 554 million TV consumers, 462 million with satellite
connections, compared to other forms of mass media such as radio or
internet.] Government of India has used the popularity of TV and radio among rural
people for the implementation of many social-programmes including that of masseducation. On 16 November 2006, the Government of India released
the community radio policy which allowed agricultural centres, educational
institutions and civil society organisations to apply for community based FM
broadcasting licence. Community Radio is allowed 100 watts of Effective Radiated
Power (ERP) with a maximum tower height of 30 metres. The licence is valid for
five years and one organisation can only get one licence, which is non-transferable
and to be used for community development purposes.

Next-generation networks (NGN)

Historically, the role of telecommunication has evolved from that of plain

information exchange to a multi-service field, with Value Added Services
(VAS) integrated with various discrete networks like PSTN, PLMN, Internet
Backbone etc. However, with decreasing ARPU and increasing demand for VAS
has become a compelling reason for the service providers to think of the
convergence of these parallel networks into a single core network with service
layers separated from network layer.[61] Next-generation networking is such a
convergence concept which according to ITU-T is:[62]
A next-generation network (NGN) is a packet-based network which can provide
services including Telecommunication Services and able to make use of multiple
broadband, quality of Service-enabled transport technologies and in which service22

related functions are independent from underlying transport-related technologies. It

offers unrestricted access by users to different service providers. It supports
generalized mobility which will allow consistent and ubiquitous provision of
services to users.
Access network: The user can connect to the IP-core of NGN in various ways,
most of which use the standard Internet Protocol (IP). User terminals such as
mobile phones,personal digital assistants (PDAs) and computers can register
directly on NGN-core, even when they are roaming in another network or country.
The only requirement is that they can use IP and Session Initiation
Protocol (SIP). Fixed
access (e.g., Digital
Subscriber
Line (DSL), cable
modems, Ethernet), mobile access (e.g. W-CDMA, CDMA2000, GSM,GPRS) and
wireless access (e.g.WLAN, WiMAX) are all supported. Other phone systems
like plain old telephone service and non-compatible VoIP systems, are supported
through gateways. With the deployment of the NGN, users may subscribe to many
simultaneous access-providers providing telephony, internet or entertainment
services. This may provide end-users with virtually unlimited options to choose
between service providers for these services in NGN environment.[61]
The hyper-competition in telecom market, which was effectively caused by the
introduction of Universal Access Service (UAS) licence in 2003 became much
tougher after 3G and 4G competitive auction. About 670,000 route-kilometer
(419,000-mile) of optical fibres has been laid in India by the major operators,
including in the financially nonviable rural areas and the process continues.
Keeping in mind the viability of providing services in rural areas, the government
of India also took a proactive role to promote the NGN implementation in the
country; an expert committee called NGN eCO was constituted in order to
deliberate on the licensing, interconnection and Quality of Service (QoS) issues
related to NGN and it submitted its report on 24 August 2007. Telecom operators
found the NGN model advantageous, but huge investment requirements have
prompted them to adopt a multi-phase migration and they have already started the
migration process to NGN with the implementation of IP-based core-network.
Regulatory environment

LIRNEasia's Telecommunications Regulatory Environment (TRE) index, which

summarises stakeholders' perception on certain TRE dimensions, provides insight
into how conducive the environment is for further development and progress. The
23

most recent survey was conducted in July 2008 in eight Asian countries, including
Bangladesh, India, Indonesia, Sri Lanka, Maldives, Pakistan, Thailand, and the
Philippines. The tool measured seven dimensions: i) market entry; ii) access to
scarce resources; iii) interconnection; iv) tariff regulation; v) anti-competitive
practices; and vi) universal services; vii) quality of service, for the fixed, mobile
and broadband sectors.
The results for India, point out to the fact that the stakeholders perceive the TRE to
be most conducive for the mobile sector followed by fixed and then broadband.
Other than for Access to Scarce Resources the fixed sector lags behind the mobile
sector. The fixed and mobile sectors have the highest scores for Tariff Regulation.
Market entry also scores well for the mobile sector as competition is well
entrenched with most of the circles with 45 mobile service providers. The
broadband sector has the lowest score in the aggregate. The low penetration of
broadband of mere 3.87 against the policy objective of 9 million at then end of
2007 clearly indicates that the regulatory environment is not very conducive
In 2013 the home ministry stated that legislation must ensure that law enforcement
agencies are empowered to intercept communications.

