Telecom industry

 Telecommunications industry deals with the activities and

services of electronic systems for transmitting messages through
cables, telephone, radio or television.
 History of Telecommunication

 Telecommunication is the assisted transmission of signals over a

distance for the purpose of communication.
 In earlier times, this have involved the use of Primitive Sign
Language, smoke signals, drums, semaphore, flags, or heliograph.
 Drums were used by natives in Africa, New Guinea and South
America whereas smoke signals were used by natives in North
America and China. Contrary to what one might think, these
systems were often used to do more than merely announce the
presence of a camp.
 In the 1790s the first fixed semaphore systems emerged in Europe;
however it was not until the 1830s that
electrical telecommunication systems started to appear.
 Distance telecommunications

 Visual signals (non-electronic):

 Prehistoric: Fires, Beacons, Smoke signals
 6th century BC: Mail
 5th century BC: Pigeon post
 4th century BC: Hydraulic semaphores
 490 BC: Heliographs
 15th century AD: Maritime flags
 1790 AD: Semaphore lines
 19th century AD: Signal lamps
 Audio signals:
 Prehistoric: Communication drums, Horns
 1838 AD: Electrical telegraph. See: Telegraph history.
 1876: Telephone. See: Invention of the telephone, History of the
telephone, Timeline of the telephone
 1880: Photophone
 1896: Radio.
 Advanced electrical/electronic signals:

 1927: Television.
 1930: Videophone
 1964: Fiber optical telecommunications
 1969: Computer networking
 1981: Analog cellular mobile phones
 1982: SMTP email
 1983: Internet
 1998: Satellite phones
 Evolution of the industry-Important Milestones

 1851 First operational land lines were laid by the government

near Calcutta (seat of British power)
 1881 Telephone service introduced in India
 1883 Merger with the postal system
 1923 Formation of Indian Radio Telegraph Company (IRT)
 1932 Merger of ETC and IRT into the Indian Radio and Cable
Communication Company (IRCC)
 1947 Nationalization of all foreign telecommunication
companies to form the Posts, Telephone and Telegraph (PTT), a
monopoly run by the government's Ministry of Communications
 1985 Department of Telecommunications (DOT) established, an
exclusive provider of domestic and long-distance service that
would be its own regulator (separate from the postal system)
 1986 Conversion of DOT into two wholly government-owned
companies: the Videsh Sanchar Nigam Limited (VSNL) for
international telecommunications and Mahanagar Telephone
Nigam Limited (MTNL) for service in metropolitan areas.
 1997 Telecom Regulatory Authority of India created.
 1999 Cellular Services are launched in India. New National
Telecom Policy is adopted.
 2000 DoT becomes a corporation, BSNL
Company Name Market Cap in Crores
Bharti Airtel 108066.23
Reliance Communications 32683.44

Idea Cellular 14368.92

Tata Communications 13181.25
Tata Teleservices 4393.06
Spice Communications 4136.13
MTNL 4044.6
GTL 2475.12
GTL Infrastructure 2210.49
OnMobile Global 1403.52
HFCL Infotel 457.73
ITI 413.28
Him.Fut.Comm 386.99
Astra Microwave 241.88
Gemini Communications 125.71
Avaya Global 118.54
Shyam Telecom 64.58
Nelco 63.55
XL Telecom & Energy Limited 55.96
Goldstone Infratech Ltd 52.6
Nu Tek 48.16
Kavveri Telecom 26.51
Krone Communications 24.52
Mobile Telecommunications Ltd 17.37
Valiant Communications 16.58
Pun.Communi. 16.19
Nettlinx 12.68
Aishwarya Telecom Ltd 9.86
Interg.Digit 3.15
Vital Communications 2.81
 INTRODUCTION

Telecom industry in India has undergone a

revolution in the recent years. The country is ranked
second worldwide in terms of having the largest
telecommunication network, after China.
 With the ongoing investments into infrastructure
deployment, the country is projected to see high
penetration of Internet, broadband and mobile
subscribers.
Telecommunications industry deals with the
activities and services of electronic systems for
transmitting messages through cables, telephone,
radio or television.
Two major factors responsible for the growth of
telecommunications industry are use of modern
technology and market competition
One of the products of modern technologies is
optical fibers, which are being used as a medium of
data transmission instead of using coaxial or twisted
pair cables.
Optical fibers can carry a high volume of data and
are easier to maintain and install. Use of
communication satellites make this
telecommunications industry a booming industry.
 Employment opportunities in telecommunications industry

Telecommunication industry has created immense

employment opportunities.
Most of the employees in this industry are engaged
in large establishments, although there are some
small establishments, where a large number of small
contractors are involved.
 Fifty five percent of all workers are engaged in office
and administrative support occupations. The other
occupations of this industry relate to installation,
maintenance, and repair .
 Telecom industry overview

With a growth rate of 45 percent, the Indian telecom

industry is booming. Apart from providing mobile
and broadband subscriptions, the telecom industry is
also involved in the manufacture of telecom
equipment.
 Growth Potential

As economic growth continues at a stable 8% p.a., as

Indian customers continue to embrace the currently
under-penetrated mobile technology, and as
regulatory policy continues to favor investment in
the sector, this growth path is likely to continue.
India's telecom service revenue was ~USD 30 billion
in 2008, and Ernst and Young analysts believe it is
projected to almost double to ~USD 55 billion by
2012, thereby contributing over 6% to the GDP.
Market Structure

