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Indian Telecom Journey. Bigger hit than any Bollywood movie. Topics. The Journey so far! Where it stands today? What Next?. Organizational changes. 1854:A regular, separate department was opened, when telegraph facilities were thrown open to the public.
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Indian Telecom Journey Bigger hit than any Bollywood movie
Topics • The Journey so far! • Where it stands today? • What Next? Telecom India DailyTM
Organizational changes • 1854:A regular, separate department was opened, when telegraph facilities were thrown open to the public. • Dr. O'Shaughnessy was the first Superintendent of Electric Telegraphs in India and later became the first Director General. • 1914: World War I, Postal Department and the Telegraph Department were amalgamated under a single Director-General. • 1st April, 1950: In 1950 the number of Telephone Exchanges absorbed from princely states was 196. • The installed capacity of these 196 exchanges was 13,362 lines with 11,296 working connections. Telecom India DailyTM
Organizational changes • 1981:Prime Minister Indira Gandhi signed contracts with of France to merge with the state owned Telecom Company (ITI), in an effort to set up 5,000,000 lines per year. • January 1985: two separate Departments for the Posts and the Telecommunications were created. • 1986 : Mahanagar Telephone Nigam Ltd. (MTNL) was created. • 1989:The Telecom Commission was constituted. • January 1997: Telecom Regulatory Authority of India (TRAI) was formed. • 1st October 2000:Department created BSNL, a new entity to operate services in different parts of the country as a public sector unit. Telecom India DailyTM
Policy Changes • 1986:Department reorganized the Telecommunication Circles with the Secondary Switching Areas as basic units. • 1994 : First National Telecom Policy was introduced and the sector was opened up for privatization. • 1998: First tariff order issued in –thus reforms effective from 1998. • 1999 : The second National Telecom Policy was introduced to take the telecom sector to next level. • 2004 : The policy for Broadband was defined with the aim to increase the internet penetration in India. Broadband was define initially as 128 Kbps which was later changed to 256 kbps. Telecom India DailyTM
Market Changes • 1985: First mobile telephone service started on non-commercial basis in Delhi. • 1994 : India was divided into 20 telecom circles and today we have 23 circles categorized as Circle – A, B & C. • 1995: GSM entered India. Historic first cell phone-call was made by Mobile Net-joint venture between Telstra (Australia) & B.K. Modi group. First call was made by Jyoti Basu. • 1996: Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle. • The sector was liberalized and private mobile operators began their journey. Telecom India DailyTM
Telecom Growth Telecom India DailyTM
Topics • The Journey so far! • Where it stands today? • What Next? Telecom India DailyTM
Indian Telecom Statistics Telecom India DailyTM
Existing Operators Telecom India DailyTM
New Players Telecom India DailyTM
M & As (1998-2005) Telecom India DailyTM
M & As (2005-2008) Telecom India DailyTM
Market Statistics – 2008-09 Telecom India DailyTM
New Initiatives • Reasons for high growth are changes or initiatives taken in the recent years. • One Indian Plan launched in 2006 heated up the price war in India. • New Licenses given by Government in 2008 added up in ongoing competition – 120 new licenses awarded. • Lowest tarrifs in the world with local calls reaching 10 paise/min and STD tarrifs dropping to 50 paise/min from high tarrifs of 17 Rs/min in 1994 • Reduction in Handset prices has made mobile a common weapon tool. Telecom India DailyTM
Topics • The Journey so far! • Where it stands today? • What Next? Telecom India DailyTM
Market Forecast - 2012 • Total subscribers to reach 700 million. • Wireless users will reach 640-650 million. • Fixed line will dwindle around 45-50 million. • Telecom services revenue will reach 54 USD billion. • Rural sector will be the key driver with potential of increasing tele-density from 15 % today to 40% in coming years. • Data revolution to be fuelled by 3G & WiMAX with 25-30 million 3G subscribers and WiMAX touching user base of 8-10 million. • Internet users to reach 45 million; Broadband users to reach 25-30 million and Mobile internet users to reach 196 million. Telecom India DailyTM
Challenges for Operators Decline in Tariffs Falling ARPU Telecom India DailyTM
Innovation will be key Mobile VAS will evolve with new technologies and an operator with good service portfolio will command the market • New Innovative ideas and services will hold the key for telecom operators to generate revenue and sustain in this competitive market. • Convergence of Mobile, fixed line & internet will give rise to new services. • Fixed Line will be saved by Broadband, IPTV and VoIP services. • Mobile will see new technologies like 3G, 4G (LTE) and WiMAX. Telecom India DailyTM
Thanks! • Sources • DOT • TRAI • COAI & AUSPI • Ernest & Young • IMRB • BDA • Telecom India Daily (internal research) • ……..open internet Telecom India DailyTM