Telecom Report April2010

8/8/2019 Telecom Report April2010

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Telecom

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Telecom

Abhinanda(002)AbhishekSingh(003)Abhishek

Tanwar(007)AnjulAgarwal(023)DeepakGarg(031)Kapil

Singh(043)Manish

Tembhurkar(053)


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Table of ContentsIndias Telecommunications framework...............................................................................3

Government Agencies.........................................................................................................4

Industry associations............................................................................................................5

Industry associations


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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


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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. --
http://en.wikipedia.org/wiki/TRAIhttp://en.wikipedia.org/wiki/TRAI


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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.


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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


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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


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Evolution of Cellular Networks


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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)


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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


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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 ...)


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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.


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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


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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.


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Mobile number portability TRAI issued notification in June 2009

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

4G (LTE)


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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


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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.


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Opportunities

IPTV

VoD (Video on Demand)

Gaming

Video calls

Convergence (e.g. access internet from TV)

Peer to peer sharing


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Wireline vs mobile data access


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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


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Rural/Urban distribution of total telecom subscribers

Trends in subscription (Voice Communication):


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Trends in subscription (Data Communication):


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

Trends in usage (GSM/CDMA):


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Market Share (Wireless/Wireline)


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Bharti Airtel


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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


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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.


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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.


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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


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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 aten-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.


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Latest Results Q3 FY09/10

Q3 FY 2010 Y-on-Y

Customers 121.85 mn 38.0%


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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


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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


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Bharti Product Innovations

Bharti Strategic Business Units


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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.


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Segment contributionRevenue , EBITDA and Investment


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Bibliographyhttp://wikipedia.org/

www.trai.gov.in

www.coai.com

www.airtel.in

.

.
http://wikipedia.org/http://www.trai.gov.in/http://www.coai.com/http://www.airtel.in/http://wikipedia.org/http://www.trai.gov.in/http://www.coai.com/http://www.airtel.in/

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Telecom Report April2010