 Divided into 22 circles

Jammu &

 4 metros
Kashmir

Himachal
Pradesh
Punjab

 19 circles Haryana
Uttar
Pradesh
North Eastern
States
W

– Further divided into A, Rajasthan

DELHI
Uttar Pradesh E

B and C category based

Bihar
West
Gujarat Madhya
Bengal
Pradesh

on economic parameters Maharashtra

Orissa KOLKATA

and revenue potential MUMBAI

Andhra

 Each circle has a licenses

Pradesh

Karnataka
METRO Circles

 Licenses are saleable CHENNAI

A Circles
Tamil Nadu
B Circles
Kerala

C Circles

20 Source :COAI
21
22
 TRAI

 The TRAI acts as an independent regulator of the business of

telecommunications in the country, which is funded by Central
Govt.
 TRAI follows the Telecom Regulatory Authority of India Act-1997
which was amended in 2000.
 The mission of Telecom Regulatory Authority of India (TRAI) is
to ensure that the interests of consumers are protected and at the
same time to nurture conditions for growth of
telecommunications, broadcasting and cable services in a
manner and at a pace which will enable India to play a leading
role in the emerging global information society.
 Objective

 The main objective of TRAI is to form a transparent and fair

policy environment that encourages fair competition.
 TRAI has issued from time to time a large number of regulations,
orders and directives to deal with issues coming before it and
provided the required direction to the evolution of Indian telecom
market from a Government owned monopoly to a multi operator
multi service open competitive market.
 The various powers and functions of TRAI are that

 The authorities recommend the timing and need for the

introduction of a service provider that is new, ensure successful
inter- connection and technical compatibility between various
service providers.
 Suggest the terms and conditions on which license would be
provided to a service provider.
 Issue directions to service providers.
 The authority sees that terms and conditions that it has
formulated are being followed
 Regulate the arrangements between the service providers in
order to ensure that they share the revenue that are derived from
supplying telecommunication services
 Suggest license revocation when there is non- fulfillment of terms
and conditions of the license.
 Give advice to the government at the center on subjects that are
connected with the development of the telecommunication
technology.
 Charge fees at rates that may be fixed by regulations
 Perform functions that the central government may entrust, and
also carry out functions that are necessary according to the TRAI
Act, 1997. 
 Efficient management of available spectrum.
 Ensure compliance of Universal service obligation (USO).
 Monitor the service quality, and also conduct survey periodically
of the service that is being provided by the service providers.
 Settlement of disputes that arise between service providers
 Resolution of disputes between Government (in its role as
licensor) and any licensee.
 Maintaining a register of the agreements that are interconnected.
Current Industry Structure

Ministry of Communication & Information Technology

Licensor
Dept of Telecom Unified License Operators

Fixed Line Operators

Regulator
Telecom Regulatory National Long Distance Operators
Authority of India CDMA
International Long Distance
1800Mh
Judiciary Operators
z
Telecom Dispute
Wireless Operators
Settlement Appellate
Tribunal GSM
FDI in telecom recently revised to 74%. 900 &
31 1800
Government gets 15% of revenues from Unified Licensing
Rank in world in network size                  3rd

Tele–density (per hundred populations)        52.74

Telephone connection (In million)

Fixed                                                        36.95

Mobile                                                    548.32

Total                                                                                  621.28

Village Public Telephones inhabited (Out of 5,93,601 uncovered       5,69,385

villages)
Foreign Direct Investment (in million)  (from April 2000 till       4070
March  2010) 
 Licenses issued

Basic                                                         2

CMTS           38

UAS                                                         241

Infrastructure Provider I                         219

ISP (Internet)                                           371

National Long distance        29

International Long Distance         24

 Performance of telecom equipment manufacturing sector 

 Government policy, progress has been achieved in the

manufacturing of telecom equipment in the country.
 There is a significant telecom equipment-manufacturing base in
the country and there has been steady growth of the
manufacturing sector during the past few years
 (Rs. in crore)

Year Production Export

2002-03 14400 402

14000
2003-04 250

2004-05 16090 400

2005-06 17833 1500

2006-07 23656 1898

2007-08 41270 8131

2008-09 48800 11000

2009-10 50000 13500

 Rising demand for a wide range of telecom equipment,
particularly in the area of mobile telecommunication, has
provided excellent opportunities to domestic and foreign
investors in the manufacturing sector. The last two years saw
many renowned telecom companies setting up their
manufacturing base in India
 Ericsson set up GSM Radio Base Station Manufacturing facility
in Jaipur. Elcoteq set up handset manufacturing facilities in
Bangalore.
 Nokia and Nokia Siemens Networks have set up their
manufacturing plant in Chennai.
 LG Electronics set up plant of manufacturing GSM mobile
phones near Pune. Ericsson launched their R&D Centre in
Chennai.
 Flextronics set up an SEZ in Chennai. Other major companies
like Foxconn, Aspcom, Solectron etc have decided to set up their
manufacturing bases in India.
 The Government has already set up Telecom Equipment and
Services Export Promotion Council and Telecom Testing and
Security Certification Centre (TETC).
 A large number of companies like Alcatel, Cisco have also
shown interest in setting up their R&D centers in India. 
 With above initiatives India is expected to be a manufacturing
hub for the telecom equipment.
Components and factors responsible behind the growth of telecommunications industry

 Two major factors responsible for the growth of

telecommunications industry are use of modern technology and
market competition.
 One of the products of modern technologies is optical fibers,
which are being used as a medium of data transmission instead of
using coaxial or twisted pair cables.
 Optical fibers can carry a high volume of data and are easier to
maintain and install.
 Use of communication satellites make this telecommunications
industry a booming industry.
 The use of mobile network has a crucial role behind the growth of
an improved telecommunications industry. Leading companies
are showing their interest to invest in this telecommunications
industry.
 Telecommunications industry is going to be a digitized one. Use
of ISDN (Inter Services Digital Network) makes this
telecommunication industry a total digitalized system and
eventually enhanced the speed and quality of digital
communication.
 The introduction of these advanced technologies makes the
telecommunications industry a competitive one, where a number
of multinational companies have shown their interest to invest in
this industry and consequently the prices are reduced, the quality
is also improved. During the period of 1990, the
telecommunication industry showed a speedy growth in terms of
investment and eventually increased the competition. The
competition between the companies led to the decline of
revenues.
 World Telecom Industry

