Economics Analysis for Business Decision

PRESENTATION
On
Telecommunication Sector and its
competitive Era
 Group Project By :
• SAMEER PRASAD • AMRITA SINGH
• VIPUL BANSODE • TERALIA NEWMAI
• RUTUJA SONAR • TEJAS BODAGE
• RUTUJA SHINDE • AKASH RATNAPARKHI
• SABA KAZI • SATYAM GIRI
 INTRODUCTION
Telecommunication is the transmission of signs, signals, messages,
words, writings, images and sounds or information of any nature by wire,
radio, optical or other electromagnetic systems. Telecommunication
occurs when the exchange of information between communication
participants includes the use of technology. It is transmitted through a
transmission media, such as over physical media, for example, over
electrical cable, or via electromagnetic radiation through space such as
radio or light. Such transmission paths are often divided into
communication channels which afford the advantages of multiplexing.
Since the Latin term communication is considered the social process of
information exchange, the term telecommunications is often used in its
plural form because it involves many different technologies
 History of Telecommunication
• Communication started in the old Historic Period where they communicated by the
carvings on walls around 40000-100000 Years back
• In 1200 B.C Communication took place by the way of Smoke and fire signals
• Beacons and Pigeons were used as mode of communication during late Historic period.
• During the 1980’s telegraph was invented which changed the entire history of
communication
• After telegraph various other devices like telephones, Radios, television were invented.
• 1940 Computer was invented and 1983 Internet was added changing the entire
telecommunication sector to a new level.
• 1990 – 2010 Internet was evolved as a most important mode of communication along
with other sources, wireless network came into existence.
• 2011 – 2019 Internet entered a new phase of 4G, LTE was Introduced Internet became
one of the basic needs of human.
Importance of Telecommunication
• Communication plays a central role in the fundamental
operations of a society from business to government to
families. In fact, communication among people is the
essence of what distinguishes an organization,
community, or society from a collection of individuals.
Communication from Web browsing to cell phone calling
to instant messaging has become increasingly integrated
into how we work, play, and live. Telecommunications
plays an increasingly vital role in enabling the participation
and development of people in communities and nations
disadvantaged by geography, whether in rural areas or in
developing nations in the global society and economy.
Types of Telecommunication Services
• E-mail Computer networks
• Fax • ARPANET
• Ethernet
• Instant messaging • Internet
• Radio • Wireless networks
• Satellite • Public switched
• Telegraphy telephone networks
(PSTN)
• Telephony
• Packet switched
• Television broadcasting networks
• Videoconferencing • Radio networks
• VoIP • Television networks
Jio VS Competitors
 JIO
Parent Company Reliance Industries Limited
Category Mobile service provider
Sector Telecom Service Providers
Tagline/ Slogan Jio digital life
USP Affordable 4G LTE mobile network with innovative technology
Type Subsidiary
Founder Mukesh Ambani
Founded on 15 February 2007
Headquarters Maker Chambers IV, 222 Nariman Point, Mumbai, India
Revenue (est.) ₹11,679 crore (FY, 2019)
Operating Income ₹3,631.2 crore (FY, 2019)
Total Asset ₹187,720 crore (FY, 2019)
Net income ₹1,148 crore (FY, 2019)
Members 348.25 million (FY 2019)
 Reliance Jio
• Starting off with the newest operator on the block, Reliance Jio has
revamped its Dhan Dhana Dhan offerings, giving users some more options
at a couple of new price points.
• Initially, Reliance Jio launched the Dhan Dhana Dhan plan with two offers –
Rs. 309 and Rs. 509. They both offered 1GB and 2GB 4G data per day
respectively for 84 days. Under its new Dhan Dhana Dhan offers, Reliance
Jio has reduced the validity of the Rs. 309 and Rs. 509 plans to 56 days
from 84 days.
• The company has launched a new Rs. 399 plan with 84 days validity, 1GB
data per day with unlimited voice calls and SMS.
• For all the plans, Jio Prime membership is required. It costs Rs. 99 and is
valid for one year
 Airtel
Parent Company Bharti Airtel Limited
Category Mobile service provider
Sector Telecom Service Providers
Tagline/ Slogan Sab Kuch Try Karo, Fir Sahi Chuno
USP Open to taking risks, experimenting with new ideas
Type Public