Revenue and growth

The total revenue in the telecom service sector was 867.2

billion (US$13.1 billion) in 200506 as against 716.74 billion (US$10.8 billion)
in 20042005, registering a growth of 21% with estimated revenue of FY'2011
of 8.35 billion (US$130 million). The total investment in the telecom services
sector reached 2006 billion (US$30.3 billion) in 200506, up from 1788
billion (US$27.0 billion) in the previous fiscal. Telecommunication is the lifeline
of the rapidly growing Information Technology industry. Internet subscriber base
has risen to more than a 121 million in 2011.Out of this 11.47 million were
broadband connexions. More than a billion people use the Internet globally. Under
the Bharat Nirman Programme, the Government of India will ensure that 66,822
revenue villages in the country, which have not yet been provided with a Village
24

Public Telephone (VPT), will be connected. However doubts have been raised
about what it would mean for the poor in the country.
It is difficult to ascertain fully the employment potential of the telecom sector but
the enormity of the opportunities can be gauged from the fact that there were 3.7
million Public Call Offices in December 2005 up from 2.3 million in December
2004.
The Total Revenue of Indian Telecom Services company is likely to exceed 2000
billion (US$30 billion) ( US$44 Bn approx) for FY 1112 based on FY 1011 nos
and latest quarterly results. These are consolidated numbers including foreign
operation of Bharti Airtel. The major contributions to this revenue are as follows:

Airtel 65060 (US$980)

Reliance Communications 31468 (US$480)

Idea 16936 (US$260)

Tata Communications 11931 (US$180)

MTNL 4380 (US$66)

TTML 2248 (US$34)

BSNL 32045 (US$480)

Vodafone India 18376 (US$280)

TataTeleservice 9200 (US$140)

Aircel 7968 (US$120)

SSTL 600 (US$9.10)

Uninor 660 (US$10)

Loop 560 (US$8.50)

Stel 60 (91 US)

25

HFCL 204 (US$3.10)

Videocon Telecom 254 (US$3.80)

DB Etisalat/ Allianz 47 (71 US)

Grand Total 2019 billion (US$30 billion)

Introduction
India is currently the worlds second-largest telecommunications market and has
registered strong growth in the past decade and half. The Indian mobile economy is
growing rapidly and will contribute substantially to Indias gross domestic product
(GDP), according to report prepared by GSM Association (GSMA) in
collaboration with the Boston Consulting Group (BCG).
The liberal and reformist policies of the Government of India have been
instrumental along with strong consumer demand in the rapid growth in the Indian
telecom sector. The government has enabled easy market access to telecom
equipment and a fair and proactive regulatory framework that has ensured
availability of telecom services to consumer at affordable prices. The deregulation
of foreign direct investment (FDI) norms has made the sector one of the fastest
growing and a top five employment opportunity generator in the country.
Market Size
Driven by strong adoption of data consumption on handheld devices, the total
mobile services market revenue in India is expected to touch US$ 37 billion in
2017, registering a Compound Annual Growth Rate (CAGR) of 5.2 per cent
between 2014 and 2017, according to research firm IDC.
According to a study by GSMA, smartphones are expected to account for two out
of every three mobile connections globally by 2020 making India the fourth largest
smartphone market.
The broadband services user-base in India is expected to grow to 250 million
connections by 2017, according to GSMA.
India saw the fastest growth in new mobile-phone connections with 18 million net
additions in the third quarter of 2014, followed by China with 12 million new
additions, according to a report by Swedish mobile network equipment maker
Ericsson.
26

