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8/8/2019 Telecom Industry Final
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Name Enrollment No.
Sandeep Taparia 08BS0002937
Srinath R 08BS0002474
Ritu Panwar 08BS0002652
Ravi Kumar 08BS0002633
Shivangi Kadam 08BS0002836
Rajan Sehgal 08BS0002533
Richa 08BS0002658
Yashodhan Mundra 08BS0003864
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Intr ducti n
Brief Hi t ry
arket Structure
aj r Firm & Share
Pricing P licy
Trend in Inve tment
Exp rt
arket Strategy
Perf rmance (Financial Analy i )
Future Analy i
C nclu i n
Rajan
Richa
Richa
Ritu
Ritu
a h dhan
a h dhan
Ravi
Srinath
Sandeep
Shivangi
-
-
-
-
-
-
-
-
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Indian Telec m had g ne thr ugh pha e f gr wth anddiver ificati n. Telegraphic and teleph nic y tem in the 19th century U e f advanced techn l gie like:
o GS ,
o CD A,o WLL &o 3G Techn l gy.
B th Public and Private Player . Give maximum facilitie t the cu t mer . The Telec m ect r c ntribute 2.83 % t the t tal GDP in
2006-07 a again t 2.71 % in 2005-06.
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Telec mmunicati n Indu try include :
o Telec m ervice :- Teleph ne Service :
Fixed Line Teleph ny.
bile Teleph ny.
- Internet Service .- Br adband Service .- Netw rk Infra tructure.
- Telec m Equipment :- Ph ne In trument .- Semic nduct r .
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India Fa te t gr wing market in W rld 190 mn ub criber
4th large t m bile market gr wing at 6 mn Sub/m nth
4th large t internet market, 3rd large t by 2007
V ice Revenue dr pping;
PCO - 4.5 mn @ CQGR f 7.22%
Paying highe t taxe and regulat ry charge ; Variable Licen e fee.
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Ministry of Communication & Information Technology
Regulator
Licensor
Judiciary
Telecom Regulatory
Authority of India
Telecom Dispute
Settlement Appellate
Tribunal
Dept of Telecom Unified License Operators
Fixed Line Operators
GSM
900 &
1800
Wireless Operators
National Long Distance Operators
International Long Distance OperatorsCDMA
1800Mhz
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Company PresenceSubscribers Jul 06 (mn) Share (%)
Fixed Mobile Fixed Mobile
BSNL Government owned. Has ramped up GSM services.
National presence (except Mumbai and Delhi)
37.4 17.7 74.7% 19.6%
MTNLGovernment owned. Operates in Delhi and
Mumbai.3.8 2.0 7.7% 2.3%
Bharti Integrated operator, with presence in all sectors.Largest mobile services provider. 1.4 19.6 2.7% 21.7%
Reliance
Integrated operator. Plans expansion of GSM
network apart from being the largest private
CDMA operators.
3.0 17.3 6.0% 19.2%
Hutch Pure play GSM operator in 11 circles. 15.4 17.0%
IDEA Pure play GSM operator in 6 circles 7.4 8.2%
Tata
Teleservices
Integrated operator (along with VSNL) with
presence in all segments. Provides CDMA servicesin 20 circles
4.0 4.9 8.0% 5.4%
AircelOperates in 2 circles. Announced Plans to expand
GSM footprint in North and North east2.6 2.9%
Spice Pure play GSM player in 2 circles 1.9 2.1%
Others 0.4 1.4
Total 50 90
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Internati nal Bandwidth U age
The ab ve figure i f r u age f bandwidth China ha m re than 10 time f higher bandwidth u age a c mpari n t India
2000 2001 2002 2003 2004 2005 2006 2007
Australia 9 21 27 33 54 93 157 250
China 16 34 56 93 178 352 602 954
India 2 4 5 8 16 33 61 101
Indonesia 1 1 2 3 5 9 16 25
Japan 39 70 87 179 283 443 733 1176
Singapore 7 12 19 37 57 97 159 256
Taiwan 8 18 30 45 88 196 311 508
Thailand 1 2 3 5 6 10 16 26
Gbps
*S urce : Telege graphy
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22%
19%
15%
9%
20%
3%
3%
2% 2%
5%
0%0%
% Share Sept 2005
Bharti BSNL Hutch Idea Reliance Tata
Aircel TNL Spice BPL HFCL Shyam
September 2005
Players % Share
Bharti 20.89
BSNL 18.30
Hutc
13.54
Idea 6.59
Reliance 20.06
Tata 9.56
Aircel 2.93
MTNL 1.87
Spice 1.69
BPL 0.80
HFCL 0.11
S
yam 0.05
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21%
19%
14%7%
21%
10%
3% 2%
2% 1%
0% 0%
% Share Sept 2006
Bharti BSNL Hutch Idea Reliance Tata
Aircel TNL Spice BPL HFCL Shyam
September 2006
Players % Share
Bharti 22.
0
BSNL 17.90
tch 16.10Idea 8.60
Reliance 20.
0
Tata 7.01
Aircel 3.21
MTNL 1.69
Spice 1.61
BPL 0.66
FCL 0.
6
Shyam 0.21
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22%
18%
16%
9%
20%
7%
3% 2%
2%1%0% 0%
% Share Feb 2007
Bharti BSNL Hutch Idea Reliance Tata
Aircel TNL Spice BPL HFCL Shyam
February 2007
Players % Share
Bharti 20.30
BSNL 18.