Founder Abhash Mittal
Founded on 7 July 1995; 24 years ago
Headquarters Bharti Crescent, 1, Nelson Mandela Road, New Delhi, India
Revenue (est.) ₹807,802 million (FY, 2019)
Operating Income ₹-4,095 million (FY, 2019)
Total Asset ₹2,751,975 million (FY, 2019)
Net income ₹4,095 million (FY, 2019)
Members 383.37 million (FY, 2019)
Airtel
• Airtel has recently launched a new plan to compete with Reliance Jio’s Rs.
399 plan.
• The new Rs. 399 plan from Airtel offers 84GB high-speed 4G data, with 1GB
data per day. It also offers unlimited local and STD calls, but this comes
with a FUP of its own. Airtel’s terms and conditions say that free voice calls
are limited to 1000 minutes per week. Beyond that limit, Airtel-to-Airtel
calls will cost Rs. 0.10 per minute, while calls to other networks will cost Rs.
0.30 per minute.
• The plan does not offer any free SMS, unlike Reliance Jio.
• Airtel also has a cheaper Rs. 244 plan that offers 1GB data per day for 70
days, but free voice calls are limited only to the Airtel network. There are
no free SMSs in this plan as well.
 Vodafone Idea
Parent Company Vodafone India Idea Cellular Limited
Category Mobile service provider
Sector Telecom Service Providers
Tagline/ Slogan An Idea can change your Life (IDEA) . HAPPY TO HELP YOU (VODAFONE)
The Company provides pan India Voice & Data services across 2G, 3G
USP
and 4G platform.
Type Public
Founder Kumar Mangalam Birla ( Chairman ), Ravinder Takkar ( CEO )
Founded on 31 August 2018; 13 months ago
Headquarters Mumbai (Corp.) Gandhinagar
Revenue (est.) ₹378,236 million (FY, 2019)
Operating Income ₹-192,243 million (FY, 2019)
Total Asset ₹2,296,995 million (FY, 2019)
Net income ₹-145,711 million (FY, 2019)
Members 375.07 million (FY 2019)
 Vodafone Idea
• Vodafone Idea Limited is an Indian telecom operator with its headquarter based
in Mumbai, Maharashtra. Vodafone Idea is a pan-India integrated GSM operator
offering 2G, 3G and 4G VoLTE mobile services under two brands named
Vodafone and Idea.Vodafone Idea also provides services including Mobile
payments, IoT, enterprise offerings and entertainment, accessible via both digital
channels as well as on-ground touch points, centers across the country. As of July
2019,Vodafone Idea has a subscriber base of 380 million, making it the largest
mobile telecommunications network in India .Vodafone Idea has a broadband
network of 340,000 sites, distribution reach of 1.7 million retail outlets.
• On 31 August 2018,Vodafone India merged with Idea Cellular, and was renamed
as Vodafone [Idea Limited. However, the merged entity continues using both the
Idea and Vodafone brand. Currently, the Vodafone Group holds a 45.1% stake in
the combined entity, the Aditya Birla Group holds 26% and the remaining shares
will be held by the public.Kumar Mangalam Birla heads the merged company as
the Chairman and Balesh Sharma used to be the CEO. After a plunge in share
price of Vodafone Idea by 80% on NSE, Balesh Sharma resigned citing personal
reasons. Ravinder Takkar, Ex-CEO of Vodafone Romania and the key deal
negotiator from Vodafone has taken over the reigns as CEO.
 MARKET SHARE OF
TELECOMMUNICATION SECTORS :
Introduction:
Reliance Jio Infocomm Ltd. is an Indian Telecommunication company
and wholly owned subsidiary of Reliance Industries. It has the
maximum number of share market and largest mobile network
operator in India and third largest mobile network in the world.
India’s second largest telecommunication sector with a second place
market share gives a various facilities to its customers and that place is
hold by the Bharti Airtel Ltd. It has the third largest mobile network in
India.
Vodafone Idea limited is an Indian Telecom operator which provides
different types of services. Idea and Vodafone India has announced that
their respective boards has approved a merger of two companies.
• Jio Infocomm Ltd has the largest number of customers over the Indian
market and has a large number of market share.
• Day by day the market share of Jio is getting more response from its
customers because of new strategies and plans provided by the
company.
• Increasing market share of Jio is showing an impact on other
telecommunication sectors that is on Airtel, Idea and Vodafone.
• As we can see the above diagram represents highest market share in
the favour of Reliance Jio that is 39.30%, on the second place highest
market share is carried by Airtel that is 18.38%, Vodafone has a
13.99% of share and Idea has a 8.47% market share.
 UPCOMING PLANS

