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Telecom Revolution

The document summarizes India's telecom revolution. It describes how telecommunication works, the regulatory bodies that govern the industry (TRAI and DoT), and some of the major players like Jio. It outlines how Jio disrupted the market in 2016 by launching 4G services at very low prices, gaining over 100 million subscribers within a year. This forced other providers to lower prices and led to increased internet and smartphone usage across India. The telecom sector has seen significant changes, competition and consolidation since Jio's market entry.

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Avinash Singh
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96 views22 pages

Telecom Revolution

The document summarizes India's telecom revolution. It describes how telecommunication works, the regulatory bodies that govern the industry (TRAI and DoT), and some of the major players like Jio. It outlines how Jio disrupted the market in 2016 by launching 4G services at very low prices, gaining over 100 million subscribers within a year. This forced other providers to lower prices and led to increased internet and smartphone usage across India. The telecom sector has seen significant changes, competition and consolidation since Jio's market entry.

Uploaded by

Avinash Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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TELECOM REVOLUTION

WHAT IS TELECOMMUNICATION?

• COMMUNICATION OVER A DISTANCE BY


ELECTRONIC AND ELECTRICAL MEAN

• INCLUDES ALL TYPES OF VOICE, TEXT ,DATA


AND VIDEO TRANSMISSION

• EXAMPLE–TELEPHONE,FAX,INTERNET
ROUTER, RADIO, ETC
TELECOM REGULATORY BODY

TELECOM REGULATORY AUTHORITY OF INDIA


(TRAI)

 SETUP BY ACT OF PARLIAMENT ON 20 FEBRAURY 1997

TO CREATE AND NURTURE CONDITIONS FOR GROWTH OF


INDUSTRY

DIRECTION ON TARIFFS ,INTERCONNECTIONS, DTH SERVICE


AND MOBILE NUMBER PORTABILITY

CURRENT CHAIRMAN OF TRAI IS RAM SEWAK SHARMA

IT WORKS INDEPENDENT OF GOVERNMENT


TELECOM REGULATORY BODY

DEPARTMENT OF TELECOMMUNICATION (DoT)

IT IS A GOVERNMENT BODY UNDER MINISTRY OF


COMMUNICATION

IT ISSUES LICENSE TO THE OPERATORS

INDIVIDUAL CAN REGISTER COMPLAINT AGAINST


OPERATOR ONLINE TO DoT

IT WAS ESTABLISHED IN 1985


MAJOR MARKET PLAYERS
INDIA GLOBALLY

• 2nd largest in the world by number of


telephone users with 1.183 billion subscriber

• It has one of lowest tariff in the world

• 2nd largest internet user base in the world


with 581.51 million broadband subscribers in
the country

• India’s share globally in terms of internet


userbase in 17%

• India surpassed USA in term of number of app


download to become second in the world
TIMELINE- MAJOR EVENTS
LIBERALISATION
INTRODUCTION GLOBALIZATION
TELECOM IN INDIA BEGAN JIO LAUNCH
WITH INTRODUCTION OF PRIVATIZATION
JIO SERVICES WERE
TELEGRAPH. THE FIRST INDUSTRY WAS OPENED LAUNCHED FOR GENERAL
EXPERIMENTAL ELECTRIC UP FOR INTERNATIONAL PUBLIC ON 5TH SEPTEMBER
TELEGRAPH LINE WAS
STARTED
TELECOM OPERATORS 2016.

1850 1991 2016

1902 1995
INTRODUCTION OF
WIRELESS TELEGRAPH INTERNET
FIRST WIRELESS TELEGRAPH FIRST MOBILE TELEPHONE
STATION ESTABLISHED SERVICE STARTED ON NON-
BETWEEN SAGAR ISLAND AND COMMERCIAL BASIS ON 15
SANDHEAD. AUGUST AND INTERNET WAS
INTRODUCED TO INDIA.
• JIO WAS FOUNDED ON 15TH FEBRAURY 2007.

