Telecom

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Telecom

Abhinanda(002) Abhishek Singh(003) Abhishek Tanwar(007) Anjul Agarwal(023) Deepak Garg(031) Kapil Singh(043) Manish Tembhurkar(053)

Table of ContentsIndias Telecommunications framework...............................................................................3Government Agencies.........................................................................................................4Industry associations............................................................................................................5Industry associations

Indias Telecommunications framework

Indian telecom framework helps in regulating the level playing field for all the operators. The department of telecommunication ( GOI) is the governing body in the industry. Telephone Regulatory Authority of India (TRAI) assists the Government of India (GoI) to take timely decisions and introduce new technologies in the country.

There are two governing bodies

Indian Govt body The body formulates various policies and pass laws, thus regulating the telecom industry in India.

a. Wireless planning and coordination ( WPC ) The body handles spectrum allocation and management

b. DoT It regulates the licenses and frequency management for telecom

c. Telecom commission It makes exclusive policy making body of DoT.

d. Group on Telecom and IT ( GoT-IT) It handles the ad hoc issues of the telecom industry.

Independent bodies -- They undertake various research activities and monitor the quality of service provided in the Indian telecom industry. They also provide various recommendations to improve the status of telecom operations in India.

a. Telecom Regulatory Authority of India (TRAI) Independent body

b. Telecom Disputes Settlement and Appellate Tribunal (TDSAT) -- Telecom disputes settlement body

Government Agencies

Government Agencies (TRAI / DOT etc)

Telecom Regulatory Authority of India (TRAI) Independent regulatory body to regulate the telecommunication business set up by Govt in 1997. It formulates the terms and conditions for licensce for the service provider. Its role is to maintain the competition among the service providers by formulating rules and regulating liceneses. Ref: http://en.wikipedia.org/wiki/TRAI

DoT It regulates the licenses and frequency management for telecom. It is the executive branch of Ministry of communication and Information Technology. The Department of Telecom has been formulating developmental policies for the accelerated growth of the telecommunication services. The Department is also responsible for grant of licenses for various telecom services like Unified Access Service Internet and VSAT service. The Department is also responsible for frequency management in the field of radio communication in close coordination with the international bodies. It also enforces wireless regulatory measures by monitoring wireless transmission of all users in the country.

Telecom Disputes Settlement and Appellate Tribunal. --

Industry associations

Cellular Operators Association (COAI) The objective of the association is to improve the standards and quality of service wrt to GSM

Association of Unified Telecom Service Providers of India ( AUSPI) The association represents industry body of Unified Access Service (UAS) licensing providing the telecom services based on CDMA technology.

The Indian Wireless Industry

The wireless subscriber base was 391.76 million subscribers at the end of the financial year in comparison to the subscriber base of 261.07 million at the end of March, 2008. It added 130.69 million subscribers in the financial year 2008-09 registering an annual growth rate of about 50.06 %.

The total subscriber base of wireless services has grown from 33.69 million in March, 04 to 391.76 million in March, 09

The Indian Wireless Industry is divided in to 23 circles

The circles have been categorized as Metros, A circle, B circle & C circle

The circled are categorized by degree of affluence, infrastructure development and revenue potential areas.

There are four metro cirlces

-Chennai

-Mumbai

-Delhi

-Kolkatta

These circles accounts for 15.3% of Wireless subscribers and have highest ARPU compared to other circles

There are five category A circles covering the state of Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu

These circles form a major portion of total subscriber base of 137.18 million subscribers

There are eight category B circles covering the state of Haryana, Kerela, Madhya Pradesh, Punjab, Rajasthan, Uttar Pradesh(East & West) and West Bengal(including Andoman & Nicobar Islands)

These circles form a major portion of total subscriber base of 146.84 million subscribers and recorded a increase in growth

There are six category C circles covering the state of Assam, Bihar, Himachal Pradesh, North East, Orissa, and Jammu & Kashmir.

These circles form a minor portion of total subscriber base of 45.65 million subscribers and have lowest tele-density and ARPU levels

Circles distribution

Evolution of Cellular Networks

GSM

Global system for mobile communication

Goal: Digital voice service with improved quality and also provide better data services

Time Frame: 1990- 2000

Technology: TDMA/TDD

Enhanced for data services

General Packet Radio Service (GPRS)

Enhanced Data rates for GSM Evolution (EDGE)

CDMA

Code division multiple access.

used in several wireless broadcast channels (cellular, satellite, etc) standards

unique code assigned to each user; i.e., code set partitioning all users share same frequency, but each user has own chipping sequence (i.e., code) to encode data

data rates up to 144K

VAS

Not a form of basic service but rather adds value total service offering

Stands alone in terms of profitability and/or stimulates incremental demand for core service(s)

add-on to basic service

e.g SMS, GPRS, mobile stores (R-world, airtel world ...)

