Report on Telecom Service Provider Industry

Report prepared by
Group VI Section B
As a fulfillment of the course in

Industry Analytics

Post Graduate Program 2008-2010

Industry Report on Telecom Service Provider Industry

Report prepared by
Group VI Section B Members 1. Ajay Goyal 2. Geetanjali Ghosh 3. Natasha Jain 4. Ritesh Bhansali 5. Satam Roy As a u! i!!ment o t"e course in Industry Ana!ytics

Post Graduate Program 2008-2010

DECLARATION

#"is is to dec!are t"at t"is report on $The Telecommunications Service Sector "as been made or t"e partia! u! i!!ment o t"e course% Industry Ana!ytics in #erm & III o PGP 'Batc" 2008-2010( by t"e group members) #"e *or+ *as underta+en by t"e o!!o*ing members) #"e members e,press t"at t"e contents o t"e report "a-e been done .oint!y and t"e -ie*s contained t"erein "a-e been discussed and de!iberated in u!!) #"e group ta+es responsibi!ity o t"e contents and agrees to go t"roug" t"e re-ie* process) MEMBERS
1) A.ay Goya!

SIGNATURE 08PG0//

2) Geetan.a!i G"os" 08PG080 1) 2atas"a 3ain 4) Rites" B"ansa!i 5) Satam Roy

08PG101 08PG111 08PG125

Post Graduate Program 2008-2010

AC NO!LEDGEMENT
At the successful completion of our project !e !oul" li#e to e$press my sincere %ratitu"e to all the people !ithout !hose support this project !oul" not &e complete". At the onset ' !oul" li#e to than# my institute (Alliance Business School) for %i*in% us the opportunity to un"er%o this research project. +e !oul" also li#e to ac#no!le"%e the constant help an" encoura%ement of our project %ui"e ,rof. Sami# Shome !ho has %i*en his *alua&le su%%estions an" e$pert %ui"ance an" support. +e !oul" also li#e to than# all those !ho ha*e "irectly or in"irectly helpe" us in the preparation of this report.

E"ECUTI#E SUMMAR$
#"is report e,amines t"e emergence o inno-ation and -a!ue creation or en"ancing customers6 e,perience7 as a resu!t o increasing competition in t"e Indian te!ecom industry during t"e !ate 1000s and ear!y 2000s) #"e report pro-ides a detai!ed account o t"e e-o!ution o t"e Indian te!ecom industry) It traces -arious de-e!opments in t"e industry be ore7 during and a ter t"e !ibera!i8ation o t"e Indian te!ecom sector) It a!so pro-ides in ormation about t"e increasing popu!arity o ce!!u!ar ser-ices *"ic" !ed to t"e emergence o se-era! pri-ate te!ecom operators !i+e B"arti #e!e Ventures7 9utc"ison #e!ecom7 Idea :e!!u!ar ;td7 Re!iance #e!ecom ;td7 etc) <ue to t"e "uge mar+et potentia! e-en pub!ic sector underta+ings !i+e BS2; and M#2; "a-e a!so begun o ering ce!!u!ar ser-ices apart rom basic *ire !ine ser-ices) #"e ast trac+ gro*t" o t"e Indian te!ecom industry "as made it a +ey contributor to India=s progress) India adopted a p"ased approac" or re orming t"e te!ecom sector rig"t rom t"e beginning) Pri-ati8ation *as gradua!!y introduced7 irst in -a!ue-added ser-ices7 o!!o*ed by ce!!u!ar and basic ser-ices) An independent regu!atory body7 #e!ecom Regu!atory Aut"ority o India '#RAI(7 *as estab!is"ed to dea! *it" competition in a ba!anced manner) #"is gradua! and t"oug"t u! re orm process in India "as a-oured industry gro*t") #oday7 t"ere are more t"an 225 mi!!ion te!ecom subscribers in India) >-ery mont"7 ?-/ mi!!ion ne* subscribers are added) @pcoming ser-ices suc" as 1G and AiMa, *i!! "e!p to urt"er augment t"e gro*t" rate) Burt"ermore7 t"e Indian economy is s!ated to sustain its /-0 per cent gro*t" rate in t"e near uture) #"is is supported by t"e po!itica! stabi!ity t"at t"e country is e,periencing current!y) India=s demograp"ic out!oo+ ma+es it one o t"e !argest mar+ets in t"e *or!d) A conduci-e business en-ironment is a!so created by a a-ourab!e regu!atory regime) #"ere e,ists enormous business potentia! or te!ecom companies on account o t"e country=s !o* te!e-density7 *"ic" is c!ose to 10 per cent present!y) #"e Indian te!ecom industry is gro*ing at t"e astest pace in t"e *or!d and India is pro.ected to be t"e second !argest te!ecom mar+et g!oba!!y by 2010)

LIST O% TABLES
#ab!e 1)1% #e!ecom Statistics o t"e *or!d #ab!e 1)2% Cutgoing Minutes o t"e *or!d #ab!e 1)1% Internationa! :omparison o te!e-density #ab!e 4)1 :ompanies and 2o) o :irc!es co-ered #ab!e% 4)2 2umber o broadband subscribers #ab!e% 4)1 B<I In !o*s into India=s #e!ecom Industry '1001-200/7 in Rs mi!!ion( #ab!e% 4)4 Dear *ise production and e,port o te!ecom eEuipment-manu acturing sector #ab!e% 4)4 Indian #e!ecommunications at a g!ance #ab!e% /)1 B<I Po!icy or di erent te!ecom sectors #ab!e% /)2 Actua! In !o* 'Dear Aise( o B<I in #e!ecom Sector rom Apri! 2000 to August 2008 #ab!e% /)1 Actua! In !o* o B<I in #e!ecom Sector :ountry -*ise ' rom 3anuary 2000 to August 2008( #ab!e% /)4 Actua! In !o* o B<I in #e!ecom Sector -Sector-*ise as on August7 2008 #ab!e% /)5 :apita! Mar+et data #ab!e 0)1% Fey Ratios o B"arti Airte! ;td) #ab!e 0)2% Fey Ratios o Re!iance :ommunications ;td) #ab!e 0)1% Fey Ratios o Voda one >ssar ;td) #ab!e 0)4% Fey Ratios o BS2; #ab!e 0)5% Fey Ratios o Idea :e!!u!ar ;td) #ab!e 0)?% Fey Ratios o Airce! :e!!u!ar ;td) #ab!e 0)/% Fey Ratios o M#2; #ab!e 0)8% Fey Ratios o BP; :ommunications ;td) '200?-200/( #ab!e 0)0% Fey Ratios o 9B:; In ote! ;td) #ab!e 0)10% Fey Ratios o S"yam #e!ecom ;td

#ab!e% 0)11 Inter-:ompany comparison o top 5 companies #ab!e% 0)12 Inter-:ompany comparison o bottom 5 companies

LIST OF FIGURES
Bigure% 1)1 Gro*t" in i,ed !ines7 mobi!e ce!!u!ar subscribers7 estimated Internet users and subscribers to mobi!e broadband net*or+s7 in bi!!ions7 1005-200/

Bigure% 1)2 Broadband subscribers by region7 200/ Bigure% 1)1 Bi,ed and mobi!e broadband e-o!ution in de-e!oped and de-e!oping countries Bigure% 4)1 Aire!ine Subscriber Bigure% 4)2 Aire!ess Subscriber Bigure% 4)1 Internet Subscriber Bigure% 4)4 Broadband Subscriber Bigure% 4)5 Gro*t" o #e!e-density Bigure% 4)? Mar+et s"are o *ire!ess ser-ice pro-iders 'as on 11st Marc" 2008( Bigure% 4)/ Subscriber gro*t" o *ire!ess ser-ices 'GSM and :<MA( Bigure% 4)8 PS@ Cperators Subscriber Base Bigure% 4)0 Pri-ate Cperators Subscribers Base Bigure% 4)10 S"are o pubic and pri-ate sector IPS 'in !a+"s( Bigure% 4)11 Set top bo,es in :AS noti ied area Bigure% ?)1 Dear *ise ce!!u!ar tari and no) o subscribers Bigure% /)1 >mp!oyment Potentia! o Indian te!ecom industry Bigure% 0)1 Mar+et S"are o #e!ecom :ompanies as on 11st 3an=00

TABLE O% CONTENTS
C&A'TER 'AGE NO(

1)

Introduction 1

2. "

Review o Liter!ture

1)

Glo#!l Overview 12

4)

Indi!n Overview 2$

5)

Industry Structure "$

?)

Government Policy %n!lysis $&

/)

Economic F!ctors !nd Its Implic!tions '$

8)

%n!lytic!l Fr!mewor( )&

0) 10)

*omp!ny %n!lysis +) Trend !nd orec!st 1&"

11)

,i#lio-r!p.y 1"/

*.!pter 1

INTRODUCTIO N

1.1 0ISTOR1 I34USTR1

OF

TELE*O22U3I*%TIO3

#"e "istory o te!ecommunication industry started *it" t"e irst pub!ic demonstration o Morse=s e!ectric te!egrap"7 Ba!timore to Aas"ington in 1844) In 18/? A!e,ander Gra"am Be!! i!ed "is patent app!ication and t"e irst te!ep"one patent *as issued to "im on /t" o Marc") In 10117 te!egrap" *as popu!ar *ay o communication) A#G# commits to dispose its te!egrap" stoc+s and agreed to pro-ide !ong distance connection to independence te!ep"one system) In 105?7 t"e ina! .udgment !imited t"e Be!! System to :ommon :arrier :ommunications and Go-ernment pro.ects but preser-ing t"e !ong-standing re!ations"ips bet*een t"e manu acturing7 researc"es and operating arms o t"e Be!! System) In t"is .udgment A#G# retained be!! !aboratories and Aestern >!ectric :ompany) #"is ina! .udgment broug"t to a c!ose t"e .ustice departments se-en &year-o!d antitrust suit against A#G# and Aestern >!ectric *"ic" soug"t separation o t"e Be!! Systems Manu acturing rom its operating and researc" unctions) A#G# *as sti!! contro!!ing t"e te!ecommunication industry) In 1082 7 A#G# *as reEuested to di-estiture its stoc+ o*ners"ip in Aestern >!ectricH termination o e,c!usi-e re!ations"ip bet*een A#G# and Aestern >!ectricH di-estiture by Aestern >!ectric o its i ty percent interest in Be!! #e!ep"one ;aboratories7 A#G# Is te!ecommunication researc" and de-e!opment aci!ity7 is a .oint!y o*ned subsidiary in *"ic" A#G# and Aestern >!ectric eac" o*n 50J o t"e stoc+H separation o te!ep"one manu acturing rom pro-ision o te!ep"one ser-ice and t"e compu!sory !icensing o patents o*ned by A#G# on a non-discriminatory basis) It *as te!ecommunication act o 100? t"at true competition *as a!!o*ed) #"e act o 100? opened t"e mar+et to a!! competitors) A#G# being t"e irst te!ecommunication company pa-ed t"e road or t"e te!ecommunication industry as *e!! as set t"e po!icy and standards or ot"ers to o!!o*)

Be)innin) o* telecommunication in In+ia 1851 Birst operationa! !and !ines *ere !aid by t"e go-ernment near :a!cutta

1881#e!ep"one ser-ices introduced in India

1881 Merger *it" posta! system

1021 Bormation o Indian radio #e!egrap" :ompany

1012 Merger o >#: and IR# into Indian Radio and :ab!e :ommunication :ompany

104/ 2ationa!i8ation o a!! oreign te!ecommunication companies to orm t"e posts7 te!ep"one and te!egrap"7 a monopo!y run by t"e go-ernment=s ministry o communications

1085<epartment o te!ecommunication estab!is"ed 7 an e,c!usi-e pro-ider o domestic and !ong-distance ser-ices t"at *ou!d be its o*n regu!ator

108? :on-ersion o dot into t*o *"o!!y go-ernment & o*ned companies t"e VS2; or internationa! te!ecommunication and M#2; or ser-ices in metropo!itan areas

100/ #e!ecom regu!atory aut"ority created

#e!ecommunication is important not on!y because o its ro!e in bringing t"e bene its o communication to e-ery corner o India but a!so in ser-ing t"e ne* po!icy ob.ecti-es o impro-ing t"e g!oba! competiti-eness o t"e Indian economy and stimu!ating and attracting oreign direct in-estment) Indian #e!ecom industry is one o t"e astest gro*ing te!ecom mar+ets in t"e *or!d) In te!ecom industry7 ser-ice pro-iders are t"e main dri-ersH *"ereas eEuipment manu acturers are *itnessing gro*t" and dec!ine in successi-e Euarters as sa!es is dependent on order underta+en by t"e companies)

*.!pter 2

REVIEW OF LITERATURE

RE5IE6 OF LITER%TURE
Giri,a -.//012 in its artic!e $Socioeconomic Imp!ications o #e!ecommunications ;ibera!i8ation% India in t"e Internationa! :onte,tK says t"at #e!ecommunications restructuring "a-e e-o!-ed di erent!y in Asia and ;atin America) A"i!e Asian go-ernments "a-e mo-ed cautious!y in bringing c"anges to t"e sector7 ;atin American nations "a-e imp!emented radica! o*ners"ip and mar+et trans ormations) #"e Indian te!ecommunications re orm a!!s in bet*een t"ese t*o genera! regiona! trends) #"e c"oice o a "ig" component o competition7 increased pri-ate participation7 and no pri-ati8ation o t"e nationa! carrier set conditions t"at *i!! trigger uniEue socioeconomic e ects) #"is artic!e identi ies and "ig"!ig"ts t"e !i+e!y imp!ications o t"e Indian re orm on +ey economic and socia! issues7 suc" as t"e cost o ser-ices7 cross-subsidies7 net*or+ interconnection7 pri-ate in-estments7 uni-ersa! ser-ices7 emp!oyment7 and t"e possib!e rise o an in ormation-intensi-e economy) It does so by comparing and contrasting t"e Indian e,perience *it" dominant re orm strategies e!se*"ere in t"e de-e!oping *or!d) T(&( Cho3+ar4 -.///1 discusses "o* #e!ecom re orm7 or demonopo!i8ation7 in India "as been bung!ed) S"aped by !egis!ation dating bac+ to t"e co!onia! era and post Second Aor!d Aar socia!ist po!icies7 by t"e mid-1080s India rea!i8ed t"at its poor te!ecommunications in rastructure and ser-ice needed re orm) At t"e "eart o t"e prob!em !ay t"e monopo!y by t"e go-ernment=s <epartment o #e!ecommunications '<C#( in eEuipment7 net*or+s and ser-ices) #"e 2ationa! #e!ecom Po!icy 1004 spe!t out decent ob.ecti-es or re orm but tragica!!y its imp!ementation *as entrusted to t"e <C#) #"is created an untenab!e situation in *"ic" t"e <C# became po!icyma+er7 !icenser7 regu!ator7 operator and a!so arbitrator in disputes bet*een itse! and !icensed competitors) 9e discusses t"e Euestion% IA"y did India get it so *rongL and A"at India s"ou!d do no*L

Anan+ -.///12 in "is artic!e named $India6s economic po!icy re ormsK says t"at India *as embar+ed on economic re orms in 3u!y 10017 in t"e *a+e o a ba!ance o payments crisis) In t"is artic!e7 an attempt is made to re-ie* t*o boo+s and a set o Aor!d Ban+ reports concerning t"e progress o t"ese re orms) Issues concerning economic po!icy7 impact o t"e re orms on po-erty7 sectora! issues re!ating to agricu!ture7 industry and in rastructure are brie !y discussed) As re orms enter a more di icu!t p"ase7 se-era! c"a!!enges remain) Some o t"is a!! under t"e $economic agenda66 o measures needed to maintain economic gro*t"H ot"ers can be termed t"e $de-e!opment agenda66 o impro-ing "uman de-e!opment) Progress *it" regard to t"e ormer is not su icient to produce resu!ts concerning t"e !atter)

Bhattachar4a -56661 constructs a -ision o t"e Indian te!ecommunication sector or t"e year 2020) #"e paper aims at iso!ating agents o c"ange based on internationa! e,periences and situates India in t"e de-e!opment continuum) #"e agents o c"ange "a-e been broad!y categori8ed into economic structure7 competition po!icy and tec"no!ogy) Das -566612 in "er paper described t"e ;ibera!isation o t"e Indian te!ecommunications ser-ices *"ic" started in mid nineties *it" no c"ange in t"e e,isting pub!ic monopo!y structure7 entire!y contro!!ed by <epartment o #e!ecommunications '<o#() In order to e-a!uate any proposed industry structure7 it is essentia! to ana!yse t"e production tec"no!ogy o <o# so as to determine t"e rationa!e o !ibera!isation and sustainabi!ity o competition) According!y7 t"e researc"er estimates a rontier mu!ti-product cost unction or <o#7 *"ere t"e cost unction "as been du!y modi ied to account or t"e production tec"no!ogy o a pub!ic monopo!y) #"e study inds t"at a!t"oug" <o# disp!ays "ig" a!!ocation ine iciency7 it is sti!! a natura! monopo!y *it" -ery "ig" degree o sub additi-e!y o cost o production) #"is study imp!ies t"at t"e c"oice o any re orm po!icy s"ou!d consider t"e trade-o bet*een t"e !oss o sca!e and scope economies and cost sa-ing rom t"e reduction in ine iciency o t"e incumbent monopo!y in t"e e-ent o competition) Rao -566612 in "er artic!e named $Internet ser-ice pro-iders in IndiaK7 pro-ides a broad -ie* o t"e ro!e o an Internet ser-ice pro-ider 'ISP( and t"e actors to be considered be ore entering t"e ISP mar+et) <escribes t"e InternetMISP scene *it"in India and discusses t"e con iguration o !oca!7 regiona! and nationa! !e-e! ISPs7 and t"e supporting in rastructure) S"e a!so identi ies t"e -arious success actors) #"e g!oba! Internet scenario is discussed regarding t"e p"ases o t"e Internet in India7 i)e) pre and post commercia!i8ation) #"e main p!ayers are described% >R2>#7 2I:2>#7 S#PI7 VS2;7 M#2;7 Satyam In o*ay and B"arti-B#) #"e inancia! and !ega! imp!ications are "ig"!ig"ted in t"e Indian conte,t) Many companies entered t"e nascent ISP business in

India due to deregu!ation) Bui!ding !oca! content7 ore+no*!edge o ne* Internet tec"no!ogies7 connecting issues7 competiti-eness7 etc) *ou!d "e!p in t"eir sustainabi!ity) S"e conc!udes t"at t"oug" many companies entered t"e nascent ISP businesses in India due to deregu!ation7 many o t"em are un!i+e!y to sur-i-e in t"e !onger term) #rmani -56661 estimates t"e contribution o te!ecommunication 'or te!ecom( ser-ices to aggregate economic gro*t" in India) >stimated contribution is distinguis"ed bet*een pub!ic and pri-ate sectors to "ig"!ig"t t"e impact o te!ecom pri-ati8ation on economic gro*t") Fno*!edge o po!icy determinants o demand o te!ecom ser-ices is s"o*n to be essentia! to en"ance gro*t" contribution o te!ecom ser-ices) @sing a recent samp!e sur-ey data rom Farnata+a State in Sout" India7 price and income determinants o demand or te!ecom ser-ices are estimated by capacity o te!ep"one e,c"anges >stimation resu!ts o er e-idence or signi icant negati-e o*n price e!asticity and positi-e income e!asticity o demand or te!ecom ser-ices) Narin+er -566712 in "is artic!e $>n"ancing <e-e!opmenta! Cpportunities by Promoting I:# @se% Vision or Rura! IndiaK ta!+s about t"e oremost bene its o In ormation and :ommunication #ec"no!ogies 'I:#s( in de-e!oping countries t"at can be "e!p u! in impro-ing go-ernance inc!uding pub!ic sa ety and eradication o i!!iteracy) #"e bene its o I:#s "a-e not reac"ed t"e masses in India due to !ac+ o I:# in rastructure7 particu!ar!y in rura! areas7 *"ere t*o-t"ird o t"e popu!ation o t"e country !i-es) >-en in cities and suburban areas7 use o I:#s is not popu!ar due to !ac+ o a*areness to its use7 computer i!!iteracy7 and absence o practica! app!ications) India is t"e !argest country in Sout" Asia7 *it" a popu!ation o o-er one bi!!ion peop!e and its te!ecom sector is present!y e,periencing ast gro*t" p"ases) 9o*e-er te!ep"ony penetration in -i!!ages is !ess t"an t*o percent o t"e rura! popu!ation and about 15 percent o t"e -i!!ages are sti!! *it"out any te!ep"ony ser-ice) @ni-ersa! access to I:#s in rura! areas "as been p!anned and is being imp!emented t"roug" Pub!ic #e!e In o :enters "a-ing -oice data and -ideo7 as ma.ority o -i!!agers in India cannot a ord a separate "ome connection) I!!iteracy in rura! areas is as "ig" as 40 percent and in some triba! be!ts "ard!y about 20 percent peop!e are !iterate) #"ere are 15 mi!!ion c"i!dren in age group o ?&11 years7 *"o are out o sc"oo! and one out o our drops out during primary c!asses) >ducation and training7 t"ere ore7 must be gi-en t"e top priority i ad-antages o I:#s are to be "arnessed) Indian economy is agricu!ture based and emp!oys ma,imum *or+ orce) Impro-ement in agricu!ture producti-ity can "e!p in reducing rura! po-erty) Adoption o I:# in agricu!ture *i!! p!ay an increasing!y important ro!e in crop production and natura! resource management) #"e ot"er critica! actor is tec"no!ogica! c"a!!enges or uni-ersa! access to I:#s to bring do*n t"e net*or+ access cost)

