BSBCMM401A

1. BSBCMM401A • Task One

2. Purpose of the Presentation. To provide understanding of the economic and political situation in India and their associated factors to make a balanced investment decision in telecommunication industry.

3. Overall economic and political environment • Stable government. • Mixed economy- more inclined towards capitalism. • GDP- Growth rate 8.3%. • Unemployment rate-10% • Inflation rate- 8.82% • Marching towards economic integration with west. • Sharp decrease in Unions impact on business.

4. Unemployment rate-10% • Inflation rate- 8.82% • Marching towards economic integration with west. • Sharp decrease in Unions impact on business.

5. Demographic situation. • Population- 1.21 billion. • Proportion of working age to reach 65% by 2025. • Continuous fall in the age dependency ratio. • Self employed sector – 60%. • More women in jobs. • Vibrant civil society.

6. Financial assistance. • Easily available loans from banks. • Government subsidised financial assistance. • Industry specific tailored financial aids. • Low rate finance plans for projects creating opportunities in rural employment.

7. Advantages & disadvantages Advantages- • Low Labour Cost. • Large Talent Pool. • Large Market Potential.

8. Disadvantages- • Sluggish pace of reform process. • Lack of infrastructure in semi-rural and rural areas. • Limited spectrum availability.

9. Statistics • 7 major players in the market. • Investment- US $55.95 Billion. • Revenue- US $45 Billion. • Land Lines- 34.73 Million. • Cell Phones- 811.59 million. • World’s third largest internet users- 100 million.

10. Telecom Regulatory Authority of India (TRAI) ConsumerProtection. Quality of Service Affordable Tariff Interconnections Regulations, directions and Orders Recommendations

11. The Telecom Regulatory Authority of India is the independent regulator established in 1997 by the Government of India to regulate the telecommunications business in India. • 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.

12. Responsibilities. • make recommendations, either suomotu or on a request from the licensor, on the following matters, namely: • need and timing for introduction of new service provider; • terms and conditions of license to a service provider; • revocation of license for non-compliance for terms and conditions of license: • measures to facilitate competition and promote efficiency in the operation of telecommunication services so as to facilitate growth in such services.

13. technological improvements in the services provided by the service providers. • type of equipment to be used by the service providers after inspection of equipment used in the network. • measures for the development of telecommunication technology and any other matter relatable to telecommunication industry in general; • efficient management of available spectrum.

14. discharge the following functions, namely: • ensure compliance of terms and conditions of license; • notwithstanding anything contained in the terms and conditions of the license granted before the commencement of the Telecom Regulatory Authority (Amendment) Ordinance,2000, fix the terms and conditions of inter-connectivity between the service providers;

15. ensure technical compatibility and effective inter-connection between different service providers. • regulate arrangement amongst service providers of sharing their revenue derived from providing telecommunication services; • lay down the standards of quality of service to be provided by the service providers and ensure the quality of service and conduct the periodical survey of such service provided by the service providers so as to protect interest of the consumers of telecommunication services.

16. lay down and ensure the time period for providing local and long distance circuits of telecommunication between different service providers; • maintain register of interconnect agreements and of all such other matters as may be provided in the regulations; • keep register maintained under clause (viii) open for inspection to any member of public on payment of such fee and compliance of such other requirement as may be provided in the regulations; • ensure effective compliance of universal service obligations.

17. levy fees and other charges at such rates and in respect of such services as may be determined by regulations. • perform such other functions including such administrative and financial functions as may be entrusted to it by the Central Government or as may be necessary to carry out the provisions of this Act: • Provided that the recommendations of the Authority specified in the clause (a) of this sub-section shall not be binding upon the Central Government:

18. Provided further that the Central Government shall seek the recommendations of the Authority in respect of matters specified in sub-clauses (i) and (ii) of clause (a) of this sub-section in respect of new licence to be issued to a service provider and the Authority shall forward its recommendations within a period of sixty days from the date on which that Government sought the recommendations: • Provided also that the Authority may request the Central Government to furnish such information or documents as may be necessary for the purpose of making recommendations under sub-clauses (i) and (ii) of clause (a) of this sub-section and that Government shall supply such information within a period of seven days from receipt of such request:

19. Provided also that the Central Government may issue a licence to a service provider if no recommendations are received from the Authority within the period of specified in the second provision or within such period as may be mutually agreed upon between the Central Government and the Authority. • Provided also that if the Central Government having considered that recommendation of the Authority comes to a prima facie conclusion that such recommendation cannot be accepted or needs modifications, it shall, refer the recommendations back to the Authority for its reconsideration, and the Authority may within fifteen days from the date of receipt of such reference, forward to the Central Government its recommendation after considering the reference made by the Government. After receipt of further recommendation, if any, the Central Government shall take a final decision.

20. Questions