GROWTH PROSPECTS OFINDIA’S TELECOS IN 2012GROUP MEMBERS:VEDANT PODDARPIYUSH K CHANDAKKESHAV JHAMUNNESHWAR SINGHVIKAS SAINIMOHAMMAD IRFAN
PRESENTATION PLAN• Introductionby Vedant Poddar• Telecom Investment Attracting Sectorby Piyush K. Chandak• Regulatory Framework and its Impactby Keshav Jha• Emerging Trendsby Munneshwar Singh• Growth Opportunitiesby Vikas Saini• Growth Avenues (Conclusion)by Mohammad Irfan
INTRODUCTION• Big market potentiality• socio-economic development• Telecom Regulatory Authority of India (TRAI) was formed in 1997• Two segments, which are Fixed Service Provider (FSPs) and Cellular Services.• The sector requires 14 billion units of electricity annually• India: An Ideal Destination for Investments in Telecom Sector
Indian Telecom Investment Opportunities(1)• Second largest telecom penetration, world’s highest monthly additions.• Indian Telecom sector to witness huge investments .• Telecom Subscribers to cross 1.5 billion by 2015 and 5 billion by 2020.
Indian Telecom InvestmentOpportunities(2)• About 25 per cent ( Appx. 300 million) would be 3G/4G subscribers• About $ 70 Bn. is estimated to be invested in rolling out green field 2G, 3G/4G• The total investment in the pan-India broadband rollout is expected to be $ 20 Bn,.
Regulatory Framework provides level playing field for all operators The Department of telecommunications (Government of India) is the main governing body for 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. Indian Telecom Industry Framework Indian Telecom Industry Framework Indian Government Independent Bodies Bodies Wireless Planning Handles spectrum allocation and Coordination Telecom Regulatory Independent regulatory body and management (WPC) Authority of India (TRAI) Department of DoT – Licensee and frequency Telecommunicatio Telecom Disputes Telecom disputes settlement management for telecom body ns Settlement and Appellate Tribunal (TDSAT) Telecom Commission Exclusive policy making body of DoT Group on Telecom Handles ad hoc issues of the and IT (GoT-IT) telecom industry 8
RECENT REGULATORY NEWS A. Liberalization of long distance segment B. Corruption investigation still on for 2G spectrum C. Mobile number portability D. Fresh guidelines for telemarketer. E. User tally crossed 800 mn. F. Increase in FDI limit to 74% & 100% in manufacturing G. New telecom policy expected in Jan 2012
Concerns… • Advent of 4G • Licensing and sale of spectrum • Below cost pricing and industry profitability • Managing competition • Security • Managing M&A
FUTURE GROWTH DRIVERS Burgeoning Middle Class Booming MNs add every year Knowledge Sector Large Young major global hub for Population IT enabled services. 60% population below age of 35 GROWTH High GDP Growth Competition 8% -9% p.a. in next Innovation leads to coming years. growth Rising Income Levels 4th largest economy.
Technical Opportunities Mobile TV Mobisodes M- Commerce entertainment M wallet and Mobile video clips. Banking. Video on Demand Entertainment, news, sports etc. GROWTH Mobile Gaming Positive shift of consumer’s Data Cards behavior. need to connect LBS anywhere and Market place anytime. navigation, emergency etc.
Major Players in different segments of Indian telecom industry Basic Services Operators MOBILE SERVICES GSM Services Operators BSNL Airtel MTNL Reliance Vodafone Idea TTSL Reliance Internet Services Operators BSNL BSNL CDMA Services Operators MTNL Reliance Reliance TTSL TTSL BSNL Airtel TTSL – Tata Teleservices Ltd. 17