• The biggest announcement for the Jio customers that took place
was the commercial launch schedule of Jio Fiber, Jio Home
Phone, Jio postpaid plus, Jio set top box with gaming support
etc.
• It also announces offers like Jio to Jio calling free, 6 ps. Per
minute for Jio to others, Yearly call rates planning, Television
services routed to deliver console like gaming experiences.
• On the other side, Airtel announced that it would offer double
data with almost all its broadband plans and now the company
is looking to do the same with its data card plans.
• According to a source close to us, Airtel will roll out new data
tariff plans for data card users starting at Rs. 499.
• Similarly Vodafone Idea also changing their plans by offering
new plan. For example: 3 family postpaid connections for
Rs.749.
Communication Algo
 Communication System
Digital signal processing, as it is used in communication systems, often
requires the implementation of special functions in addition to filtering.
Examples of these are modulation, demodulation, detection, and
frequency translation. Often, there are several ways in which a
particular function can be implemented; however, one method may
require less computation than another. It is important to recognize the
many methods to reduce computation in a system, because these tricks
often make the difference between a practical system and one that is
unrealistically complex. This was particularly important during the early
days of digital signal processing, when hardware resources were very
limited. Even in present day systems, real advantages can often be
realized by recognizing the best algorithm.
 ANNUAL REPORT
• Jio aims at creating an entire digital ecosystem, offering broadband
services, applications, smart devices, and mobile telephony facilities.
Its offering range from a wide library of recorded and live music
programs, television shows, sport program to movies, Jio money, Jio
Play and Jio Join App are amongst the most popular Jio applications.
• STRATERGY :
• Entry of Jio took the Oligopoly telecom market by storm. It was
something that was no other competitors in the market was expecting.
• Mukesh Ambani finally acknowledges the universal truth – globally
consumers pay for eithers calls and texts or data – they don’t pay for
both.
• Reliance drives shareholders value through active portfolio
management to continuously enhance the quality of its business
portfolio, consistently deliver shareholder returns and maintains a
focus on long term growth potential.
• Reliance creates value for its employees, by ensuring their prosperity
as the organisation grows.
 STRATERGY
• Airtel uses mix of segmentation strategies to segment its
offerings like basic Call /SMS plans, prepaid / Post-paid plans,
VAS – Data, caller tunes etc. Apart from geographically
segmenting the market in East, West, North, South & central,
the market is also segmented in each region on the basis of
demographic variables like age, Income, Social groups.
• The subscriber base for Airtel did not feel a massive blow. In the
quarter that ended in September 2016, Airtel had 36308.8 crore
subscribers and by the end of December 2016 there was only a
marginal rise in the number and it stood at 36456.4 crore. The
fourth quarter that ended In March 2017 saw Airtel have a
registered user base of 37235.4 crore while in the latest quarter
release (Q1) the subscriber base stood at 37987 crore.
• It looks like Airtel saw a humungous loss with the entry of Jio.
The net income had the largest setback as it dropped 75 per
cent year on year to Rs 367 crore while this was a marginal drop
from the previous quarter which was recorded at Rs 374 crore
rupees.
 FINANCIAL PERFORMANCE
 Plain old telephone calls continue to be the industry’s biggest revenue
generator ‘but thanks to advances in network technology this is changing.
 Telecom is growing less about voice and increasingly about videotext and data.
 high-speed internet access, which delivers computer-based data applications
such as broadband information services and interactive entertainment, is
rapidly making its way into homes and businesses around technology ,digital