Wimax

Worldwide Interoperability for Microwave Access

Brand licensed by the WiMax Forum.

a standards-based technology enabling the delivery of last mile wireless broadband access as an alternative to cable and DSL

WiMAX was seen as more of a Metropolitan Area Network (MAN) technology providing a much larger coverage.

3G

Goal: High speed wireless data access and unified universal standard

Time frame: 2002-

Two competing standards

One based on GSM, IS-136 and PDC known as 3GPP

Other based on IS-95 named 3GPP2

Completely move from circuit switching to packet switching

Enhanced data rates of 2-20Mbps

3G, BWA and MNP status

3G auctions started on April 7 2010.

BWA (wimax) auction to done after 3G.

3 licences in each circle to be given.

All major companies bidding.

Mobile number portability TRAI issued notification in June 2009

Not yet implemented (deadline of 31 march 2010 extended).

4G (LTE)

Supports even higher data rates than 3G

50 Mbps upload and 100 Mbps download.

Commercial installation started in different parts of world

The sale process for 4G will begin as soon as operators roll out their 3G networks this year

Challenges

No. of operators are increasing per circle: hence more competition

ARPUs are going down

Cost/ Customer is very high in rural areas

Spectrum a scare commodity

Infrastructure readiness in rural

PC prices are very high

Availability of Contents in local language

Availability of Contents for Rural Population

International Bandwidth is costly

Telecom Manufacturing in India.

Opportunities

IPTV

VoD (Video on Demand)

Gaming

Video calls

Convergence (e.g. access internet from TV)

Peer to peer sharing

Wireline vs mobile data access

Role in development

Connect rural India to urban India and the world

Connect even remote areas to the information highway (internet)

Growth in telecom directly related to globalization.

Direct and indirect employment

Rural/Urban distribution of total telecom subscribers

Trends in subscription (Voice Communication):

Trends in subscription (Data Communication):

Trends in teledensity (Rural/Urban and Wireless/Wireless):

Trends in usage (GSM/CDMA):

Market Share (Wireless/Wireline)

Bharti Airtel

SUNIL BHARTI MITTAL

Chairman and Managing Director of Bharti Group, India's largest GSM-based mobile phone service provider. Sunil Mittal can be called as originator of cellular phone revolution in India. Sunil B.Mittal company runs India's largest GSM-based mobile phone service. Son of a politician, he built his Bharti group, along with two siblings, into India's largest mobile phone operator in just ten years. Sunil has always been a pioneer.

In his personal capacity, Sunil has received several awards such as:

Telecom Person of the Year, Voice & Data, 2006

Best Asian Telecom CEO, Telecom Asia Awards 2005

Best CEO, India, Institutional Investor, 2005

Business Leader Of The Year, Economic Times, 2005

Ernst & Young Entrepreneur Of The Year 2004, Ernst & Young

1976

Mittal started his first business at the age of 18, with a capital investment of Rs 20,000 (U$500) borrowed from his father. His first business was to make crankshafts for local bicycle manufacturers .

1982

started a full-fledged business selling portable generators imported from Japan.

1986

Incorporated Bharti Telecom Limited (BTL) and entered into a technical tie up with Siemens AG of Germany for manufacture of electronic push button phones.

1990

Mittal was making fax machines, cordless phones and other telecom gear. started marketing telephones, answering/fax machines under the brand name Beetel and the company picked up really fast

1992

Successfully bid for one of the four mobile phone network licences auctioned in India, in collaboration with French telecom group Vivendi.

1995

Launched services in Delhi, when Bharti Cellular Limited (BCL) was formed to offer cellular services under the brand name AirTel.

Bharti Airtel Snaphot

3rd Largest wireless operator in the world.

6th Largest Integrated telecom operator in the world.

Largest wireless operator in India.

Largest operator in NLD, ILD and VSAT business.

Largest TELECOM company listed on Indian Stock Exchange.

Bharti Group Important Event Snapshot

1995

Launched cellular services 'AirTel in Delhi.

1996

launched cellular services in Himachal Pradesh

1998

First Indian private fixed-line service, ending fixed-line services monopoly of DoT (now BSNL)

2001

Bharti Cellular entered into license agreements to provide cellular services in eight new circles.

