29-09-2012, 05:04 PM
The Telecom Industry
Final Incfrastructure Assignment.docx (Size: 37.48 KB / Downloads: 50)
Introduction
The telecom services have been recognized the world-over as an important tool for socio-economic development for a nation. It is one of the prime support services needed for rapid growth and modernization of various sectors of the economy. Indian telecommunication sector has undergone a major process of transformation through significant policy reforms, particularly beginning with the announcement of NTP 1994 and was subsequently re-emphasized and carried forward under NTP 1999.
Driven by various policy initiatives, the Indian telecom sector witnessed a complete transformation in the last decade. It has achieved a phenomenal growth during the last few years and is poised to take a big leap in the future also.
The present telecom and mobile-phone service providers in India, apart from BSNL include Vodafone, Reliance Communications, BhartiAirtel, Idea, Tata Docomo, Aircel and a few others.
Status of Telecom Sector
The Indian Telecommunications network is split between wireless services and fixed land-line networks. The wireless network service, which has the lion’s share with 851.7 million connections as on June 2011, is the second largest in the world. The sector is growing at a speed of 26% during recent years. There are nearly 35 million fixed landlines in India, with 98% of occupied villages having at least 1 phone.
This rapid growth is possible due to various proactive and positive decisions of the Government and contribution of both by the public and the private sectors. The rapid strides in the telecom sector have been facilitated by liberal policies of the Government that provides easy market access for telecom equipment and a fair regulatory framework for offering telecom services to the Indian consumers at affordable prices. Presently, all the telecom services have been opened for private participation.
Telecom Towers:
There are more than 3, 00,000 telecom towers in India with a teledensity of nearly 74% and a projected teledensity of 84% and 1 billion people by 2012. The entire country is divided into 22 zones called circles, which are usually geographical boundaries between states. Bharti has around 30, 000 towers under the company BhartiInfratel and also has a stake in Indus Towers, which is a pool of Vodafone, Bharti and Idea. Reliance Communications, under Reliance Infratel, has nearly 48, 000 towers. The most successful independent Towerco in India is GTL Infrastructure Limited (“GIL”). GIL has a business with a market capitalisation of $730 million and has built an excellent market position in a very short time. The Enterprise Value of each tower in India is nearly USD 1, 00, 000. A Reuters article in September, 2009 estimates the number of telecom towers in India to cross 4, 50, 000 in 2014. This is testimony to the large potential of the telecom sector in India. So with nearly 1, 50, 000 towers to be built there are likely to be a number of investment opportunities in the Indian towers industry over the coming years.
Technology in Telecom:
The Indian telecom industry has matured to a large extent and this is evident from steps like use of fibre-optic cables, a move which has enhanced call clarity & reduced call rates. The 3G data services were recently launched in India, through interested companies bidding in auctions for different circles. Vodafone, Aircel& Reliance were the major winners in the lucrative urban circles of Mumbai, Delhi etc.
Gaps in Infrastructure availability
In 1999, NTP envisaged the affordability and availability of telecommunication services for the common populace, along with the benefit of VAS such as internet for the urban and rural population and the abolition of the digital divide. However, the telecom sector continues to face various issues that act as impediments to its growth.
Major issues impeding the development ¬
The Indian telecom industry has witnessed phenomenal growth in the number of subscribers, with a CAGR of 77.5% during the period FY00–10. Furthermore, according to TRAI, the Indian telecom industry is expected to reach 1 billion wireless subscribers by March 2014. In line with the growth of subscribers, the need for spectrum to service these subscribers has also increased. According to TRAI, the bandwidth required by 2014 may be as high as 800MHz. Spectrum bands such as the 900MHz band are of great value to mobile operators due to the longer ranges these can support, therefore requiring lesser BTSs density and lower capital and operating expenditure. Currently, in the absence of a long-term plan to meet future requirements, the advent of new technologies is expected to create conflicts for spectrum. The availability of spectrum for commercial services in India is below the required levels. Despite being the second-largest market in terms of the subscriber base, India lags behind in terms of availability of spectrum for commercial use. Globally, the allocation of spectrum is separate from the grant of license to provide service. However, in India, licenses are bundled with the allotment of a certain amount of spectrum.Telecom infrastructure service providers face several challenges.
Telecommunication Industry in Malaysia
Malaysia’s telecommunication industry is being administered and managed by the
Ministry of Energy, Water and Communications (MEWC) of Malaysia which serves as a
policy formulator and service regulator for the communication sector. The ministry
regulates the industry through its regulatory body, Malaysia Communications and
Multimedia Commission (MCMC). While still in an expansion phase the Malaysia's telecom sector has undergone some important restructuring. This has involved the regulator progressively introducing reforms. In the meantime, the telecom companies have been doing battle in an increasingly competitive and changing market.
With extensive application of modern technologies, Malaysia has one of the more advanced telecom networks in the developing world. Malaysia has been working towards a clear national objective to see it ranked as a fully developed nation by the year 2020. With its widespread application of modern technologies such as fibre optics, wireless transmission, digitalisation and satellite services, Malaysia has been steadily working towards achieving its goal.
It is true to say that the last decade has seen healthy overall growth in Malaysia's telecom sector. At the same time, substantial government participation in Information & Communications Technology (ICT) development has also been a particular characteristic of the Malaysian market.