Ni8am2 Ganesh2 Tami9hchelvan -566712 ana!yses t"at c"anging ace o India in bridging t"e digita! de-ice) 9e reiterated - $India !i-es in -i!!agesK said t"e Bat"er o t"e 2ation7 Ma"atma Gand"i) Ait" 17000 mi!!ion peop!e and 180 mi!!ion "ouse"o!ds7 India is one o t"e biggest gro*ing economies in t"e *or!d) Ait" t"e ad-ent o t"e In ormation7 :ommunication and #ec"no!ogy 'I:#( re-o!ution7 India and its -i!!ages are s!o*!y but steadi!y getting connected to t"e cities o t"e nation and t"e *or!d beyond) C*ing to t"e !ate Ra.i- Gand"i7 India is no* a po*er u! +no*!edge economy7 and t"oug" India may "a-e been s!o* to start7 it certain!y "as caug"t up *it" t"e Aest and is a"ead in important respects) #"e Go-ernment7 t"e corporate sector7 2GCs and educationa! institutions "a-e supported rura! de-e!opment by encouraging digita! !ibraries7 e-business7 e-!earning and e-go-ernance) #"e aim o t"is paper is to touc" upon and "ig"!ig"t some o t"e areas *"ere7 by using I:#7 t"e masses "a-e been reac"ed in t"is *ay) A o!!o*-up paper *i!! out!ine co!!ections o signi icant cu!tura! materia! *"ic"7 once nationa! I# strategies are u!!y ac"ie-ed7 cou!d orm part o a digita!!y preser-ed nationa! "eritage co!!ection) De4 -566712 in "er artic!e ta!+s about t"e discussions bet*een t"e Bedera! :ommunications :ommission 'B::( and communications po!icy ma+ers and regu!ators in ot"er countries and "o* t"ey "a-e g!eaned se-era! c!usters o issues *"ere urt"er researc" *ou!d direct!y bene it t"em) Recent!y7 t"ere "a-e been t*o notab!e s"i ts) Birst7 as t"e acceptance o t"e competition mode! o-er t"e monopo!y mode! or te!ecommunications mar+ets ta+es deep e ect in regu!ators a!! o-er t"e *or!d7 Euestions regarding process and procedure or regu!ation are becoming e-er more urgent) #"is paper discusses current Euestions regarding decision ma+ing7 en orcement7 and understanding consumer issues t"at arise o ten in t"e B::6s discussions *it" ot"er regu!ators) Second7 tec"no!ogica! c"ange is potentia!!y s"i ting mar+et de initions) In t"e B::6s discussion *it" ot"er regu!ators o-er t"e !ast t*o years7 t"e o-er!ap o *ire!ine te!ecom7 *ire!ess te!ecom and cab!e te!e-ision "as become more pronounced) Sin)h -566:12 in "is artic!e $#"e ro!e o tec"no!ogy in t"e emergence o t"e in ormation society in IndiaK describes t"e ro!e t"at in ormation and communication tec"no!ogies are p!aying or Indian society to educate t"em orma!!y or in orma!!y *"ic" is u!timate!y "e!ping India to emerge as an in ormation society) #"oug" India "as a "uge popu!ation7 t"e i!!iteracy rate is a!so "uge in t"is country) #"e paper "as ta+en an approac" to ind t"e "istorica! situation and present t"e pre-ai!ing scenario as *e!! as t"e c"ange t"at are ta+ing p!ace *it" t"e app!ication o I:# to t"e ad-antage o t"e society in di erent areas inc!uding dai!y !i e) India is ma+ing a!! out e orts to be counted among t"e de-e!oped nations o t"e *or!d) #"e artic!e a!so describes t"e considerab!e attention India is ta+ing or app!ication o tec"no!ogy7 de-e!opment o in rastructure and "uman resource or meeting nationa! needs) Basica!!y India is bui!ding an in ormation society) #ec"no!ogy "as "e!ped society to cut across t"e traditiona! boundaries or getting con-erted into an

emerging in ormation society) #"e study conc!udes t"at #"e Indian so t*are and ser-ices industry "as signi icant!y "e!ped to boost t"e Indian economy) In I#-enab!ed ser-ices too7 India "as been c!ear!y percei-ed to be t"e dominant "ub) #"e Indian so t*are sector is being recogni8ed as t"e sing!e !argest contributor to incrementa! mar+et capita!i8ation in India but t"e sector is sti!! sma!! in terms o contribution to G<P7 especia!!y *"en compared to ot"er !arge sectors in t"e economy !i+e agricu!ture and manu acturing) Simi!ar!y7 t"e te!ecommunication sector "as contributed a !ot but sti!! "as a considerab!e *ay to go) #"e paper a!so en orces t"at comparisons o India=s te!ecommunication statistics *it" t"ose o de-e!oped and ot"er emerging economies s"o* t"at t"e country is sti!! ar be"ind its contemporaries)

Mr( Ban8a -566;1 gi-es an o-er-ie* o t"e mergers and acEuisitions in t"e te!ecommunication industry) According to "im Go-ernments decision to raise t"e oreign in-estment !imit to /4J is e,pected to spur res" rounds o mergers and ta+eo-ers in India) 9e oresees a sector t"at represents "umongous opportunity *aiting to be tapped by Indian and oreign cong!omerates) Thomas -566<12 in "is artic!e describes t"e contribution made by te!ecommunications in India by t"e state and ci-i! society to pub!ic ser-ice7 t"is artic!e aims to identi y t"e state=s initia! re!uctance to recogni8e te!ecommunications pro-ision as a basic need as against t"e robust tradition o pub!ic ser-ice a!igned to t"e posta! ser-ices and inds "ope in t"e rene*a! o pub!ic ser-ice te!ecommunications -ia t"e Rig"t to In ormation mo-ement) #"e artic!e o!!o*s t"e met"odo!ogy o studying t"e "istory o te!ecommunications approac" t"at is con-ersant *it" t"e po!itica! economy tradition) It uses arc"i-a! sources7 persona! correspondence7 and pub!is"ed in ormation as its researc" materia!) #"e indings o t"e paper suggests t"at pub!ic ser-ice in te!ecommunication is a re!ati-e!y IIne*== concept in t"e anna!s o Indian te!ecommunications and t"at a deregu!ated en-ironment a!ong *it" t"e Rig"t to In ormation mo-ement "o!ds signi icant "ope or ma+ing pub!ic ser-ice te!ecommunications a rea! a!ternati-e) #"e artic!e pro-ides a re !e,i-e7 critica! account o pub!ic ser-ice te!ecommunications in India and suggests t"at it can be strengt"ened by !earning gained rom t"e continua! rene*a! o pub!ic ser-ice idea!s and action by t"e posta! ser-ices and a peop!e-based demand mode! !in+ed to t"e Rig"t to In ormation Mo-ement) A!! studies done by t"e researc"er suggests t"at t"e rig"t to in ormation mo-ement "as contributed to t"e re-ita!isation o participatory democracy in India and to a strengt"ening o pub!ic ser-ice te!ecommunications) C4)nus Business Consultin) = Research 'vt( Lt+( -566012 in its $Nuarter!y Per ormance Ana!ysis o :ompanies 'Apri!-3une 2008(K "as ana!ysed t"e Indian te!ecom industry in t"e a*a+e o recent g!oba! recession and its o-era!! impact on t"e Indian

economy) #"e ana!ysis is done in t"e bac+ground o *a+e o g!oba! recession and rising in !ation) :ygnus estimates7 t"e Indian te!ecom industry is e,pected to maintain t"e gro*t" tra.ectory in t"e ne,t Euarter as *e!!) Ait" a!most 5-?m subscribers are being added e-ery mont"7 and t"e country is *itnessing *i!d momentum in t"e te!ecom industry) Mahesh3ari ->ul4?Se@temAer 566012 in "er report ana!ysed t"e Indian te!ecom industry and ascertain t"at Indian te!ecommunications "as been 8ooming up t"e gro*t" cur-e at an mounting pace7 and India is "as surpassed @S to become t"e second !argest *ire!ess net*or+ in t"e *or!d) #"is gro*ing subscriber base is basica!!y created by tapping into rura! India7 *"ic" is an emerging mar+et or t"e industry) #"e estimate or t"e ne,t i-e to ten years is t"at t"e rura! mar+et *i!! orm 40 J o t"e subscriber base) #"e study "as ana!ysed t"e "uman resource management process o t"e industry7 and specia!!y t"e !atest trends o recruitment o t"is massi-e!y gro*ing industry) An+erson -566012 in "is sing!e e,ecuti-e inter-ie* tit!ed $<e-e!oping a route to mar+et strategy or mobi!e communications in rura! India An inter-ie* *it" Gurdeep Sing"7 Cperations <irector7 @ttar Prades"7 9utc" IndiaK suggests t"at managers need to go beyond traditiona! approac"es to ser-ing t"e poor7 and inno-ate by ta+ing into account t"e uniEue institutiona! conte,t o de-e!oping mar+ets) 9is practica! imp!ication says t"at t"e e,perience o 9utc"ison >ssar in India pro-ides some important !essons or mobi!e net*or+ operators 'M2Cs( and ot"er irms in ot"er de-e!oping mar+ets *"o are "oping to ser-e t"e rura! poor% 9utc"ison "as recogni8ed t"e -a!ue o corporate and noncorporate partners) #"e company "as proacti-e!y estab!is"ed re!ations"ips *it" indi-idua! entrepreneurs7 and "as pro-ided "as pro-ided de-e!opment support to ot"er partners suc" as distributors) #"e company "as recogni8ed t"e -a!ue o !e-eraging e,isting !oca! institutions7 and "as seen gaps in !oca! in rastructure or missing ser-ices as potentia! opportunities rat"er t"an barriers to gro*t") #"e company "as seen t"e rura! mar+et as an opportunity & not .ust an ob!igation to be ser-ed because o uni-ersa! ser-ice ob!igations) A!so t"is artic!e demonstrates t"at M2Cs can de!i-er a-ai!abi!ity and a ordabi!ity to ac"ie-e increased indi-idua! or "ouse"o!d penetration t"roug" business mode! inno-ation) Mani -56601 addresses a number o issues arising rom t"e gro*t" o te!ecom ser-ices in India since t"e mid-1000s) It a!so discusses a number o spi!!o-er e ects or t"e rest o t"e economy and one o t"e more important e ects is t"e potentia! to de-e!op a ma.or manu acturing "ub in t"e country or te!ecom eEuipment and or do*nstream industries suc" as semiconductor de-ices) #"e te!ecom industry in India cou!d s!o*!y become an e,amp!e o t"e ser-ice sector acting as a i!!ip to t"e gro*t" o t"e manu acturing sector) A beginning to*ards t"is "as been made) #"e ormation o a #e!ecom >Euipment >,port Borum and t"e announcement o t"e Indian Semiconductor Po!icy 200/ are steps in t"is

direction) Success crucia!!y depends on t"e response o t"e pri-ate sector to t"ese incenti-es) Gi-en t"e importance t"at a regu!atory agency can p!ay in t"is cra ting7 no e ort s"ou!d be !ost in strengt"ening t"e po*ers o t"e #RAI) #"e bene its to t"e Indian economy rom "a-ing bot" a strong ser-ices and manu acturing segments in t"e te!ecom sector cannot be undermined) Nara4ana -56601 estimates t"e contribution o te!ecommunication 'or te!ecom( ser-ices to aggregate economic gro*t" in India) >stimated contribution is distinguis"ed bet*een pub!ic and pri-ate sectors to "ig"!ig"t t"e impact o te!ecom pri-ati8ation on economic gro*t") Fno*!edge o po!icy determinants o demand o te!ecom ser-ices is s"o*n to be essentia! to en"ance gro*t" contribution o te!ecom ser-ices) @sing a recent samp!e sur-ey data rom Farnata+a State in Sout" India7 price and income determinants o demand or te!ecom ser-ices are estimated by capacity o te!ep"one e,c"anges) >stimation resu!ts o er e-idence or signi icant negati-e o*n price e!asticity and positi-e income e!asticity o demand or te!ecom ser-ices) Sharma -566/1 dea!s *it" t"e ma.or c"a!!enges aced by India=s te!ecom eEuipment manu acturing sector7 *"ic" !ags be"ind te!ecom ser-ices) Cn!y 15J o t"e tota! demand or te!ecom eEuipment in t"e country is met by domestic production) #"is is not a-ourab!e to !ong-term sustained gro*t" o t"e te!ecom sector) #"e country is a!so ar be"ind in RG< spending *"en compared to ot"er !eading countries) India needs to see an increase in RG< in-estment7 industry-academia-go-ernment partners"ip7 better Eua!ity doctora! education and incenti-es to entrepreneurs or start-ups in te!ecom eEuipment manu acturing) In 200?-0/7 ?5J o t"e tota! consumption o eEuipment *as met t"roug" imports) #"is trend "as ar-reac"ing imp!ications or t"e economy and s"ou!d not be a!!o*ed to continue or !ong) In a country !i+e India *"ic" "as a prob!em o massi-e unemp!oyment7 t"e manu acturing sector s"ou!d be promoted to create more emp!oyment opportunities) Shah -%eAruar42 566/12 "as ana!ysed Indian te!ecom industry and studied t"e sector +eeping in mind t"ree companiesH name!y B"arti7 R):omm and idea in t"e bac+ground o recent g!oba! me!tdo*n) #"e study suggests t"at t"oug" t"ere is no sign o s!o*do*n in t"is sector7 but sure!y a strong turmoi! is going on in t"e industry) #"e study states t"at t"e sector is air!y immune rom t"e current economic do*nturn G does pro-ide a good de ensi-e bet in medium term) Ait" t"e "e!p o ne*er tec"no!ogies7 *ire!ess penetration is e,pected to increase in t"e near uture7 *"ic" is basica!!y ue!!ing t"e gro*t" o t"e sector) A"i!e t"e 1G M Broadband adoption *ou!d ensure !ong term gro*t" momentum7 t"e artic!e "as t"oroug"!y in-estigated about t"e intense competiti-e scenario7 pricing pressure7 "ig" capita! intensity G substantia! regu!atory uncertainties current!y aced by t"e industry) #"e artic!e "as a!so described t"e cause o being re!ati-e!y sa e o t"is

industry) #"e causes described by S"a" are increasing rura! co-erage7 rising a ordabi!ity7 dec!ining "andsetMsubscription costs7 substantia!!y !o* tari s G estab!is"ed brandMdistribution) 9o*e-er7 t"e study a!so cautions t"e te!ecom industry t"at a steeper economic s!o*do*n cou!d start impacting t"e subscriber usage patterns as *e!! as operator capita! in-estments G t"ereby cou!d substantia!!y restrict re-enue gro*t" rates going or*ard)

*.!pter &

GLOBAL OVERVIEW

&.1 I3TRO4U*TIO3
Aor!d te!ecom industry is an uprising industry7 proceeding to*ards a goa! o ac"ie-ing t*o t"ird o t"e *or!d6s te!ecom connections) C-er t"e past e* years in ormation and communications tec"no!ogy "as c"anged in a dramatic manner and as a resu!t o t"at *or!d te!ecom industry is going to be a booming industry) Substantia! economic gro*t" and mounting popu!ation enab!e t"e rapid gro*t" o t"is industry) #"e *or!d te!ecommunications mar+et is e,pected to rise at an 11 percent compound annua! gro*t" rate at t"e end o year 2010) #"e !eading te!ecom companies !i+e A#G#7 Voda one7 Veri8on7 SB: :ommunications7 Be!! Sout"7 N*est :ommunications are trying to ta+e t"e ad-antage o t"is gro*t") #"ese companies are *or+ing on te!ecommunication ie!ds !i+e broadband tec"no!ogies7 ><G>'>n"anced <ata rates or G!oba! >-o!ution( tec"no!ogies7 ;A2-AA2 inter net*or+ing7 optica! net*or+ing7 -oice o-er Internet protoco!7 *ire!ess data ser-ice etc) >conomica! aspect o te!ecommunication industry% Aor!d te!ecom industry is ta+ing a crucia! part o *or!d economy) #"e tota! re-enue earned rom t"is industry is 1 percent o t"e gross *or!d products and is aiming at attaining more re-enues) Cne statistica! report re-ea!s t"at appro,imate!y 1?)0J o t"e *or!d popu!ation "as access to t"e Internet) Present mar+et scenario o *or!d te!ecom industry% C-er t"e !ast coup!e o years7 *or!d te!ecommunication industry "as been conso!idating by a!!o*ing pri-ate organi8ations t"e opportunities to run t"eir businesses *it" t"is industry) #"e Go-ernment monopo!ies are no* being pri-ati8ed and conseEuent!y competition is de-e!oping) Among a!!7 t"e domestic and sma!! business mar+ets are t"e "ardest)

&.2 GLO,%L S*E3%RIO

@nti! t"e 1080s t"e *or!d te!ecommunications systems "ad a simp!y administrati-e structure) #"e @nited States te!ep"one ser-ice *as supp!ied by a regu!ated monopo!y7 American #e!ep"one and #e!egrap" 'A#G#() #e!egrap" ser-ice *as pro-ided main!y by t"e Aestern @nion :orporation) In a!most a!! ot"er countries bot" ser-ices *ere t"e monopo!ies o go-ernment agencies +no*n as P##s ' or Post7 #e!ep"one7 and #e!egrap"() In t"e @nited States beginning in 10817 A#G# agreed in a court sett!ement to di-est itse! o t"e !oca! operating companies t"at pro-ided basic te!ep"onic ser-ice) #"ey remained regu!ated !oca! monopo!ies7 grouped toget"er into eig"t regiona! companies) A#G# no* o ers !ong distance ser-ice in competition *it" "a! a do8en ma.or and many minor competitors *"i!e retaining o*ners"ip o a subsidiary t"at produces te!ep"onic eEuipment7 computers and ot"er e!ectronic de-ices) <uring t"e same period Great Britain=s nationa! te!ep"one company *as so!d to pri-ate in-estors as *as 3apan=s 2## te!ep"one monopo!y) Bor te!egrap"y and data transmission7 Aestern @nion *as .oined by ot"er ma.or companies7 *"i!e many mu!tinationa! irms ormed t"eir o*n te!ecommunications ser-ices t"at !in+ o ices scattered t"roug"out t"e *or!d) 2e* tec"no!ogy a!so broug"t continuing c"anges in t"e pro-iders o te!ecommunication) Pri-ate companies suc" as :omsat in t"e @nited States *ere organi8ed to pro-ide sate!!ite communication !in+s *it"in t"e country) Around t"e *or!d *e are *itnessing remar+ab!e c"anges to t"e te!ecoms en-ironment) A ter years o debate7 structura! separation is no* ta+ing p!ace in many parts o t"e *or!d inc!uding 9ong Fong7 2e* Oea!and7 Singapore and some >uropean mar+ets) Structura! separation & or at !east u!!-b!o*n operationa! separation & is reEuired to ad-ance t"e entire industry and to create ne* business opportunities and inno-ations *"ic" *i!! bene it our society7 our economy and u!timate!y our industry)

#"e ocus is a!so s"i ting a*ay rom broadband to *"at it can actua!!y ac"ie-e) 2e,t Generation #e!ecommunications better describes t"is ne* en-ironment and is essentia! or t"e emerging digita! economy) Important ser-ices t"at depend on 2G# inc!ude te!e"ea!t"7 e-education7 e-business7 digita! media7 e-go-ernment and en-ironmenta! app!ications suc" as smart uti!ity meters) In order to meet t"is burgeoning consumer demand or 2G# app!ications7 *e are seeing increasing in-estment in A!!-IP 2e,t Generation 2et*or+s and ibre net*or+s) A proper in-entory o nationa! in rastructure assets is reEuired i *e *ant to estab!is" an e icient and economica!!y -iab!e nationa! broadband structure or t"ese ser-ices) In t"e de-e!oping mar+ets7 ne,t generations te!ecoms *i!! ta+e t"e orm o *ire!ess 2G2s 'ie7 ;#>MAiMAP() #"ese are some o t"e e!ements o t"e broader I:# re-o!ution t"at is un o!ding be ore our -ery eyes) Ae are rig"t in t"e midst o t"e transition rom o!d communications structures 'main!y one-*ay streets( to ne* structures t"at are u!!y-interacti-e and -ideo-based) Cne o t"e dri-ers be"ind t"e industry c"anges are t"e dec!ining re-enues e,perienced by t"e te!cos in t"eir traditiona! mar+ets) C-er t"e past 10 years or so7 i,ed-!ine operators "a-e been a ected by deregu!ation7 a se-ere industry do*nturn7 dec!ining prices and ma.or inroads by mobi!e ser-ices) In addition7 peop!e are dri ting to ot"er orms o communication7 suc" as emai!7 on!ine c"at7 and mobi!e te,t messaging instead o t"e traditiona! p"one) #"is "as a!so !ed to an increased need or band*idt"7 *"ic" in turn "as re-i-ed t"e submarine cab!e sector) In recent times t"ere "a-e been many cab!e bui!d-out announcements around t"e *or!d7 and some ma.or systems are again being constructed) C-er 25 systems are e,pected to be bui!t o-er t"e ne,t t*o to t"ree years and net*or+ upgrades are a!so on t"e agenda or some e,isting systems) It is c!ear t"at t"e mobi!e industry is a!so undergoing pro ound c"anges) #"e saturated de-e!oped mar+ets are orcing t"e industry to ind ne* re-enue streams and *e are no* seeing ot"er organi8ations suc" as media companies7 content pro-iders7 Internet media companies and pri-ate eEuity companies becoming in-o!-ed in t"is mar+et) Bor t"e time being "o*e-er7 -oice *i!! remain t"e +i!!er app!ication or mobi!e *it" some data ser-ices inc!uded as support ser-ices and nic"e mar+et ser-ices) 4G 'ie7 AiMAPM;#>( is t"e rea! so!ution or mobi!e data and by 2015 it is e,pected t"at t"e ma.ority o mobi!e re-enues *i!! come rom data)

Ait" t"e Internet economy7 digita! media and ot"er te!ecommunications acti-ities becoming urt"er estab!is"ed7 t"e need or modern and e icient in rastructure is becoming more critica!)

&.2.1

7ey .i-.li-.ts
In 2008 t"e o-era!! te!ecoms industry *as -a!ued at *e!! o-er Q1)5 tri!!ion *it" steady gro*t" a"ead) Cn a regiona! !e-e!7 Aestern >urope sti!! "as t"e !argest s"are o broadband subscribers *or!d*ide) <S; is t"e most popu!ar broadband access tec"no!ogy *or!d*ide7 eEuating or around a ??J mar+et s"are)

6orldwide telecom st!tistics !t ! -l!nce 8 mid92::)

Table 3.1: #e!ecom Statistics o t"e *or!d

TELECOM STATISTICS 'o@ulation ?)/ bi!!ion %iBe+ lines 1)1 bi!!ion MoAile suAscriAers 1)5 bi!!ion MoAile teBt messa)es sent 2)1 tri!!ion Internet users 1)2 bi!!ion %iBe+ Aroa+Aan+ suAscriAers 180 mi!!ion
'Source% Budde:omm estimates(

TaAle C(5D Cutgoing Minutes o t"e *or!d

Bank Operator (Country) Fiscal year International outgoing telephone traffic (Million) International revenue telecom

Change (M 1998 99 "#$) (!) 4.3% 1'.4% -1%.1% 24.%% -'.9%

Change %s ! 1998 99 total (!) telecom revenue 7.9% %.&% %.0% 4.1% 4.&%

of

1 2 3 4 '

AT&T (United States) 31.Dec. MCI !"#dC!$ 31.Dec. (United States) De(tsc)e (+e"$an,) ."ance (."ance) Te#e*!$ 31.Dec.

10'900.0 %'30&.0 3'%&0.0 3'&40.0 3'200.0

4'921.0 -7.7% 3'4%9.0 27.1% 1'493.' -'3.1% %2'.0 -10.'%

S-"int (United States) 31.Dec. T/#/c!$ 31.Dec.