 World telecom industry is an uprising industry, proceeding

towards a goal of achieving two third of the world's telecom
connections. Over the past few years information and
communications technology has changed in a dramatic manner
and as a result of that world telecom industry is going to be a
booming industry. Substantial economic growth and mounting
population enable the rapid growth of this industry.
 Research works associated with world telecommunication industry

 A number of research works are being carried out all over the
world to improve the quality and speed of transmission. Research
works are also done on the basis of the users' needs. The
objective of the research work is to provide quality and
affordable service to the consumers.
 Market potentiality of world telecommunication industry

 The world telecommunications market is expected to rise at an 11

percent compound annual growth rate at the end of year 2010.
The leading telecom companies like AT&T, Vodafone, Verizon,
SBC Communications, Bell South, Qwest Communicationsare
trying to take the advantage of this growth. These companies are
working on telecommunication fields like broadband
technologies, EDGE(Enhanced Data rates for Global Evolution)
technologies, LAN-WAN inter networking, optical
networking, voice over Internetprotocol, wireless data service etc
 Economical aspect of telecommunication industry

 World telecom industry is taking a crucial part of world economy.

The total revenue earned from this industry is 3 percent of the
gross world products and is aiming at attaining more revenues.
One statistical report reveals that approximately 16.9% of the
world population has access to the Internet
 Present market scenario of world telecom industry

 Over the last couple of years, world telecommunication industry

has been consolidating by allowing privateorganizations the
opportunities to run their businesses with this industry. The
Government monopolies are now being privatized and
consequently competition is developing. Among all, the domestic
and small business markets are the hardest.
 U.S. Telecom Industry

 U.S. telecom industry is the most prosperous telecommunication

industry in the world, which covers a wide range of areas and
services like telephone, television, Internet, radio and so many.
U.S. telecom industry primarily deals with the services of
transmitting message through mediums like cables, satellites etc.
 Principal divisions of U.S. telecom industry

 U.S. telecom industry specifically consists of three primary

sections namely technical, regulatory and economic. These three
sectors work together to make the U.S. telecom industry a
prosperous one. U.S. telecom industry began with the telegraph
industry and gradually focus towards wireless and online
services
 Components and services of U.S. telecommunications industry

 Components and services of U.S. telecommunication industry

include wireless technologies, digital technologies and mobile
network services.
 Wireless technology is a form of technology for data
communication without wires, which is alternatively called radio
transmissions. This technology is more affordable and easy to
use. American engineers started using digital technology from the
mid-twentieth century and with the use of ISDN(Inter Services
Digital Network), information will be transmitted in a completely
digital fashion.
 Economic perspective of U.S. telecom industry

 Telecommunication industry is the key force of American

economy. U.S. telecommunication industry extends it's activities
in almost every sector, from education to health care or banking
and finance. U.S. telecom industry enables an overall of 75%
U.S. labor productivity gains.
 Prime objectives of U.S. telecommunication industry

 U.S. telecommunication industry designed to achieve the target of

creating more than 212,000 jobs in it's telecommunication
industry. Besides creating new job opportunities, some other
objectives of U.S. telecommunication industry include adding
customer value by providing them innovative services like VoIP
(Voice over Internet Protocol), creating an overall of $58 billion
capital investment opportunities and generating $113 billion new
revenues in it's telecom industry.
 China Telecom Industry

 China telecom industry has an enormous business potentiality

and is targeting on the development and application of advanced
technologies specifically on wireless and broadband services.
China telecom industry is rapidly prospering towards the world's
leading market in telecommunication industry and consequently
employment opportunities are also growing. Government of
China is also encouraging this industry by adopting technical
support and expert services from Canadian Aprel Laboratories
for the development of wireless telecommunication industry.
 Recent developments of China telecom industry

 China telecom industry is trying to issue 3G(third generation)

mobile licenses. Only 12 countries have issued '3G' mobile
communications, which is a combination
of wireless mobile technology with data transmission
capabilities. The three 3G standards comprise of WCDMA
(Wideband Code Division Multiple Access), TD-SCDMA(Time
Division-Synchronous Code Division Multiple Access) and
CDMA 2000 (Code Division Multiple Access). TD-SCDMA can
be treated as one of the most advanced technologies for mobile
operators.China telecommunication industry is also going to
enhance the Internet accessibility for the users throughout the
world.
Leading telecommunication service providers of China telecom industry

 A number of state run companies are primarily involved with

China telecom industry. Some of the leading providers of telecom
services include China Telecom and China Netcom, who are
engaged in fixed line business activities. China Mobile and China
Unicom are engaged with the mobile sector of China telecom
industry. Some minor companies include China Tie Tong, China
Satcom. China Government is also encouraging foreign
operators to access the telecom industry.
 Economic perspective of China telecom industry

 China telecom sector is prospering rapidly. The growth rate of

this industry from year 1997 to 2000 was about 20%. Out of
China's overall telecom sector, the mobile operators have
invested an average of 25 billion US dollars in a year. With
respect to the number of subscribers, China possesses the world's
largest fixed-line and mobile network industry.
 Telecom Industry Analysis

 Telecom industry analysis uncovers the fact that this industry has

a huge business potentiality and is going to be a booming
industry. Telecom industry analysis also reveals that this industry
will provide an immense employment opportunity in the coming
years.
 Statistical report

 Phoenix Center research revealed that in the coming years, there

will be a healthy competition among the providers of
telecommunication services. At the same time, the price will be
lower and quality will be higher. The new telecommunications
technologies will replace the traditional telecom services.
Statistical data also reveals that
the telecommunications industry is going to be a dynamic and
booming industry in the near future. The telecom industry
comprises of complex network of services like telephones, mobile
phones and internet services.
 Telecom industry trends

