Technological Analysis

Telecom industry is capital intensive. Therefore, the product cycle and services must
stay for long before the returns are felt. Licensed operators and equipment
manufacturers are under pressure because technology is uncertain. The revenue of the
firm will decline when technology changes (Gupta, 2015). Telecom sector needs
constant upgrades in order to meet its technological advancements. Telecom capital
expenditure was considered to be non-discretionary and this expenditure increases or
decreases, depending on the technological changes, which occur on a time-to-time
basis and which require an increase in the CAPEX (Capital expenditures) to be
incurred by the operator (Care Ratings Professionals Risk Opinion, 2018). Indian
telecom sector needs more investment in basic infrastructure to provide services in
large scale and geographically widespread population and to boost the present
insufficient spectrum (India Rating & Research, 2012). The government has taken
initial steps towards the development of India such as Smart City Project, Make in
India, Payment banks, and Digital India. The 4G LITE services created a good
platform for the exponential growth of cloud, Internet of Things, Machine to
Machine, big data and analytics which led to huge development of voice, video, and
data (Joshi, 2016). Revolution is taken place in trends and technology. It has been
accepted across the world operators. Now slowly 5G is becoming a reality worldwide
and will evolve naturally from current 4G networks. The 5G will constitute a turning
point for communications in the future, bringing instant high-power connectivity to
devices (Bose, 2019). The telecommunications industry is on the verge of
technological revolution and digital transformation in order to offer its consumers a
wider range of services. Consumers demand better service quality from service
providers. The solution to this problem is to embrace artificial intelligence and
machine learning (Khokale, 2019).

Replacement Technology

Technology in India is replacing very fast with change in time, as the economy is
growing the technology is also, so the company bringing new technology will be very
successful.
Research funding

Govt is providing various tax benefits and subsidies to the players which are in
research and development fields of telecom sector, the govt has also open various
research institutes where the research is done with the collaboration of various private
research companies.

Telecommunications companies with 3G services will no longer be allowed to avail

of tax breaks found under Section 80 IA of the Income Tax Act.

The tax breaks under Section 80 IA are given to companies building infrastructure. In
the telecommunications sector, companies can choose a 10-year period out of the first
15 years of operations to qualify for the tax benefits.

Companies can choose to avail of a 100 percent exemption on taxable profit in its first
five years and a 30 percent exemption for the next five years.

Legal factors

There are many important legal obligations that must be followed by each sector. The
telecom sector has always taken care of all the laws without breaking any of them.

Until 1985, the Indian Telegraph Act of 1885 and the Wireless Telegraph Act of 1932
provided the legal basis for the central government’s telecommunications monopoly.
Under these laws, posts and telecommunications were combined in one P&T
department run by the Ministry of Communications. In the late 1970s and early 1980s
protests against poor service by subscribers, politicians, industrialists, and business
leaders coincided with global and national pressure for liberalization.

A separate Department of Telecommunications (DoT) was established in 1985, under

the Ministry of Communications and two supposedly public sector undertakings
(PSUs)(VSNL and MTNL) were created to expand, develop, and manage crucial
segments of the Indian telecommunications system.

The National Telecom Policy (NTP) of 1994 provided the basis for liberalizing the
telecommunication market. It recognized the importance of liberalization and private
sector participation as key elements of economic development. With the entry of
private sector in the provision of telecommunication services a need was felt to have
an independent regulatory body. The above requirement was indicated in the
guidelines issued for entry of private sector in basic telecom service. Accordingly,
Telecom Regulatory Authority of India (TRAI) was established in the year 1997 in
pursuance of TRAI (Ordinance) 1997, which was later replaced by an Act of
Parliament, to regulate the telecommunication services. Legal framework of telecom
in India is supported by TRAI (Telecom Regulatory Authority of India), having
purpose of Independent regulator to control telecom industry.

India continues to be one of the fastest growing telecom markets in the world.
Reforms introduced by successive Indian governments over the last decade have
dramatically changed the nature of telecommunications in the country. The sector
ranks fifth in the world, with over 103.2 million telephone subscriptions by 2005-end.

Environment factors

Atmosphere changes and a worldwide temperature alteration can influence how media
transmission items achieve clients. As far as business, with innovation propelling,
representatives need to adjust to changes.

In present scenario, telecommunication services are widely used all over the world.
People extensively use telephone services, internet services and many more. Initially,
there were wired phones which are not hazardous to our health and also to the
environment. Now, more than 80 million people use pocket-sized cellular phones as a
principal form of communication and many researches proved that these smaller
phones, with their smaller antenna, increase exposure to microwaves and pose a
potential health threat to the frequent user.

Wireless Technology Research (WTR), formed by the Cellular Telecommunications

Industry Association (CTIA) to research the effects of cellular phones, has indicated
several health problems traceable to radiation exposure due to phone use like many
cases of people suffering from brain tumour, memory loss, and genetic damage in
human blood. A recent study indicated that the number of immune cancer cells
doubled in mice exposed to microwaves.

Cognitive effects: A 2009 study examined the effects of exposure to radiation emitted
by standard GSM cell phones on the cognitive functions of humans. The study
confirmed the existence of an effect of exposure on response times to a spatial
working memory task, as well as the fact that exposure duration may play a role in
producing detectable effects on performance

Health hazards of base stations: Another area of concern is the radiation emitted by
the fixed infrastructure used in mobile telephony, such as base stations and their
antennas, which provide the link to and from mobile phones. This is because, in
contrast to mobile handsets, it is emitted continuously and is more powerful at close
quarters. Base station emissions must comply with safety guidelines. Several surveys
have found increases of symptoms depending upon proximity to electromagnetic
sources such as mobile phone base stations.