1'333.' -24.7%

Ran+ed by 1000 outgoing minutes '***)itu)in( Note: A!! isca! year dates s"o* t"e ending period e,cept t"ose preceded by an asteris+ *"ic" s"o* t"e beginning period) Source: Internationa! #e!ecommunication '***)te!egeograp"y)com() R I#@7 2001 @nion% P#C databaseH #e!e-Geograp"y

&.2.2

Tele9density
TaAle C(CD Internationa! :omparison o te!e-density

&.& GLO,%L PL%1ERS

&.&.1 %T;T

A#G# Inc) is t"e !argest pro-ider o bot" !oca! and !ong distance te!ep"one ser-ices7 *ire!ess ser-ice7 and <S; Internet access in t"e @nited States) Bormer!y SB: :ommunications7 Inc)7 t"e company s"ed its name and too+ on t"e iconic A#G# moni+er and t"e # stoc+-trading symbo! ' or Ste!ep"oneS( a ter its acEuisition o American #e!ep"one G #e!egrap" :ompany '!ater +no*n as A#G# :orporation() A#G# Inc) *as ounded in 1081 as Sout"*estern Be!! :orporation7 "eadEuartered in St) ;ouis7 Missouri) It *as one o t"e se-en origina! Regiona! Be!! Cperating :ompanies7 or SBaby Be!!s)S #"e company T a "o!ding company or Sout"*estern Be!! #e!ep"one :ompany T *as created as a resu!t o @)S) antitrust action against American #e!ep"one G #e!egrap" :ompany in 1081) It too+ u!! contro! o Sout"*estern Be!! #e!ep"one on 3anuary 17 1084)

&.&.2

2*I 6orldcom

MCI2 Inc( is an American te!ecommunications company t"at is "eadEuartered in As"burn7 Virginia) #"e corporation *as t"e resu!t o t"e merger o !orl+Com ' ormer!y +no*n as LDDS o!!o*ed by LDDS !orl+Com( and M:I :ommunications7 and used t"e name MCI !orl+Com o!!o*ed by !orl+Com be ore ta+ing its ina! name on Apri! 147 2001 as part o t"e corporation6s emergence rom ban+ruptcy) #"e company ormer!y traded on 2AS<AN under t"e symbo!s SA:CMS 'pre-ban+ruptcy( and SM:IPS 'postban+ruptcy() #"e corporation *as purc"ased by Veri8on :ommunications *it" t"e dea! c!osing on 3u!y /7 200?7 and is no* identi ied as t"at company6s #eri9on Business di-ision *it" t"e !oca! residentia! di-isions s!o*!y integrated into !oca! Veri8on subsidiaries)

M:I6s "istory7 combined *it" t"e "istories o companies it "as acEuired7 ec"oes most o t"e trends t"at "a-e s*ept American te!ecommunications in t"e past "a! -century% It *as instrumenta! in pus"ing !ega! and regu!atory c"anges t"at !ed to t"e brea+up o t"e A#G# monopo!y t"at dominated American te!ep"onyH its purc"ase by Aor!d:om and subseEuent ban+ruptcy in t"e ace o accounting scanda!s *as symptomatic o t"e Internet e,cesses o t"e !ate 1000s) It accepted a proposed purc"ase by Veri8on or @SQ/)? bi!!ion)

&.&.&

3E<TEL

Sprint 2e,te! :orporation is one o t"e !argest te!ecommunications companies in t"e @S) Ait" 51)8 mi!!ion subscribers7 Sprint 2e,te! operates t"e t"ird !argest *ire!ess te!ecommunications net*or+ in t"e @nited States 'based on tota! *ire!ess customers(7 be"ind A#G# and Veri8on Aire!ess) Sprint is a g!oba! #ier 1 Internet carrier7 and7 as suc"7 ma+es up a portion o t"e Internet bac+bone) In t"e @nited States7 t"e company a!so operates t"e second !argest *ire!ess broadband net*or+ and is t"e t"ird !argest !ong distance pro-ider) #"e company *as created in 2005 by t"e Q15 bi!!ion purc"ase o 2>P#>; :ommunications by Sprint :orporation) In 200?7 t"e company spun o its !oca! !and!ine te!ep"one business7 naming it >mbarE and a!so comp!eted t"e Q?)5 bi!!ion acEuisition o 2e,te! Partners7 one o its !argest a i!iates7 *"ic" primari!y pro-ides 2e,te! *ire!ess ser-ices to more rura! mar+ets) Sprint 2e,te! "as its e,ecuti-e "eadEuarters in Reston7 Virginia and maintains an operationa! and engineering "eadEuarters in C-er!and Par+7 Fansas '*"ere t"e !argest number o Sprint 2e,te! emp!oyees are based() Bot" interna!!y and e,terna!!y7 SSprintS is an acceptab!e s"ort name or t"e companyH "o*e-er7 a!! i<>2 S*a!+ie-ta!+ieS p"ones current!y being s"ipped are sti!! branded *it" t"e 2e,te! !ogo and grap"ics)

&.&."

4eutsc.e Telecom

Deutsche Tele8om 'DTAG( is a te!ecommunications company "eadEuartered in Bonn7 Germany) It is t"e !argest te!ecommunications company in Germany and in t"e >uropean @nion)

<eutsc"e #e!e+om *as ormed in 100? as t"e ormer state-o*ned monopo!y <eutsc"e Bundespost *as pri-ati8ed) As o 3une 20087 t"e German Go-ernment sti!! "o!ds a 15J sta+e in company stoc+ direct!y7 and anot"er 1/J t"roug" t"e go-ernment ban+)

&.&.$

Fr!nce telecom

%rance TElEcom is t"e main te!ecommunication company in Brance and one o t"e !argest in t"e *or!d) It current!y emp!oys about 1017000 peop!e '"a! outside o Brance( and "as near!y 150 mi!!ion customers *or!d*ide '200/() Bor t"e t*e!-e mont"s ending September 2004 it "ad re-enue o @SQ?0)11 bi!!ion) #"e current :>C is <idier ;ombard) In August 20057 B# acEuired a //J o*ners"ip in t"e Spanis" mobi!e p"one company Amena7 rebranding it Crange >spaUa) Brance #e!ecom-Crange is t"e number t"ree mobi!e operator and t"e number one pro-ider o broadband internet ser-ices in >urope and7 under t"e brand Crange Business Ser-ices7 is one o t"e *or!d !eaders in pro-iding te!ecommunication ser-ices to mu!tinationa! companies

&." GLO,%L TRE34S

#"e industry is dominated by t"ree ma.or communication too!s) #"ese are% Bi,ed-!ines Mobi!e #"e Internet #"e State o t"e mar+et t"oug" "as been c"anging) #"is "as been main!y c"aracteri8ed by increasing competition7 main!y due to t"e numerous p!ayers in t"e te!ecom industry) #"e boom in t"e te!ecom industry can be main!y attributed to increasing pri-ate sector participants) #"ere a!so "as been an increased independent regu!ation by t"ese companies)

&.".1

Fi=ed Line !nd *ellul!r Line Su#scri#ers

Bi,ed-!ine mar+et penetration remains comparati-e!y !o* in most de-e!oping countries7 at an a-erage o 11 per cent by end o 200/ e-en t"oug" t"e de-e!oping *or!d accounted or 58 per cent o t"e *or!d=s 1)1 bi!!ion i,ed p"ones !ines in 200/) In act7 t"is segment o t"e mar+et s"o*ed a dec!ine in de-e!oped countries and .ust a s!ig"t increase in some de-e!oping countries) C-era!!7 it is air to say t"at i,ed-!ine penetration *or!d*ide

stagnated in 200/) Mobi!e penetration7 "o*e-er7 continued to s"o* "ig" gro*t" rates & enoug" to reac" an estimated ?1 per cent o t"e *or!d=s popu!ation 'some 4 bi!!ion subscribers( by t"e end o 2008) Moreo-er7 by t"e beginning o t"e year7 more t"an /0 per cent o t"e *or!d=s mobi!e subscribers *ere in de-e!oping countries) Bi-e years ear!ier7 in 20027 t"ose subscribers "ad been !ess t"an 50 per cent o t"e *or!d tota!) A rica remains t"e region *it" t"e "ig"est gro*t" rate '12 per cent bet*een 200? and 200/() #"e grap" be!o* s"o*s t"e gro*ing trends o t"e i,ed and ce!!u!ar subscribers) #"is s"o*s t"e transition rom i,ed te!ep"one subscribers to mobi!e subscribers
%i)ureD C(. Growth in fixed lines, mobile cellular subscribers, estimated Internet users and subscribers to mobile broadband networks, in billions, 1995-200

Source% I#@ Aor!d #e!ecommunications

&.".2

0i-.9speed> #ro!d#!nd !ccess trends

I#@=s Internet and broadband data suggest t"at more and more countries are going "ig"speed) By t"e end o 200/7 more t"an 50 per cent o a!! Internet subscribers "ad a "ig"speed connection) <ia!-up is being rep!aced by broadband across de-e!oped and de-e!oping countries a!i+e) In de-e!oping countries suc" as :"i!e7 Senega!7 and #ur+ey7 broadband subscribers represent o-er 00 per cent o a!! Internet subscribers) At t"e same time7 ma.or di erences in broadband penetration !e-e!s remain7 and t"e number o broadband subscribers per 100 in"abitants -aries signi icant!y bet*een regions) A"i!e i,ed broadband penetration stood at !ess t"an 1 per cent in A rica7 it "ad

reac"ed muc" "ig"er !e-e!s in >urope '1? per cent( and t"e Americas region '10 per cent( by t"e end o 200/)
%i)ureD C(5 The Aroa+Aan+ +ivi+e Broa+Aan+ suAscriAers A4 re)ion2 566<

Source: I#@ Aor!d #e!ecommunicationMI:# Indicators <atabase)

%i)ureD C(C

%iBe+ an+ moAile Aroa+Aan+ evolution in +evelo@e+ an+ +evelo@in) countries "ixed broadband subscribers #er 100 #o#ulation, 200

!obile broadband subscribers #er 100 #o#ulation, 200

Source: I#@ Aor!d #e!ecommunicationMI:# Indicators <atabase

Note: I#@=s de inition o $Mobi!e broadband co-ers mobi!e ce!!u!ar subscribers *it" access to data communications at broadband speeds 'minimum o 25? +bitMs()

The shi*t to all?I' environments Probab!y t"e best e,amp!e o t"e $a!!-IPK mo-e is t"e rise o Voice-o-er-Internet-Protoco! '$VoIPK( ser-ices) In t"e !ast e* years7 VoIP ser-ices "a-e continued to gro* strong!y) >-en i t"ey *ere not as $disrupti-eK to traditiona! te!ep"ony as "ad been predicted7 VoIP o erings "a-e pro-ed to be some o t"e most success u! Internet app!ications) C-er t"e past t*o years7 t"e mar+et presence o VoIP "as surged or*ard7 a!t"oug" at a s!o*er gro*t" rate t"an in 2005) More important!y7 it is steadi!y rep!acing traditiona! pub!ic s*itc"ed te!ep"one net*or+ 'PS#2( !ines in many de-e!oped and some de-e!oping countries)

&.$ *O3*LUSIO3
<espite t"e unsteady state o t"e g!oba! inancia! mar+ets7 t"e *or!d*ide te!ecommunications industry is e,pected to continue e,panding o-er t"e ne,t i-e years as continuing gro*t" o *ire!ess ser-ices in emerging mar+ets o sets t"e spending s!o*do*n in t"e ad-anced economies7 says a ne* mar+et ana!ysis report rom #"e I2SIG9# Researc" :orporation) According to t"e ne* industry mar+et study7 o-era!! te!ecommunications ser-ices re-enues are e,pected to gro* at a compounded rate o near!y 10)1 percent o-er t"e ne,t e* years7 reac"ing Q2)/ tri!!ion by 2011) *ire!ess ma+es t"e strongest s"o*ing *"i!e *ire!ine o!!o*s a distant second) 2ear!y a!! o t"e gro*t" in bot" sectors is e,pected to occur in broadband ser-ices7 *it" *ire!ess broadband ser-ice re-enues e,pected to gro* at a compounded rate o more t"an /0 percent o-er t"e orecast period7 *"i!e *ire!ine broadband ser-ices gro* at under 10 percent o-er t"e same orecast "ori8on) $#"e 2000 #e!ecommunications Industry Re-ie*% An Ant"o!ogy o Mar+et Bacts and BorecastsK states t"at e-en amidst so muc" economic uncertainty t"e act remains t"at te!ecommunications is a +ey input actor in economic gro*t") #e!ecommunications is a aci!itator o socio-economic ad-ancement and is a critica! uti!ity or economic de-e!opment7 muc" !i+e *ater and energy) It is on t"e basis o te!ecommunications as a !ync"pin in t"e e-entua! economic reco-ery t"at I2SIG9# Researc" pro.ects continued carrier re-enue gro*t") $#"e *or!d*ide economy is in turmoi!7 t"ere is no doubt about t"at7 but o-er t"e !ong "au! *e e,pect t"e te!ecommunications industry to continue gro*ing7K says I2SIG9# president Robert Rosenberg) $#e!ecom is as necessary to de-e!opment as roads and

bridges7 so *e e,pect it to are muc" better t"an ot"er economic segments t"at may ta+e !onger to return to norma!cy7K Rosenberg conc!uded)

*.!pter "

INDIAN OVERVIEW

".1 I3TRO4U*TIO3
#oday t"e Indian te!ecommunications net*or+ *it" o-er 1/5 Mi!!ion subscribers is second !argest net*or+ in t"e *or!d a ter :"ina) India is a!so t"e astest gro*ing te!ecom mar+et in t"e *or!d *it" an addition o 0- 10 mi!!ion mont"!y subscribers) #"e te!edensity o t"e :ountry "as increased rom 18J in 200? to 11J in <ecember 20087 s"o*ing a stupendous annua! gro*t" o about 50J7 one o t"e "ig"est in any sector o t"e Indian >conomy) #"e <epartment o #e!ecommunications "as been ab!e to pro-ide state o t"e art *or!d-c!ass in rastructure at g!oba!!y competiti-e tari s and reduce t"e digita! di-ide by e,tending connecti-ity to t"e unconnected areas) India "as emerged as a ma.or base or t"e te!ecom industry *or!d*ide) #"us Indian te!ecom sector "as come a !ong *ay in ac"ie-ing its dream o pro-iding a ordab!e and e ecti-e communication aci!ities to Indian citi8ens) As a resu!t common man today "as access to t"is most needed aci!ity) #"e re orm measures coup!ed *it" t"e proacti-e po!icies o t"e <epartment o #e!ecommunications "a-e resu!ted in an unprecedented gro*t" o t"e te!ecom sector) #"e t"rust areas present!y are% 1) 1)Bui!ding a modern and e icient in rastructure ensuring greater competiti-e en-ironment 2) Ait" eEua! opportunities and !e-e! p!aying ie!d or a!! sta+e"o!ders) 1) Strengt"ening researc" and de-e!opment or manu acturing7 -a!ue added ser-ices) 4) > icient and transparent spectrum management 5) #o acce!erate broadband penetration ?) @ni-ersa! ser-ice to a!! unco-ered areas inc!uding rura! areas) /) >nab!ing Indian te!ecom companies to become g!oba! p!ayers) Recent t"ings to *atc" in Indian te!ecom sector are% 1) 1G and BAA auctions 2) MV2C 1) Mobi!e 2umber Portabi!ity 4) 2e* Po!icy or Va!ue Added Ser-ices 5) Mar+et dynamics once t"e recent!y !icensed ne* te!ecom operators start ro!!ing out ?) Ser-ices)

/) Increased t"rust on te!ecom eEuipment manu acturing and e,ports) 8) Reduction in Mobi!e #ermination :"arges as t"e cost per !ine "as substantia!!y reduced 0) <ue to tec"no!ogica! ad-ancement and increase in tra ic) India6s te!ecom sector "as s"o*n massi-e upsurge in t"e recent years in a!! respects o industria! gro*t") Brom t"e status o state monopo!y *it" -ery !imited gro*t"7 it "as gro*n in to t"e !e-e! o an industry) #e!ep"one7 *"et"er i,ed !and!ine or mobi!e7 is an essentia! necessity or t"e peop!e o India) #"is c"anging p"ase *as possib!e *it" t"e economic de-e!opment t"at o!!o*ed t"e process o structuring t"e economy in t"e capita!istic pattern) Remo-a! o restrictions on oreign capita! in-estment and industria! de-!icensing resu!ted in ast gro*t" o t"is sector) At present t"e country6s te!ecom industry "as ac"ie-ed a gro*t" rate o 14 per cent) #i!! 20007 t"oug" ce!!u!ar p"one companies *ere present7 i,ed !and!ines *ere popu!ar in most parts o t"e country7 *it" go-ernment o India setting up t"e #e!ecom Regu!atory Aut"ority o India7 and measures to a!!o* ne* p!ayers country7 t"e eatured products in t"e segment came in to prominence) #oday t"e industry o ers ser-ices suc" as i,ed !and!ines7 A;;7 GSM mobi!es7 :<MA and IP ser-ices to customers) Increasing competition among p!ayers a!!o*ed t"e prices drastica!!y do*n by ma+ing t"e mobi!e aci!ity accessib!e to t"e urban midd!e c!ass popu!ation7 and to a great e,tend in t"e rura! areas) >-en or sma!! s"op+eepers and actory *or+ers a p"one connection is not an unreac"ab!e !u,ury) Ma.or p!ayers in t"e sector are BS2;7 M#2;7 B"arti #e!eser-ices7 9utc"ison >ssar7 BP;7 #ata7 Idea7 etc) Ait" t"e gro*t" o te!ecom ser-ices7 te!ecom eEuipment and accessories manu acturing "as a!so gro*n in a big *ay) Indian #e!ecom sector7 !i+e any ot"er industria! sector in t"e country7 "as gone t"roug" many p"ases o gro*t" and di-ersi ication) Starting rom te!egrap"ic and te!ep"onic systems in t"e 10t" century7 t"e ie!d o te!ep"onic communication "as no* e,panded to ma+e use o ad-anced tec"no!ogies !i+e GSM7 :<MA7 and A;; to t"e great 1G #ec"no!ogy in mobi!e p"ones) <ay by day7 bot" t"e Pub!ic P!ayers and t"e Pri-ate P!ayers are putting in t"eir resources and e orts to impro-e t"e te!ecommunication tec"no!ogy so as to gi-e t"e ma,imum to t"eir customers)

".2 TELE*O2 SU,S*RI,ER ,%SE I3 I34I%

Indian te!ecommunication Industry is one o t"e astest gro*ing te!ecom mar+et in t"e *or!d) The moAile sector has )ro3n *rom aroun+ .6 million suAscriAers in 5665 to reach .:6 million A4 earl4 566< re)isterin) an avera)e )ro3th o* over /6F( #"e t*o

ma.or reasons t"at "a-e ue!!ed t"is gro*t" are !o* tari s coup!ed *it" a!!ing "andset prices) Surprising!y7 :<MA mar+et "as increased it mar+et s"are upto 10J t"an+s to Re!iance :ommunication) 9o*e-er7 across t"e g!obe7 :<MA "as been !oosing out numbers to popu!ar GSM tec"no!ogy7 contrary to t"e scenario in India) #"e ot"er reason t"at "as tremendous!y "e!ped t"e te!ecom Industry is t"e regu!atory c"anges and re orms t"at "a-e been pus"ed or !ast 10 years by successi-e Indian go-ernments) According to #e!ecom Regu!atory Aut"ority o India '#RAI( t"e rate o mar+et e,pansion *ou!d increase *it" urt"er regu!atory and structura! re orms) >-en t"oug" t"e i,ed !ine mar+et s"are "as been dropping consistent!y7 the overall -*iBe+ an+ moAile1 suAscriAers have risen to more than 566 million A4 *irst Guarter o* 566<) #"e te!ecom re orms "a-e a!!o*ed t"e oreign te!ecommunication companies to enter Indian mar+et *"ic" "as sti!! got "uge potentia!) Internationa! te!ecom companies !i+e Voda one "a-e made entry into Indian mar+et in a big *ay) :urrent!y t"e Indian #e!ecommunication mar+et is -a!ued at around Q100 bi!!ion 'Rupees 4007000 crore() #*o te!ecom p!ayers dominate t"is mar+et - B"arti Airte! *it" 2/J mar+et s"are and Re!iance :ommunication *it" 20J a!ong *it" ot"er p!ayers !i+e BS2; 'B"arat Sanc"ar 2igam ;imited( and A#G#) Cne segment o t"e mar+et t"at "as been pu88!ing is broadband Internet) <espite t"e manner in *"ic" t"e country=s Internet mar+et "as been booming7 India=s mo-e into "ig"-speed broadband Internet access "as been distinct!y s!o*) And7 *"i!e t"ere appears to be considerab!e ent"usiasm amongst t"e popu!ation or t"e Internet itse! 7 t"is "as not been re !ected in broadband subscription numbers) In 200? India *itnessed a good surge in broadband users *it" t"e total suAscriAer Aase in the countr4 eB@an+in) A4 almost 566F to ,ust over 5 million A4 4ears en+) <espite t"is surge7 Aroa+Aan+ @enetration in In+ia still remains aroun+ onl4 6(5FH broadband ser-ices sti!! account or on!y 25J o t"e tota! Internet subscriber base7 sti!! in itse! comparati-e!y !o*) So7 i /0J o tota! popu!ation is rura!7 t"e scope or gro*t" in t"is Industry is unprecedented #"e Ministry o :ommunications and In ormation #ec"no!ogy 'M:I#( is "as -ery aggressi-e p!ans to increase t"e pace o gro*t"7 targeting 250 mi!!ion te!ep"one subscribers by end-200/ and 500 mi!!ion by 2010) Most o t"e e,pansion in subscribers is set to occur in rura! India) India=s rura! te!ep"one density "as been !anguis"ing at around 1)0J) #"e subscriber addition rate "as been strong in t"e !ast 12 mont"s but t"e regu!atory de-e!opments *i!! increase competition and t"us curtai! t"e !ong-term gro*t" rates o indi-idua! companies) #"e sa-ings t"roug" t"e setting o to*er companies *i!!

part!y go to*ards t"e "ig"er cape, and ope, costs rom more stringent spectrum a!!ocation norms or t"e incumbents) #"e #e!ecommunications sector "as been consistent!y adding more t"an / mi!!ion subscribers or t"e !ast ? mont"s7 a -ery "ea!t"y net addition rate in act) A!! t"e pri-ate operators GSM as *e!! as t"e :<MA operators "a-e been -ery consistent in t"eir per ormance) #"e sector pro-ides -ery strong re-enue as *e!! as earnings -isibi!ity o-er t"e ne,t 12 mont"s) 9o*e-er t"e recent regu!atory de-e!opments are seem to be negati-e or t"e te!ecom companies as it *i!! increase t"e number operators per circ!e *"ic" *i!! intensi y competition)

".& GE3ER%L E35IRO32E3T I3 T0E TELE*O2 SE*TOR

#"e year 200/-08 a!so *itnessed a p"enomena! gro*t" in t"e subscriber base or mobi!e ser-ices *"ic" inc!udes subscribers o A;; 'B(7 t"us bui!ding on t"e gro*t" trend in subscriber base e,perienced since mid-1000s) As per t"e data a-ai!ab!e on :#IA 'Internationa! Association or t"e *ire!ess #e!ecommunications Industry( *ebsite7 India "as become second !argest *ire!ess net*or+ in t"e *or!d a ter :"ina by o-erta+ing @SA)

".&.1

6ireline Su#scri#er

#"e subscriber base o Aire!ine ser-ices as on 11st Marc" 2008 *as 10)42 mi!!ion as compared to 40)/5 mi!!ion subscribers on 11st Marc"7 200/ registering a decrease o 1)11 mi!!ion subscribers during t"e year 200/-08) Cut o t"e 10)42 mi!!ion *ire!ine subscribers7 2/)/8 mi!!ion are @rban *ire!ine subscribers and 11)?4 mi!!ion Rura! Subscribers)
%i)ureD 7(. Aire!ine Subscriber

".&.2

6ireless Su#scri#er

#"e *ire!ess subscriber crossed t"e 2?1 mi!!ion subscriber mar+ at t"e end o t"e inancia! year in comparison to t"e subscriber base o 1?5)11 mi!!ion at t"e end o Marc"7 200/) It added 05)0 mi!!ion subscribers in t"e inancia! year 200/-08 registering an annua! gro*t" rate o about 58)12J) #"e tota! subscriber base o *ire!ess ser-ices "as gro*n rom 11)?0 mi!!ion in Marc"7 04 to 2?1)0/ mi!!ion in Marc"7 08)
%i)ureD 7(5 Aire!ess Subscriber

".&.&

Internet Su#scri#er

#"e Internet subscriber base in t"e country as o 11st Marc" 2008 stood at 11)00 mi!!ion as compared to 0)2/ mi!!ion during t"e pre-ious year7 registering an annua! gro*t" rate o about 10)?1J)
%i)ureD 7(C Internet Subscriber

".&."