International Data Corporation (IDC) predicts India to overtake US as the secondlargest smartphone market globally by 2017 and to maintain high growth rate over
the next few years as people switch to smartphones and gradually upgrade to 4G.
In spite of only 5 per cent increase in mobile connections in 2015, overall
expenditure on mobile services in India is expected to increase to US$ 21.4 billion
in 2015, led by 15 per cent growth in data services expenditure, as per research
firm Gartner.
The Indian telecom sector is expected to generate four million direct and indirect
jobs over the next five years according to estimates by Randstad India. The
employment opportunities are expected to be created due to combination of
governments efforts to increase penetration in rural areas and the rapid increase in
smartphone sales and rising internet usage.
Investment
With daily increasing subscriber base, there have been a lot of investments and
developments in the sector. The industry has attracted FDI worth US$ 17,058.03
million during the period April 2000 to March 2015, according to the data released
by Department of Industrial Policy and Promotion (DIPP).
Some of the major developments in the recent past are:
Swedish telecom equipment maker Ericsson has announced the introduction
of a new radio system in the Indian market, which will provide the necessary
infrastructure required by mobile companies in order to provide fifthgeneration (5G) services in future.
Out of the total number of smartphones shipped in India during the June
2015 quarter, 24.8 per cent were made locally - a significant rise as
compared to 19.9 per cent in the previous quarter - as per CyberMedia
Research firm.
Global telecom equipment makers like Ericsson, Nokia Networks and
Huawei are looking forward to over US$ 1 billion revenue opportunity as
mobile phone operators in India roll out high-speed broadband services on
the 4G LTE technology across the country.
Lenovo Group of China has commenced manufacturing its smartphones in
India, through its contract manufacturer Flexs facility near Chennai, thus
becoming the largest Chinese company to follow Make in India strategy.
Foxconn, the worlds largest contract-manufacturing firm for consumer
electronics and manufacturer for Apple products, has signed a Memorandum
of Understanding (MoU) with Maharashtra state government to invest US$ 5

27

billion over the next three years for setting up a manufacturing unit between
Mumbai and Pune.
Micromax was able to secure trademark protection for 111 countries
allowing it to enter other markets such as South Africa, Nigeria and
Indonesia.
Karbonn looks to open an assembly line in Noida, Hyderabad and Bengaluru
over the next 12 months in its efforts to eventually assemble and produce
phones in India by earmarking an investment of Rs 800 crore (US$ 121
million) over the next 3 -4 years
Bharti Airtel has moved up to be the third largest mobile operator in the
world owing to its 303 million customers across
Government Initiatives
The government has fast-tracked reforms in the telecom sector and continues to be
proactive in providing room for growth for telecom comapnies. Some of the other
major initiatives taken by the government are as follows:
With a view to encourage consolidation in the telecom sector, the
Government of India has approved the rules for spectrum trading that will
allow telecom companies to buy and sell rights to unused spectrum among
themselves. The Union Cabinet chaired by the Prime Minister, Mr Narendra
Modi, gave its approval to the guidelines on spectrum sharing, aimed to
improve spectral efficiency and quality of service, based on the
recommendations of the Telecom Regulatory Authority of India (TRAI).
The Central Governments several initiatives to promote manufacturing in
the country, such as Make in India campaign appears to have had a positive
impact on mobile handsets manufacturing in the country. Companies like
Samsung, Micromax and Spice had been assembling handsets in the country
already. Xiaomi and Motorola, along with Lenovo have also started
assembly of smartphones in India. Firms like HTC, Asus and Gionee too
have shown interest in setting up a manufacturing base in the country.
The Government of India plans to roll out free high-speed wi-fi in 2,500
cities and towns across the country over the next three years. The program
entails an investment of up to Rs 7,000 crore (US$ 1.06 billion) and will be
implemented by state-owned Bharat Sanchar Nigam Ltd (BSNL).
Road Ahead

28

India will emerge as a leading player in the virtual world by having 700 million
internet users of the 4.7 billion global users by 2025, as per a Microsoft report.
With the governments favourable regulation policies and 4G services hitting the
market, the Indian telecommunication sector is expected to witness fast growth in
the next few years.
Exchange Rate Used: INR 1 = US$ 0.0152 as on September 16, 2015
OVERVIEW
Telecom is one of the fastest-growing industries in India. Today India stands as the
second-largest telecommunications market in the world. The mobile phone
industry in India would contribute US$ 400 billion in terms of gross domestic
product (GDP) of the country in 2014. This sector which is growing exponentially
is expected to generate about 4.1 million additional jobs by 2020, as per Groupe
Speciale Mobile Association (GSMA).