subscriber line [dsl] has ushered in new era.
 The fastest growth comes from services delivered over mobile network of all
the customer markets, residential and small business market are arguably the
toughest .
 With literally hundreds of players in market competitors rely heavily on price
to slog it out for households’ monthly checks success rests largely on brand
name strength and heavy investments in efficient billing systems.
 Telecom operators also make money by providing network connectivity to
other telecom companies that need it, and by wholesaling circuits to heavy
network users like internet service provider and large corporations.
 Interconnected and wholesale markets favor those players with far-reaching
networks.
 NETWORK EXPANSION
 Going forward, the number of players is expected to reduce from 4 in a service area to 3 or
2,
 TRAI has recommended enabling m and n provision for increase in market share for merged
entity as been increased from 35%to 60%.
 Data trends show an upswing 4G/5G roll out is progressing and user devices currently in the
range of $2000 dollars are available in the Indian market.
 Demographics favor India : 50% of the population is below the age of 25, and 65% below 35
years and they are expected to be the main drivers of consumption.
 As far as the availability of spectrum for commercial exploitation is concerned, we hope that
700 MHz will be auctioned in the near future for long term evolution [lte].
 The commercial value of spectrum is creating pressure for the release of spectrum by
government agencies.
 Average spectrum holding per operator is expected to increase from 7.4 MHz to 10 MHz .
 The growth strategy has reached a watershed . The race for increasing subscribers is over.
 For the first time total subscriber numbers decreased in July.
 The focus will now be on the quality of service and the quality of experience.
 With the potential for growth left in the system , Telecom industry will now come up with a
new generation of 5G by 2021
 INTRODUCTION
 India is the world's second-largest telecommunications market, with around
1,183.53 million telephone subscriber bases at the end of May 2019.
 The telecom market can be split into three segments – wireless, wireline and
internet services.
 The wireless market segment comprises of 89.92 per cent of the total subscriber
base, as of May 2019 compared to 95.90 % in year 2011. As of May 2019, rural
subscribers form 42.9 % of total telephone subscribers and in April 2019 43.33
per cent, compared to 33.35 % in year 2011.
 India is also the second largest country in terms of internet subscribers. The
number of internet subscribers in the country increased at a 41.58 % during year
2006-2018 to reach 636.73 million in 2018-19.
 India became the world’s fastest-growing market for mobile applications in the
first quarter of 2018 and remained as the world’s fastest growing market for
Google Play downloads in the second and third quarter of 2018.
 The internet user base in India has crossed 500 million mark and is likely to reach
627 million by end 2019. Total wireless data usage in India grew 119 per cent
year-on-year to 1,58,50,560 terabytes between January-March 2019.
 The following companies are evaporated are as follows :
Modi Telstra 2000 Merged into Axiata Spice Communications
Hutch 2007 Bought by Vodafone Group
Axiata Spice Communications 2008 Merged into Idea Cellular Limited
S-Tel 2012 Licence cancelled by the Supreme Court of India
Etisalat 2012 Licence cancelled by the Supreme Court of India
Loop Mobile 2014 Ceased operations after expiration of licence
Virgin Mobile India 2015 Merged into Tata Docomo
T24 Mobile 2015 Merged into Tata Docomo
Videocon 2016 Shut down following sale of spectrum to Bharti Airtel
MTS India 2017 Merged into Reliance Communications
Vodafone India 2018 Merged with Idea to form Vodafone Idea Limited
Idea Cellular 2018 Merged with Vodafone to form Vodafone Idea Limited
Aircel 2018 Bankrupt
Telenor India 2018 Merged into Bharti Airtel
Tata Docomo 2019 Merged into Bharti Airtel
Reliance Communications 2019 Bankrupt
 Types Of Services And Sectors Of Every
Company