Bharti Telenet entered into license agreements to provide fixed-line services in the Haryana, Delhi, Tamil Nadu and Karnataka circles

Bharti Telesonic launched national long distance services under the brand name of IndiaOne

Bharti Telenet launched fixed line services in Haryana under the brand name of TouchTel.

2002

Comes out with issue of 18.53 crore equity shares through book building route with a floor price of Rs 45 per share

Shares listed on BSE, NSE and DSE, opens at 11% premium to its issue price of Rs 45

2003

Company accorded its approval for amalgamation of its subsidiary companies viz: Bharti Telenet Ltd, Bharti Telesonic Ltd, Bharti Broadband Networks Ltd and Bharti Comtel Ltd through scheme of Amalgamation. The merged entity would be renamed as Bharti Infotel Ltd

2004

Bharti Tele-Ventures enters into a three year service agreement with Ericsson

Bharti Tele-Ventures (BTVL) has signed and received unified access service licence to provide GSM services in five circles

Bharti Tele-Ventures Ltd signed an information technology outsourcing deal with infotech major IBM, estimated to be in the range of 0-750 million for a ten-year period.

2008

Nokia Siemens Networks on Jan 3 declared that it has been awarded a multi million euro contract from Bharti Airtel Ltd for deployment of a single interactive voice response (IVR) platform across 23 circles.

2010

acquire Zain Africa BV based on an enterprise valuation of USD 10.7 billion.

Latest Results Q3 FY09/10

Q3 FY 2010 Y-on-Y

Customers 121.85 mn 38.0%

Revenue $2,093mn 1.4%

EBITDA $838 mn -0.9%

Cash Profit $876 mn 8.9%

Net Income $473 mn 2.3%

Bharti Marketing Strategy

2002

Ties up with SSC (Secondary School Certification) Board, Hyderabad, where Bharti will announce SSC results to its customers on their mobile phones

ICICI Bank ties up with Bharti for pre-paid mobile cards via ATMs

Bharti Group's cellular brand Airtel has unveiled free multimedia messaging services (MMS) for its customers. The company has also rolled out pan-India GPRS (General Packet Radio Services) for its corporate subscribers

Launches its `IndiaOne MeetXpress' audio-conferencing service

Airtel provides SMS cricket updates

AirTel, Touchtel jointly offer freeTouchtel land line for post-paid Airtel connection

AirTel rolls out voice mail service for pre-paid customers

Offers 0-1-2, a new cellular package for the customers, which means zero charges on incoming calls, Re 1 on mobile-to-mobile outgoing calls, Rs 2 on mobile-to-mobile STD calls Iinks distribution pact with Hathway Cable. With this alliance, Bharti is said to be the first telecom firm to step into television distribution services

2004

Samsung India Electronics Limited has tied up with cellular operator Bharti for bundling its mobile handsets with a connection.

Bharti Tele-Venture on July 19 launched ring back tone service which is a personalized mobile music service where the caller hears songs and other sound clips instead of the traditional switchboard ring-ring tone

Bharti Product Innovations

Bharti Strategic Business Units

Performance

Wireless Customer market share leadership at 22.7%.

Total minutes on network carried in Q3 175 billion

Total employee strength 18,201

Balance sheet strength:

Assets -$ 14 billion

Net debt -nil * ($414 million inclCCD)

Net debt to EBITDA nil * (0.12 inclCCD)

Continues to be FCF positive on a standalone basis

Note: * Net Debt is excluding fully and compulsory convertible,non-cumulative, unsecured and interest free Debentures of US$ 661.

Segment contributionRevenue , EBITDA and Investment

Bibliographyhttp://wikipedia.org/

www.trai.gov.in

www.coai.com

www.airtel.in

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Indias Telecommunications frameworkGovernment AgenciesIndustry associationsThe Indian Wireless IndustryCircles distributionEvolution of Cellular NetworksGSMCDMAVASWimax3G3G, BWA and MNP status4G (LTE)ChallengesOpportunitiesWireline vs mobile data accessRole in developmentRural/Urban distribution of total telecom subscribersTrends in subscription (Voice Communication):Trends in subscription (Data Communication):Trends in teledensity (Rural/Urban and Wireless/Wireless):Trends in usage (GSM/CDMA):Market Share (Wireless/Wireline)Bharti AirtelBharti Airtel SnaphotBharti Group Important Event SnapshotLatest Results Q3 FY09/10Bharti Marketing StrategyBharti Product InnovationsBharti Strategic Business UnitsPerformanceSegment contributionRevenue , EBITDA and InvestmentBibliography