Telecom Sector: Industry Overview

Telecom Sector
Industry overview:
Telecom sector in India, like other sector goes up to tremendous growth and
diversification. A conducive business environment, favorable demographic outlook and
political stability enjoyed by the country led to the growth of this sector. Various new
technologies have entered in telecom sector which make the sector hot for investment
by the companies. The whole traditional system of telecommunication now changed to
more advanced versions like CDMA, GSM and WLL Also many private players are
taking keen interest in this sector, making efforts to improve it and provide the best to
their customers.
The telecom industry is one of the fastest growing industries in India. India has nearly
200 million telephone lines making it the third largest network in the world after China
and USA. With a growth rate of 45%, Indian telecom industry has the highest growth
rate in the world.
Key Initiatives of Telecom Sector in India
Initiatives in telecom sector began in 1980 with telecom manufacturing being opened for
private sector followed by national telecom policy (NTP) in 1994 and 1999. These
initiatives were as follows:
 The decade of 1980's saw private sector being allowed in telecommunications

equipment manufacturing.
 Mahanagar telephone nigam limited (MTNL) and Videsh sanchar nigam limited
(VSNL) were formed.
 A telecom commission was set up to give focus to telecommunications policy

formation
 In 1990s, telecommunications sector also benefited from the general opening up

of the economy
 NTP 1994 was the first attempt to give a comprehensive roadmap for the Indian
telecommunications sector.
 Availability of telephones on demand (targeted by 1997
 Telecom services at affordable and reasonable prices
 NTP 1999 brought in the third generations of reforms in the Indian

Telecommunications sector.
Telecom Sector
 FDI increase from 49% to 74%.
 Internet telephony in 2002.
 Launch of CDMA technology.
 3-6 operators in each circle.
 Broadband policy 2004.
Major players in the telecom sector in India
 Bharat Sanchar Nigam Limited (BSNL)
 Mahanagar Telecom Nigam Limited (MTNL)
 Reliance Communications
 Bharti Airtel
 Tata Teleservices Ltd.
 Vodafone
 Idea Cellular
 Spice
 BPL
 Aircel
Services provide by these players
GSM: Global System for Mobile Communication is a digital cellular telephone

technology that is based on time-division multiple access; it operates on the 900-
megahertz and 1.8-gigahertz bands in Europe
CDMA : Code Division Multiple Access is a digital wireless transmission technology that
allows for a large amount of users to share access to a single radio channel.
WLL: Wireless Local Loop is a wireless connection of a telephone in a home or office to

a fixed telephone network. This connection to the telephone system is made without
cables.
Telecom Sector
3G: 3G refers to the third generation of mobile technology.
Broadband : these players provide a broadband facility which we can easily connect to
internet with a very high speed.
Ventures outside India
 Bharti Airtel in Sri Lanka has 2G 3G services since 2006.
 Tata Communication has a stake of 53% with NEOTEL.S Africa
 MTNL is working with Nepal Communication.
Present scenario of Indian telecom sector
 India is 4th largest market in Asia after China, Japan and South Korea.
 Indian telecom network is 8th largest in the world and 2nd largest among
developing countries.
 Telecom sector revenue contribution is 2.1% to GDP is far better as compared to

2.8% in emerging economies.
 Low call rates is the benefited to public.
 Indian telecom sector with 237million subscribers (June 2007). This figure is set
to grow further as 9-10 million subscribers keep getting added every month.
 More GSM subscribers than fixed line phones.
 Increasing with the annual growth rate of about 45%.
Future scenario of Indian telecom sector
 Expected to reach total subscriber base of about 500 millions by the year 2010.
 Up gradation of 3g technology.
Telecom Sector
 Research on 4G technology is going so that updated technology arrives soon in
the market.
 Huge job opportunities are there in future because of its speed of growing.
 The Telecom sector revenues would touch $30 billion by 2013 registering a
compound annual growth rate (CAGR) of 12.5 percent between 2009-2013.
 The Telecom subscriber base is also expected to grow at a CAGR of 12.5
percent and would cross 770 million by 2013.
 Mobile market penetration is projected to increase to 63.5 percent in 2013 from
38.7 percent in 2009.
Conclusion
Telecom sector in India has a great a great future because of the rise in the number of
people in using latest technologies. From which they can do their business sitting from
home or elsewhere. As the trend of business going on a global level the telecom sector
will always get a rapid growth. Lots of job opportunities are there for the new player.
Many training institutes and management institutes are opened especially to give
practical knowledge to the people eager to join this sector.

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Telecom Sector

Key Initiatives of Telecom Sector in India

 The decade of 1980's saw private sector being allowed in telecommunications

 A telecom commission was set up to give focus to telecommunications policy

 In 1990s, telecommunications sector also benefited from the general opening up

 Availability of telephones on demand (targeted by 1997

 Telecom services at affordable and reasonable prices

 NTP 1999 brought in the third generations of reforms in the Indian

 Internet telephony in 2002.

 Launch of CDMA technology.

 3-6 operators in each circle.

 Broadband policy 2004.

Major players in the telecom sector in India

 Bharat Sanchar Nigam Limited (BSNL)

 Mahanagar Telecom Nigam Limited (MTNL)

 Tata Teleservices Ltd.

Services provide by these players

GSM: Global System for Mobile Communication is a digital cellular telephone

WLL: Wireless Local Loop is a wireless connection of a telephone in a home or office to

Ventures outside India

 Bharti Airtel in Sri Lanka has 2G 3G services since 2006.

 Tata Communication has a stake of 53% with NEOTEL.S Africa

 MTNL is working with Nepal Communication.

Present scenario of Indian telecom sector

 Telecom sector revenue contribution is 2.1% to GDP is far better as compared to

 Low call rates is the benefited to public.

 More GSM subscribers than fixed line phones.

 Increasing with the annual growth rate of about 45%.

Future scenario of Indian telecom sector

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