In the period April 2000 to January 2014, the telecom industry has got in foreign
direct investments (FDI) of about US$ 59,796 million, which is an increase of 6
per cent to the total FDI inflows in terms of US$, as per report published by
Department of Industrial Policy and Promotion (DIPP).

Indias global system for mobile (GSM) operators had 4.14 million rural
subscribers as of January 2014, bringing the total to 285.35 million.

Data traffic powered by third generation (3G) services grew at 146 per cent in
India during 2013, higher than the global average that saw usage double, according
to an MBit Index study by Nokia Siemens Networks (NSN).

India's smartphone market grew by 171 per cent in 2013, to 44 million devices
from 16.2 million in 2012, as per research firm IDC India. The increasing
popularity of bring-your-own-device (BYOD) in the workplace is further adding
momentum to the smartphone market.
29

Indian telecom industry has grown from a tele-density of 3.58% in March 2001 to
74% in June 2013. This great leap in both number of consumers as well as
revenues from telecom services has not only provided sufficient contribution in
Indian GDP growth but also provided much needed employment to India youth.

Players in the market

BSNL is the market leader with a 67.7 per cent share followed by MTNL with 11.5
per cent market share. Next is Bharti Airtle at 10.9% followed by Tata and
Reliance at 5% and 4.1% respectively.

BSNL as a company is growing and showed annual revenues of approximately

$4.5 billion as of 2014. BSNL is serving more than 125 million customers across
the country and is catalyst in checking the price point for telecom services.

Also, with the government intensifying its rural focus, only BSNL can turn into
reality the next wave of rural telecom penetration.

BSNL is a 100% Central Government entity and employees with BSNL are entitled
to get salaries and perks as decided by Government of India and not by BSNL

However both, MTNL and BSNL are plagued by declining revenues coupled with
high costs. BSNL has massive infrastructure, manpower, systems, and 80 per cent
of landlines and 90 per cent of broadband connections in India are operated by it.

30

Vodafone is investing nearly US$ 3 billion over the next two years in India in
expanding its network infrastructure and distribution channel in the country, as
per Vittorio Colao, CEO, Vodafone Plc.

BlackBerry plans to set up enterprise solutions centres to educate corporate

customers about various BlackBerry Enterprise Service (BES) 10 solutions. "India
is one of the fastest growing markets in terms of smartphone and mobile data
adoption, said according to Sunil Lalvani, Managing Director (MD), BlackBerry
India.

Tata Teleservices plans to set up nearly 4,000 wi-fi hotspots in nine cities across
the country in the next two years.

Booming sectors

The tide has turned for the telecom sector in India, as growth and profitability has
accelerated in recent times. Tower companies are reaping benefits of a turnaround
in the sector as operators have started investing in networks to boost data
penetration.

However it is in the countrys booming mobile segment in which the major battles
are being fought. Three major private players Bharti, Reliance and Vodafone with a formidable 54% share of the market between them, lead a large field of
mobile operators. State-owned enterprises BSNL and MTNL have also been
making their presence felt with a combined market share of 12%.

31

A look ahead

According to Craig Wigginton, vice chairman and U.S. Telecommunications

leader, Deloitte & Touche LLP, the big challenge for the telecom industry in 2014
which also presents a major growth opportunity for the sector is that consumers
are getting addicted to connectivity and speed.

The ongoing expansion of the mobile ecosystem, coupled with demand for highbandwidth applications and services such as video and gaming, is keeping pressure
on the industry to increase the availability and quality of broadband connectivity.

What does this mean for players in the sector? Carriers will continue to pursue
technological advancements to handle demand, including offloading some mobile
bandwidth needs to Wi-Fi, which is proving an effective complement to mobile
networks. At the same time, long-term spectrum availability, spectrum efficiency,
small cells and continued backhaul improvements are likely to be a key focus to
assure continued mobile broadband momentum.