,ro!d#!nd Su#scri#er

#"e tota! Broadband subscriber base "as reac"ed 1)8/ mi!!ion by t"e end o Marc"7 2008 as compared to 2)14 mi!!ion by t"e end o Marc" 200/ t"ereby registering a net addition o 1)5? mi!!ion broadband subscribers during t"e inancia! year 200/-08)

%i)ureD 7(7 Broadband Subscriber

".&.$

Tele9density

#"e te!e-density at t"e end o Marc"7 2008 reac"ed to t"e mar+ o 2?)22J as compared to 18)21J at t"e end o pre-ious year recording an increase o near!y 8J) :ompetition dri-en by regu!atory initiati-es7 tec"no!ogica! ad-ancements and po!icy initiati-es continue to pus" t"e gro*t" to ne*er !e-e!s) #"is trend *as more -isib!e in mobi!e and !ong distance ser-ices) #"e competiti-e pressures a!so made t"e ser-ice pro-iders to be more inno-ati-e in t"eir tari o erings) %i)ureD 7(: Gro*t" o #e!e-density

"." RE5IE6 OF ,%SI* SER5I*ES

As on 11st Marc" 20087 *ire!ine connections are being pro-ided by 5 !icensed pri-ate operator groups in addition to t"e incumbent BS2; and M#2;) #"e !ist o Ser-ice Pro-iders pro-iding *ire!ine ser-ices a!ong *it" t"eir area o operation is gi-en in t"e tab!e be!o*) #"e subscriber base o basic ser-ices 'Aire!ine( recorded a decrease o 1)28J in 200/-08 o-er t"e pre-ious year) In comparison7 t"e pri-ate BSCs7 recorded an annua! increase o 41)14J in t"e subscriber base during t"e year 200/-08) As on 11st Marc" 20087 t"e incumbents BS2; and M#2; "ad 80J and 0J mar+et s"are respecti-e!y in t"e subscriber base7 *"i!e a!! t"e i-e pri-ate BSCs "ad on!y 11J o t"e tota! subscriber base) <uring t"e pre-ious year7 at t"e end o Marc" 200/7 t"e mar+et s"are o t"e BS2; and M#2; *as 81J and 0J respecti-e!y7 *"i!e t"e s"are o a!! t"e pri-ate operators ta+en toget"er *as 8J) #"us t"e mar+et s"are in terms o subscriber base o t"e incumbents BS2; and M#2; "as s!ig"t!y decreased7 *"ereas t"e mar+et s"are o pri-ate BSCs "as increased by 1J) #"e 5 pri-ate BSCs "a-e added 8)0? !a+"s ne* <irect >,c"ange ;ines '<>;s() 9o*e-er7 BS2; "as recorded a reduction o 21)8? !a+"s <>;s7 *"ereas M#2; "as a!so registered an annua! dec!ine o 0)4/ ;a+"s <>;s) #"us Pri-ate operators "a-e contributed to pro-ide most o t"e ne* additions in <>;s) #"e tota! subscriber base "o*e-er "as been recorded an annua! dec!ine o 11)1/ !a+"s <>;s in comparison to pre-ious year)
TaAle 7(. Com@anies an+ No( o* Circles covere+

".".1 Review Services

6ireless

?GS2

!nd

*42%@

#"e Aire!ess Industry crossed 2?1 mi!!ion-subscribers mar+ at t"e end o t"e inancia! year 200/-08) #"is tota! subscribers base o 2?1)0/ mi!!ion comprise o 102)/ mi!!ion GSM and ?8)1/ mi!!ion :<MA subscribers) <uring t"e inancia! year 200/-08 around 05)0? mi!!ion subscribers *ere added *it" a gro*t" rate o 58)12J as compared to ?/)1/J gro*t" during t"e year 200?-0/) #"e gro*t" o subscriber base o Aire!ess 'inc!uding GSM and :<MA( Ser-ices rom Marc" 2004 to Marc" 2008 is depicted in Bigure 1)10 #"e subscriber base G mar+et s"are o di erent mobi!e operators as on Marc" 2008 is disp!ayed in Bigure ) In t"e *ire!ess segment7 GSM ser-ices "as reac"ed t"e 102)/0 mi!!ion subscriber mar+ at t"e end o inancia! year 200/-087 as compared to 120)4/ mi!!ion during t"e pre-ious year) It added around /2)21 mi!!ion subscribers during t"e year7 registering an annua! gro*t" o 50)0?J) In terms o subscriber base and mar+et s"are o GSM ser-ices7 MMs B"arti *it" ?1)08 mi!!ion subscriber base remains t"e !argest GSM operator o!!o*ed by MMs Voda one7 MMs BS2;7 and MMs Idea *it" subscriber base o 44)11 mi!!ion7 1?)21 mi!!ion and 24)00 mi!!ion respecti-e!y) #"e mar+et s"are o di erent GSM operators as on Marc" 2008 is disp!ayed in Bigure 1)12) In :e!!u!ar :<MA ser-ices7 in terms o subscriber base and mar+et s"are7 MMs Re!iance In ocom *it" 18)/8 mi!!ion subscriber base remains t"e !argest :<MA operator o!!o*ed by MMs #ata and MMs BS2; *it" subscriber base o 24)11 mi!!ion7 and 4)58 mi!!ion respecti-e!y)

%i)ureD 7(; Mar+et s"are o *ire!ess ser-ice pro-iders 'as on 11st Marc" 2008(

%i)ureD 7(< Subscriber gro*t" o *ire!ess ser-ices 'GSM and :<MA(

'uAlic an+ 'rivate Sector ContriAution in the Gro3th o* %iBe+ an+ MoAile Services Be ore opening up o t"e #e!ecom Sector or t"e pri-ate p!ayers7 gro*t" in te!ecom ser-ices *as primari!y dri-en by pub!ic sector monopo!y7 s"o*ing -ery margina! gro*t"7 as t"e incrementa! te!e-density bet*een 1048 and 10087 a 50 year period7 *as on!y

1)02J) #e!ecommunication de-e!opment in t"e initia! stage o t"e re orms process beginning *it" 2#P=04 started at a s!o* pace7 but acce!erated !ater on under 2#P=007 *"ic" pro-ided or migration rom i,ed !icense ee to re-enue s"are regime) :ostoriented #e!ecom tari s *ere a!so introduced by #RAI in 1000) Brom 2001 on*ards7 as a resu!t o certain pragmatic decisions by t"e Go-ernment and t"e Regu!ator7 -i8)7 introduction o :a!!ing Party Pay ':PP( regime7 @ni ied Access !icensing regime7 !o*ering o access de icit coup!ed *it" introduction o re-enue s"are regime in A<: triggered urt"er gro*t") #"e po!icy and regu!atory regime estab!is"ed by t"e Go-ernment and t"e Regu!ator "as !ed to speedy gro*t" o subscriber base o t"e incumbent Pub!ic Sector @nderta+ings as *e!! as t"at o t"e pri-ate sector operators) <uring t"e period 1008-20087 t"e abso!ute gro*t" in subscriber base o PS@ operators *as ?1)/ mi!!ion comprising o 10)5 mi!!ion i,ed subscribers and 42)2 mi!!ion mobi!e subscribers) #"e PS@ Cperators "a-e s"o*n remar+ab!e gro*t" in t"e competiti-e en-ironment7 *"i!e in t"e pre-re orm non-competiti-e en-ironment7 t"eir per ormance *as s!o*) Bigure 1)15 s"o*s gro*t" in subscriber base o PS@ Cperators) Pri-ate operators "a-e a!so s"o*n remar+ab!e gro*t" in a "ig"!y competiti-e en-ironment) #"e o-era!! gro*t" in t"e subscriber base o pri-ate operators during 1008-2008 *as 220)04 mi!!ion comprising o 0)81 mi!!ion i,ed subscribers and 211)11 mi!!ion mobi!e subscribers) Pri-ate operators "a-e contributed -ery !arge!y to post 1008 gro*t" primari!y in mobi!e ser-ices due to t"e ob-ious cost and ast dep!oyment ad-antages) #"e Bigure s"o*s t"e gro*t" in subscriber base o pri-ate operator) It may be seen rom t"e t*o grap"s at Bigure and Bigure t"at in comparison to Pri-ate Sector7 t"e gro*t" o subscriber base o PS@s "a-e been -ery !o* during t"e !ast i-e years)
%i)ureD 7(0 PS@ Cperators Subscriber Base

%i)ureD 7(/ Pri-ate Cperators Subscribers Base

".".2

Pu#lic 2o#ile R!dio Trun(ed Services

Pub!ic Mobi!e Radio #run+ed Ser-ice 'PMR#S( *as opened or pri-ate sector in t"e year 1005) As on 11st Marc" 200/7 PMR#S is being pro-ided by 12 operators) #"e subscriber base o PMR#S "as recorded a gro*t" rate o 15)04J during 200/-08 o-er t"e pre-ious year) Its subscriber base increased rom C.:6. at t"e end o Marc" 200/ to C;576 at t"e end o Marc" 2008)

".".&

Internet Services

#RAI is constant!y monitoring t"e gro*t" o t"e Internet and Broadband ser-ices in t"e country by *ay o Per ormance Monitoring Reports being submitted by Internet Ser-ice Pro-iders 'ISP() Issues raised by ISPs7 rom time to time7 *ere success u!!y reso!-ed by #RAI to create conduci-e en-ironment and to encourage t"e gro*t" o t"e ser-ice during t"e inancia! year) #ota! 118 ISPs reported data to #RAI7 *"ic" indicates 11)00 mi!!ion Internet Subscribers at t"e end o 11st Marc" 2008) #"ere *as an increase o 10)?1J in t"e subscriber=s base as compared to Marc" 200/) #"e distribution o Internet Subscribers among Go-t) ISPs G Pri-ate ISPs as on 11st Marc" 2008 is at Bigure 1)1/) #"e mar+et s"are o top eig"t Internet Ser-ice Pro-iders 'ISPs(7 inc!uding BS2;7 in terms o subscriber base as on 11st Marc" 2008 is at Bigure 1)18) #"e BS2; "as ma,imum o 50)82J o tota! internet subscriber base) Among PS@s

o*ned ISPs7 MMs BS2; and MMs M#2; "a-e reported a subscriber base o 5)?4 Mi!!ion and 1)80 Mi!!ion respecti-e!y) Amongst t"e Pri-ate Sector ISPs MMs B"arti Airte! ;imited "as a subscriber base o 0)81 Mi!!ion and stood t"ird o-era!!)
%i)ureD 7(.6 S"are o pubic and pri-ate sector IPS 'in !a+"s(

"."."

,ro!d#!nd

#"e number o Broadband subscribers '*it" a do*n!oad speed o 25? +bps or more( *as 1)8/ Mi!!ion on 11st Marc" 2008 as compared to 2)14 Mi!!ion subscribers on 11st Marc" 200/ registering an annua! gro*t" o ?5)18J) #"e distribution o Broadband subscribers among Go-ernment ISPs and Pri-ate ISPs as on 11st Marc" 2008 is as be!o*%
TaAleD 7(5 2umber o broadband subscribers

".".$

Internet Telep.ony

Cn t"e recommendation o #RAI7 Go-ernment issued t"e guide!ines on 24t" August 200/ or urt"er opening o Internet #e!ep"ony by permitting a!! ISPs signing ne* ISP ;icense to pro-ide Internet #e!ep"ony) #"e restrictions on de-ices being used or Internet

#e!ep"ony "a-e a!so been remo-ed) As on 20t" Bebruary 20087 <C# "as gi-en permission to 140 ISPs ':ategory IA= & 5?H :ategory IB= & ?4H and :ategory I:= & 20( to o er Internet #e!ep"ony ser-ices) At t"e end o 11st Marc" 2008 10 ISPs "a-e reported t"e pro-isioning o Internet #e!ep"ony Ser-ices) #"e tota! minutes o usage o internet te!ep"ony are 115 mi!!ion at t"e end o 11st Marc" 2008)

".".'

,ro!d#!nd *!stin- !nd *!#le T5 Services

In order to regu!ate t"e Icarriage= o Broadcasting and :ab!e Ser-ices7 t"e Go-ernment o India issued a 2oti ication dated 0t" 3anuary7 2004 by *"ic" broadcasting and cab!e ser-ices "a-e been broug"t *it"in t"e pur-ie* o #RAI in terms o section 2'+( o t"e #e!ecom Regu!atory Aut"ority o India Act7 100/) #"e Go-ernment a!so issued an order dated 0t" 3anuary7 2004 under section 11'd( o t"e #RAI Act7 *"ic" mandated #RAI to ma+e recommendations regarding terms and conditions on *"ic" t"e $Addressab!e SystemsK s"a!! be pro-ided to t"e customers and t"e parameters or regu!ating ma,imum time or ad-ertisements in pay c"anne!s as *e!! as ot"er c"anne!s) #"e order a!so entrusted to #RAI7 t"e unction o speci ying t"e standard norms or7 and periodicity o re-ision o rates o pay c"anne!s7 inc!uding interim measures) -a1 CaAle T# Service At present7 as per !atest estimates t"ere are 12/ mi!!ion "ouse"o!ds in India "a-ing te!e-ision sets) Cut o t"is7 t"ere are /1 mi!!ion "ouse"o!d subscribers o cab!e te!e-ision ser-ices) #"e ma,imum number o Bree-to-Air 'B#A( :"anne!s7 pay c"anne!s and !oca! c"anne!s being carried by MSCs in t"eir net*or+s across t"e country as on Nuarter ending 11st Marc" 2008 *as 1117 05 and 8 respecti-e!y) #"ese igures are based on t"e reports recei-ed rom some o t"e ma.or ser-ice pro-iders regarding t"e number o c"anne!s being carried by t"em in t"eir 2et*or+s7 ana!og and M or in digita! orm) #"ese c"anne!s "a-e been reported across di erent net*or+s o t"e ser-ice pro-iders "a-ing di erent combinations o pay7 B#A and !oca!) As on 11st Marc" 20087 t"e tota! number o set-top bo, insta!!ed in t"e :AS noti ied areas o <e!"i7 Mumbai7 Fo!+ata and :"ennai *as ?70/7881) A brea+-up o t"e set top bo,es in t"e our metropo!itan cities "as been depicted in t"e grap" be!o*%
%i)ureD 7(.. Set top bo,es in :AS noti ied area

-A1 Satellite T# Channel At t"e end o Marc" 20087 t"ere are reported!y 114 pay c"anne!s in e,istence and t"ese c"anne!s are being broadcasted M distributed by 1/ broadcasters or t"eir distributors

-c1 DT& Services Apart rom Bree-to-Air <#9 ser-ice o <oordars"an7 t"ere *ere si, pri-ate <#9 !icensees and out o t"ese si, !icensees7 on!y t"ree !icensees are o ering paid <#9 Ser-ice to customers as on 11st Marc" 2008) #"e o!!o*ing are t"e si, pri-ate <#9 !icensees% 1) 2) 1) 4) 5) ?) <is" #V #ata S+y ;imited Sun <irect #V Pri-ate ;imited Re!iance B!ue Magic ;imited B"arati #e!emedia ;imited B"arat Business :"anne! ;imited

-+1 %M Ra+io I Communit4 Ra+io Service Apart rom BM Radio Stations o A!! India Radio 'AIR(7 t"ere are 205 pri-ate BM Radio Stations in operation across t"e country as on 11st Marc" 2008) Bor t"e Euarter ending

Marc" 2008 out o 40 !icensees o :ommunity Radio Stations7 15 Stations are in operation

".$ F4I
>-er since t"e go-ernment opened up its gates or oreign direct in-estment 'B<I( in 10017 te!ecom sector "as emerged as t"e c!ear *inner in attracting oreign capita!) Bor starters7 Indian te!ecom sector ran+s irst in terms o actua! B<I in !o* since August 1001 ti!! Bebruary 20017 pipping to post many de-e!oped as *e!! as de-e!oping countries inc!uding t"e Sout" >ast Asian countries) More7 it stands second on!y to petroc"emica!s in attracting B<I7 beating ot"er sectors in t"e manu acturing as *e!! as ser-ices)

TaAleD 7(C B<I In !o*s into India=s #e!ecom Industry '1001-200/7 in Rs mi!!ion(

According to t"e numbers pub!is"ed by In-estindiate!ecom7 an on-!ine agency *"ic" trac+s de-e!opments in t"e Indian te!ecom sector7 Indian te!ecom "as grossed actua! B<I *ort" Rs 075/?)40 crore during t"e period starting rom !ate 1001 to ear!y 2001) In abso!ute terms7 t"is is t"e "ig"est in !o* o B<I into t"e te!ecom sector in t"e *or!d)

Mauritius7 *"ic" "ouses a number o "o!ding and in-estment companies7 emerges as a distant second *it" B<I grossing Rs ?7855)81 crore during t"e period) $#"e Mauritius numbers may be decepti-e as it is one o t"e !ast ta, "a-ens in t"e region and may inc!ude money actua!!y in-ested e!se*"ere) #"oug" data or se-era! important countries are not inc!uded7 t"e B<I in !o* into India te!ecom sector is impressi-e7K a senior ana!yst *"o trac+s t"e te!ecom sector says) C t"e tota! B<I in !o* into Indian te!ecom sector7 t"e !ion=s s"are "as gone into in-estment in "o!ding companies o!!o*ed by ce!!u!ar net*or+ and manu acturing and consu!tancy) #"e tota! oreign money in-ested in t"e "o!ding companies stood at Rs 47811)1 crore or 50)2? per cent o t"e tota! in !o*7 ce!!u!ar te!ep"ony attracted Rs 27112)8 crore accounting or 24)1? per cent during t"e period) #"e oreign capita! in !o* into t"e manu acturing and consu!tancy segment stood at Rs 175/8)4 crore or 1?)48 per cent o t"e tota! in !o*) Cn an inter-sectora! comparison7 te!ecom sector is t"e second !argest recipient o B<I *it" 10)/0 per cent o tota! in !o*)

$#"e numbers are a c!ear indication o t"e oreign companies perception about t"e prospects in Indian te!ecom sector) So ar7 t"e in-estment is main!y con ined to ce!!u!ar te!ep"ony) 9o*e-er7 *it" recent c"anges7 basic te!ep"ony too *i!! start attracting oreign capita! in a big *ay7K

".' PERFOR2%3*E OF TELE*O2 EAUIP2E3T 2%3UF%*TURI3G SE*TOR

As a resu!t o Go-ernment po!icy7 progress "as been ac"ie-ed in t"e manu acturing o te!ecom eEuipment in t"e country) #"ere is a signi icant te!ecom eEuipmentmanu acturing base in t"e country and t"ere "as been steady gro*t" o t"e manu acturing sector during t"e past e* years) #"e igures or production and e,port o te!ecom eEuipment are s"o*n in tab!e gi-en be!o*%

TaAleD 7(7 Dear *ise production and e,port o te!ecom eEuipment-manu acturing sector
?Rs. in crore@

1e!r
2002-03 2003-04 2004-05 2005-06 2006-07

Production
14400 14000 16090 17833 23656

E=port
402 250 400 1500 1898

'Source% ***)dot)go-)in(

Rising demand or a *ide range o te!ecom eEuipment7 particu!ar!y in t"e area o mobi!e te!ecommunication7 "as pro-ided e,ce!!ent opportunities to domestic and oreign in-estors in t"e manu acturing sector) #"e !ast t*o years sa* many reno*ned te!ecom companies setting up t"eir manu acturing base in India) >ricsson set up GSM Radio Base Station Manu acturing aci!ity in 3aipur) >!coteE set up "andset manu acturing aci!ities in Banga!ore) 2o+ia and 2o+ia Siemens 2et*or+s "a-e set up t"eir manu acturing p!ant in :"ennai) ;G >!ectronics set up p!ant o manu acturing GSM mobi!e p"ones near Pune) >ricsson !aunc"ed t"eir RG< :entre in :"ennai) B!e,tronics set up an S>O in :"ennai) Ct"er ma.or companies !i+e Bo,conn7 Aspcom7 So!ectron etc "a-e decided to set up t"eir manu acturing bases in India) #"e Go-ernment "as a!ready set up #e!ecom >Euipment and Ser-ices >,port Promotion :ounci! and #e!ecom #esting and Security :erti ication :entre '#>#:() A !arge number o companies !i+e A!cate!7 :isco "a-e a!so s"o*n interest in setting up t"eir RG< centers in India) Ait" abo-e initiati-es India is e,pected to be a manu acturing "ub or t"e te!ecom eEuipment)

"./ T%RGETS SET ,1 T0E GO5ER32E3T

.( Net3or8 eB@ansion

a) 500 mi!!ion connections by t"e year 2010 b) Pro-ision o mobi!e co-erage o 00J geograp"ica! area by 2010 5( Rural tele@hon4 a) Cne p"one per t*o rura! "ouse"o!ds by 2010 'about 80 mi!!ion rura! connections( b) Reduce urban-rura! digita! di-ide rom present 25%1 to 5%1 by 2010 1) Broa+Aan+ a) Broadband *it" minimum speed o 1 mbps b) Broadband co-erage or a!! secondary G "ig"er secondary sc"oo!s and pub!ic "ea!t" care centres by t"e end o year 2008 c) Broadband co-erage or a!! Grampanc"ayats by t"e year 2010 4) In*rastructure Sharin) a) @SC subsidy support sc"eme or s"ared *ire!ess in rastructure in rura! areas *it" about 187000 to*ers by 2010 b) Increase s"aring in urban areas to /0J by 2010 5) Intro+uction o* S@rea+ o* I'T# an+ MoAile T# a) IP#V in ?00 to*ns by 2010 ;( Manu*acturin) a) Ma+ing India a "ub or te!ecom manu acturing by aci!itating more and more te!ecom speci ic S>Os b) Nuadrup!ing production in 2010 c) Ac"ie-ing e,ports o ? times rom present !e-e! o 0)5 bi!!ion in 2010 /) Research = Develo@ment a) Pre-eminence o India as a tec"no!ogy so!ution pro-ider b) :ompre"ensi-e security in rastructure or te!ecom net*or+ c) #ested in rastructure or enab!ing interoperabi!ity in 2e,t Generation 2et*or+ d) <oub!ing t"e te!ecom eEuipment RG< by 2010 rom present !e-e! o 15J 8) 0(International Ban+3i+th a) Baci!itating a-ai!abi!ity o adeEuate internationa! band*idt" at competiti-e prices to dri-e I#>S sector at aster gro*t"

TaAleD 7(7 Indian #e!ecommunications at a g!ance

-As on 30th September 2008)

Ran+ in *or!d in net*or+ si8e Cr+ #e!e&density 'per "undred popu!ations( C6(;7 Telephone connection (In millions) Bi,ed C0(C: Mobi!e C.:(C. #ota! C:C(;; Vi!!age Pub!ic #e!ep"ones :(; la8h Boreign <irect In-estment 'in mi!!ion( ' rom .05675 million 3anuary 2000 ti!! August 2008( Licenses issued Basic 2 :M#S ?0 @AS 224 In rastructure Pro-ider I 1// ISP 'Internet( 182 ISP *it" #e!ep"ony 'Broadband( 125 2ationa! ;ong distance 24 Internationa! ;ong <istance 10