 Throughout the world, telecom industry are being controlled

by private companies instead of government monopolies.
Traditional telecom technologies are also being replaced by
modern wireless technologies, specifically in case of mobile
services. One of the major objectives of telecom industry is to
enhance the quality and speed of Internet technology.
 These days, telecom industry is more concerned with texts and
images (Internet technologies), rather than voice(telephone
service). Most of the research works are going on Internet
accessibility, specifically on data applications and broadband
services. The other major division of telecom industry is mobile
network sector, where lots of innovative research works are going
on. Previously the traditional telephone calls used to earn the
maximum revenues, but these days mobile service is going to
replace traditional telephone services.
 Telecom industry analysis from the experts point of view

 Telecom industry is a vast and diversified industry and needs a

huge capital to invest. That is why the competitors of
this industry should be such that they can meet that demand.
From the investor's point of view, it can be said that they should
be well aware of cash flow in this industry.
Bharti Airtel number one telecom company: Survey

 Bharti Airtel retained its leading position among telecom service

providers and posted a growth of five per cent to end 2009-10 fiscal
with revenues of Rs. 38,800 crore, the survey said

 Telecom service provider Aircel recorded the highest growth of 37.2

per cent among operators in 2009-10, while Bharti Airtel retained its
leading position, according to a survey by journal ‘Voice and Data’

 Aircel, which recorded the highest growth among the top 10 telecom
players, posted a revenue of Rs. 4,700 crore to move to the number
eight slot, the survey by telecom industry journal ‘Voice and Data’
revealed.

64
 Bharti Airtel retained its leading position among telecom service
providers and posted a growth of five per cent to end 2009-10
fiscal with revenues of Rs. 38,800 crore, the survey said.
 Vodafone recorded 13.7 per cent growth to emerge as the third
largest player with revenue of Rs. 23,200 crore, it said.
 Leading public sector telecom giant BSNL saw a drop in its
revenue for the second consecutive year to post Rs. 30,240 crore,
a drop of 14 per cent, even though it retained the number two
position among telecom players.
 The company’s mobile subscriber base grew by a third to touch
70 million, the survey found.
 “Reliance Communications reported a negative growth of 3.5 per
cent with revenue of Rs. 22,130 crore to occupy the number four
slot,” the survey pointed said.
 Idea Cellular, Tata Communications and Tata Teleservices
retained their slots at number 5, 6 and 7 with revenues of Rs.
11,390 crore, Rs. 11,000 crore and Rs. 6,900 crore, respectively.
 The other public sector telecom giant MTNL’s revenue dropped
nearly by a fifth - highest among the top 10 players - to Rs. 3,650
crore, it revealed.
 The third Tata group company, TTML, ranked number 10 among
the Top 10 telecom players, with revenues of Rs. 2,300 crore
helped the group earning go past the Rs. 20,000 mark.
 Stricter guidelines soon for mobile radiation

 The Union government finally seems to have woken up to the

health hazards related to radiation from mobile towers and
handsets. The Ministry of Communications and IT is considering
a high-level study to find out the level of electromagnetic
frequency (EMF) radiation from towers and handsets in order to
frame stricter regulations to rein in erring operators and handset
manufacturers.
“It is high time we addressed the issue of radiation, as
strong objections have been raised by experts and civil
society over the uncontrolled spread of mobile towers
and import of cheap handsets that could have serious
impact on the health of people. I will soon be meeting
health and telecom experts to evolve a strong
monitoring mechanism for the same,” Minister of State
for Communications and IT Sachin Pilot told TheHindu.
 All post offices to be computerised by 2012

 Union Minister of State for Communications and Information

Technology Sachin Pilot on Sunday said all post offices across
the country would be computerised by 2012, and that Rs.1,877
crore has been sanctioned for the same. Selected post offices
have already been included in ‘Project Arrow' to enable them to
join the telecom revolution, he added.
Addressing a postal insurance function at Bhudol
village in Ajmer district, Mr. Pilot said new schemes
were being executed in the postal department with a
vision for the future. As many as 140 post offices in
Rajasthan are presently being modernised.
He said the postal insurance scheme would make life
easier for the rural people and labourers in the
unorganised sector. “Their life will be insured on the
payment of a premium as low as Rs.20 to Rs.25 a
month.”
News
 Union Budget 2010: Nothing Special for Telecom Industry

The union Budget 2010-11 neglected the telecom

industry's special demands.
Telcos were looking at a rationalisation of tax and
levies, uniform license fee of one per cent of the AGR.
Telcos wanted a re-look at direct tax, tax holidays and
section 81 (A), a re-look at licenses and indirect taxes.
As far as infrastructure products are concerned,
oeprators were hoping for a boost in telecom
infrastructure and wanted telecom to be included as part
of infrastructure, so that all tax holidays applicable to
infrastructure are applicable to telecom.
Telcos wanted FM to remove bank guarantees for
telecom.
 Top 10 Mobile Phone Networks in India 2010

August 6, 2010
Voice and Data magazine from CIOL Network has released the data regarding the
top telecom service providers in India 2009-10.