The telecommunications sector consists of three basic sub-sectors: telecom

equipment (the largest), telecom services (next largest) and wireless
communication.

The major segments within these sub-sectors include the following:

 Wireless communications
 Communications equipment
 Processing systems and products
 Long-distance carriers
 Domestic telecom services
 Foreign telecom services
 Diversified communication services
 Wireless Communications
The smallest, but fastest-growing, area within the sector is wireless
communications, as more and more communications and computing
methods shift to mobile devices and cloud-based technology. This piece of
the industry is the anticipated keystone for the continued global expansion
of the telecommunications sector. There is still ample room for growth, even
in developed countries: As of 2018, the Federal Communications
Commission (FCC) reported that approximately one-fifth of the rural
American population still does not have access to broadband networks, for
example.
Looking forward, the sector's biggest challenge is to keep up with people's
demand for speedier data connectivity, higher resolution, quicker video
streaming, and ample multimedia applications. Meeting people's needs for
faster and better connections as they consume and create content requires
significant capital expenditures. Companies that can meet these needs
thrive.
5 Tech Trends in Telecommunications

 Connecting the IoT

Telecoms seem keenly aware of the potential—in 2015 the industry ranked 4th in
IoT spending , committing nearly $111 million to IoT pursuits. Telecoms are not going to
sit back, build the infrastructure for it and watch the world ride piggyback with all the
profits like they have in the past 10 years when more agile digital service providers ran
roughshod over their business.

 Cloud Computing
Communications providers are facing some great challenges and opportunities in cloud
computing. They can potentially use the cloud to deliver higher quality, more flexible
and more scalable enterprise IT services at lower cost than on-premise solutions.

 Carrier-Grade WiFi
When it comes to wireless connectivity over short distances, WiFi is hard to beat.
Theoretically, it’s faster than the leading alternative, 4G LTE, and can handle bandwidth-
hogging services like mobile video for a fraction of the cost. But in practice, today’s WiFi
hotspots are notoriously slow and fickle. That’s about to change.
 5G Wireless

The pressures of IoT on top of our insatiable desire for streaming video will absolutely
decimate 4G LTE. (Seriously, 3.25 BILLION hours of video is watched every month
on YouTube alone. That’s about 400,000 years, in case you were wondering). And
according to Gartner, 20.8 billion devices will be connected to the internet by 2020.
That’s a lot of YouTube-ing, Netflix-ing, and IoT-ing, and the fifth generation (sixth, if
you’re counting LTE) of wireless is being built to handle it. 5G is projected to be about
10x faster than 4G, with download speeds around 10 GBPS.