CASE STUDY OF BHARTI AIRTEL

Bharti Airtel

32

history
Bharti Airtel, incorporated on July 7, 1995 is the flagship company of Bharti
Enterprises. The Bharti Group, has a diverse business portfolio and has created
global brands in the telecommunication sector. Bharti Airtel, is Asias leading
integrated telecom services provider with operations in India and Sri Lanka. Bharti
Airtel has been at the forefront of the telecom revolution and has transformed the
sector with its world-class services built on leading edge technologies.
Bharti Enterprises is one of Indias leading business groups with interests in
telecom, retail, manufacturing, agri business and financial services. Bharti has
recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with
Wal-Mart for the cash & carry business. It has successfully launched an
international venture with EL Rothschild Group to export fresh agri products
exclusively to markets in Europe and USA and has launched Bharti AXA Life
Insurance Company Ltd under a joint venture with AXA, world leader in financial
protection and wealth management.
Bharti Airtel is Indias largest integrated and the first private telecom services
provider with a footprint in all the 23 telecom circles. Bharti Airtel since its
inception has been at the forefront of technology and has steered the course of the
telecom sector in the country with its world class products and services.
The businesses at Bharti Airtel have been structured into three individual strategic
business units (SBUs) - Mobile Services, Airtel Telemedia Services & Enterprise
Services. The mobile business provides mobile & fixed wireless services using
GSM technology across 23 telecom circles while the Airtel Telemedia Services
business offers broadband & telephone services in 95 cities and has recently
launched India's best Direct-to-Home (DTH) service, Airtel digital TV. The
Enterprise services provide end-to-end telecom solutions to corporate customers
and national & international long distance services to carriers. All these services
are provided under the Airtel brand. Airtel's high-speed optic fibre network
currently spans over 90,205 kms covering all the major cities in the country.
The company has two international landing stations in Chennai that connects two
submarine cable systems - i2i to Singapore and SEA-ME-WE-4 to Europe.

33

Bharti Airtel (Singapore) Private Limited, a wholly owned subsidiary was

incorporated on 2nd April, 2007 and will obtain a license to enable interconnecting
the i2i cable with other submarine cable systems landing in Singapore to provide
increased onward connectivity to US West Coast and also to cater to connectivity
requirements in Asia Pacific and for carrying the business of International Calling
Card Services.
Products and services offered by the company:
Mobile
Prepaid
Postpaid
Broadband & Internet
Speed on demand
Airtel PC secure
Airtel Net PC
IPTV
Digital TV
Data and IP Solutions
Wireless Internet
Data Card
USB Modem
Email on the go
Windows Mobile 5.0

34

 Airtel Easy Mail

Calling Cards
International Calling Cards
Airtel Call Home
Airtel World Calling Cards
Voice SolutionsConferencing
Milestones:
2014

Airtel crosses 200 million mobile customer mark in India

2013

Airtel signs definitive agreement to fully acquire Warid Uganda

2012 Bharti Airtel move one notch in the world wide ranking to be the fourth
largest mobile operator in the world in terms of subscribers.
2011

Bharti Airtel and other global telcos launch EIG for Commercial use

2011
Bharti Airtel partners with Savvis for enhancing Managed Service
offerings
2010 Bharti Airtel launches high capacity direct terrestrial link between India
and China
2010

Bharti Airtel rated as Indias Best Enterprise Connectivity Provider

2010

Bharti Airtel launches Global Data Services in Thailand & Malaysia

Achievements/ recognition: Bharti Airtel ranked fourth in Transparency 2013

Airtel wins top honours at the 7th Frost & Sullivan ICT Awards 2008
Bharti Airtel hs been awarded the 'Best Cellular Service Provider' and 'Best
35

Broadband Service Provider' at the 2008 V&D 100 Awards.

