TELECOM REFORMS
IN INDIA
presented by : Apoorva(1003) Saurabh.j(1013) Prashant(1018) Sidharth(1023) Paul(1027)
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Presented to: Shanta kakodkar
2/24/2013
What it is now
Size of the Industry 562 million Subscribers, 525.1 million wireless connections per annum Gurgaon, Noida, Bangalore, Hyderabad, Pune, Chennai, New Delhi, Mumbai and other cities. Rs 136,833 crore per annum & Increasing 20% for every annum 6% to Share
Geographical distribution
Output per annum
Percentage In GDP
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For the youth, mobile phones are not just a necessity This They generally prefer using post segment particularly values paid schemes with free added prepaid schemes with value SMS servicesservices like information about stock market, news updates and so on. Providing services like Group talk and Group SMS
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1851 Indian Telecom Industry started near Calcutta. 1881 the Telephone services were introduced. 1883 telephone services were merged with the postal
system.
1923 the Indian Radio Telegraph Company (IRT) was
formed.
1947 all the foreign telecommunication companies
were nationalized to form the (PTT).
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Continued
Indian Telecom Industry was considered as
a strategic service.
It was under state's control. 1980 the private sector allowed in
telecommunications equipment was the first reforms in telecommunications.
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Department of Telecommunication set up
Licenses for 20 cellular circles issued
Allows basic operators to provide WLL services on a restricted basis
MTNL incorporated to provide fixed-line telephone services in Mumbai and New Delhi
ISP business opened up to operators other than DoT and VSNL.
Government announces the National Telecom Policy, opening up the basic service sector to private player VSNL incorporated to provide international telecom services
TRAI issues the first tariff order and cuts domestic and international long distance telephony charges
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Telecom Regulatory Authority of India established by government
Telecommunication reforms pre-90s
Department of Telecommunications (DOT) from Indian
post & telecommunication department
Provider of domestic and long-distance service
(separate from the postal system).
Two wholly owned companies which were created. Videsh Sanchar Nigam Limited.
Mahanagar Telephone Nigam Limited 2/24/2013
Videsh Sanchar Nigam Limited
Now Tata Communications, a global Indian
telecommunications company. Provider of international wholesale voice services. VSNL was the sole provider for overseas telecommunication service. Infrastructure to private telecommunication operators. Major player in the Domestic market. Tata Communications acquired a 45% stake in VSNL
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Mahanagar Telephone Nigam Limited
The Government of India set up MTNL on 1 April 1986. Aim of : Upgrading the quality of telecom services, Expanding the telecom network, Introducing new services Raising revenue for the telecom development Needs of India's key metros - Delhi and Mumbai. The Government of India currently holds 56.25% stake in the
company
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Second phase reforms
Evolved in 1991 Private players allowed entry Government mandated 2 operators each circle Radio paging , cellular mobile sector opened up Act as a catalyst for broadband Telecom at affordable rate
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Third phase reforms
Evolved in late 90s FDI increased from 49 to 74 per cent Stake sold in VSNL
Launch of CDMA service
More operators per circle
Long distance call Tariff reduced
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TRAI
Came into existence in 1997 Governed by Telecom regulatory authority of India act 1997 Oversee orderly growth of telecom sector Protects the interest of telecom operators and customers TRAI act emended in 2000 Formation of telecom dispute settlement appellate tribunal
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Mobile Tariffs in India one of the Lowest
0.25 0.23 0.22 0.2 0.19 0.17 0.16 0.15 0.11 0.1 0.11 0.11 0.09
USD
0.05 0.05
0.05 0.04 0.03 0.02
Argentina
Belgium
Italy
France
Philippines
Malayasia
Thailand
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Hong Kong
Pakistan
Taiwan
China
Brazil
India
UK
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VALU CHANGES IN TARIFS LOCAL STD ISD Rs 15 Rs 37 Rs75 Ps 60 Ps 60 Ps 7
FINANCIAL PERFORMANCE
Particular Revenue of public companies Revenue of Private sector companies TOTAL REVENUE
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2009-2010 37390
2010-11 33976
113270 150660
132776 166752
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900 800 700 600 500 400 300
The Wireless Subscriber base
584.32
811.59
391.76 261.07 165.11 98.77
200
100 0
06/Mar
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07/Mar
08/Mar
09/Mar Millions
10/Mar
11/Mar
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Millions
Millions 55.32 45.9 37.91 35.8 35.62
The Wire line Subscriber base
33.21
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06/Mar
07/Mar
08/Mar
09/Mar
10/Mar
11/Mar
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Mobile service penetration is current 51% which is expected to grow to grow at 72% in 2016. Structural change in composition of telecom sector. Fastest growing telecom markets in world Implementation of MNP Lower tariff levels
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Indian MVAS estimated to grow at US$10.8 billion by 2015. India is second largest handset market Contributes to 2% of Indian GDP Emergence of BPO and KPO Third largest sector to attract FDI in India NLD charges dropped by more than 60%
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Current scenario
world's most competitive and one of the fastest growing
telecom markets.
grown over 20 times in j10 years, from 37 million subscribers
in the year 2001 to over 846 in 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 third-largest Internet user-base with over 137
million as of June 2012.
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National Telecom Policy 2012
For bringing back the transparency and to encourage
development in the scammed telecom sector, central cabinet has approved National Telecom Policy 2012.
The policy aims at providing affordable, cost effective and
high quality telecom service at all India basis.
Accelerate socio-economic development by having
transformation and impact on the overall economy.
It aims at providing a stable policy regime for a period of 10
years.
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Salient features of NTP 2012
Increase rural tele-density from 39 at present to 70 by 2017
and 100 by 2020.
To make India a global hub by active participation in
Domestic Manufacturing.
Its theme is "Broadband for All" at speed of 2 Mbps. Free roaming and one nation, i.e. Mobile number
portability
Applicability of VoIP - Voice over Internet Protocol (IPV6)
Internet Protocol Version 6.
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Components of policy
Broadband Rural Telephony and Universal Service
Obligation Fund R&D, Manufacturing and Standardization of Telecommunication Equipment Licensing, Convergence and Value Added Services Spectrum Management Quality of Service and Protection of Consumer Interest Security
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Effect of NTP 2012
National Telecom Policy allow benefits for mobile
subscribers, in short period of time mobile operators may experience negative effect through nationwide Mobile Number Portability(MNP). Abolish of roaming charges will lead mobile service providers to lose its income through roaming charge sat initial stages of its implementation. Well in long run all of those losses will be covered through increase in number of subscribers.
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opportunities and challenges
For accelerating the growth of teledensity in the country. For creation of telecom infrastructure in rural and remote
areas by utilization of the USO Fund. For laying of Optical Fibre Cable (OFC) to uncovered areas and effective utilization of the existing resources to provide connectivity. For huge Broadband potential in the country. For R&D, product development and indigenous telecom manufacturing
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Non availability of adequate spectrum for telecom
services Underperformance of PSUs resulting in industrial unrest and erosion of value of government . Dependence on foreign telecom equipment suppliers. Cyber threats on ICT networks, leading to security concerns. Obsolesce of existing network elements due to fast changing telecom technologies.
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