 Integration with Content

It has been said more than once, “one or more communication service providers will be
acquired by content providers by 2020.” Well, it is 2016 and it is starting to seem like the
CSPs are the ones doing the acquiring. AT&T bought DirecTV in 2014, Verizon has
absorbed both AOL and Yahoo!, With the Amazons, Rokus, and Netflixes of the world
snatching up more and more cable customers by the day, it only makes sense that CSPs
get into the content game themselves. The strategy of most CSPs seems to be owning
the content, so however it is consumed, they still derive revenue from it (and user data).
 What is T R A I ?
• Telecom Regulatory Authority Of India (TRAI) is a Statutory
body set up by the Government of India
under Section 3 of
• Telecom Regulatory Authority of India Act, 1997.
• It is the regulator of Telecommunication Sector in India
• Telecom Regulatory authority of India was established on 20
February 1997 by an Act of Parliament to regulate telecom
services and tariffs in India. Earlier regulation of telecom
services and tariffs was overseen by the Central Government.
The current Chairman of TRAI is Ram Sewak Sharma.
• TRAI's mission is to create and nurture conditions for growth of
telecommunications in India to enable the country to have a
leading role in the emerging global information society.
Which Sectors it Deals with?
Mainly, it deals with :-
i) Telecom Sector.
ii) Broadcasting.(TVs, Radio)
In Telecom Sector
- It ensure that the Telecom industries grow along an Ethical path.
- Protecting the interest of telecom service providers and consumers.
- Encourage technological improvements whenever new advances are
made.
- Establishing a standard quality of service that telecom industries have to
follow to grow properly.
- Ensuring that the telecom Industries are functioning within a Proper
Legal frame work.
- It supervises how services providers share revenue
- Also conducts periodical survey.
 Relience JIO
1. Jio also known as reliance jio and officially as reliance jio
infocomm limited (RJIL) is an upcoming provider of
mobile telephony, broadband services and digital
services in India.
2. RJIL is setting up a India telecom network to provide to a
highly underserviced India market.
3. JIO aims to provide anytime, anywhere access to
innovative and empowering digital content, applications
and services, thereby India into global leadership in
digital economy.
4. Jio phone is a line of feature phones marketed by Jio.
The first model, released in August 2017 (with public
pre-orders beginning 24 August 2017), was positioned as
an "affordable”.
5. ON DECEMBER 24 ,2015 Bollywood actor Sharukh khan
was appointed as a brand ambassador of jio.
 Effect of Jio on other companies
• Mobile data consumption in the country up from 20 cr GB/month to nearly 370 cr
GB/month.
• Cost of data down to less than Rs 15/GB from at least Rs 250/GB.
• India now no. 1 in data consumption compared with 155th before Jio launch.
• Enhanced user base across all key social media platforms; Facebook, YouTube with
an estimated 70 m additions in the 1st year of Jio’s launch.
• No. of private telos down to 3 Bharti Airtel .
Reliance Jio has caused the revenue shares of the competition to drop by 7%
percent in the next two quarters. Combined with demonetization, there has been a
huge fall in the income of incumbents since most of their customers are prepaid.
• Airtel, Vodafone and Idea are constantly coming with offers to counter Jio’s Happy
New Year Offer. At least two offers a week! Airtel probably has come up with more
than 20 offers since Jio’s launch.
• Jio has completely turned the industry on it’s head. it has been one of the changing
forces that has put a halt to rising data costs and increased mobile penetration in
second tier towns and rural areas. Jio is one one the best things to have happened
in 2016.
 Meaning and definition of GDP

• Gross domestic product(GDP) is the total monetary or

market value of all the finished goods and services
produced within a country’s borders in a specific time
period.
• GDP can be calculated in three ways using
expenditure,production, or income.
• The GDP measures the value of economic activity
within a country.GDP is the sum of the market values
or prices of all the final goods and services produced
in an economy during a period of time.
 Economical effect over GDP
1) BUSINESS PLANNING:
• Businesses use the GDP as a planning tool to decide whether they will
expand or contract in the coming year. If the GDP has grown since the
last year, a company may take the growth as a positive sign and hire
more employees, build a new factory or purchase more raw materials
for production. Conversely, when the GDP shrinks, firms may not focus
on expanding their operations.
2)CHANGES IN CURRENCY:
• When a country releases its GDP data, its currency can appreciate or
depreciate as a result. Let’s say that the U.S. releases its GDP for the past
year, and the GDP has risen since the last time the data was published. It will
likely take more of a foreign currency--for example, the British pound--to buy
fewer U.S. dollars. If the U.S. GDP shrinks in comparison to the previous year,
it will generally cost fewer British pounds to buy more U.S. dollars.
 Economical effect over GDP Cont.
3) GOVERNMENT POLICIES:
As the GDP measures economic performance, governments
watch it closely. A low GDP will cause a government to embark on
a different economic policy, one which will boost economic
performance. If, on the other hand, the GDP rises from the
previous year, the government will propose policies to maintain
economic growth, but will also seek to prevent inflation.
4) INTEREST RATE CHANGES:
Rising or shrinking GDP also affects interest rates. The interest
rate refers to the amount of money charged for loans. In the U.S.,
the Federal Reserve sets the basic interest rates. If the GDP rises,
it means the economy has grown. GDP growth also means that
people are spending more money to purchase goods on the
market. To prevent inflation, the Federal Reserve will raise the
prime interest rate,
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