".) *O3*LUSIO3
Indian te!ecommunication Industry is one o t"e astest gro*ing te!ecom mar+ets in t"e *or!d) The moAile sector has )ro3n *rom aroun+ .6 million suAscriAers in 5665 to reach .:6 million A4 earl4 566< re)isterin) an avera)e )ro3th o* over /6F 4?o?4( #"e t*o ma.or reasons t"at "a-e ue!!ed t"is gro*t" are !o* tari s coup!ed *it" a!!ing "andset-prices Surprising!y7 :<MA mar+et "as increased it mar+et s"are upto 10J t"an+s to Re!iance :ommunication) 9o*e-er7 across t"e g!obe7 :<MA "as been !osing out numbers to popu!ar GSM tec"no!ogy7 contrary to t"e scenario in India) #"e ot"er reason t"at "as tremendous!y "e!ped t"e te!ecom Industry is t"e regu!atory c"anges and re orms t"at "a-e been pus"ed or !ast 10 years by successi-e Indian go-ernments) According to #e!ecom Regu!atory Aut"ority o India '#RAI( t"e rate o mar+et e,pansion *ou!d increase *it" urt"er regu!atory and structura! re orms) >-en t"oug" t"e i,ed !ine mar+et s"are "as been dropping consistent!y7 t"e o-era!! ' i,ed and mobi!e( subscribers "a-e risen to more t"an 200 mi!!ion by irst Euarter o 200/) #"e te!ecom re orms "a-e

a!!o*ed t"e oreign te!ecommunication companies to enter Indian mar+et *"ic" "as sti!! got "uge potentia!) Internationa! te!ecom companies !i+e Voda one "a-e made entry into Indian mar+et in a big *ay) $urrentl% the Indian &elecommunication market is 'alued at around (100 billion )*u#ees +00,000 crore,- &wo telecom #la%ers dominate this market - .harti /irtel with 2 0 market share and *eliance $ommunication with 200 alon1 with other #la%ers like .S23 ).harat Sanchar 2i1am 3imited, and /&4&- Cne segment o t"e mar+et t"at "as been pu88!ing is broadband Internet) <espite t"e manner in *"ic" t"e country=s Internet mar+et "as been booming7 India=s mo-e into "ig"-speed broadband Internet access "as been distinct!y s!o*) And7 *"i!e t"ere appears to be considerab!e ent"usiasm amongst t"e popu!ation or t"e Internet itse! 7 t"is "as not been re !ected in broadband subscription numbers) In 200? India *itnessed a good surge in broadband users *it" t"e total suAscriAer Aase in the countr4 eB@an+in) A4 almost 566F to ,ust over 5 million A4 4earJs en+) <espite t"is surge7 broadband penetration in India still remains around only 0 2!" broadband ser-ices sti!! account or on!y 25J o t"e tota! Internet subscriber base7 sti!! in itse! comparati-e!y !o*) #"e Ministry o :ommunications and In ormation #ec"no!ogy 'M:I#( is "as -ery aggressi-e p!ans to increase t"e pace o gro*t"7 targeting 250 mi!!ion te!ep"one subscribers by end-200/ and 500 mi!!ion by 2010) Most o t"e e,pansion in subscribers is set to occur in rura! India) India=s rura! te!ep"one density "as been !anguis"ing at around 1)0JH So7 i /0J o tota! popu!ation is rura!7 t"e scope or gro*t" in t"is Industry is unprecedented)

*.!pter $

INDUSTRY STRUCTUR E

$.1 I3TRO4U*TIO3

#"e te!ecom industry is one o t"e prime contributors to India6s G<P) #"e once monopo!istic mar+et is today7 "ig"!y competiti-e) #"is "as necessitated t"e gro*t" o India te!ecom in rastructure) Brom t"e time o t"e Britis" Ru!e7 t"e #e!ecom Industry *as under t"e strict super-ision o t"e go-ernment) #"e trend continued e-en a ter independence unti! t"e !ate 1000s *"en t"e o!!o*ing initiati-es *ere ta+en up by t"e go-ernment% V #"e te!ecom sector *as opened up or pri-ate in-estment as a part o !ibera!i8ationpri-ati8ation-g!oba!i8ation po!icies V Cn 1st Cctober7 2000 t"e Go-ernment corporati8ed its operations *ing under t"e name o B"arat Sanc"ar 2igam ;imited 'BS2;( V #"e criteria or pri-ate companies or entering t"e te!ecom sector *ere re!a,ed A"at o!!o*ed *as a rapid de-e!opment o t"e mar+et or mobi!e p"ones and a!!ied inno-ations7 "ence bringing about a ne* era in t"e te!ecom sector in India)

$.2 I34I% TELE*O2 I3FR%STRU*TURE

#"e te!ecom ser-ices "a-e been recogni8ed t"e *or!d-o-er as an important too! or socioeconomic de-e!opment or a nation) It is one o t"e prime support ser-ices needed or rapid gro*t" and moderni8ation o -arious sectors o t"e economy) <ri-en by -arious po!icy initiati-es7 t"e Indian te!ecom sector *itnessed a comp!ete trans ormation in t"e !ast decade) It "as ac"ie-ed a p"enomena! gro*t" during t"e !ast e* years and is poised to ta+e a big !eap in t"e uture a!so)

$.2.1

Indi! telecom in r!structure 8 present st!tus

#"e go-ernment o India be!ie-es t"at or rapid economic de-e!opment bac+ed by socia! *e! are7 t"e te!ecom in rastructure in India needs to be up!i ted) #"is necessitates t"e ormu!ation o a compre"ensi-e te!ecom po!icy t"at -isua!i8es t"e uture o t"e Indian te!ecom mar+et) By t"e beginning o 200/7 t"e te!ecom net*or+ in India consisted o 48 mi!!ion i,ed-!ine connections) 2o*adays7 a -ast ma.ority o t"e popu!ation "as access to te!ep"one ser-ices) #"e "ig"!y competiti-e en-ironment "as ensured !o* pricing o goods and ser-ices t"at caters to t"e *ea+er sections o t"e society) Moreo-er7 t"e en"ancement o India te!ecom in rastructure "as a!so *idened t"e scope o t"e te!ecom sector to ot"er a!!ied -entures !i+e mobi!e ser-ices7 Internet7 cab!e #V ser-ices7 >:ommerce7 and ot"er orms o In ormation #ec"no!ogy 'I#()

#"e Indian #e!ecommunications net*or+ *it" 151 mi!!ion connections 'as on September 2008( is t"e t"ird !argest in t"e *or!d) #"e sector is gro*ing at a speed o 4?-50J during t"e recent years) #"is rapid gro*t" is possib!e due to -arious proacti-e and positi-e decisions o t"e Go-ernment and contribution o bot" by t"e pub!ic and t"e pri-ate sectors) #"e rapid strides in t"e te!ecom sector "a-e been aci!itated by !ibera! po!icies o t"e Go-ernment t"at pro-ides easy mar+et access or te!ecom eEuipment and a air regu!atory rame*or+ or o ering te!ecom ser-ices to t"e Indian consumers at a ordab!e prices In terms o !ong distance ca!!s7 India te!ecom in rastructure "as made remar+ab!e progress) ;atest tec"no!ogies7 !i+e use o ibre-optic cab!es "as en"anced ca!!-c!arity and reduced ca!!-costs to a !arge e,tent) #"e present te!ecom and mobi!e-p"one ser-ice pro-iders in India7 apart rom BS2; inc!ude 9utc"ison >ssar7 Re!iance :ommunications7 B"arti Airte!7 Idea7 #ata Indicom7 and a e* ot"ers)

$.2.2

Indi! telecom in r!structure 8 present st!tus

India "as pro-en its dominance as a tec"no!ogy so!ution pro-ider) > orts are being continuous!y made to de-e!op a ordab!e tec"no!ogy or masses7 as a!so compre"ensi-e security in rastructure or te!ecom net*or+) Researc" is on or t"e preparation o tested in rastructure or enab!ing interoperabi!ity in 2e,t Generation 2et*or+) It is e,pected t"at t"e te!ecom eEuipment R G < s"a!! be doub!ed by 2010 rom present !e-e! o 15J) Modern tec"no!ogies inductions are being promoted) Pi!ot pro.ects on t"e e,isting and emerging tec"no!ogies "a-e been underta+en inc!uding AiMa,7 1G etc) >mp"asis is being gi-en to tec"no!ogies "a-ing potentia! to impro-e rura! connecti-ity) 1G and Broadband Aire!ess Access 'BAA( po!icies "a-e since been issued) A!so to impro-e t"e RG< in rastructure in t"e te!ecom sector and bridge t"e digita! di-ide7 ce!!u!ar operators7 top academic institutes and t"e Go-ernment o India toget"er set up t"e #e!ecom :entres o >,ce!!ence ':C>s()

$.2.&

T!r-ets Set ,y t.e Government o I34I%

Indian go-ernment "as ta+en up t"e o!!o*ing e,pansion p!an or t"e uture%

1) 2et*or+ e,pansion 500 mi!!ion connections by t"e year 2010) Pro-ision o mobi!e co-erage o 00J geograp"ica! area by 2010) 2) Rura! te!ep"ony Cne p"one per t*o rura! "ouse"o!ds by 2010 'about 80 mi!!ion rura! connections() Reduce urban-rura! digita! di-ide rom present 25%1 to 5%1 by 2010) 1) Broadband Broadband *it" minimum speed o 1 mbps) Broadband co-erage or a!! secondary G "ig"er secondary sc"oo!s and pub!ic "ea!t" care centres by t"e end o year 2008) Broadband co-erage or a!! gram panc"ayats by t"e year 2010 4) In rastructure S"aring @SC subsidy support sc"eme or s"ared *ire!ess in rastructure in rura! areas *it" about 187000 to*ers by 2010) Increase s"aring in urban areas to /0J by 2010) 5) Introduction o Spread o IP#V and Mobi!e #V IP#V in ?00 to*ns by 2010) ?) Manu acturing Ma+ing India a "ub or te!ecom manu acturing by aci!itating more and more te!ecom speci ic S>Os) Nuadrup!ing production in 2010) Ac"ie-ing e,ports o ? times rom present !e-e! o 0)5 bi!!ion in 2010) /) Researc" G <e-e!opment Pre-eminence o India as a tec"no!ogy so!ution pro-ider) :ompre"ensi-e security in rastructure or te!ecom net*or+) #ested in rastructure or enab!ing interoperabi!ity in 2e,t Generation 2et*or+) <oub!ing t"e te!ecom eEuipment RG< by 2010 rom present !e-e! o 15J) 8) Internationa! Band*idt"

Baci!itating a-ai!abi!ity o adeEuate internationa! band*idt" at competiti-e prices to dri-e I#>S sector at aster gro*t")

$.& 2%BOR SEGE2E3TS

$.&.1 ,!sic Services

Basic Ser-ices in t"e pub!ic sector7 !i+e BS2; and M#2; toget"er account or 00 percent o t"e 28 mi!!ion connections) #"e tota! re-enue in BD20017 or t"ese t*o entities combined *as I2R 28/ bi!!ion) #"e te!ecommunication net*or+ o t"e BS2; - M#2; combine is one o t"e !argest in Asia7 *it" a capacity o 15 mi!!ion !ines and 28)4 mi!!ion *or+ing connections) S*itc"ing capacity during BD2000 increased by o-er 40 percent) In t"e period rom Apri!-<ecember 20007 4)0 mi!!ion ne* i,ed !ine connections *ere pro-ided representing a gro*t" rate o 20)8 per cent o-er t"e corresponding period !ast year) As o 3une 20007 @S< 5/)5 mi!!ion B<I "as been in-ested in t"e basic ser-ices sector) #"e tota! number te!ep"one !ines is e,pected to go up to /5 mi!!ion by t"e year 20057 and assuming a-erage re-enue per user 'APR@( o I2R 10000 per !ine7 t"e tota! re-enue is e,pected to rise to I2R /50 bi!!ion by 20057 trans!ating into an :AGR o around 25 per cent) @nti! 10047 <o#7 no* BS2;7 *as t"e so!e i,ed ser-ice pro-ider 'BSP( in India e,cept Mumbai and <e!"i *"ere ser-ices *ere pro-ided by M#2;) In 10047 t"e Go-ernment o India 'GCI( a!!o*ed pri-ate participation in pro-ision o i,ed ser-ices) Bor t"e pro-ision o basic ser-ices7 2#P 04 di-ided t"e country into7 21 basic te!ecom circ!es to be ser-iced by BS2; and one ot"er pri-ate sector operator) But in <e!"i and Mumbai7 t"e pub!ic sector pro-ider *ou!d be M#2; and one pri-ate operator) 2#P 00 too+ t"is process urt"er and a!!o*ed upto our pri-ate operators to compete in eac" circ!e and recent!y #RAI a!!o*ed un!imited competition in eac" circ!e In addition7 e,isting ce!!u!ar pro-iders "a-e been granted permission to operate i,ed ser-ices using t"eir GSM in rastructure) #"e irst round o bidding or basic and ce!!u!ar ser-ices !icenses= mopped up an astonis"ing I2R 1200 bi!!ion as !icense ees in 1004) SubseEuent!y it turned out t"at t"ese amounts *ere too ambitious7 and *ou!d possib!y !ead to ban+ruptcy) #"ere ore7 under 2#P 00 guide!ines7 t"e i,ed !icense ee arrangement *as rep!aced by a re-enue s"aring regime) #"e ee structure as it stands no* "as t"ree components% a i,ed entrance ee o anyt"ing bet*een I2R 10 mi!!ion to I2R 1)15 bi!!ion7 a re-enue s"are o 8 to 10 percent and a ee or RG<)

Pre-2#P 00 !icensees= "a-e to c!ear t"eir !icense ee dues be ore mo-ing on to t"e re-enue s"aring regime) #"e pri-ate sector "asn=t s"o*n t"e !e-e! o interest in basic te!ep"ony t"at *as anticipated) #ab!e 2 be!o* s"o*s t"e -arious pri-ate p!ayers in di erent circ!es) C t"e 11 pro.ects or *"ic" ;etters o Intent ';oI=s( "ad been issued7 !icense agreements "a-e been signed on!y in t"e case o ? pro.ects) ;icenses "a-e been issued to% B"arti #e!enet ' or t"e state o Mad"ya Prades"(H #ata #e!eser-ices ' or t"e state o And"ra Prades"(H Re!iance #e!ecom ' or t"e state o Gu.arat(H >ssar :om-ision ' or t"e state o Pun.ab(H 9ug"es Ispat ' or Ma"aras"tra(H and S"yam #e!e!in+ ' or Ra.ast"an() #"ese si, !icensees "a-e to pay !icense ees @S< ?50 mi!!ion to t"e GCI o-er t"e ne,t 15 years) In a recent po!icy announcement7 guide!ines *ere issued by t"e <C# in 3anuary 20017 to permit basic operators to pro-ide !imited mobi!ity ser-ices 'using :<MA tec"no!ogy or *ire!ess in !oca! !oop(7 *it"in a s"ort distance c"arging area 'S<:A(7 e)g) a district) In response to t"is guide!ine7 ourt" round o bidding recei-ed 80 bids or t"e remaining 15 circ!es7 rom pri-ate operators7 inc!uding e,isting ce!!u!ar operators) #"e same companies *"ic" "a-e bid or basic !icenses are !i+e!y to bid or ot"er segments 2;< and IS<) #"e re!ati-e!y "ig" bids again t"reaten t"eir inancia! -iabi!ity7 and o ten ma+e pro.ects unban+ab!e)

$.&.2

3!tion!l Lon- 4ist!nce ?3L4@ Services

According to #RAI7 2;< represents te!ecom ser-ices *it"in t"e country but outside t"e !oca! area o an e,c"ange system) #"is sector *as !ibera!i8ed in 2000 and t"e <o# "as since a*arded pre!iminary appro-a! ';oIs( to Re!iance In ocomm and B"arti #e!esonic) M#2; p!ans to enter t"e !ong-distance te!ep"one business a!ong *it" Rai!te!7 a subsidiary o t"e Indian Rai!*ays and a t"ird partner) VS2; too "as s"o*ed interest in entering t"is segment o t"e mar+et in anticipation o a de inite end to its monopo!y o-er IS< ser-ices by Apri! 2002) Guide!ines or entry in t"is sector7 issued by #RAI7 restrict entry to t"ose7 *it" a minimum paid-up capita! at I2R 2)5 bi!!ion and combined net *ort" o I2R 25 bi!!ion) #"e guide!ines a!so reEuire t"at7 2;< operators *it" nationa! !icense to carry inter-circ!e tra ic enter into agreements *it" respecti-e BSPs7 or carrying intra-circ!e tra ic) #"is can restrict t"e 2;< mar+et to inter-circ!e mar+et or a pure !ong-distance p!ayer)

According to #RAI estimates7 t"e 2;< mar+et si8e7 in BD007 *as 2? bi!!ion minutes7 *it" re-enues o I2R 124 bi!!ion 'inc!uding re-enue rom t"e domestic carriage o IS<

*"ic" is estimated at I2R 21 bi!!ion() Inter-circ!e ca!!s accounted or 25 per cent o t"e 2? bi!!ion minutes tra ic and 54 per cent o t"e I2R 124 bi!!ion re-enue in BD00) #"us7 t"e addressab!e mar+et or 2;< operators is roug"!y 50 per cent o t"e tota! !ong distance mar+et)

$.&.&

Intern!tion!l Su#scri#er 4i!lin- ?IS4@

#"e segment *as monopo!i8ed by VS2; *"ose re-enue rom t"e IS< ser-ices *as I2R ?8 bi!!ion in BD2001) IS< ca!! c"arges "a-e been reduced by 21 per cent in May 10007 and urt"er 1/ per cent in Cctober 20007 as a part o tari rationa!i8ation initiated by #RAI) #"e go-ernment "as in-ited o-erseas companies to o er internationa! ca!!ing ser-ices) But t"e current situation is entire!y di erent) #e!e-density per "undred popu!ations "as gro*n rom /)08 in Marc" 2004 to 8)05 in Marc" 2005 and to a !e-e! o 12)/4 in Marc" 200?) Bu!!y automatic Internationa! Subscriber <ia!ing 'IS<( ser-ice is a-ai!ab!e to a!most a!! t"e countries) #"e tota! number o stations connected to 2ationa! Subscriber <ia!ing '2S<( is o-er 117?8?) #"e gro*t" in rura! demand "as outstripped urban demand *it" te!ecom penetration in -i!!ages increasing in mu!tip!es) 9ig"er te!ecom dispersa! is indicati-e o reduced economic disparities7 e,perts point out)

$.&."

*ellul!r 2o#ile Services

#"e ce!!u!ar sector is t"e astest gro*ing segment *it"in t"e Indian te!ecom ser-ices) #"e bi!!ed re-enue during BD2001 *as I2R 18)/ bi!!ion) A ter a s!o* start7 t"is sector registered an annua! gro*t" rate o more t"an /0 per cent in BD2000 and BD2001 and is e,pected to gro* at t"e same rate or BD2002) Simi!ar to basic ser-ices7 under 2#P 04 eac" ser-ice area or ce!!u!ar mobi!e ser-ices *as to be ser-iced by t*o operators *it" t"e di erence t"at bot" *ere to be pri-ate operators) A 10-year !icense period *as pro-ided7 *it" <o# reser-ing t"e rig"t to enter t"e mar+et at a uture date) In addition direct interconnection bet*een di erent pri-ate ser-ice pro-iders 'basic7 ce!!u!ar and 6Va!ue Added Ser-ices6( in t"e same ser-ice area *as not permitted as suc" interconnection "ad to pass t"roug" <o#=s and M#2;=s net*or+) Bids or ce!!u!ar ser-ices *ere initia!!y in-ited or t"e our metros and ser-ice commenced in August 1005) In 100?7 ce!!u!ar te!ep"one ser-ices *ere opened or 18

te!ecom circ!es) #"e !icenses or di erent Icirc!es= 't*o eac" per circ!e( *ere priced by pub!ic auction) But 2#P 00 a!tered t"e competiti-e structure o t"e industry and c"anged t"e duopo!y to un!imited competition in eac" circ!e) A staggering 15)4 mi!!ion mobi!e !ines *ere acti-ated in India during 3anuary7 according to t"e !atest statistics rom t"e #e!ecom Regu!atory Aut"ority o India '#RAI()

$." *O3*LUSIO3
>conomic re orms and !ibera!i8ation "a-e dri-en te!ecom sector t"roug" se-era! transmission c"anne!s o *"ic" t"ese t"ree categories are o ma.or signi icance) Indian #e!ecom Sector is going under a "uge tec"nica! c"ange) It is attracting a !ot o in-estors7 and t"us t"e industry dynamics is c"anging rapid!y) #"e te!ecom sector reEuires a "ig" in-estment and t"e mar+et is a!so -ery competiti-e) #"e industry is orced to c"ange under t"e in !uence o internationa! orce7 e,perience7 tec"no!ogy and competition)

*.!pter '

GOVERNMEN T POLICY ANALYSIS

'.1 I3TRO4U*TIO3
As t"e sector is open or bot" pri-ate and pub!ic p!ayers t"ere are "uge number o p!ayers in t"e mar+et *"ic" reEuires a proper picturing o ru!es and regu!ation to p!ay a air game) India "as been -ery strong in case o ru!es and regu!ationH it "as created body !i+e <C#7 #RAI7 <#S *"o ta+es care o t"e ru!es and regu!ation) Apart rom t"em it +eeps issuing po!icy and act *"ic" c"ec+s t"e e-ents "appening in t"e industry) #"e go-ernment "as been issuing po!icy !i+e Broadband Po!icy 20047 ne* te!ecom po!icy10007 2ationa! #e!ecom Po!icy 1004) #"ere are more agencies !i+e I#@7 #<SA7 #:I;7 I:SI;7 and M:C:A7 *"ic" "e!ped it regu!ating t"eir *or+) Ait" increasing number o p!ayers in mar+et t"e go-ernment and its agencies "a-e to unction more care u!!y)

'.2 GO5ER32E3T REGUL%TIO3

'.1.1 4ep!rtment o Telecommunic!tions

@nti! Cctober 20007 t"e <epartment o #e!ecommunication '<C#( *as t"e aut"ority in granting !icences and ser-ice pro-ision) It a!so operated domestic basic te!ep"one ser-ices t"roug"out India) #"e po!icy ma+ing unctions and t"e ser-ice pro-iding unction *ere segregated into t*o di erent entities during 2000)#"e t*o ser-ice pro-iding department o te!ecom sector *ere corporati8ed-t"e department o te!ecom ser-ice and t"e department o te!ecom operation ) #"e state o*ned corporation BS2; too+ o-er a!! ser-ice pro-iding unctions o t"ese t*o departments)

'.1.2

3!tion!l telecom policy> 1++"

#"e ne* economic po!icy adopted by t"e Go-ernment aims at impro-ing India6s competiti-eness in t"e g!oba! mar+et and rapid gro*t" o e,ports) Anot"er e!ement o t"e ne* economic po!icy is attracting oreign direct in-estment and stimu!ating domestic in-estment) #e!ecommunication ser-ices o *or!d c!ass Eua!ity are necessary or t"e success o t"is po!icy) It is7 t"ere ore7 necessary to gi-e t"e "ig"est priority to t"e de-e!opment o te!ecom ser-ices in t"e country)

OA,ective

u d i n g s u c " a d m i n i s t r a t i e a n d

i n a n c i a !

'.1."