Bharti Airtel has been voted as India 's most innovative company , in a
survey conducted by The Wall Street Journal.
Airtel has been voted the 2nd Most Trusted Service Brand in the Annual
Economic Times-Brand Equity, Most Trusted Brands survey.
Airtel has won the Platinum Trusted Brand Award in the Mobile Service
provider category in the Reader's Digest Asia Trusted Brands Survey .
Airtel bagged 'Wireless Service Provider of the Year' award at the 2008
Frost & Sullivan Asia Pacific ICT Awards.
Voted Indias most innovative company in a survey conducted by The Wall
Street Journal in 2008
Winner of the Gallup Great Workplace Award- Gallup Consulting, 2008
2nd Most Trusted Service Brand - Annual Economic Times-Brand Equity,
Most Trusted Brands survey 2008
Best Content Service Award for its Farmer Information Dissemination
Platform for Bharti Airtels joint venture with IFFCO, IKSL (IFFCO Kisan
Samachar) - World Communications Awards 2008
Best Project Management Award for its Gujarat e-GRAM project - World
Communications Awards 2008
Best Telecom Company at the NDTV Profit Business Leadership Awards
Best Carrier India for innovative products & services and efficient cost
models and the Ovum Telco-Transformation award recognizing philosophy
and execution of a successful outsourcing strategy at the Telecom Asia
Awards 2008
Sunil Bharti Mittal was awarded the GSM Association Chairmans Award
2008. The highest honour in global telecom sector, recognized his
36

tremendous contribution to the development of Indias telecom sector

Sunil Bharti Mittal adjudged the Business Leader Transforming India, 2008
at the NDTV Profit Business Leadership Awards
Bharti Airtel has won the Most Preferred Cellular Service Provider Brand
award at the CNBC Awaaz Consumer Awards in Mumbai.
Bharti Airtel has received the prestigious Businessworld-FICCI-SEDF
Corporate Social Responsibility Award 2009-2010.

Key executives
S.No

Name

Designation

Sunil Bharti Mittal

Chairman

Gopal Vittal

Managing Director

14

Rajendra Chopra

Company Secretary

Chua Sock Koong

Non Executive Director

Tan Yong Choo

Non Executive Director

Sheikh Faisal Thani Al-Thani Non Executive Director

Rajan Bharti Mittal

Promoter & Non-Executive Director

Craig Ehrlich

Non Executive Independent Director

Manish Kejriwal

Non Executive Independent Director

V K Viswanathan

Non Executive Independent Director

10

DK Mittal

Non Executive Independent Director

37

11

Ben Verwaayen

Non Executive Independent Director

12

Obiageli Ezekwesili

Non Executive Independent Director

13

Shishir Priyadarshi

Non Executive Independent Director

COMPETITORS
Company

Sales
Curren
P/E Market
Chang
(Rs.Million t
Rati Cap.
e (%)
)
Price
o
(Rs.Million)

52-Week
High/Lo
w

Idea Cellular

312794.71

157.90 0.73

19.02 568378.48

204/137

Reliance Comm 119250.00

75.30

0.00 187420.17

117/46

Tata
Communication 43193.50
s

424.85 0.71

17.38 121082.25

505/336

Hathway Cable
10229.10
& Data

42.30

11.32

0.00 35129.92

77/35

Tata
Teleservice(Ma 28927.30
h

6.75

-1.32

0.00 13195.76

11/6

-1.12

MTNL

34000.80

16.65

-0.60

0.00 10489.50

32/14

GTL

20694.10

12.09

-1.47

0.00 1901.72

23/10

We Internet

145.46

11.30

0.00

0.00 84.20

11/11

Dhanus
Technology

535.23

0.08

0.00

0.00 45.68

0/0

38

Vital
NA
Communication

0.69

0.00

0.00 26.20

1/1

PRODUCT
Product Name

Year

Mont Sales
Sales
% of STO
h
Quantity Value(Rs.Million)

Service Revenue 2014 03

Voice

0.00

404264.00

80.98

Service Revenue
2014 03
Others

0.00

94863.00

19.00

Sale of Products 2014 03

0.00

58.00

0.01

2014 03

0.00

0.00

0.00

Traded Goods

JOBS
Applications Engineers Jobs
Customer Support Staff Jobs
Data Warehousing Jobs
Database Administration Jobs
Desktop Support Jobs
ERP CRM Jobs
Embedded Technologies Jobs
IT Asset Manager Jobs