As per the data the top 10 telecom companies are ranked as below
1. Airtel Rs. 38,800 crore
2. BSNL Rs 30,240 crore
3. Vodafone Rs 23,200 crore
4. Reliance Communications Rs 22,130 crore
5. Idea Cellular Rs 11,390 crore
6. Tata Communications Rs 11,000 crore
7. Tata Teleservices 6,900 crore
8. Aircel Rs 4,700 crore
9. MTNL Rs 3,650 crore
10. TTML Rs 2,300 crore
 Egypt imposes restrictions on news text messages

Egypt has imposed new regulations to monitor the news

and advertisement text messaging, a move criticised as
an attempt to prevent anti-government ideas ahead of
November's Parliamentary elections.
 The National Telecommunication Regulatory Authority
(NTRA) told companies which provide such services
that they must first have authorisation from the the
supreme council for journalism and Information
Ministry to send SMSs.
Meanwhile, sources said the decision was an attempt to prevent
anti-regime ideas, meddling with the stock market or instigating
ethnic violence.
An official at the NTRA denied there were political dimensions to
these regulations noting that they targeted adjusting the status of
30 companies that operate in Egypt without a definite legal frame.
over and above the regulations are meant to abort an agreement
the Muslim Brotherhood finalised with one of the sms advertising
companies to send out hundreds of thousands of text messages
prior to the parliamentary elections next month.
 
A head of one the service providing companies said that there
had been meetings with the NTRA over the past two weeks
with a representative of the state security investigations
attending .
During these meetings the new regulations were presented to
the service providing company managers including censoring
the texts and cutting off 3 per cent of the revenues of the
company to fund the censors' salaries. 
It is worth noting that Egypt had refused to place a ban on
the use of the Black Berry texting feature, contrary to many
other Arab countries
 India To Have Mobile Number Portability From Oct 31

The telecom regulator of India on Thursday said mobile number

portability (MNP) will be rolled out nationwide from Oct 31.
However, the service was delayed many times due to improper
infrastructure.
 
The MNP is a service that allows a mobile user to change his
operator while retaining the number.
 
 "There will be no further delay in the implementation of MNP,"
Telecom Regulatory Authority of India (TRAI) Chairman J S Sarma
said in New Delhi.
 
The Department of Telecom (DoT) also asked the telecom operators
to ensure all inter-operator tests for porting the numbers from one
service provider to another before Sept 1, 2010.

The DoT also made it clear that in case they fail to implement MNP
as per the scheduled deadline, they will be disqualified from
launching any new commercial services from Sept 1.

"It has been decided that permission to launch commercial service

in any area with effect from September 1, 2010 shall be given to
only those licensee(s) who are MNP compliant," said DoT in a
statement.
State-run Bharat Sanchar Nagar Nigam and Mahanagar
Telephone Nigam Limited have said they are ready with
the infrastructure to implement the MNP service.

Previously, the service was delayed three times. Last time,

the MNP service was to be implemented from June 30,
2010.
 BSNL To Launch 'Mobile Money Transfer' Service

BSNL, as a part of extending facilities to its customers,

will be starting the money transfer service soon. The
telecom major has tied up with the State Bank of
India (SBI) in this regard.
 
The customers of BSNL network, under the service
would be able to pay their mobile bills and also landline
bills just by calling their banks and requesting
for money transfer, the BSNL's (Bihar Circle) General
Manager Vijay Kumar said.
Besides, talking about the network congestion in
Kishanganj district, he noted that a proposal to set up 10
new BTS in the region has been made to fix the setback.
 
BSNL, with its telecom circles in all over India including
Andaman & Nicobar, has about 66.88 million customers
as of June 2010 and the company plans to increase it to
160 Million by March 2014. Currently, BSNL ranks as the
third largest cellular service provider in India.
TRAI Suggests 10-Digit Telephone Numbers For Landline Connections

A ten-digit phone number for fixed landline connections

are likely to be introduced in India. The Telecom
Regulatory Authority of India (TRAI) has suggested
bringing ten-digit numbers for fixed landline phones to
meet the growing number of landline connections.
 
"Both fixed line and mobile phones will have a 10-digit
number. This would make available enough numbers to
cater to expansion of existing services and introduction
of new services for the next 30-40 years," TRAI said.
Given the current growth rate, it is being anticipated that the
numbers for telephone connections would be completed and
there could be shortage of numbers in future. It is expected
that the system could be implemented by December next year.

TRAI also noted that the existing 10-

digit numbering for mobile telephones has to be continued.
TRAI said, "The existing 10-digitnumbering scheme for
mobile telephony should be continued to avoid inconvenience
to the customers that would accompany any move to shift to
an 11-digit numbering scheme."
Smartphone Market To Capture 54% Of Asia-Pacific Market By 2015

Smartphone market is expected to capture about 54 percent of the Asia-

Pacific region, according to an industry report.  

The report said the smartphone market is likely to generate around $38

billion for telecommunication operators in Asian markets. With this the
smartphone segment would cover about half of the Asian market.

“The Asia-Pacific market is particularly interesting for smartphones as

there has been significant uptake in emerging markets like China, India
and Indonesia, even among prepaid users," Consultancy Frost and
Sullivan’s industry manager, Marc Einstein was quoted as saying in the
report.
Apple’s iPhone and Research in Motion's BlackBerry are reported
as being most liked brand among the business professionals. 
Smartphones are the mobile phones or handheld devices that
usually come with connectivity features and run on operating
system. Initially, smartphones entered markets to cater mainly to
corporate professionals. Now with the development of
smartphone market in emerging countries in Asia-Pacific region
including India and China, smartphones are largely purchased
for even non-corporate purposes like gaming and social
networking. This has led to drastic expansion in the segment.
Further, it is expected a total of 477 million units of smartphone
sales by the year 2015.
 Nokia To Set-Up Its Server In November