3ew telecom policy> 1+++

OA,ectives an+ tar)ets o* the ne3 telecom @olic42 ./// 1) Access to te!ecommunications is o utmost importance or ac"ie-ement o t"e country6s socia! and economic goa!s) A-ai!abi!ity o a ordab!e and e ecti-e communications or t"e citi8ens is at t"e core o t"e -ision and goa! o t"e te!ecom po!icy) 2) Stri-e to pro-ide a ba!ance bet*een t"e pro-ision o uni-ersa! ser-ice to a!! unco-ered areas7 inc!uding t"e rura! areas7 and t"e pro-ision o "ig"-!e-e! ser-ices capab!e o meeting t"e needs o t"e country6s economy 1) >ncourage de-e!opment o te!ecommunication aci!ities in remote7 "i!!y and triba! areas o t"e country) 4) :reate a modern and e icient te!ecommunications in rastructure ta+ing into account t"e con-ergence o I#7 media7 te!ecom and consumer e!ectronics and t"ereby prope! India into becoming an I# superpo*er 5) :on-ert P:C6s7 *"ere-er .usti ied7 into Pub!ic #e!ein o centers "a-ing mu!timedia capabi!ity !i+e IS<2 ser-ices7 remote database access7 go-ernment and community in ormation systems etc) ?) #rans orm in a time bound manner7 t"e te!ecommunications sector to a greater competiti-e en-ironment in bot" urban and rura! areas pro-iding eEua! opportunities and !e-e! p!aying ie!d or a!! p!ayers /) Strengt"en researc" and de-e!opment e orts in t"e country and pro-ide an impetus to bui!d *or!d-c!ass manu acturing capabi!ities 8) Ac"ie-e e iciency and transparency in spectrum management 0) Protect de ense and security interests o t"e country 10) >nab!e Indian #e!ecom :ompanies to become tru!y g!oba! p!ayers

'.1.$
'reamAle

,ro!d#!nd Policy> 2::"

Recogni8ing t"e potentia! o ubiEuitous Broadband ser-ice in gro*t" o G<P and en"ancement in Eua!ity o !i e t"roug" societa! app!ications inc!uding te!e-education7 te!e-medicine7 e-go-ernance7 entertainment as *e!! as emp!oyment generation by *ay o "ig" speed access to in ormation and *eb-based communication7 Go-ernment "a-e ina!i8ed a po!icy to acce!erate t"e gro*t" o Broadband ser-ices) <emand or Broadband is primari!y conditioned and dri-en by Internet and P: penetration) It is recogni8ed t"at t"e current !e-e! o Internet and Broadband access in t"e country is !o* as compared to many Asian countries) Penetration o Broadband7 Internet and Persona! :omputer 'P:( in t"e country *as 0)02J7 0)4J and 0)8J respecti-e!y at t"e end o <ecember7 2001) :urrent!y7 "ig" speed Internet access is a-ai!ab!e at -arious speeds rom ?4 +i!obits per second '+bps( on*ards and present!y an a!*ays-on "ig" speed Internet access at 128 +bps is considered as IBroadband6) #"ere are no uni orm standards or Broadband connecti-ity and -arious countries o!!o* -arious standards)

'.1.' %dministr!tion Industry

!nd

*ontrol

on

Telecom

#"e #e!ecom :ommission7 set up in Apri! 10807 "as t"e administrati-e and inancia! po*ers o t"e Go-ernment o India to dea! *it" -arious aspects o te!ecommunications) #"e :ommission and t"e <epartment o #e!ecommunications '<C#( are responsib!e7 inter alia7 or po!icy ormu!ation7 !icensing7 *ire!ess spectrum management7 administrati-e monitoring and contro! o t"e Pub!ic Sector @nderta+ings 'PS@s( engaged in te!ecommunication ser-ices7 researc" and de-e!opment7 standardi8ationM-a!idation o eEuipment) In addition to t"e #e!ecom :ommission7 ot"er Go-ernment organi8ations engaged in t"e te!ecom sector 'as a part o <C#( are t"e :entre or <e-e!opment o #e!ematics ':<C#(7 t"e #e!ecom >ngineering :entre '#>:( and t"e Aire!ess P!anning and :oordination 'AP:( *ing) :<C# *as estab!is"ed in 1084 *it" t"e ob.ecti-e o de-e!oping a ne* generation o digita! s*itc"ing items) It "as de-e!oped a *ide range o s*itc"ing and transmission products bot" or rura! and urban app!ications) #>: is de-oted to product -a!idation and standardi8ation or user agencies) It a!so pro-ides tec"nica! and engineering support to

t"e #e!ecom :ommission and t"e ie!d units) #"e Aire!ess P!anning and :oordination *ing dea!s *it" t"e po!icies o Spectrum management7 !icensing7 reEuency assignments7 internationa! coordination or spectrum management and administration o t"e Indian Aire!ess #e!egrap"y Act7 1011) In order to administer t"e use o radio reEuencies7 t"e !icensesMrene*a!s or use o *ire!ess eEuipment and t"e reEuencies are aut"ori8ed by AP:) #"e !icenses are granted or speci ic periods on payment o prescribed !icense ees and roya!ty in ad-ance and are rene*ed a ter e,piry o t"e -a!idity periods)

'.1./

Telecom Re orms

As a part o t"e continuing process o te!ecom re orms and in pursuance o t"e 2e* #e!ecom Po!icy 1000 '2#P-00(7 t"e <epartment o #e!ecom Ser-ices '<#S( and t"e <epartment o #e!ecom Cperations '<#C( *ere car-ed out rom <C# in Cctober 1000 or pro-iding te!ecommunication ser-ices in t"e country) <#S and <#C *ere ina!!y corporati8ed into a *"o!!y o*ned Go-ernment :ompany name!y7 t"e B"arat Sanc"ar 2igam ;imited 'BS2;( 'incorporated on 15 September 2000( and t"eir business *as trans erred to t"is :ompany *it" e ect rom 1 Cctober 2000) #"e creation o BS2; *as e,pected to pro-ide a !e-e! p!aying ie!d in a!! areas o te!ecom ser-ices7 bet*een Go-ernment operators and pri-ate operators)

'.1.)

Re-ul!tory *ontrol

#"e entry o pri-ate ser-ice pro-iders in 1002 broug"t *it" it t"e ine-itab!e need or independent regu!ation) #"e #e!ecom Regu!atory Aut"ority o India '#RAI( *as t"us estab!is"ed *it" e ect rom 20 Bebruary 100/ by an Act o Par!iament7 ca!!ed t"e #e!ecom Regu!atory Aut"ority o India Act7 100/7 to regu!ate te!ecom ser-ices7 inc!uding i,ationMre-ision o tari s or te!ecom ser-ices7 *"ic" *ere ear!ier -ested in t"e :entra! Go-ernment) #"e #RAI Act *as amended by an ordinance7 e ecti-e rom 24 3anuary 20007 estab!is"ing a #e!ecommunications <ispute Sett!ement and Appe!!ate #ribuna! '#<SA#( to ta+e o-er t"e ad.udicatory and disputes unctions rom #RAI) #<SA# *as set up to ad.udicate any dispute bet*een a !icensor and a !icensee7 bet*een t*o or more ser-ice pro-iders7 bet*een a ser-ice pro-ider and a group o consumers7 and to "ear and dispose o appea!s against any direction7 decision or order o #RAI)

'.1.+ Ot.er Government Or-!niC!tions in t.e Telecom Sector

Besides M#2; and BS2;7 ot"er pub!ic sector underta+ings in t"e te!ecom sector are I#I ;imited 'I#I(7 #e!ecommunications :onsu!tants India ;imited '#:I;(7 Inte!!igent

:ommunication Systems India ;imited 'I:SI;( and Mi!!ennium #e!ecom ;imited 'M#;() I#I ;imited *as ormed in 1048 or manu acturing a *ide range o eEuipment7 *"ic" inc!uded e!ectronic s*itc"ing eEuipment7 transmission eEuipment and te!ep"one instruments o -arious types) #:I; *as estab!is"ed in 10/8 or pro-iding +no*-"o* in a!! ie!ds o te!ecommunications at t"e g!oba! !e-e!) #"e core competence o #:I; is in communications net*or+ pro.ects7 so t*are support7 s*itc"ing and transmission systems7 ce!!u!ar ser-ices7 rura! te!ecommunications and optica! iber based bac+bone net*or+) I:SI; *as estab!is"ed in Apri! 108/ or manu acturing computer based communication systems and eEuipment) It a!so pro-ides engineering7 tec"nica! and management consu!tancy ser-ices or computers and communication systems in India and abroad) M#2; *as estab!is"ed in Bebruary 2000 as a *"o!!y o*ned subsidiary o M#2; or pro-iding internet ser-ices in t"e country) It is pursuing t"e estab!is"ment o broadband internet access or t"e corporate segment and Voice o-er Internet Protoco! 'VCIP( te!ep"ony ser-ices t"roug"out India *it" t"e use o re!e-ant tec"no!ogies !i+e Very Sma!! Aperture #ermina!s 'VSA#s()

'.1.1: industry

Re-ul!tory !nd policy issue o

telecom

Indian te!ecom sector is *itnessing an unprecedented gro*t" o its time) #"e same is e,pected to increase in uture as *e!!) #"is is necessitating action on t"e ronts o in rastructure de-e!opment and suitab!e !egis!ati-e and regu!atory re orms in t"e ie!d o In ormation and :ommunication #ec"no!ogy 'I:#( at !arge) :on-ergence !a*s in India are in t"e process o ormu!ation and so are po!icy re!ated matters) #"oug" t"e :ommunication :on-ergence Bi!!7 2001 "as been ormu!ated7 it seems not to "a-e been noti ied yet) #"e Bi!! is intended to promote7 aci!itate and de-e!op in an order!y manner t"e carriage and content o communications 'inc!uding broadcasting7 te!ecommunications and mu!timedia(7 or t"e estab!is"ment o an autonomous :ommission to regu!ate carriage o a!! orms o communications7 or estab!is"ment o an Appe!!ate #ribuna! and to pro-ide or matters connected t"ere*it" or incidenta! t"ereto7 to aci!itate de-e!opment o a nationa! in rastructure or an in ormation based society7 and to enab!e access t"ereto7 to pro-ide a c"oice o ser-ices to t"e peop!e *it" a -ie* to promoting p!ura!ity o ne*s7 -ie*s and in ormation7 to estab!is" a regu!atory rame*or+ or carriage and content o communications in t"e scenario o con-ergence o te!ecommunications7 broadcasting7 data-communication7 mu!timedia and ot"er re!ated tec"no!ogies and ser-ices7 to pro-ide or t"e po*ers7 procedures and unctions o a sing!e regu!atory and !icensing aut"ority and o t"e Appe!!ate #ribuna!7 etc)

'.1.11 3orms or 2;% ,etween Telecommunic!tion *omp!nies

#"e go-ernment "as re-ised norms and regu!ations or merging G acEuisition 'MGA( bet*een te!ecommunication companies *it"in a same circ!e) <ec!aring t"e guide!ines and regu!ations7 t"e <epartment o #e!ecommunication '<o#( said t"at prior appro-a! or merger o te!ecommunication companies is necessary) It is emp"asi8e t"at t"e tota! mar+et s"are a ter merging s"ou!d not e,ceed to more t"an 40J in terms o bot" subscriber base and re-enue) Prior it *as "e!d at ?/ per cent) It "as been made c!ear t"at no merger *ou!d be a!!o*ed un!ess and unti! t"ere are minimum our ser-ice pro-iders !e t a ter suc" merging process) #"e go-ernment6s re-ised norms and regu!ations concerning to merger "as tig"tened t"e merging and acEuisitions bet*een te!ecommunication companies in t"e circ!e) Brom no* conso!idation bet*een te!ecommunication companies *it"in same circ!e *ou!d "a-e means acing di icu!ty and "ig" cost a!so) Idea "as recent!y acEuired !icense on!y or 0 circ!es) #"ere ore7 it is not possib!e or an e,isting !icensee to get t"e Idea in t"ese nine circ!es) Simi!ar!y ot"er !icensees i t"ey *ant to se!!7 needs to searc" or some ot"er suitor *"ic" s"ou!d be outside t"e pur-ie* o group o !icensed operators in t"eir circ!es) #"is ne* step rom t"e go-ernment side "as opened up a ne* gate*ay or ne* p!ayers7 *"ic" *ou!d "a-e ti!! no* acing !ots o troub!es in absence o any !icense) #"e ne* go-ernment regu!ations are more stringent and !e t !ess room or air to pass) ;ess !e,ibi!ity is a!!o*ed *"i!e designing a!! our p"ases - or any merging pre consent o go-ernment is reEuired to ta+e7 t"e mar+et s"are o merging entity beyond *"ic" any merging *i!! not be a!!o*ed7 "as been broug"t do*n rom ?/J to 40J7 be ore contemp!ating any merging process it is imperati-e t"at t"e !icense must go rom t"roug" 1 years o operation and !ast t"e merged entity is reEuired to pay e,tra amount or e-ery spectrum) #"e ne* norms issued are some*"ere de-iated rom t"e #RAI6s regu!ations) #"e #RAI "ad ru!ed out merging and acEuisition procedure un!ess and unti! ro!!out recommendations *ere not u!! i!!ed) But in t"e re-ised guide!ines issued by go-ernment or merging process7 not"ing "as been mention in respect o ro!!out ob!igations) It is +ept si!ent or it) 2o* a c!ause "as been inserted *"ic" "a-e made !icense operation o t"ree years ob!igatory) In ne* guide!ines issued by t"e go-ernment 6acEuisition6 *ord "as been dropped) #"e remo-a! in t"e recent issued guide!ines *i!! some*"ere create ambiguity to t"e e,tent t"at it *i!! not be c!ear as *"et"er t"ese norms are speci ica!!y or merger or acEuisition)

#"e regu!ations are !oo+ing as a pi!! o re!ie or ne* entrants) As no* t"ey can bring strategic in-estors7 *"ic" means t"ey can se!! ma,imum /4J sta+e to a!! t"ose ne* g!oba! companies or domestic entities *"ic" are +een to ma+e entry into t"e India6s astest gro*ing te!ecommunication sector) >ar!ier e,isting te!ecommunication p!ayers purc"ased ne* entrants or reducing spectrum crunc") But no* a!! ne* entrants *"o "a-e recei-ed !icense in recent years can be merged or purc"ased by ot"ers on!y a ter 3anuary 2011)

#"e ne* issued guide!ine a!so ma+es it c!ear t"at Imerger o !icenses s"a!! be restricted to t"e same ser-ice area=) It means i an operator "as its ser-ices on!y in eastern regions it can6t undergone into merging process *it" anot"er te!ecommunication company *"o is o ering ser-ices on!y in 9imac"a! Prades" and Pun.ab) Burt"er it c!ears t"at no buoyant or merging process can be ta+en p!ace among top 1 ser-ice pro-iders) It ma+es c!ear t"at as !ong as t"ese ne* norms are into operation7 Voda one can ne-er be ab!e to purc"ase B"arti or Re!iance and -ice -ersa7 nor can e-er t"e Idea :e!!u!ar purc"ase Voda one) 9o*e-er7 suc" big companies- Re!iance7 B"arti7 Voda one7 and Idea :e!!u!ar can purc"ase sma!! p!ayers !i+e Spice)

#"e <o# a!so e,p!icit!y mentioned out t"at t"e spectrum trans er c"arges are needed to be pay in case o any merging bet*een e,isting te!ecommunication companies) #"e amount *"ic" *i!! be paid is decided by go-ernment) 9o*e-er7 i number o ser-ice pro-iders a!!s be!o* 4 in circ!e during process t"en no merging *i!! ta+e p!ace)

#"e go-ernment6s motto be"ind issuing ne* princip!es and guide!ines is to ensure t"at one o t"e astest gro*ing te!ecommunication sectors in near uture *i!! continua!!y to "a-e more t"an 8 operators in circ!es) #"is step in turns bo!sters competition and "e!ps in earning more buc+s) It *i!! a!so !ead to optimum uti!i8ation o resources)

'.2. I2PORT%3T REGUL%TIO3S I2P%*T O3 T0E I34I%3 I34USTR1

'.2.1 ?U%SL@ Uni ied %ccess Service

%34 T0EIR TELE*O2

License

Re-ime

@ni ied !icensing mar+ed t"e end o t"e !icense regime in t"e Indian te!ecom industry) It "e!ped in a!igning con-ergent tec"no!ogies and ser-ices) #"e estab!is"ment o t"e @ni ied Access ;icensing Regime '2001( e!iminated t"e need or di erent !icenses or di erent ser-ices) P!ayers are no* a!!o*ed to o er bot" mobi!e and i,ed-!ine ser-ices under a sing!e !icense a ter paying an additiona! entry ee) #"is does not ta+e into account nationa! and internationa! !ong-distance ser-ices and Internet access ser-ices)

'.2.2

%ccess 4e icit *.!r-es ?%4*@

A<: ma+es it mandatory or a ser-ice pro-ider at t"e ca!!er=s end to s"are a percent o t"e re-enue earned *it" t"e ser-ice pro-ider at t"e recei-er=s end in !ong-distance te!ep"ony) #"is subsidises t"e in rastructure costs o t"e ser-ice pro-ider enab!ing access at recei-er=s end7 especia!!y because renta! or i,ed-!ine ser-ices is !o*) Re-ision in t"e A<: regime is e,pected to be o!!o*ed by urt"er tari reduction in te!ecom ser-ices)
%i)ureD ;(. Dear *ise ce!!u!ar tari and no) o subscribers

'.2.&

%ccess 4e icit *.!r-es ?%4*@

A<: ma+es it mandatory or a ser-ice pro-ider at t"e ca!!er=s end to s"are a percent o t"e re-enue earned *it" t"e ser-ice pro-ider at t"e recei-er=s end in !ong-distance te!ep"ony) #"is subsidises t"e in rastructure costs o t"e ser-ice pro-ider enab!ing access

at recei-er=s end7 especia!!y because renta! or i,ed-!ine ser-ices is !o*) Re-ision in t"e A<: regime is e,pected to be o!!o*ed by urt"er tari reduction in te!ecom ser-ices)

'.& *O3*LUSIO3
Ae sa* -arious agencies and acts passed by Indian go-ernment to regu!ate t"e industry) #"e go-ernment "as to be rigid and cautious as t"e g!oba! p!ayers enter into t"e mar+et) #"e increasing number o ser-ices pro-ided by te!ecom sectors ca!! or additiona! attention) #"e go-ernment "as been doing e,ce!!ent .ob in maintaining a "armony bet*een pub!ic and pri-ate p!ayers but sti!! "as a !ong *ay to go) #"e step ta+en by go-ernment to*ards t"e 1G a!!ocation s"o*s "o* e ecti-e!y it can operate)

*.!pter /

ECONOMIC FACTORS AND ITS

IMPLICATION S

/.1 I3TRO4U*TIO3
#"is c"apter gi-es us an o-er-ie* about t"e -arious measures ta+en by t"e go-ernment o India to bring in more B<I in to te!ecommunication sector) #"e go-ernment *ants to bring in ad-anced tec"no!ogy and more capita! in t"e te!ecommunication sector and "ence "as increased t"e B<I cap to /4J) #"e te!ecommunication sector "as pro-ided emp!oyment opportunities to -arious s+i!!ed and uns+i!!ed *or+ers direct!y or indirect!y) #"e te!ecommunication sector "as contributed to t"e gro*t" o G<P and a!so to t"e gro*t" o :apita! mar+ets) #"ere are stoc+s !i+e *"ic" orm t"e BS> -10 s"are inde,) #"ese actors pro-ide an economic o-er-ie* o t"e economy and "a-e an impact on t"e gro*t" o t"e sector and t"e country as a *"o!e)

/.2 I35EST2E3TS
Cne o t"e most signi icant contributors to India=s booming economy is t"e de-e!opment o t"e ser-ices sector and t"e ocus o Boreign <irect In-estment in t"e #e!ecommunication sector) C-er t"e past t*o decades7 t"e ser-ice sector "as e,panded rapid!y and "as come to p!ay an increasing!y important ro!e in nationa! economies and in t"e internationa! economy) #"e structure o Boreign <irect In-estment 'B<I( *or!d*ide

"as a!so s"i ted to*ards ser-ices) In t"e ear!y 10/0s7 ser-ice sector accounted or on!y one Euarter o t"e *or!d B<I stoc+) In 1000 t"is s"ares *as !ess t"an one "a! and by 20017 it "as risen to about ?/ per cent) 2o* ser-ice sectors !i+e te!ecommunication7 I# enab!ed ser-ices7 e!ectricity insurance7 air transport are becoming prominent) Since t"e introduction o WManmo"anomics= during PV 2arasim"a Rao=s go-ernment in 10017 Boreign <irect In-estment 'B<I( "as been !oo+ed upon as a too! to trans orm under de-e!oped countries into ad-anced nations) Since t"en e-ery go-ernment "as encouraged t"e e,pansion o oreign direct in-estment) #"e !ibera!i8ation measures post-1000 "as c"anged *it" oreign in-estments radica!!y7 no* port o!io as *e!! as Boreign <irect In-estment are not on!y a!!o*ed but a!so acti-e!y encouraged) Initia!!y Boreign <irect in-estment *as introduced on!y in a e* sectors but since t"en it "as been introduced in a -ariety o sectors inc!uding t"e sector o #e!ecommunications) #"ere are mu!ti- aceted ad-antages o encouraging oreign direct in-estment in te!ecom sector) Apart rom ensuring te!ecom ser-ices at subsidi8ed prices7 it can satis y t"e dire need o in rastructura! re orms in rura! areas) #"e in !o*s *i!! a!!o* mu!tip!e bene its suc" as tec"no!ogy trans er7 mar+et access7 impro-ement in -oice and data Eua!ity and organi8ationa! s+i!!s) It increases t"e !o* o oreign currency and "e!ps in maintaining "armonious re!ations"ip *it" t"e country rom *"ic" t"e in-estment is made) Moreo-er7 India o ers an unprecedented opportunity or te!ecom ser-ice operators7 in rastructure -endors7 manu acturers and associated ser-ices companies) A"en t"e Indian go-ernment opened up ce!!u!ar te!ep"ony to pri-ate industry7 se-era! oreign in-estors *ere ready to enter India=s te!ecom sector) 9o*e-er beating ot"er manu acturing and ser-ices sectors7 Indian te!ecom "ad attracted ma.or in !o* o B<I since August 1001) According to t"e numbers pub!is"ed by In-estindiate!ecom 'an on!ine agency *"ic" trac+s de-e!opments in t"e Indian te!ecom sector(7 Indian te!ecom "as grossed actua! B<I *ort" Rs 05/?)40 crores during t"e period starting rom !ate 1001 to ear!y 2001) C t"e tota! B<I in !o* in Indian te!ecom sector7 t"e ma.or s"are "as gone to*ards in-estment in "o!ding companies o!!o*ed by ce!!u!ar net*or+ and manu acturing and consu!tancy) A"i!e 9utc"ison A"ampoa "as a 40 per cent sta+e in 9utc"ison te!ecom7 Voda one "as 21 per cent in RPG ce!!u!ar and Veri8on "as ten percent sta+e in Re!iance te!ecom) Ct"er oreign companies *it" simi!ar sta+e in Indian companies inc!ude A#G# Aire!ess7 :e!!net and Birst Paci ic)

