Presentation as part of domain study module in Business Environment course.

1. S. P. Jain Institute of Management & Research Post Graduate Program in Management Information Management 2009 Telecom Sector in India Business Environment Domain Study Presentation 20th Nov 2009 Anjana Rao, Prachi Joshi, Puneet Taneja, Sandeep Sreenivasa

2. Agenda BE - Domain Study - Telecom 2

3. BE - Domain Study - Telecom 3

4. History of Telecom in India- I BE - Domain Study - Telecom 4 First Military Landline from Fort William to Lalbazaar (Calcutta ) by the British Govt Merger with the Postal service Merger of ETC &IRT to form (IRCC) Indian Radio Telegraph Cable Company First Civil landline service introduced for the British Viceroy and his team Formation of Indian Radio Telegraph Company (IRT) Formation of Posts Telephone & Telegraphs under Ministry of Communication

6. New Telecom Policy(NTP) is adopted

7. 1st call on Mobile phone

9. DOT (others)

10. VSNL (International) TRAI created (Telecom Regulatory Authority of India) DOT becomes a corporation = BSNL

11. Quick Facts BE - Domain Study - Telecom 6 Source: TRAI report – Nov 2009

12. Growing Numbers BE - Domain Study - Telecom 7

13. Telecom Companies ? BE - Domain Study - Telecom 8 Bharti-Airtel, Vodafone, Idea, Reliance, Tata Teleservices WTTIL, Tata teleservices tower, QTIL Nokia, Motorola, Samsung, LG, Sony Ericson ARM, Texas Instruments, Qualcomm, Infineon Symbian, Google IBM, Wipro, Aricent, Tech Mahindra Infinera, Cisco, Alcatel Lucent, Nokia Siemens, Huawei

14. Market Share BE - Domain Study - Telecom 9 As on 30th Sep ‘09 Net additions in Sep 09 Tata (26.74%) > Bharti (16.78%)

15. Handset market BE - Domain Study - Telecom 10 Source: IDC Press Release

16. Growth Avenues BE - Domain Study - Telecom 11 3G Enterprise Telecom Services Growth Avenues Rural Telephony WiMax Infrastructure Sharing Value Added Services Managed Services Virtual Private Network

17. Urban-Rural Telephony BE - Domain Study - Telecom 12

18. BE - Domain Study - Telecom 13

20. Rs. 40,000 Crore quarterly revenue figures for this industrySo How all this happened?

21. TRAI functions BE - Domain Study - Telecom 15

22. Agenda BE - Domain Study - Telecom 16

23. Spectrum Allocation

24. Spectrum Allocation in India

25. Agenda BE - Domain Study - Telecom 19

26. India’s Competitive Advantage BE - Domain Study - Telecom 20 Fastest growing free market democracy Cost advantage in product development and back office processing Stable economic outlook – Decade long reforms Huge market potential – one of the largest consumer markets Large talent pool Source: www.telenor.com

29. Growing affordability and lifetime free schemes have care a market at the bottom of the pyramid.

31. Rapidly developing robust telecom infrastructure.

32. Increasing disposable income of consumers.

34. Handset players are setting up manufacturing bases in India for better operation management.

35. Many telecom and equipment and software companies are based in India.Source: IBEF Report

36. FDI in Telecom Sector BE - Domain Study - Telecom 22 Third largest sector to attract FDI in India Source: IBEF Report

37. Agenda BE - Domain Study - Telecom 23

38. VAS (Value Added Services) SMS VAS services, Bulk Messaging, B2B and B2C Voice IVR Mobile Radio, Voice chat, English Learning, Devotional and Astrology, Music on Demand Content downloads Mobile WAP Portal Consumer Applications Enterprise solutions : Mobile CRM, Mobile SFA CRBT (Caller ring back tones) USSD Message along with *141# Flash alerts

39. VAS offerings BE - Domain Study - Telecom 25

40. VAS market in India BE - Domain Study - Telecom 26 VAS: Not a form of basic service but adds value to the total service offering Contributes to 10% of total revenue from telecom operators The corresponding figure in developed nations is ~25%

41. Present Segments BE - Domain Study - Telecom 27 Source: IAMAI Report

42. Why mobile VAS ? BE - Domain Study - Telecom 28

43. VAS value chain BE - Domain Study - Telecom 29

44. Rural VAS BE - Domain Study - Telecom 30

45. Agenda BE - Domain Study - Telecom 31

46. Industry Updates BE - Domain Study - Telecom 32

47. Bharti-MTN deal BE - Domain Study - Telecom 33

48. India 3G Story Source: Google Trends BE - Domain Study - Telecom 34

49. Jan 14th 2010 BE - Domain Study - Telecom 35

50. Agenda BE - Domain Study - Telecom 36

51. Mobile Number Portability(MNP) BE - Domain Study - Telecom 37 Source: Voice and Data

52. Mobile Virtual Network Operator BE - Domain Study - Telecom 38

53. Wimaxv/s 3G BE - Domain Study - Telecom 39 Source: Business Standard

54. Generations BE - Domain Study - Telecom 40

56. IEEE 802.16e STANDARDS

57. BROADBAND EVOLUTION

58. Long term evolution

59. 3GPP

60. 80%

61. MOLILE EVOLUTION4G BE - Domain Study - Telecom 41

62. Agenda BE - Domain Study - Telecom 42

64. Competitive tariffs

65. VAS applications on Device

66. Spectrum management

67. Broadband expansion in Rural

68. Transition to NGN

69. Content Regulation of Data

70. Ecosystem to facilitate M&A

71. Reduce Circles to relax Roaming

73. References Trai – Quaterly Report (Nov 2009). IBEF report 2007-08 : Telecommunication - MARKET & OPPORTUNITIES. Cellular Statistics – Cellular Operator Association of India IAMAI & eTechnology Group@IMRB: MOBILE VALUE ADDED SERVICES IN INDIA- A Report. Telenor Entering India: Investment Update Voice and Data(May 2009): Mobile Number Portability - Poaching with Portability. Business India : Telecom Takeover, Bharti-MTN deal BE - Domain Study - Telecom 45 Thank You for Your Attention !