39

Installation & Maintenance Technician Manager JobsLAN WAN Integrator

JobsLegacy Systems JobsMainframe JobsMobile Network Administration
JobsProject Leader JobsProject Manager JobsPublic Relations JobsQuality
Assurance JobsSecurity Systems Programming JobsSystem Administration
JobsSystem Analyst JobsTech Architect System JobsTechnical Trainer
JobsTelecommunication Engineer JobsTest Engineers JobsVendor Management
Jobs
2015 Telecommunications Industry Outlook
Interview with Craig Wigginton
Every part of the mobile ecosystem shows powerful potential for continued core
growth as well as opportunities for expansionand businesses and consumers both
will ultimately benefit, says Craig Wigginton, Vice Chairman and US
Telecommunications Leader, Deloitte & Touche LLP.

Where do you see the opportunities for

growth in this sector?

As weve seen over the past few years, telecom continues to be a growing, vibrant
ecosystem, expanding rapidly across a broad swath of product, technology and
services companies. And we believe that are plenty of new and emerging
40

opportunities which could continue to provide robust growth across all of the
telecommunications sub-sectors.
A promising recent development, which we expect will accelerate in 2015, is the
movement of nascent markets toward the consumer and enterprise mainstream
with Internet of Things (IoT) leading the way. Many businesses have the potential
to derive high value from IoTby one count it is estimated to generate nearly $15
trillion in economic value in areas such as efficiency, productivity, cost reduction
and increased customer base. The news is good on the consumer side as well;
although IoT is relatively new to most consumers, 55 percent of US respondents
from Deloittes 2014 Global Mobile Consumer Survey already are interested in
connected-home technologyand for smartphone owners, that percentage is even
higher. Survey responses also showed consumer enthusiasm for connected-car
solutions.
Growth overall also will be driven by ongoing consumer obsession with their
devices. In fact, its become a critical part of our daily lives, according to
our survey. Approximately 90 percent of consumers check their smartphone within
one hour of waking up, and about 25 percent check their phone more than 50 times
a day.
Another key trend is the growth of audio and video streaming among smartphone
users, with most consumers now using more than a gigabyte of data per month.
The 2014 Global Mobile Consumer Survey showed a 19 percent increase among
US consumers streaming television or film over the past year, and there was an
impressive 30 percent year-over-year growth in streaming music. Even more
compelling was that the number of consumers who indicated they streamed media
has nearly doubled since last year.

"As the reach of IoT and verticals increases, the need for new
cybersecurity and privacy solutions offer major new revenue
opportunities."

41

What should businesses be mindful of as

they plan for growth?

Traditional telecommunications organizations must be mindful that the sector is

becoming more of an interconnected ecosystem. Rather than going it alone, in
many instances, companies can experience success by strategically and
intelligently forming alliances to offer additional value to customers and build their
businesses. With mobile increasingly touching every industry, as well as every
aspect of business and everyday life, there are a myriad of possibilities for valueadded joint efforts.
From a more technical perspective, we touched earlier on 2015 potentially being
the year of streaming. If that becomes a reality, spectrum will become
increasingly important, especially with continued natural growth and higherdefinition (e.g., 4K) content on the horizon from a number of major entertainment
organizationsand 4K screens correspondingly appearing on mobile devices. As
noted in several recent Deloitte reports on mobile broadband spectrum, the
mobile broadband ecosystem is contributing greatly to the US economysome
estimate that 4G networks could account for more than $150 billion in GDP
growth1 over the next few years. Incentive auctions of spectrum, as well as Federal
government policy, could have a profound effect on the US ability to meet
consumer and business demand.
1

Airwave Overload, Deloitte 2012

42

Whats the next big thing? What markets do

you see emerging in the sector?