Recent!y7 t"ere "as been a "i+e in t"e Boreign <irect In-estment in t"e te!ecom sector and it "as been increased rom 40J to /4 J) #"is mo-e seems to be positi-e or t"e sector7 as it reEuires in-estments o Rs /00 &000 mi!!ion o-er t"e ne,t 5 years) B<I in !o* by 2004 *as 0050)04 cores in te!ecom) :ountries !i+e >urope7 Forea7 and 3apan te!ecom are !i+e!y to enter India7 as India is seen as astest gro*ing te!ecom mar+et in *or!d) #"e increase in t"e B<I !imit is e,pected to us"er in a 20 per cent .ump in oreign in-estments in t"e te!ecom sector *it"in t"e ne,t t*o years rom t"e current Rs107 000 crores) #"ere are restrictions re!ated to remote access7 trans er o net*or+ in ormation outside India and internationa! transit routing o Indian tra ic) It "as been decided to en"ance t"e B<I in te!ecom ser-ices in areas !i+e basic te!ecom7 ce!!u!ar uni ied access ser-ices7 2at Mintranet7 !ong distance Vast7 pub!ic mobi!e7 radio ser-ice G gmdcs) <C# *i!! "a-e t"e aut"ority to restrict t"e !icense company rom operating in any o t"e sensiti-e areas o t"e country) Boreign port o!io in-estments *i!! be a!!o*ed in e,isting ne*s c"anne!s *it"in an e,isting 2? per cent cap on oreign in-estment "o!dings or t"at sector) #"is comes in time *"en t"ere is a boom in t"e Indian stoc+ mar+ets as *e!! and in t"e consumers section) #"is *ou!d c!ear!y go on to attract se-era! p!ayers in t"e te!ecom sector g!oba!!y to !oo+ or*ard to in-esting in India) #"e "ig"!ig"ts o t"e ne* po!icy are t"at Boreign <irect In-estment up to /4J is permitted in t"e te!ecom sector) Internet ser-ice '*it" gate*ays(H in rastructure pro-iders 'category-II(H radio paging ser-ice etc) "a-e been made sub.ect to !icensing and security reEuirements) B<I up to 100J permitted in respect o t"e o!!o*ing te!ecom ser-ices% Internet Ser-ice Pro-iders not pro-iding gate*ays7 >!ectronic mai!7 Voice mai!7 In rastructure pro-iders pro-iding dar+ ibre) B<I up to 100J is a!!o*ed sub.ect to t"e stipu!ation t"at a!! suc" companies *ou!d con irm to di-est 2?J o t"eir eEuity in a-our o t"e Indian pub!ic *it"in i-e years7 i t"ese companies are !isted in ot"er parts o t"e *or!d) #"e abo-e ser-ices *ou!d be sub.ect to !icensing and security reEuirements7 *"ere-er reEuired) #"is increase in t"e B<I !imit *ou!d see a sea c"ange o in-estment !o*ing into India7 and "a-e a magnanimous e ect on t"e te!ecom sector by *ay o economic re orms and a!so *ou!d a ect t"e economy as a *"o!e7 and *ou!d "a-e a c"ain e ect on -arious ot"er sectors) <ue to t"e increase in t"e oreign direct in-estment in t"e te!ecommunication mar+et in India companies !i+e B"arti #e!e-Ventures and 9utc"ison >ssar *i!! be ab!e to modu!ate t"e oreign sta+es in t"eir companies t"at "a-e a!ready acEuired a range bet*een ?/-?0 percent o t"eir assets) Ait" respect to t"e unner-ing gro*t" in t"e te!ecom industry in India *"ic" accounted or near!y 10 percent e-ery year7 t"e @nion :abinet decided or t"e "i+e in oreign direct in-estment as it *i!! bene it t"e country by aci!itating t"e capita! in !o*s in t"e industry) As o no* acEuires t"e !argest s"are in t"e Indian te!ecom

mar+et "as been acEuired by t"e mobi!e segment as it "as been estimated to *itness a doub!e rise in t"e past 2 years) #"e /4 s"ares occupied by t"e Indian te!ecommunication industry *ou!d in-o!-e a!! t"e oreign direct in-estments t"at "a-e main!y come rom t"e non-residentia! Indians7 oreign currency con-ertib!e bonds7 oreign institutiona! in-estors7 con-ertib!e pre erence s"ares7 and depository receipts on a direct and indirect basis) #"e step ta+en or t"e increase in t"e B<I in Indian te!ecom industry *i!! boost up t"e country6s economic condition) Post 1001 one o t"e ma.or contributors in t"e accretion o India6s economy is Boreign <irect In-estment and t"ereby it "as been "ig"!y needed by eac" sector in Indian te!ecommunications industry) As o no* t"e te!ecom sector reEuires 17 ?07000 crores or de-e!opment purposes among *"ic" 107000 is coming rom t"e !oca! mar+ets) B<I in ser-ices responds *e!! to openness especia!!y *"en it comes to t"e te!ecommunications sector) #"is is Euite e-ident !oo+ing at t"e recent boom in t"e Indian #e!ecommunication sector) Burt"er !ibera!i8ation o ser-ices in-o!-es potentia! ad-antages or Indian economy) Bene its can arise rom increased competition7 !o*er prices7 and better Eua!ity o ser-ices) B<I in ser-ices !i+e #e!ecommunications pro-ide +ey inputs to ot"er producti-e acti-ities t"at !ead to urt"er in-estment and competiti-eness o an economy) > orts s"ou!d be made to*ards attracting e iciency see+ing B<I t"roug" a rig"t po!icy t"at e,pands operation7 impro-e !oca! s+i!!s7 estab!is" !in+ages and upgrade tec"no!ogy 9o*e-er7 precautions s"ou!d be ta+en to a-oid t"e ris+ o oreign in-estors outcompeting domestic in-estors especia!!y in case o in rastructure ser-ices !i+e #e!ecommunications) Ser-ices *"ere domestic in-estors are not ab!e to cater to t"e gro*ing demand7 or *"ere domestic ser-ice-pro-iders do not "a-e t"e abi!ity or capacity to pro-ide t"e reEuired Eua!ity o ser-ices7 are *"ere t"e !east barriers e,ist) #o circum-ent suc" spira!s it is important or t"e region to "a-e appropriate domestic regu!ations in p!ace7 *"ic" *i!! assure better Eua!ity o ser-ices at a ordab!e prices) :!ear domestic regu!ations increase transparency in t"e system and encourage oreign direct in-estment) #o sustain t"e momentum o gro*t" in ser-ices trade in t"e region7 conscious e orts s"ou!d be made to impro-e t"e competiti-e ad-antage o t"e region as a *"o!e) Inc!usion o trade in ser-ices in SAB#A may "e!p attract B<I in ser-ices and !ead to greater intra-regiona! trade) Access to more e icient ser-ices cou!d !ead to "ig"er gro*t" in producti-ity in ot"er sectors7 *"ic"7 in turn7 cou!d impro-e t"e o-era!! competiti-e strengt" o t"e region)

#"us it can be conc!uded t"at t"e recent up*ard s*ing in t"e #e!ecommunications sector in India is due to t"e introduction o B<I in t"is sector by t"e Indian Go-ernment since 1001 but at t"e same time *e must a!so be care u! and not get carried a*ay by t"is de-e!opment and s"ou!d "a-e proper regu!ations in p!ace to actua!!y uti!i8e t"is situation to our ad-antage)

/.& FOREIG3 4IRE*T I35EST2E3T

/.&.1 F4I Policy

B<I Po!icy or t"e #e!ecom is as under%TaAleD <(. B<I Po!icy or di erent te!ecom sectors

S SectorIActivit4 %DI Ca@IEGuit4 Entr4 l(n route o( 1) Basic and ce!!u!ar7/4J 'inc!udingAutomatic @ni ied AccessB<I7 BII7 2RI7upto 40J) Ser-ices7 B::Bs7 A<Rs7 2ationa!MInternation G<Rs7 a! ;ong <istance7 V-con-ertib!e

Other Con+itions Relevant 'ress Note Sub.ect toP2 1M200/ guide!ines noti ied in t"e Press 2ote 2o) 1 '200/ Series(

Sat7 Pub!ic Mobi!epre erence s"ares7 Radio #run+edand proportionateBIPB Ser-ices 'PMR#S( oreign eEuity inbeyond 40J) G!oba! Mobi!eIndian Persona! promotersMIn-esti :ommunications ng :ompany( Ser-ices 'GMP:S( and ot"er -a!ue added te!ecom ser-ices

2)

ISP *it" gate*ays7/4J radio-paging7 endto-end band*idt")

Automatic Sub.ect to !icensingP2 upto 40J and securityM2001 reEuirements noti ied by t"e <epartment o BIPB #e!ecommunication beyond s) ***)dot)go-)in 40J

1)

a( ISP gate*ay7 V

*it"out100J

b( In rastructure pro-ider pro-iding dar+ ibre7 rig"t o *ay7 duct space7 to*er' :ategory &I(H

c( >!ectronic mai! and -oice mai!

Automatic Sub.ect to t"eP2 0M 2000 upto 40J condition t"at suc"and P2 companies s"a!!2M200/ di-est 2?J o t"eir eEuity in a-our o Indian pub!ic in 5 years7 i t"ese BIPB companies are beyond !isted in ot"er parts 40J o t"e *or!d) A!so sub.ect to !icensing and security reEuirements7 *"ere reEuired) ***)dot)go-)in

4)

Manu acture o 100J te!ecom eEuipments

Automatic Sub.ect to sectora!P2 2 M 2000 reEuirements)

/.&.2

Incentives or Telecom Sector

 Incentives to 'romote Telecom EGui@ments Manu*acturin)

:ustom duty on I#A-I product reduced to 8ero *)e) ) 01)01)2005) 4J additiona! duty on import o I#A products to counter-ai! t"e state !e-e! ta,es) 2o industria! !icence or manu acturing o te!ecom eEuipment) Simp!e Industria! >ntrepreneur Memorandum 'I>M( "as to be i!ed *it" SIA) 100J Boreign <irect In-estment 'B<I( t"roug" automatic route) Bu!!y repatriab!e di-idend income and capita! in-ested) Payment o tec"nica! +no*-"o* ee o up to @SQ 2 mi!!ion and roya!ty up to 5J on domestic sa!es and 8J on e,port sa!es7 net o ta,es7 t"roug" automatic route) Imposition o additiona! import duty7 at t"e rate not e,ceeding 4J ad--a!orem7 to counter-ai! sa!es ta,7 -a!ue added ta,7 !oca! ta,es and ot"er c"arges !e-iab!e on !i+e goods on t"eir sa!e or purc"ase or transportation in India Promotion o te!ecom product speci ic S>Os) Modi ication o >!ectronic 9ard*are tec"no!ogy Par+ '>9#P(MSpecia! >conomic Oones 'S>Os( sc"eme to a!!o* 100J sa!es in t"e <omestic #ari Area '<#A( or t"e purpose o meeting e,port ob!igations)

Incentives *or 'romotion o* Service Sectors Any underta+ing *"ic" "as started or starts pro-iding te!ecommunication ser-ices *"et"er basic or ce!!u!ar7 inc!uding radio paging domestic sate!!ite ser-ice7 net*or+ o trun+ing7 broadband net*or+ and internet ser-ices on or a ter t"e 1 st day o Apri!7 10057 but on or be ore t"e 11st day o Marc" 20057 *i!! be a!!o*ed in computing t"e tota! income7 a deduction o 7 an amount eEua! to "undred percent o pro its and gains deri-ed rom suc" business or ten consecuti-e assessment years) Import o speci ied te!ecom eEuipment 'I#A1 Products( is permitted at 8ero customs duty rates) Import o a!! capita! goods or manu acturing te!ecom eEuipment does not reEuire any !icense)

Incentives *or EB@orters 10 year income ta, "o!iday or >C@M>POMS#PM>9#P units) >,port income is e,empt rom income ta, or a!! e,porters)

TaAleD <(5 Actua! In !o* 'Dear Aise( o B<I in #e!ecom Sector rom Apri! 2000 to August 2008

(In Millions)

$ear -A@ril?March1 %DI in Rs( %DI in USK

2000-01 /7841)50 1//)?0

2001-02 107184)?1 8/1)21

2002-01 070//)11 101)?0

2001-04 57110)21 111)/2

2004-05 57?05)18 124)51

2005-0? 2/7/50)51 ?21)55

TaAleD <(C Actua! In !o* o B<I in #e!ecom Sector :ountry -*ise ' rom 3anuary 2000 to August 2008(

14 Sout" A rica ?)82 0)15 0 15 Spain 17580)/0 1?)20 0)88 1? Sri ;an+a 4)/1 0)1 0 1/ S*eden ?50 15)12 0)1? 18 S*it8er!and 2/4)45 ?)12 0)15 10 #ai*an 15)2 0)8 0)02 40 #"ai!and /15)12 1/)1 0)41 41 @)A)>) 171?0)?1 25)51 0)?4 42 @)F) 27050)04

TaAleD <(7 Actua! In !o* o B<I in #e!ecom Sector Sector-*ise as on August7 2008

'Amount in Mi!!ion(

S( No( ServiceIItem In Rs( In USK Fa)e

1 #e!ecommunications 11/7125)41 27?84)24 ?4)41

2 Radio Paging Ser-ice 111)02 2)51 0)0?

1 :e!!u!ar Mobi!eMBasic #e!ep"one Ser-ices ?17200)58 17411)/2 11)?5

/.&.&

2!Dor Investments

#"e booming domestic te!ecom mar+et "as been attracting "uge amounts o in-estment *"ic" is !i+e!y to acce!erate *it" t"e entry o ne* p!ayers and !aunc" o ne* ser-ices) Buoyed by t"e rapid surge in t"e subscriber base7 "uge in-estments are being made into t"is industry)

2or*ay-based te!ecom operator #e!enor "as boug"t a ?0 per cent sta+e in @nitec" Aire!ess or @SQ 1)21 bi!!ion) 3apanese te!ecom ma.or 2## <o:oMo "as acEuired a 2/)11 per cent eEuity capita! o #ata #e!eser-ices or about @SQ 2)? bi!!ion and a 20)25 per cent sta+e in #ata #e!eser-ices 'Ma"aras"tra( ;td or about @SQ 100)21 mi!!ion) Singapore #e!ecommunications 'Sing#e!(7 *"ic" "as a 11 per cent sta+e in B"arti Airte!7 "as recei-ed t"e go-ernment=s appro-a! to o er !ong distance ser-ices in India7 according to a communication ministry o icia!) Mauritius-based P5 Asia 9o!ding In-estments 'Mauritius( ;td *i!! be in-esting around @SQ 545)11 mi!!ion to "o!d a 20 per cent sta+e in Aditya Bir!a #e!ecom ;td 'AB#;() #"e unds *i!! be uti!ised or net*or+ ro!!out and operations o AB#; in t"e Bi"ar circ!e) B"arat Sanc"ar 2igam ;td 'BS2;( is p!anning an in-estment o around @SQ 201)5 mi!!ion in t"e #ami! 2adu :irc!e or an additiona! 21 !a+"s mobi!e connections under bot" 2G and 1G tec"no!ogies by 2000) #"e !atest to .oin t"e *or!d6s second !argest te!ecom mar+et is Ba"rain6s Bate!co *"ic" "as signed a dea! to buy 40 per cent in :"ennai-based S-#e!7 a GSM ser-ice pro-ider7 or Q225 mi!!ion) >tisa!at7 a Gu! -based te!ecommunications company "as pic+ed up a 45 per cent sta+e in S*an #e!ecom) Fa-eri #e!ecom Products ;imited is p!anning to set up a ne* subsidiary - Fa-eri #e!ecom In rastructure ;imited 'F#I;( - *it" an in-estment o @SQ 20)11 mi!!ion o-er t"e ne,t t*o years7 to o er in-bui!ding te!ecom in rastructure to te!ecom ser-ice pro-iders) 3uniper 2et*or+s7 *"ic" is t"e second-!argest ma+er o net*or+ing eEuipment7 p!ans to in-est @SQ 400 mi!!ion in India7 o-er t"e ne,t i-e years7 *it" a ocus on its researc" and de-e!opment 'RG<( acti-ity) BS2;7 India6s !eading te!ecom company in re-enue terms7 *i!! put in about @SQ 1)1? bi!!ion in its AiMa, pro.ect) B"arti Airte! *i!! be spending @SQ 2)5 bi!!ion in a ma.or e,pansion bid) Re!iance :ommunication "as committed @SQ 5)?0 bi!!ion as capita! in-estment or t"e isca! year ending Marc" 2000)

Idea :e!!u!ar *i!! spend about @SQ 2)1? bi!!ion in t"e isca! ending Marc" 2000) Srei Group6s Nuippo #e!ecom In rastructure ;td 'N#I;( p!ans to in-est @SQ 1 bi!!ion in 2008-00 to ramp up its te!ecom in rastructure business to gro* bot" organica!!y and inorganica!!y) Voda one >ssar *i!! in-est @SQ ? bi!!ion o-er t"e ne,t t"ree years in a bid to increase its mobi!e subscriber base rom 40 mi!!ion at present to o-er 100 mi!!ion) #e!ecom ser-ice pro-ider7 #ata #e!eser-ices ;imited7 "as announced t"at t"e company *i!! be in-esting additiona! @SQ ?)/4 mi!!ion in Gu.arat to set up 100 ce!! sites by August 2000) #"e company "ad ear!ier made an announcement o in-esting @SQ 24)1 mi!!ion in t"e state ti!! Marc" 2000)

#e!ecom operator Airce!7 *"ic" !aunc"ed GSM mobi!e ser-ices in Banga!ore on Bebruary 217 20007 p!ans to in-est @SQ 220)58 mi!!ion o-er t"e ne,t year to set up base stations across t"e state)

Investments AAroa+ A ter t"e ama8ing gro*t" story in t"e domestic mar+et7 Indian te!ecommunication companies are no* set to "a-e a ma.or g!oba! ootprint)

#"e B"arti Group7 *"ic" a!ready "as operations in Seyc"e!!es7 'begun o-er a decade ago(7 and in t"e :"anne! Is!ands in >urope7 !aunc"ed its mobi!e ser-ices in Sri ;an+a under 6Airte!6 brand on 3anuary 127 2000) Airte! is e,pected to in-est about @SQ 200 mi!!ion in setting up and e,panding its operation in Sri ;an+a o-er t"e ne,t i-e years) #"e company *i!! simu!taneous!y ro!! out second generation '2G( and t"ird generation '1G( ser-ices in t"e country) #ata :ommunications "as boug"t t"e 10 per cent sta+e in 2eote! t"at *as pre-ious!y "e!d by >s+om and #ransnet) Ait" t"is7 #ata :ommunications in association *it" #ata A rica 9o!dings became t"e !argest sta+e"o!der *it" 5? per cent sta+e) #ata :ommunications mar+ed its entry into @A> by !aunc"ing a range o dedicated >t"ernet ser-ices in association *it" !eading te!ecommunication ser-ice pro-ider o @A>7 >tisa!at)

/." *%PIT%L 2%R7ET

TaAleD <(: :apita! Mar+et data

Name

Bharti Airtel
9B:; In ote!

Idea Cellular M TNL elia!"e C#$$ %&i"e C#$$ Tata Tele Mah

%ull $ear -Rs Cr(1 $ear En+ EGuit4 Gr( Bl8 DivF B(# Rs E'S Rs( 'rice 'rice Date 200801 17808)24 287115)?5 0 10?)1 12)? 5/1 1M10M2000 200801 525)52 17155)28 0 -/)1 0 8 1M10M2000 200801 17100)00 117888)80 0 15 1)2 4? 1M10M2000 200801 ?10 157842)58 40 180)2 0 ?5 1M10M2000 200801 17012)01 2175/?)12 15 120)1 12)4 15/ 1M10M2000 200812 ?80)02 27??5)54 0 -2 0 ?1 1M10M2000 200801 1780/)10 47524)/1 0 -1 0 21 1M10M2000

'rice In*ormation :5 ! :5 ! M8t( Ca@( ?& ?L 050 484 10874?5)40 21 ? 41?)21 114 14 147151)01 11? 52 470/?)10 ?00 111 127122)55 05 21 471?0)20 18 11 4720/)14

'IE 'IB# 18 0 14 /)2 11 0 0 5)1/ -1)11 1)11 0)14 1)11 -11)5 -21

#"e te!ecom sector consists o t"e abo-e e* companies t"at are !isted on t"e Stoc+ >,c"ange7 o *"ic" B"arti Airte! and Re!iance :ommunications are among t"e #op 10 :ompanies) #"e prices o a!! t"e companies "a-e been !uctuation o-er a period o time due to se!! by oreign Institutiona! In-estors7 bringing t"e prices to s"are to its !o*est !e-e!s)

B"arti Airte! and Re!iance :ommunications are t"e t*o scripts t"at "a-e been traded t"e most)

#"e Mar+et :apita!i8ation o B"arti Airte! and Re!iance :ommunications is t"e "ig"est among t"e te!ecom p!ayers as t"ere are more number o s"ares outstanding in t"e mar+et)

#"e S"are capita! is t"e "ig"est or Idea :e!!u!ar and B"arti Airte! among a!! t"e p!ayers in t"e mar+et)

/.$ G4P
#"e current g!oba! inancia! crisis is7 o course7 no* one o t"e ma.or constraints on t"e pace o economic re orm7 but t"e Indian te!ecom sector7 because o its innate strengt" and resi!ience7 is per"aps one o t"e e* sectors t"at "a-e remained a!most una ected by t"is ad-erse g!oba! trend7S #"e te!ecom sector7 *"ic" c!oc+ed a 42)2J gro*t" in t"e Euarter ended September7 "as emerged as a big contributor to t"e G<P gro*t")

9ig" gro*t" rate in t"is sector - *it" *eig"t o !ess t"an 1J in G<P - *as a +ey dri-er *"ic" pus"ed G<P igures or t"e Euarter ended September to /)?J7S :ompanies re !ect t"e con idence7 and t"e sector *i!! continue its gro*t" story remain unscat"ed by t"e g!oba! inancia! turmoi!) #"e te!ecom sector6s potentia! in India remains under-tapped and gro*t" rate in te!edensity7 especia!!y in rura! India7 *i!! remain robust) S#e!ecommunications contribution to t"e G<P gro*t" rate *i!! urt"er increase in t"e coming Euarters7S #"e te!ecom sector is e,pected to per orm e-en betterH its contribution to t"e nation6s G<P is e,pected to increase rom 2J in 200? to an estimated 1)? per cent in 2010)

/.' L!#our 2!r(et

Ait" te!ecom sector booming7 career in t"e industry is -ery !ucrati-e) #"e career pat" to t"e !eading companies goes -ia te!ecom engineering) #"e te!ecom sector o ers a -ariety o career options) Ait" t"e coming o more and more pro.ects7 t"e te!ecom industry is going or "ig" sca!e recruitments) #"ere is a "uge demand or so t*are engineers7 mobi!e ana!ysts7 and "ard*are engineers or mobi!e "andsets) Besides7 t"ere are amp!e opportunities or mar+eting peop!e *"ose ser-ices are reEuired to capture more and more customer base) #"e ne* pro.ects7 setting up o ne* ser-ice bases7 e,pansion o co-erage areas7 net*or+ insta!!ations7 maintenance7 etc are pro-iding more and more emp!oyment opportunities in t"e te!ecom sector) Ait" t"e boom o e-business G -oice data con-ergence or IP7 t"e demand or te!ecom ser-ice is gro*ing ast) #e!ecom o ers un!imited opportunities G possibi!ities in t"e present and uture) #"e #e!ecom sector is ast ad-ancing g!oba!!y by introducing ad-anced tec"no!ogies and so!utions to t"e *or!d mar+ets)