Nokia has today said that it would set up its server in India
in November to adhere to the country’s security issues.
"We are launching the server on November 5 in compliance
with all the rules and regulation in the country...It is for
hosting mail and ensuring that the government has access
(to the data)," Nokia India Managing Director D.
Shivakumar was quoted as saying.
Nokia’s move would probably force
BlackBerry maker Research in Motion (RIM) also to set up
its server in the country.
Indian government has been serious with regard
to security issues and asked RIM to provide solution over
the deeply encrypted data.
 The data, which is said to be highly completed, could be
misused by militants to carry attacks on India. The data is
also difficult to monitor because of its complication.
Now RIM is being expected to set up its server in India to
operate in India. 
Nokia comes with announcement of setting up its server
amidst the RIM’s security issues remaining unsolved.
 Government Set To Allocate 3G Spectrum To Operators

he 3G spectrum will be allocated to Bharti Airtel, Reliance

Communications, Vodafone and other service providers today, the
Department of Telecom said on Tuesday.
The government will be allocating the 3G services with Defence
agreeing to provide radio airwaves.
September 1 was scheduled as the last date for allocating spectrum
to operators. And the services are expected to be rolled out by the
end of this year or during early 2011.
With the 3G and 2G services, operators would launch of high-
speed broadband access in India. Through the spectrum allocation,
the operator would now use radio waves to provide high-speed
connectivity.
Besides offering high-quality voice calls, users will also
be able to enjoy high-speed internet connection and
access TVs, movies and music.
The third generation spectrum went on auction recently
and the overall sale brought about Rs. 67,000 crore to the
government.
India To Demand Data Access From Google And Skype?

ndia could issue notices to Google and Skype demanding to set

up their server and data access in the country, sources said.
G.K. Pillai, the Home Secretary was reported as saying,
‘similar demands would be made to Google and Skype’ also. 
The Indian government had asked BlackBerry to provide
access to its encrypted data and set up its server in the country.
Fearing about the militants’ misuse of information on the
Internet, the Indian government had imposed a deadline on
August 31 to come up with a solution. The company had finally
agreed to set up its server in the country.
BlackBerry has faced similar issued in Saudi Arabia also,
where the government had warned the company that it
would ban the BlackBerry services. 
Meanwhile, Nokia on Monday said that it would set up its
server in India, a move that would force even other
major telecom operators for similar action.
 AKAI Forays Mobile Market By Launching 10 Models

KAI, the consumer electronics firm, has forayed into the mobile
handset market by launching 10 new models under its brand. 
AKAI’s new mobile phones come with dual SIM capacity, full touch
3-D user interface, e-book capability and social networking sites. 
The Japan-based consumer electronics firm has entered the mobile
phone market with the target of making 40 percent of its total
revenues from mobile phones.
"We are expecting an overall turnover of Rs.435 crore by July 2011
and mobile sales are expected to contribute around 40 percent of
the total revenues with targeted monthly sales of one lakh handsets
from October onwards," said Pranay Dhabhai, managing director,
AKAI India.
The handsets come priced between Rs.1,895 and
Rs.7,995.
"We hope to become a prominent player in the Rs.700
billion mobile handset market in the coming years," he
added.
Headquartered in Singapore, the company is into
manufacturing consumer electronics including televisions,
microwave ovens, washing machines, DVD players,
and home theatres.
 Vodafone Sells $6 Billion Stake In China Mobile

odafone Group is selling its 3.2 percent stake worth $6.6 billion
in China Mobile, the company announced. Accordingly, the
company sells a share at HK$79.2, sources said.
The world’s largest telecommunication service
provider Vodafone sells the China Mobile shares as a move to
sell off the minority stakes. It is noteworthy, that Vodafone had
earlier said that it would reconsider about holding minority
stakes.
The announcement comes as the company’s lock-up period on
the stake had ended recently. The telecom major now has plans
of focusing on core markets including Europe, India and Africa.
Eight major banks including Bank of America, UBS,
Goldman Sachs, Merrill Lynch, Morgan Stanley, JP
Morgan and HSBC are reportedly managing the placing.
The share prices of China Mobile were seen down by 4.15
percent on Wednesday.
The UK-based Vodafone Group plc is the largest telecom
operator by revenues and has over 300 million
subscribers worldwide as of June 2010. The company has
a market capitalization of 80.2 billion Pounds as of
August 2010.
 Tata Teleservices Touches 75 Million Subscribers, Becomes Fourth
Largest Telecom Operator

Tata Teleservices today announced that the company has crossed

the 75-million subscriber mark. With this the telecom operator
becomes the fourth largest telecom service provider in the country. 
The company saw a consistent growth in subscriber base in the last
year. Now it has touched 76.9 million subscriber base. In August
alone, Tata Teleservices added about 2.1 million new subscribers.
Telecom industry in India has immense competition and Tata
Teleservices, following the low price strategy has attracted as many
subscribers to survive in the battle.
Besides, other major telecom operators including Airtel, Vodafone
and Reliance are reportedly having more than 100 million wireless
subscribers.
Tata Teleservices operates mobile services under three
brand names including Tata Indicom, Tata DoCoMo and
Virgin Mobile besides providing GSM and CDMA
services.
The telecommunications industry in India is one of the
fastest growing industries with 688.38 million telephone
subscribers and 652.42 million mobile phone
connections as of July 2010. The major drive behind the
growth of the industry is price war, due to which the call
and messaging rates have reduced significantly in India.
 Tata Indicom- Rx Healthcare Magic Jointly Bring Medical Services
Over Phone

Tata Indicom on Wednesday introduced its new emergency medical

service called ‘doctor on call’ in partnership with Rx Healthcare Magic
Private Ltd. With the new service, customers of Tata Indicom and Tata
Walky can call up to doctors for medical assistance 
Based on the intensity of the problem, doctors would offer suitable
suggestion to callers via phone. Accordingly, patients are divided into three
categories including acute, chronic and emergency. 
In case of acute condition, doctors would suggest home remedy and in case
of chronic patients would be suggested to take preventive measures. In case
of emergency, the patient would be asked to rush to the hospital nearby.
To determine the condition of the patient, doctors would ask medical
history of the patient and other details including age, gender and marital
status.
Initially, patients would be charged with Rs. 9 per minute, Tata
Indicom said.
"Today advanced mobile telephony is offering complete mobility
services in the interest of the common man and having introduced
the medical emergency service we have ensured that our subscribers
get the best in class value- added services at a nominal fee," said
Vineet Bhatia, regional head, Tata Teleservices Limited 
Tata Teleservices recently crossed the 75-million subscriber mark
becoming the fourth largest telecom service provider in the country.
The telecom major with the launch of medical services over phone
seems to be still endeavoring to expand its subscriber base.
 Bharti Airtel To Sell African Business Zain To Bharti Infratel?

