08-05-2013, 04:08 PM
Indian Telecom Industry Ltd
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Introduction of the Industry
World telecom industry
World telecom industry is an uprising industry, proceeding towards a goal of achieving two third of the world's telecom connections. Over the past few years information and communications technology has changed in a dramatic manner and as a result of that world telecom industry is going to be a booming industry. Substantial economic growth and mounting population enable the rapid growth of this industry.
Telecom industry in India
The telecom network in India is the fifth largest network in the world meeting up
With global standards. Presently, the Indian telecom industry is currently slated to an Estimated contribution of nearly 1% to India’s GDP.
At 110.01 million connections ' Indian Telecom Industry' is the fifth largest and fastest growing in the world. The subscriber base has grown by 42% in 2010 and is expected to reach 250 million in 2012.
The Indian Telecommunications network with 110.01 million connections is the fifth Largest in the world and the second largest among the emerging economies of Asia.
Today, it is the fastest growing market in the world and represents unique
Opportunities for U.S. companies in the stagnant global scenario. The total subscriber base, which has grown by 42% in 2010, is expected to reach 250 million in 2012.
According to Broadband Policy 2006, Government of India aims at 9 million
broadband connections and 26 million internet connections by 2012. The wireless subscriber base has jumped from 33.69 million in 2008 to 62.57 million in 2009-2010. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities,covering 2000 towns across the country.
Employment opportunities in telecommunications industry
Telecommunication industry has created immense employment opportunities. Most of the employees in this industry are engaged in large establishments, although there are some small establishments, where a large number of small contractors are involved. Fifty five percent of all workers are engaged in office and administrative support occupations. The other occupations of this industry relate to installation, maintenance, and repair .
Policies of telecom industry in India
Telecom industry in India has a big market potentiality and is a fast growing sector. Government of India is eager to reconstitute this telecom industry by enacting effective policies for more investments from foreign companies, which results in a very competitive and deregulated market in the world.
Government of India implemented the unified access licensing regime, which enables basic and cellular mobile service to use any modern technology. In 1997, Telecom Regulatory Authority of India (TRAI) was formed to facilitate the growth of the telecom sector in India.
Major services and market potentiality of Telecom industry in India
Telecommunication sector in India is primarily subdivided into two segments, which are Fixed Service Provider (FSPs) and Cellular Services. Telecom industry in India constitutes some essential telecom services like telephone, radio, television and Internet. Telecom industry in India is specifically emphasizing on latest technologies like GSM( Global System for Mobile Communications), CDMA(Code Division Multiple Access), PMRTS(Public Mobile Radio Trunking Services), Fixed Line and WLL(Wireless Local Loop ). India has a prospering market specifically in GSM mobile service and the number of subscribers is growing very fast.
Economic perspective of telecom industry in India
Telecom industry in India has a major role in Indian economy. The Indian government is also enforcing some effective telecom policies and regulations for the infrastructural growth of this industry. Indian telecom market provides a tele-density of 8.5 percent as registered in the year 2004. A number of leading multinational telecommunication companies are approaching and showing their interest to invest for the telecom industry in India. Telecommunication industry of India ranked sixth among all the telecommunication sectors in the world.
Growth of Telecom
The Indian telecom sector has made rapid progress during the past five years. In fact, with more than 290 million lines, India has one of the largest telecom networks in the world. The growth of this sector has been greatly facilitated by certain major reforms undertaken in 1999. While the process of reforms had been initiated several years earlier with the opening of value added services including cellular mobile services in 1992 and subsequently of Basic Services in 1994 for private sector participation, the reforms process had been stalled by litigation, lower than expected revenues leading to non-payment of license fees and a lack of clarity in the regulatory regime.
There has been an unprecedented growth in the telecom sector over the past 5 years. Tele-density is over 27.59 per cent in May, 2010. What is more significant is the emphasis given for establishing the rural communication network. Rural telephone lines have increased three-fold and the percentage of rural telephone lines to total telephone lines has nearly doubled during the period. The support from Universal Service Obligation Fund would further facilitate public access in rural areas for both voice and data. With all these initiatives, a broad frame-work would be in place to create an environment which would largely overcome the digital divide.
The most significant development since 1999 has been the progressive drastic reduction in tariffs which has been facilitated by competition through a multi-operator environment. Both domestic long distance and international long distance rates have been brought down substantially. The most dramatic reduction in tariff has been in the cellular mobile sector. When the mobile cellular services started, the peak air-time charges were very high at Rs. 16 per minute. In terms of the growth in the telecom sector, India is second only to China. There is a huge potential market still to be tapped and, therefore, India should attract substantial investment in this field as well. With limited investment opportunities in the telecom sector in the developed countries and the telecom sector in China reportedly showing signs of slowing down from a regime of high growth.
The telecom sector has shown robust growth during the past few years. It has also undergone a substantial change in terms of mobile versus fixed phones and public versus private participation.
MAJOR PLAYERS IN THE INDIAN TELECOM MARKET
BSNL
Bharat Sanchar Nigam Limited (BSNL) was formed on 1 October 2000 by the corporatization of the Indian government's Department of Telecom Operations. It is India's largest public sector undertaking with revenues of $7.14 billion and a network of over 45 million lines covering 5000 towns. Its geographical reach extends to the whole country with the exception of the metros of New Delhi and Mumbai.
The state-controlled BSNL operates basic, cellular (GSM and CDMA) mobile, Internet and long distance services throughout India. BSNL, which became the third operator of GSM mobile services in most circles, is now planning to overtake Bharti to become the largest GSM operator in the country. BSNL is also the largest operator in the Internet market, with a share of 21 per cent of the entire subscriber base.
RELIANCE INFOCOM
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles conglomerate. It is also an integrated telecom service provider with licenses for mobile, fixed, domestic long distance and international services. Reliance Infocom offers a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications. Reliance India Mobile, the first of Infocom's initiatives was launched on December 28, 2002. This marked the beginning of Reliance's vision of ushering in a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India. Reliance Infocomm plans to extend its efforts beyond the traditional value chain to develop and deploy telecom solutions for India's farmers, businesses, hospitals, government and public sector organizations. Until recently, Reliance was permitted to provide only “limited mobility” services through its basic services license. However, it has now acquired a unified access license for 18 circles that permits it to provide the full range of mobile services. It has rolled out its CDMA mobile network and enrolled more than 6 million subscribers in one year to become the country’s largest mobile operator. It now wants to increase its market share and has recently launched pre-paid services. Having captured the voice market, it intends to attack the broadband market.