SECTORGURU Equity Research Cell

By,
Preetika Tayal
Team 15
Tanmaiy Gnana Dev M
Akshay Raman
Deepanshu Gupta
Prerna Kumari

World Scenario

Indian Scenario

Major Players

Policies

In 2015, operators and device vendors

constituted 55% and 20% of the revenue
in the telecommunications industry;
making both of them the major segments
in this industry

North
America
Approx. total
revenues of
348
billion
Verizon,
USD
AT&T,
Comcast

Africa and
Australia
Approx.
total
revenues of
31 billion
USD

Telstra, MTN

Europe
Approx.
total
revenues of
349 billion
USD
Vodafone,
BT,
Orange

Asia
Approx.
total
revenues of
397 billion
USD

China Mobile,
NTT,
Bharti Airtel

Company
China Mobile
Verizon
AT&T
Vodafone
NTT
SoftBank
Deutsche Telekom AG
Telefonica
America Movil
China Telecom
Orange
China Unicom
Comcast
KDDI

Market value
(in USD bn)
254
202
173
88
71.5
70
85
72
74.5
54
41.5
199
165
77
Microsoft Excel
Worksheet

World Scenario

Indian Scenario

Major Players

GSM services
continue to
dominate the
wireless market
with 94.91% share
(June 2015); CDMA
accounts for the
remaining 5.09%

Expected to be world leader

by 2020
15% CAGR growth
15% CAGR growth
annually
rd Highest
3rd
number of
2ndusers
internet
largest
subscribe
r base

78.93%
77.27%
75.43%
70.90%
76.00%
68.00%
49.70%
33.70%
22.80%
14.60%

Telecom Scenario

WIRE LESS TELEDENSITY

TELECOM

SUBSCRIBERS (Millions)

Policies

WIRELESS

99 million
subscribers

FIXED LINE

3 million
subscribers

INTERNET
SERVICES

375 million
subscribers

Total mobile
services market
revenue in India is
expected to touch
US$ 37 billion in
2017
Availability of
affordable smart
phones and lower
rates are expected
to drive growth in
the
Indian telecom
industry

World Scenario

Indian Scenario

Major Players

Market break-up by broadband subscriptions (wired and

wireless) (FY16*)

16 23.3
9.1
15.7
19.7
16.2

Wireless Market Share in terms of total subscribers(FY16*)

Bharti Airtel

Vodafone

Idea

Reliance

Aircel

BSNL

Bharti

Vodafone BSNL Idea

Reliance Others
The top five players Bharti Airtel,
Vodafone, Idea, Reliance, and BSNL
accounts for 78.27 per cent of the total
subscribers.

Policies
Broadband and
mobile (GSM) in 22
circles
Mobile (CDMA) and
broadband
Broadband and
mobile (GSM) in 22
circles
Fixed-line and mobile
telephony (GSM
outside Delhi and
Mumbai), data and
Internet in 22 circles
Fixed-line and mobile
telephony (in
Delhi and Mumbai), data
and Internet

World Scenario
Due to the high prices
faced and focus on
basic high-speed
network experience, no
expectation of
differentiated customer
product/ service
Govt. needs to push
for high transparency
and accountability in
ensuring network
quality. E.g.
compensation to
customers for call
drops may improve
the network quality
Improved penetration
of mobiles has helped
telecom sector, yet
further digitization is
necessary

Indian Scenario

Negatives

Major Players
Positives
Digital India
Campaign
Full reparability of
dividend income &
capital invested in
telecom sector

Low
Transparency
and
accountability

No Industrial
License for setting
up telecom
equipment
manufacturing

High Spectrum
Prices

100% FDI in
Telecom Services

Policies
By increasing the FDI
limit and rationalizing
costs for setting up
manufacturing units,
govt. is ensuring that
new investments are
regularly made in the
sector
Expensive spectrum
and depleting voice
revenue share may
result in 5 private
players and 1 public
sector player, towards
the end of 2016
Data availability Issues:
Availability of reliable
data has become a
challenge for the
sector. Govt. needs to
find way to collate
reliable numbers