Bharti Airtel is likely to sell its recently acquired African

business, Zain, to its arm Bharti Infratel to meet the cash
requirements, reports said on Thursday.
The deal, which has been priced between Rs. 12,000 and Rs.
15,000 crore, would be completed by December, according
to the report. 
Falling subscriber base could also be the reason for the
company’s move as it expected aggressive growth there.
However, a company’s statement said that no decision has
been finalised in this regard and declined to comment on
these speculations.
The company’s African business is reported to have made
Rs 224 crore loss in the June quarter. However, there is no
official word from the company regarding the deal.
Bharti Airtel had acquired Zain Africa for an enterprise
valuation of USD 10.7 billion on June 2010. The
acquisition made it the world’s fifth largest
wireless telecom company with 179 million subscriber
base in 18 countries.
BlackBerry Maker RIM Reports Huge Revenue At $4.62 Billion In Q2

BlackBerry maker Research In Motion’s revenue for the second

quarter has reached sky high with about 31 percent growth at $4.62
billion. The company’s higher profit comes despite it facing several
difficulties including threat of ban from few countries including India.
The company attributes its whopping revenue mainly to the huge sales
of BlackBerry Torch 9800. The BlackBerry Torch 9800 model was not
much appreciated smartphone and was not expected to make such
overwhelming sales.
Despite growing apprehensions about its network security, the
company has added nearly 4.5 million new users in the quarter. RIM
still hopes to make stronger sales in the coming quarters as well with
more new products coming up in the smartphone line-up.
"RIM set another new record in the quarter by shipping
over 12 million BlackBerry smart phones. This
accomplishment and RIM's solid financial results during
the second quarter were driven by effective business
execution and strong demand for RIM's portfolio of
BlackBerry smart phones and services in markets around
the world," said RIM co-CEO Jim Balsillie.
RIM, currently, is reported to have 50 million subscribers.
 Beetel Teletech Enters Into Mobile Phone Market, Launches 8 New
Handsets

Bharti Group is entering the mobile phone market with the launch
of eight new handsets. Bharti’s arm Beetel Teletech Limited,the
telecom major, has forayed into the growing mobile phone market
and targets for top five position in three years. 
“The market is huge and there is a room for Indian players...
Phones in the price range of Rs 2,000-6,000 are witnessing 30 per
cent growth and we plan to offer a good combination of feature-rich
phones at affordable prices,” Beetel Teletech Limited Executive
Director and CEO Vinod Sawhny said during the announcement.
The mobile phones launched ranges from Rs 1,750-7,000. Beetel
says it was ‘important for it to enter the handset market with a
product for masses’.
The Beetel range of phones comes with exciting features
including Facebook, Yahoo, Opera Mini, Ibibo and much
more that attracts youth population.
Bhrati’s Airtel, which one of the major telecom
service providers with large number of subscriber base, is
also from Bharti’s Group. On answering whether Airtel
services would be put together with the Beetel handsets,
he said, “We shall be talking to all the GSM players for
bundling our handsets and it will not be restricted to only
the group's flagship company.”
EZ Texting Sues T-Mobile For Blocking Text Messages

A marketing firm called EZ Texting has sued T-Mobile

for blocking text messages related to a lawful marijuana
dispensary.
According to the lawsuit, T-Mobile willingly blocked the
text messages related to a marijuana dispensary.
However, the lawsuit says that the company can censor
or block text messages which seem to be unlawful.
Meanwhile, T-Mobile has also announced that it would
increase the tariff on text message soon.
Shane Neman, the CEO of EX Texting, said, “The fact is
T-Mobile ... put my business in jeopardy without any
warning, without any justification, and without any
appeal. It's like the Wild West out there. You don't know
what the rules are.”
It is not the first case of such a lawsuit as a similar
lawsuit was filed against Verizon in 2007. However, it
later allowed the text messages on the network.
 18.18 Million Subscribers Added In August

early 18.18 million subscribers have been added in the month of

August, the Telecom Regulatory Authority of India (TRAI) today
said.
With this the overall Indian mobile phone subscriber base has
reached 59.63 percent at 670.60 million. 
The wireless subscriber base has increased from 652.42 million in
July, 2010, to 670.60 million in August showing the growth rate at
2.79 percent.
The telecom operator Vodafone has contributed maximum at 2.30
million users taking its subscriber base to 113.77 million.
Besides, the total number of telephone subscribers in India has
reached 706.37 million by the end of August.
The Indian telecommunication network is the second
largest network in the world after China. The
country’s telecommunication industry has witnessed
tremendous growth in the past decade. As of 2001, there
were only 5 million mobile subscribers in the country
which has grown over 650 million by 2010. Moreover, the
subscriber base is expected to cross 97 percent by 2014.
BSNL’s Rs 2,395 Crore Request For Rural Broadband Rejected