• SUBSIDIARY OF RELIANCE INDUSTRIES

• HEADQUATER IN NAVI MUMBAI

JIO LAUNCH • JIO SERVICES WAS SOFT LAUNCHED ON 27


DECEMBER 2015.

• ON 5TH SEPTEMBER 2016 IS WAS OFFICIALLY


LAUNCHED FOR GENERAL PUBLIC.

• OFFICIAL SLOGAN “JIO DIGITAL LIFE”


JIO APPS

SERVICES OF
RELIANCE JIO

• CELLULAR SERVICE

• JIONET WIFI
JIO PRODUCTS
TELECOM MARKET - BEFORE AND AFTER JIO LAUNCH

BEFORE SERVICE PROVIDER AFTER


(Rs) (Rs)

BSNL 111
176

AIRTEL 48
249

VODAFONE 49
252

IDEA 49
249

1GB/30DAYS 3GB/30DAYS
ROLE OF TRAI IN LAUNCH OF JIO

• ALLOWED JIO TO EXTEND ITS FREE PROMOTIONAL OFFER

• INCREASED THE LICENSE FEES DRASTICALLY

• FINED RS 3050 CRORE ON BHARTI AIRTEL, VODAFONE INDIA, AND


IDEA FOR ALLEGEDLY DENYING ADEQUATE POINT OF INTERCONNECT
TO JIO
HOW DID JIO MANAGE SUCH LOW PRICE ?

 READY TO TAKE HUGE LOSSES

 OPERATIONAL COST –ONLY 4G


NETWORK

 INFRASTRUCTURE – SELF OWNED


FIBER (OFC) NETWORK

 VOLTE – FREE CALLING


OTHER STRATEGIES

• BULLET-GUN STARTEGY

• SECOND MOVERS ADVANTAGE

• ECONOMY OF SCALE

• ROBUST MARKETING

• QUICK ACTIVATION , SMOOTH SERVICES


ECONOMY OF SCALES

• IT’S A COST ADVANTAGE THAT ENTERPRISE


OBTAIN DUE TO THEIR SCALE OF OPERATION

• JIO IMPLEMENTED ECONOMY OF SCALE

• IT ACHIEVED 130 MILLION USERS WITHIN A


YEAR

• THIS REDUCED COST PER CUSTOMER, THUS


LOWERING THE TARIFF
MARKET SHARE AS ON 31ST MARCH 2016

8.43% 9.91% 16.94% 19.15% 21.26% 24.31%


AIRCEL RELIANCE IDEA VODAFONE OTHERS BHARTI AIRTEL
COM

SUBSCRIBER BASE
MARKET SHARE AS ON 31ST JULY 2019
Ice Cream Infographics for PowerPoint

0.002% 0.29% 9.98% 28.12% 29.08 % 32.53%


RELIANCE MTNL. BSNL BHARTI RELIANCE VODAFONE
COM AIRTEL JIO. IDEA.

SUBSCRIBER BASE
WHAT WENT WRONG WITH RELIANCE COM ?

• LACK OF PROACTIVENESS –CDMA TECHNOLOGY

• LACK OF FLEXIBILITY

• FINANCIAL UNVIABILITY

• INCREASE IN COMPETITION

• INTRODUCTION OF RELIANCE JIO


MERGER AND ACQUISITION AFTER JIO LAUNCH
CONCLUSION
COCLUSION

 ROBUST COMPETITION LED TO CONSUMER BENEFIT

 INCREASED CONSUMPTION OF ONLINE CONTENT

 PROLIFERATION OF 4G SMARTPHONE

 THE DEATH OF 3G

 ARTIFICIAL PRICING ATMOSPHERE


• WAR OVER CALL RING TIME AMONGS JIO ,VODAFONE AND AIRTEL.

• JIO’S REVENUE PER USER DECLINE FOR SEVENTH SUCCESIVE


QUARTER.

• JIO TO CHARGE FOR CALLS ON OTHER NETWORKS.

• 5G SERVICES TO ROLL OUT IN MID 2020.

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