There are a number of exciting growth opportunities in this ever-expanding

ecosystem. On the consumer side, wearablesglasses, exercise bands,
smartwatches and the likewill be an interesting market to track. How quickly,
and to what extent, will they gain traction? We expect to see continued growth in
wearables over time, particularly those with the right features and functionality for
consumers, and those that tie to opportunities in vertical markets.
As the reach of IoT and verticals increases, the need for new cybersecurity and
privacy solutions offer major new revenue opportunities. Moreover, the availability
to gather and analyze rich customer data will offer telecom players the ability to
meet consumer needs in innovative new ways. A Deloitte POV on IoT indicates
that companies should create a strategic framework for IoT growth focused on
financial metrics (growth through innovation/market disruption), operating metrics
(acquiring, retaining and maximizing customers and products) and performance
improvement (to drive sustained value).
As noted previously, there is major opportunity for mobile in vertical markets. First
out of the gate is automotive, with a variety of additional connected-car solutions
being introduced in 2015. mHealth may also get a boost as major device
manufacturers refocus on its revenue-generating potential. Smart cities are on the
rise. The re-emergence of NFC (near-field communications) has the potential to
offer mPayment benefits to financial partners as well as the retail sector. While
currently a small market, consumers who use NFC are passionate about itin fact,
43

31% of consumers who have an NFC-enabled phone use the capability at least
monthly, according to our Deloitte survey. Finally, there is always a need around
enhancing and expanding broadband coverage in new waysenhanced 4G,
nanosatellites, small cells, DAS (distributed antenna systems), and more. Every
part of the ecosystem, including carriers, equipment and infrastructure providers,
and content developers, shows powerful potential for continued core growth as
well as opportunities for expansionand businesses and consumers both will
ultimately benefit.

CONCLUSION
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Telecom reform will establish the electronic communication infrastructure for

future information societies. National governments, international organisations,
industry groups, corporations and other organizations are publishing visionary
reports and policy statements on the future information society at a rapid rate. Yet
telecom reform policies are seldom linked to government pronouncements on
information society plans. Such declarations are illustrated by documents from
national governments such as the USs The Global Information Structure:
Agenda for Cooperation, Denmarks Info-Society 2000; from international bodies
such as the European Unions Bangemann Report, and the G-7 Summit
Information Society Conference Report; and the major PTOs Stentor Canada's
Beacon Initiative and the BT/MCI Global Communications Report 1996/97. This
infatuation at the highest levels of national and international policymaking has all
but turned into a competition to see who can make the most visionary (and
thereby unrealistic and unsupportable) claims of potential social benefits. But as
the preceding chapters in the book have demonstrated, unless telecom reform
establishes strong and effective regulation, few visions will be turned into reality. It
is widely claimed that future information societies will be characterised by
increased diversity and greatly expanded individual opportunities. Ironically, in
order to achieve this enhanced state of individual freedom and diversity, the
mainstream information society literature identifies little or no room for diversity
among countries, or even among individuals, in the direction and speed of adoption
of the new information technologies and services. It is suggested that
implementation of the vision should be as rapid as possible in the direction of a
single abstract model of a future information society composed of individuals
spending a major portion of their lives in front of a terminal (PC, television,
advanced telephone, etc.) engaged in some form of electronic communication.
Apparently the only difference among countries large or small, developed or
developing, wealthy or poor, technologically advanced or not, literate or not is
that some have much farther to go than others along the path to the information
480 society wonderland. National policymakers and telecom regulators in all
countries are being invited to submit themselves to the grand technological
determinist vision
REFERENCE

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1. Haykin, Simon (2001). Communication Systems (4th ed.). John Wiley &
Sons. pp. 13. ISBN 0-471-17869-1.
2. Jump up^ Ambardar, Ashok (1999). Analog and Digital Signal
Processing (2nd ed.). Brooks/Cole Publishing Company. pp. 12. ISBN 0534-95409-X.
3. Jump up^ ATIS Telecom Glossary 2000, ATIS Committee T1A1
Performance and Signal Processing (approved by the American National
Standards Institute), 28 February 2001.
4. Jump up^ Haykin, pp 344403.

http://lirne.net/
https://en.wikipedia.org
http://searchtelecom.techtarget.com/

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