BSNL’s request for Rs 2,395 crore additional grant to set up rural

broadband infrastructure has been rejected by the government. 
The state-owned telecom major had requested for an additional Rs 2,395
crore grant for bringing WiMax rural project.
“...BSNL is seeking only Rs 2,395 crore against rural deployment and
BSNL has absorbed Rs 6,650 crore as its own cost by apportioning only 20
per cent spectrum cost. With the present allotted grant for Wi-Max, BSNL
will be able to cover about 17,000 Common Service Centres (CSCs) using
Wi-Max Broadband access instead of 62,000 CSCs planned originally,”
BSNL said in its letter to the Department of Information Technology (DIT).
As BSNL’s request has been rejected, the company would
now limit the WiMAX deployment to 1,798 base
stations for the rural broadband project which has been
granted by DIT.
“In case the DIT rejects the request, the company would
be forced to limit the WiMAX deployment to 1,798 BTS as
per the DITgrant received so far,” the letter stated.
 Samsung Earnings Likely To Fall In Q3

Samsung Electronics, the world's largest memory chip maker has

announced that its third quarter profit has come down as compared
to the previous quarter's record profit signalling the declining
global demand.  
The South Korea-based company expects consolidated operating
profit of between 4.6 trillion won and 5 trillion won ($4.1 billion to
$4.5 billion) for the quarter ended Sept. 30.
Last quarter, the company earned 4.22 trillion won in the third
quarter last year. However, its second quarter of 2010 showed some
good results when the company earned more than 5.01 trillion won.
Meanwhile, Samsung shares fell 2.5% to 773,000 won in the
ongoing week fuelling rumours of declining Asian stocks.
The US economy would grow slower, said an
International Monetary Fund statement on Wednesday.
 Many other major economies in Europe are also expected
to grow slowly.
Samsung is the world's second largest handset maker
after Finland's Nokia Corp.
The company recorded net profit of 3.81 trillion won in
the third quarter of 2009.
 Telecom companies’ profit margins to remain under pressure: Analysts

With rock-bottom tariffs and spiralling business

expenses, the profit margins of domestic telecom players
is expected to remain under pressure in the coming
months, feel marketmen.
“Tariff wars and heightened cost of business have taken
a toll on the telecom sector. As we expect tariff wars to
re-emerge and competition to intensify in the medium
term, it is believed that margins will remain under
pressure,” a research report by Edelweiss Capital said.
In the past 10 months, headline tariffs have been stable, but revenue
per minute (RPM) has declined 22 per cent.
After implementation of mobile number portability (MNP) on
October 31, and launch of 3G services, analysts anticipate re-
emergence of tariff wars.
While the street is arguing that operators will be rational in pricing
3G services, having paid significant licence fees, marketmen believe,
operators will be under pressure to build scale in these services and
will likely price them attractively to achieve scale, the report added.
According to market experts, Idea, Aircel and Tata Docomo will
utilise the MNP opportunity to target Bharti’s and Vodafone’s high
usage customers.
The street and incumbent operators believe that MNP will be a non-
event as it has been delayed and since customers already possess dual-
SIM phones that enable the use of same handset for two numbers.
It is expected that subscribers possessing a dual-SIM phone would be
indifferent to MNP.
The entry of mobile virtual network operator (MVNO) will lead to
further pressure on business for incumbents. This, combined with
expensing of interest cost and amortisation of 3G licence fee will lead
to lower profitability.
Analysts expect some operators (Tata Docomo, RCom, Idea, Aircel and
BSNL) to utilise the MNP opportunity to lure the high usage customer
base of incumbents, especially, Bharti and Vodafone.
 WorldSIM offers global roaming SIM

WorldSIM, a leading mobile virtual network operator,

has launched its international roaming SIM, WorldSIM,
in India. It appointed Hash10 Telecom Pvt. Ltd. as its
exclusive master distributor for India.
Addressing presspersons here on Wednesday, M. S. Abu
Thahir, CMD and K. Vaidhyanathan, CEO, Hash10
Telecom, said the card would enable customers get free
incoming in 80 countries and could make outgoing calls
from over 200 countries at competitive rates.
Mr. Vaidhyanathan said Hash10 was launching this card as pre-
paid and the all outbound travellers could top-up through vouchers
and online through the web portal. The card, priced at Rs.2,750
(including Rs.500 talktime) would be available with both a U.K. and
U.S. mobile number on the same SIM. In future, multiple local
numbers would be added to the SIM, he said. Mr. Vaidhyanathan
said India was the fastest growing outbound travel market. More
than 45,000 people were travelling abroad daily and growth of
outbound travel was increasing by 20 per cent annually.
He said, the card, as per the government guidelines, would not work
in India and the same would work when they go out of India.
Reliance Industries re-enters telecom through 95 per cent stake buy in Infotel

The removal of the non-compete clause from their family

settlement has allowed Mukesh Ambani-owned Reliance Industries
(RIL) to re-enter telecom — through the broadband wireless route.
RIL has picked up 95 per cent stake in Mahendra Nahata-
promoted Infotel Broadband Services, which has bagged the
maximum 22 circles for Rs 12,848 crore in the just concluded
auction for broadband wireless.
 RIL will invest about Rs 4,800 crore into Infotel. Nahata is one of
the promoters of equipment maker Himachal Futuristic
Communications that bid an astounding Rs 85,000 crore for the
original telecom licences in 1994, a bid that nearly scuttled
India’s nascent telecom industry then. 
RIL will now compete with Reliance Communications (RCom),
Bharti Airtel and Vodafone and nine other players, including five
new players in broadband wireless. RCom in its earlier avatar as
Reliance Infocomm was controlled by Mukesh Ambani. However,
it went to Anil Ambani when the brothers split.

Though technically voice telephony can be offered under BWA

licence, the telecom policy and the internet service providers
(ISP) licence prohibits use of voice telephony. Currently, ISP
licencees are allowed to offer PC-to-PC voice telephony only.
However, with the definition of PC getting blurred and
their sizes shrinking to handheld devices, it may not be
long before voice services emerge on BWA too. At policy
level there is a precedence. In 2002, a ministerial group
on telecom and information technology allowed basic
service licence offering limited mobility to provide full
mobility to subscribers. For widespread usage, though,
low-cost BWA handsets are a must. 
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