Final Incfrastructure Assignment.docx (Size: 37.48 KB / Downloads: 50)
Introduction
The telecom services have been recognized the world-over as an important tool for socio-economic development for a nation. It is one of the prime support services needed for rapid growth and modernization of various sectors of the economy. Indian telecommunication sector has undergone a major process of transformation through significant policy reforms, particularly beginning with the announcement of NTP 1994 and was subsequently re-emphasized and carried forward under NTP 1999.
Driven by various policy initiatives, the Indian telecom sector witnessed a complete transformation in the last decade. It has achieved a phenomenal growth during the last few years and is poised to take a big leap in the future also.
The present telecom and mobile-phone service providers in India, apart from BSNL include Vodafone, Reliance Communications, BhartiAirtel, Idea, Tata Docomo, Aircel and a few others.
Status of Telecom Sector
The Indian Telecommunications network is split between wireless services and fixed land-line networks. The wireless network service, which has the lion’s share with 851.7 million connections as on June 2011, is the second largest in the world. The sector is growing at a speed of 26% during recent years. There are nearly 35 million fixed landlines in India, with 98% of occupied villages having at least 1 phone.
This rapid growth is possible due to various proactive and positive decisions of the Government and contribution of both by the public and the private sectors. The rapid strides in the telecom sector have been facilitated by liberal policies of the Government that provides easy market access for telecom equipment and a fair regulatory framework for offering telecom services to the Indian consumers at affordable prices. Presently, all the telecom services have been opened for private participation.
Telecom Towers:
There are more than 3, 00,000 telecom towers in India with a teledensity of nearly 74% and a projected teledensity of 84% and 1 billion people by 2012. The entire country is divided into 22 zones called circles, which are usually geographical boundaries between states. Bharti has around 30, 000 towers under the company BhartiInfratel and also has a stake in Indus Towers, which is a pool of Vodafone, Bharti and Idea. Reliance Communications, under Reliance Infratel, has nearly 48, 000 towers. The most successful independent Towerco in India is GTL Infrastructure Limited (“GIL”). GIL has a business with a market capitalisation of $730 million and has built an excellent market position in a very short time. The Enterprise Value of each tower in India is nearly USD 1, 00, 000. A Reuters article in September, 2009 estimates the number of telecom towers in India to cross 4, 50, 000 in 2014. This is testimony to the large potential of the telecom sector in India. So with nearly 1, 50, 000 towers to be built there are likely to be a number of investment opportunities in the Indian towers industry over the coming years.
Technology in Telecom:
The Indian telecom industry has matured to a large extent and this is evident from steps like use of fibre-optic cables, a move which has enhanced call clarity & reduced call rates. The 3G data services were recently launched in India, through interested companies bidding in auctions for different circles. Vodafone, Aircel& Reliance were the major winners in the lucrative urban circles of Mumbai, Delhi etc.
Gaps in Infrastructure availability
In 1999, NTP envisaged the affordability and availability of telecommunication services for the common populace, along with the benefit of VAS such as internet for the urban and rural population and the abolition of the digital divide. However, the telecom sector continues to face various issues that act as impediments to its growth.
Major issues impeding the development ¬
The Indian telecom industry has witnessed phenomenal growth in the number of subscribers, with a CAGR of 77.5% during the period FY00–10. Furthermore, according to TRAI, the Indian telecom industry is expected to reach 1 billion wireless subscribers by March 2014. In line with the growth of subscribers, the need for spectrum to service these subscribers has also increased. According to TRAI, the bandwidth required by 2014 may be as high as 800MHz. Spectrum bands such as the 900MHz band are of great value to mobile operators due to the longer ranges these can support, therefore requiring lesser BTSs density and lower capital and operating expenditure. Currently, in the absence of a long-term plan to meet future requirements, the advent of new technologies is expected to create conflicts for spectrum. The availability of spectrum for commercial services in India is below the required levels. Despite being the second-largest market in terms of the subscriber base, India lags behind in terms of availability of spectrum for commercial use. Globally, the allocation of spectrum is separate from the grant of license to provide service. However, in India, licenses are bundled with the allotment of a certain amount of spectrum.Telecom infrastructure service providers face several challenges.
Telecommunication Industry in Malaysia
Malaysia’s telecommunication industry is being administered and managed by the
Ministry of Energy, Water and Communications (MEWC) of Malaysia which serves as a
policy formulator and service regulator for the communication sector. The ministry
regulates the industry through its regulatory body, Malaysia Communications and
Multimedia Commission (MCMC). While still in an expansion phase the Malaysia's telecom sector has undergone some important restructuring. This has involved the regulator progressively introducing reforms. In the meantime, the telecom companies have been doing battle in an increasingly competitive and changing market.
With extensive application of modern technologies, Malaysia has one of the more advanced telecom networks in the developing world. Malaysia has been working towards a clear national objective to see it ranked as a fully developed nation by the year 2020. With its widespread application of modern technologies such as fibre optics, wireless transmission, digitalisation and satellite services, Malaysia has been steadily working towards achieving its goal.
It is true to say that the last decade has seen healthy overall growth in Malaysia's telecom sector. At the same time, substantial government participation in Information & Communications Technology (ICT) development has also been a particular characteristic of the Malaysian market.