0
tch 1
.90
Idea 10.20
Reliance 21.10
Tata 1.60
ircel 3.
0
MTNL 1.30
Spice 3.30
BPL
.
0
FCL 0.00
Shyam 0.00
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Internati nal Pricing P licy
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Players Countries Services Subscribers Partners
Bharti
Telecom
Seychelles
MTNL
United Telecom
(Since 2002)
Reliance
IndiaCallservices
(Since 2005)
Emtel of Mauritius,
(Since 1998)private
investorsand the Gov of
Seychelles
State of Jersey 2G and 3G, ILD Services from
Oct 2006
Seychelles Fixed, FWP, cellular34000 (March
2006)
MTML(Since 2005) Mauritius CDMA-based WLL
services
20000 (March
2006)
NepalCDMA-based WLL
services
45,032 (March
2006)
TCIL VSNL, and NVPL
Wholly
Jersey Telenet
Transnet/ Transtel,
Eskom, Nexus, Two,
CommuniTel
VSNL (acquired
license in 2005)
South Africa
Fixed (Services to
commence in Aug-Sep
2006)
owned subsidiary
US, UK and
Canada
ILD services toIndia,
Australia,Canada,France,Germany,
Malaysia, NZ, Singapore,
and UK
500,000 + -
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BSNL
Netw rk in n n-lucrative area e p. in rural area
Acce Deficit Charge (ADC)
Uni-brand trategy
bile TV f rGS u er
Wi-max in rural regi n
Reduce fare n fixed line
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Bharati Cellular Ltd
Airtel c ncentrate n VAS (Value Added Service )
Impr ving n brand image
Br adband - cla e in tead f the ma e t drive the pr fit
Vodafone-Essar Ltd
updated new n a wide range f ubject
Brand image with trademark ad
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Semic nduct r indu try
C ncentrating n chip de igning
18 f the t p 25 indu trie had et up chip de ign center in India
In trument
tly imp rted fr m China by n n-Indian player N kia, Ci c , etc
re m del in l w egment
re ch ice n feature in y uth egment
Re tricted up gradati n in executive egment
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Netw rk Infra tructure
Segregating the t wer bu ine
Bharati, V daf ne-E ar & Idea merged their t wer bu ineIndu T wer
Reliance ptic fiber
BSNL rural netw rk
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Telec m S ftware Exp rt fr m India:
Size f S ftware Exp rt R 4100 Cr (Exp rt & D me tic).
Size f Telec m S ftware market wa R 66 Cr. 1.6% f t tal Indu try
Sale .
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2003(Cr.) 2004 (Cr.) 2005 (Cr.) 2006 (Cr.)
Bharti 2,08
.00 3,261.00
,
36.00 7,928.00
tch 1,73
.00 2,701.00
,36
.00 6,837.00
Reliance 683.00 2,
71.00
,089.00 6,673.00
BSNL 90.00 1,98
.00 3,9
6.00 6,
7
.00
Idea 1,080.00 1,313.00 2,262.00 2,966.00
TataIndicom 6.00 2
3.00
23.00 1,878.00
Spice 0.00
20.00 706.00 8
.00
ircel 230.00 37
.00
61.00 880.00
MTNL 1
.00 227.00 338.00
99.00
FCL 11.00 12.00 10.00 22.00ShyamTelelink 10.00 11.00 6.00 12.00
Escotel 322.00 3
0.00* *
BPL 963.00 1,030.00* *
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Revenue Projections CSP
0
2000
4000
6000
8000
10000
12000
14000
2003 2004 2005 2006 2007 2008
Year
CroreRs.
Bharti
Hutch
Reliance
BSNLIdea
ata Indicom
Spice
Aircel
M NL
HFCL
Shyam elelink
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THREATS:
L w c t ervice pr vider n p ibility f breaking even in h rt term.
Weak IPR (Intellectual Pr perty Right ) pr tecti n.---c py right
S ftware and digital c ntent Piracy.--duplicate
P litical in tability.un tablene ,unreliable
Regulat ry interference.legal b die wt l t f new rule
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CHALLENGES
Regulat ry P licie Lack f level playing field
Penetrati n LevelAcr the w rld and within India Seamle R aming
Infra tructure Pr gram anufacture telec m equipment in India Pa ive Infra tructure Sharing
V IP v ice ver internet pr t c l
Value Added Service Unutilized ftware capability
Digital Divide
N n Availability f techn l gy, equipment, netw rk acce f rmilli n f p r.
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Emerging arket Driving V lume Gr wth L w Tariff (ARPU )
Devel ped arket L w Sub criber Ba e
Techn l gical Advancement
Indian Telecom depends on the global telecom industry for technology platforms& network management
While Indian market size attracts telecom giants
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WEAKNESSES:
L we t call tariff in the w rld.
arket tr ngly regulated by G vernment b dy G verning b th ISP and
Telec m ect r .
T many auth ritie ruling the ect r.
Huge p tential f r l w end and cheap hand et .
Primarily a v ice ba ed market.
High c t f ervice pr vi i n.
L w inc me c untry like India cann t aff rd t replicate expen ive telec m
infra tructure.
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Thank You
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