#"e sector *i!! need up to 17 507000 additiona! "ands in 2000) A"i!e ne* p!ayers are !aunc"ing operations7 e,isting ones are beginning to sca!e up) 2o* t"at t"e go-ernment "as issued 120 ne* !icences7 te!ecom industry o icia!s ear a ta!ent crunc" t"at cou!d pus" sa!aries in core operations by up to 10J in t"e ne,t e* Euarters) :onser-ati-e estimates put t"e demand rom ne* p!ayers at one !a+" peop!e in t"e irst p"ase) Ait" ro!!ing out o 1G and Aima,7 e,isting p!ayers *i!! need anot"er 507000 peop!e) Most o t"e ne* p!ayers *ou!d be !oo+ing or e,perienced "ands7 so getting peop!e in suc" !arge numbers *i!! be a great c"a!!enge) :urrent!y7 t"e sector direct!y emp!oys about 17 507000 peop!e7 *"i!e pro-iding .obs to anot"er 1)5 mi!!ion *it" retai! out!ets7 prepaid card se!!ers and to*er constructors) And no* *it" most te!ecom p!ayers e,panding in t"e rura! mar+ets7 t"e demand or manpo*er is e,pected to go up urt"er) $#"e ne* p!ayers *i!! "a-e to attract ta!ent by o ering 15-20J "ig"er sa!aries)

%i)ureD <(. >mp!oyment Potentia! o Indian te!ecom industry

/./ *O3*LUSIO3
#"e abo-e actors "a-e p!ayed a signi icant ro!e in t"e gro*t" o t"e Indian economy and s"a!! contribute to t"e gro*t" in t"e uture as *e!!) Ait" t"e increased B<I cap7 ne* and better tec"no!ogy *i!! be a-ai!ab!e to t"e Indian users and "a-e a better access to t"e *or!d)

*.!pter )

ANALYTICAL FRAMEWOR K

).1 I3TRO4U*TIO3
In t"e t"ird section *e "a-e ana!y8ed in detai! t"e entire te!ecom industry sector) #"ere on!y *e "a-e !aid t"e bac+ground or ana!ysing t"e ana!ytica! rame*or+ or t"e te!ecom industry) 9ere *e *i!! carry out t"e Porter=s i-e orces ana!ysis and SAC# ana!ysis or t"e te!ecom industry) Ae *i!! a!so carry out t"e ratio ana!ysis o t"e te!ecom industry as a *"o!e to ind t"e inancia! per ormance o t"e industry and compare it *it" t"at o di erent companies)

).2 PORTERES FI5E FOR*ES

#"ere is continuing interest in t"e study o t"e orces t"at impact on an organisation or an industry7 particu!ar!y t"ose t"at can be "arnessed to pro-ide competiti-e ad-antage) #"e ideas and mode!s *"ic" emerged during t"e period rom 10/0 to t"e mid-1080s 'Porter7 1008( *ere based on t"e idea t"at competiti-e ad-antage came rom t"e abi!ity to earn a return on in-estment t"at *as better t"an t"e a-erage or t"e industry sector '#"ur!by7 1008() As Porter6s 5 Borces ana!ysis dea!s *it" actors outside an industry t"at in !uence t"e nature o competition *it"in it7 t"e orces inside t"e industry 'microen-ironment( t"at in !uence t"e *ay in *"ic" irms compete7 and so t"e industry=s !i+e!y pro itabi!ity is conducted in Porter=s i-e orces mode!) A business "as to understand t"e dynamics o its industries and mar+ets in order to compete e ecti-e!y in t"e mar+etp!ace) Porter '1080( de ined t"e orces *"ic" dri-e competition7 contending t"at t"e competiti-e en-ironment is created by t"e interaction o i-e di erent orces acting on a business) In addition to ri-a!ry among e,isting irms and t"e t"reat o ne* entrants into t"e mar+et7 t"ere are a!so t"e orces o supp!ier po*er7 t"e po*er o t"e buyers7 and t"e t"reat o substitute products or ser-ices) Porter suggested t"at t"e intensity o competition is determined by t"e re!ati-e strengt"s o t"ese orces) #"e nature o competition in an industry is strong!y a ected by suggested i-e orces) #"e stronger t"e po*er o buyers and supp!iers7 and t"e stronger t"e t"reats o entry and substitution7 t"e more intense competition is !i+e!y to be *it"in t"e industry) 9o*e-er7 t"ese i-e actors are not t"e on!y ones t"at determine "o* irms in an industry *i!!

compete & t"e structure o t"e industry itse! may p!ay an important ro!e) Indeed7 t"e *"o!e i-e- orces rame*or+ is based on an economic t"eory +no* as t"e $Structure:onduct-Per ormanceK 'S:P( mode!% t"e structure o an industry determines organi8ations= competiti-e be"a-iour 'conduct(7 *"ic" in turn determines t"eir pro itabi!ity 'per ormance() In concentrated industries7 according to t"is mode!7 organi8ations *ou!d be e,pected to compete !ess ierce!y7 and ma+e "ig"er pro its7 t"an in ragmented ones)

Main As@ects o* 'orterJs %ive %orces Anal4sis #"e origina! competiti-e orces mode!7 as proposed by Porter7 identi ied i-e orces *"ic" *ou!d impact on an organi8ation=s be"a-iour in a competiti-e mar+et) #"ese inc!ude t"e o!!o*ing% The rivalr4 Aet3een eBistin) sellers in the mar8et The @o3er eBerte+ A4 the customers in the mar8et The im@act o* the su@@liers on the sellers The @otential threat o* ne3 sellers enterin) the mar8et The threat o* suAstitute @ro+ucts Aecomin) availaAle in the mar8et

@nderstanding t"e nature o eac" o t"ese orces gi-es organi8ations t"e necessary insig"ts to enab!e t"em to ormu!ate t"e appropriate strategies to be success u! in t"eir mar+et '#"ur!by7 1008() Ae *i!! e,amine t"ese concepts as described by Porter=s 5 orce mode! and as app!ied to Indian te!ecom industry simu!taneous!y)

).2.1

Force 1F T.e 4e-ree o Riv!lry

#"e intensity o ri-a!ry7 *"ic" is t"e most ob-ious o t"e i-e orces in an industry7 "e!ps determine t"e e,tent to *"ic" t"e -a!ue created by an industry *i!! be dissipated t"roug" "ead-to-"ead competition) #"e most -a!uab!e contribution o Porter6s $ i-e orcesK rame*or+ in t"is issue may be its suggestion t"at ri-a!ry7 *"i!e important7 is on!y one o se-era! orces t"at determine industry attracti-eness) #"is orce is !ocated at t"e centre o t"e diagram Is most !i+e!y to be "ig" in t"ose industries *"ere t"ere is a t"reat o substitute productsH and e,isting po*er o supp!iers and buyers in t"e mar+et

2o* !et us understand t"e imp!ication o degree o re-e!ry in Indian te!ecom sector) #"e dimensions o t"is parameter are determined by% &i)h EBit BarriersD In any industry7 i t"e e,it barrier is "ig" it increases t"e di icu!ty o any organi8ation to !ea-e t"e industry sector) So it ma+es any di icu!t to any *i!!ing to !ea-e company to !ea-e t"e industry) #"e te!ecom industry su ers rom "ig" e,it barriers7 main!y due to its specia!i8ed eEuipment) 2et*or+s and bi!!ing systems cannot rea!!y be used or muc" e!se7 and t"eir s*i t obso!escence ma+es !iEuidation pretty di icu!t) &i)h %iBe+ CostD #"e industry a!so su ers rom "ig" i,ed cost *"ic" ma+es t"e entry barrier a!so -ery "ig" or t"e industry) It comes as no surprise t"at in t"e capita!-intensi-e te!ecom industry t"e biggest barrier to entry is access to inance) #o co-er "ig" i,ed costs7 serious contenders typica!!y reEuire a !ot o cas") A"en capita! mar+ets are generous7 t"e t"reat o competiti-e entrants esca!ates) A"en inancing opportunities are !ess readi!y a-ai!ab!e7 t"e pace o entry s!o*s) Mean*"i!e7 o*ners"ip o a te!ecom !icense can represent a "uge barrier to entry) ?-/ p!ayers in eac" region 1 out o 4 BIG-Bour present in eac" region

#er4 less time to )ain a+vanta)e A4 an innovationD >-ery company in t"is industria! sector in in-esting a "uge amount in researc" and de-e!opment and mar+eting strategy) #"at is *"y *e see any o er !aunc"ed by any company is counter attac+ed by ot"er companies -ery soon) #"is ma+es t"e industry ri-a!ry most prominent) >g) :a!!er tunes7 !i e time card 'rice 3arsD #"e price *ar is rea!!y -ery ierce in t"is industry) Price *ar in te!ecom industry "as commoditi8ed t"e mar+et t"at branding "as ta+en a bac+seat)

).2.2

Force 2F T.e T.re!t o 3ew Entr!nts

Bot" potentia! and e,isting competitors in !uence a-erage industry pro itabi!ity) #"e t"reat o ne* entrants is usua!!y based on t"e mar+et entry barriers) #"ey can ta+e di-erse orms and are used to pre-ent an in !u, o irms into an industry *"ene-er pro its7 ad.usted or t"e cost o capita!7 rise abo-e 8ero) In contrast7 entry barriers e,ist *"ene-er it is di icu!t or not economica!!y easib!e or an outsider to rep!icate t"e incumbents= position) #"e most common orms o entry barriers7 e,cept intrinsic p"ysica! or !ega! obstac!es7 are as o!!o*s% >conomies o sca!e% In te!ecom industry t"e economies o sca!e e,ists rom t"e supp!ier side) #"at is *"y companies try to increase t"eir subscriber base at drastic rate) <istribution c"anne!s% <istribution c"anne!s are a!so pro-iding a ma.or determining actor) #"ese c"anne!s are not !oya! to any company and competitors can easi!y access t"em and ma+e out *or+ or t"em) :ustomer S*itc"ing :osts% :ustomer s*itc"ing cost is -ery !o*7 as cost o ne* connection is rea!!y !o*) And ne* connection o ers more bene its to t"e customers)

).2.&

Force &F T.e T.re!t o Su#stitutes

#"e t"reat t"at substitute products pose to an industry6s pro itabi!ity depends on t"e re!ati-e price-to-per ormance ratios o t"e di erent types o products or ser-ices to *"ic" customers can turn to satis y t"e same basic need) #"e t"reat o substitution is a!so a ected by s*itc"ing costs & t"at is7 t"e costs in areas suc" as retraining7 retoo!ing and redesigning t"at are incurred *"en a customer s*itc"es to a di erent type o product or ser-ice) It a!so in-o!-es% Product- or-product substitution 'emai! or mai!7 a,(H is based on t"e substitution o needH

Generic substitution 'Video supp!iers compete *it" tra-e! companies(H Substitution t"at re!ates to somet"ing t"at peop!e can do *it"out 'cigarettes7 a!co"o!()

2o* !et us discuss t"is concept or te!ecom industry) #"e potentia! ma.or substitutes or te!ecom industry are as o!!o*s% VCIP 'S+ype7 Messenger etc)( Cn!ine :"at >mai! Sate!!ite p"ones

A!! o t"ese tec"no!ogies "a-e a "uge potentia!7 t"oug" none o t"e abo-e a ma.or t"reat in current scenario) So t"e te!ecom industry "as to +eep a c!ose !oo+ on t"ese substitutes)

).2."

Force "F ,uyer Power

Buyer po*er is one o orces t"at in !uence t"e appropriation o t"e -a!ue created by an industry) #"e most important determinants o buyer po*er are t"e si8e and t"e concentration o customers) Ct"er actors are t"e e,tent to *"ic" t"e buyers are in ormed and t"e concentration or di erentiation o t"e competitors) Fippenberger '1008( states t"at it is o ten use u! to distinguis" potentia! buyer po*er rom t"e buyer6s *i!!ingness or incenti-e to use t"at po*er7 *i!!ingness t"at deri-es main!y rom t"e $ris+ o ai!ureK associated *it" a product6s use) #"is orce is re!ati-e!y "ig" *"ere t"ere a e*7 !arge p!ayers in t"e mar+et7 as it is t"e case *it" retai!ers a grocery storesH Present *"ere t"ere is a !arge number o undi erentiated7 sma!! supp!iers7 suc" as sma!! arming businesses supp!ying !arge grocery companiesH ;o* cost o s*itc"ing bet*een supp!iers7 suc" as rom one !eet supp!ier o truc+s to anot"er)

In t"e conte,t o Indian te!ecom industry *e can say t"at t"e o!!o*ing points in !uence t"e buyer po*er% ;ac+ o di erentiation among t"e ser-ice pro-ider :ut t"roat competition :ustomer is price sensiti-e

 ;o* s*itc"ing costs 2umber portabi!ity to "a-e negati-e impact

).2.$

Force $F Supplier Power

Supp!ier po*er is a mirror image o t"e buyer po*er) As a resu!t7 t"e ana!ysis o supp!ier po*er typica!!y ocuses irst on t"e re!ati-e si8e and concentration o supp!iers re!ati-e to industry participants and second on t"e degree o di erentiation in t"e inputs supp!ied) #"e abi!ity to c"arge customers di erent prices in !ine *it" di erences in t"e -a!ue created or eac" o t"ose buyers usua!!y indicates t"at t"e mar+et is c"aracteri8ed by "ig" supp!ier po*er and at t"e same time by !o* buyer po*er) In t"e dra*bac+ o Indian te!ecom industry t"e o!!o*ing s"ou!d be +ept in mind% ;arge number o supp!iers% #"e industry basica!!y "as a !arge number o supp!iers7 *"ic" "e!ps t"em to c"oose rom a !ot o options) So t"ey try to se!ect t"e best option to de!i-er t"e -a!ue to t"e customers and to "a-e a competiti-e ad-antage rom t"eir competitor) S"ared to*er in rastructure% #ec"no!ogy "as "e!ped t"em to s"are t"e to*er in rastructure) #"is basica!!y "e!ps t"em to reduce t"e initia! in-estment a !ot) ;imited poo! o s+i!!ed managers and engineers especia!!y t"ose *e!! -ersed in t"e !atest) Medium cost o s*itc"ing since c"anging t"eir "ard*are *ou!d !ead to additiona! cost in modi ying t"e arc"itecture) C-era!! in !uence on t"e industry & medium)

).& S6OT %3%L1SIS

A scan o t"e interna! and e,terna! en-ironment is an important part o t"e strategic p!anning process) >n-ironmenta! actors interna! to t"e irm usua!!y can be c!assi ied as strengt"s 'S( or *ea+nesses '!(7 and t"ose e,terna! to t"e irm can be c!assi ied as opportunities 'O( or t"reats 'T() Suc" an ana!ysis o t"e strategic en-ironment is re erred to as a S!OT anal4sis) #"e SAC# ana!ysis pro-ides in ormation t"at is "e!p u! in matc"ing t"e irm6s resources and capabi!ities to t"e competiti-e en-ironment in *"ic" it operates) As suc"7 it is instrumenta! in strategy ormu!ation and se!ection) #"e o!!o*ing diagram s"o*s "o* a SAC# ana!ysis its into an en-ironmenta! scan% SWOT Analysis Framework

>n-ironmenta! Scan M X Interna! Ana!ysis >,terna! Ana!ysis MX MX Strengt"s Aea+nesses Cpportunities #"reats Y S!OT MatriB

).&.1

Stren-t.s

9ere *e *i!! ana!y8e t"e strengt"s o t"e te!ecom industry as a *"o!e) #"e most important actors are% #ec"no!ogy is ad-anced and easy to imp!ement% Bor te!ecom industry t"e tec"no!ogy is rea!!y ad-anced and more and more in-estment is done on tec"no!ogy to get *or!d c!ass in rastructure and +no*"o* to put in t"is ie!d) Recent!y t"e te!ecom sector is going to add 1G spectrum as its !atest upgradation)

Management #eam "as prior e,perience% #"e management team contro!!ing Indian te!ecom sector in rea!!y e icient) #"an+ goes to t"e II#s *"ic" produce *or!d c!ass engineers) So Indian te!ecom sector "as abundance o tec"no!ogica! +no*"o*)

).&.2

6e!(ness

#"e *ea+nesses o t"e Indian te!ecom sector are as o!!o*s) 9ig" :ost o In rastructure% #"e in rastructure cost o te!ecom industry is -ery "ig") ;o* customer retention po*er% #"e customer retention po*er or te!ecom industry is rea!!y !o* and t"e customer c"anges t"eir ser-ice pro-ider company -ery soon)

).&.&

Opportunity

'o@ulationD #"e popu!ation o India is rea!!y an opportunity o te!ecom ser-ice pro-iders7 as t"e number o popu!ation *it"out te!ecom ser-ice is a!so -ery "ig") #"e industry "as to target India=s "uge popu!ation to gro*)

Chan)in) 'o@ulation @s4cho)ra@hD Popu!ation psyc"ograp" is a!so c"anging) Pre-ious!y te!ecom ser-ice *as t"oug"t as an emergency ser-ice7 no* it "as become an essentia! part o !i e in our country) Increase+ 'enetration LevelD A!! t"e organi8ations o t"e industry are trying to increase t"eir penetration !e-e!7 in ot"er *ord to increase t"e te!e-density o t"e country) #"e urban Indian popu!ation gi-es a rea! gro*t" prospect to t"e industry)

%DID #"e oreign direct in-estment in te!ecom "as been "i+ed up rom 40J to /4J) #"is mo-e is positi-e or t"e sector7 as it reEuires in-estments o Rs /00 & 000 mi!!ion o-er t"e ne,t 5 years) B<I in !o* by 2004 *as 0050)04 cores in te!ecom) :ountries !i+e >urope7 Forea7 and 3apan te!ecom are !i+e!y to enter India7 as India is seen as astest gro*ing te!ecom mar+et in *or!d)

).&."

T.re!ts

#"e treats to t"e industry are t"e o!!o*ing% Go-ernment Po!icies & Go-ernment may pro-ide !icenses to many oreign operators7 *"ic" may a!ready "a-e pose a t"reat or t"e e,isting p!ayers in t"e industry) 2e* #ec"no!ogy can c"ange t"e mar+et dynamics% A !ot o ne* tec"no!ogies are coming) #"en e-en "a-e t"e potentia! o c"anging t"e entire industry dynamics or e-en create substitute o t"e te!ecom ser-ices e,isting)

Some o t"e e,amp!es are o!!o*s% VCIP 'S+ype7 Messenger etc)( Cn!ine :"at >mai! Sate!!ite p"ones

#o summari8e t"e SAA# ana!ysis *e can dra* t"e o!!o*ing rame*or+ or te!ecom industry%

)." R%TIO %3%L1SIS OF I34USTR1

Ratio Ana!ysis is an approac" in understanding t"e strengt" and *ea+ness o a business) Ratio ana!ysis is a -ery po*er u! ana!ytica! too! use u! or measuring per ormance o an organi8ation) It is a!so a yardstic+ to set goa!s or impro-ement) Ratio ana!ysis a!!o*s -arious interested parties to ma+e e-a!uation o certain aspects o t"e irm=s per ormance)

).".1

LiGuidity R!tiosF

Current Ratio? #"is ratio measures t"e so!-ency o t"e company in t"e s"ort term) #"is ratio indicates t"at "o* muc" current asset is a-ai!ab!e or eac" rupee o current !iabi!ities) So7 "ig"er t"e ratio more *i!! be t"e margin o sa ety or s"ort-term creditors) Current ratio *or telecom service @rovi+er in+ustr4 *or 566<?5660 L .(55 :urrent ratio o 1)22 means t"at t"e industry can success u!!y pay o its debt *"i!e at t"e same time sti!! "a-e cas" !e t o-er to continue operating)

DeAt?to?EGuit4 Ratio? <ebt eEuity ratio is !ong term debt di-ided by s"are "o!der=s und) ;ong term consists o secured and unsecured debt *"i!e s"are "o!ders und consists o s"are capita! and reser-e G surp!us) I t"e ratio is 1%17 it indicates t"at t"e company is "a-ing eEua! und rom t"e s"are"o!ders and a!so t"e debt instruments) A"i!e t"e increasing ratio indicates t"e company "as to pay more interest on t"e borro*ed debt) DeAt?to?eGuit4 ratio *or telecom service @rovi+er in+ustr4 *or 566<?5660 L 6(C: <ebt to eEuity ratio o 0)15 means t"at industry is not using debt instruments *"i!e it is re!ying more on t"e s"are"o!ders capita!) #"is indicates t"at t"e assets are primari!y supp!ied *it" eEuity) 2o* as debt is t"e c"eapest source o und7 so te!ecom ser-ice pro-iders industry is not using t"e c"eapest source o und)

).".2

Turnover R!tiosF

#"ese ratios measure "o* e ecti-e!y t"e irm uti!i8es its resources) #"ese ratios are a!so ca!!ed Acti-ity Ratio7 it in-o!-es comparison bet*een t"e !e-e! o sa!es and in-estment in -arious accounts & in-entories7 debtors7 i,ed assets etc) %iBe+ Assets Turnover Ratio? Bi,ed Assets #urno-er Ratios is net sa!es di-ided by net i,ed assets) So i,ed assets turno-er ratios s"o* "o* e icient!y t"e assets o t"e irm are uti!i8ed) #"ere ore7 t"e "ig"er t"e ratio7 t"e more e icient t"e company is *it" its assets) %iBe+ Assets Turnover Ratios *or telecom service @rovi+er in+ustr4 *or 566<?5660 L 6(7C Bi,ed assets in te!ecom ser-ice pro-ider industry are -arious transmission eEuipments !i+e to*ers7 transmitters7 optica! ibers etc) #"is i,ed assets turno-er ratio o 0)41 is -ery !o*

Inventor4 Turnover Ratio?

In-entory turno-er ratio is cost o goods so!d di-ided by a-erage stoc+) So in-entory turno-er ratio !eads to stoc+ -e!ocity7 *"ic" is an indication o t"e rotation o t"e current stoc+) So !ess rotation time is good or t"e company) Inventor4 Turnover Ratio *or telecom service @rovi+er in+ustr4 *or 566<?5660 L 5:(;: Stoc8 #elocit4 L 1?5M25)?5 comes as 14)21 days means t"e te!ecom ser-ice pro-iders industry ta+es 14)21 days to rotate t"e stoc+ *"ic" is again a !o* stoc+ -e!ocity) DeAtor Turnover Ratio? It is credit sa!es di-ided by a-erage accounts recei-ab!es '<ebtor Z Bi!!s recei-ab!es() So debtor turno-er ratio !eads to debtor -e!ocity *"ic" is an indication t"at "o* muc" time an organi8ation ta+es to co!!ect its recei-ab!es) 9ence7 !o*er t"e debtor -e!ocity7 t"e good or t"e organi8ation)

DeAtor Turnover Ratio *or telecom service @rovi+er in+ustr4 *or 566<?5660 L ;(77 DeAtor #elocit4 L 1?5M?)44 comes as 5?)?8 days *"ic" means te!ecom ser-ice pro-ider industry ta+es on an a-erage 5/ days to co!!ect its money bac+ rom its debtors) Interest Cover Ratio? Interest :o-erage Ratio is pro it be ore interest7 depreciation and ta, di-ided by interest on !ong term debt) So t"e "ig" ratio indicates t"e !o* proportion o t"e debt in t"e sector and t"e industry is using a -ery conser-ati-e po!icy o using t"e debt component in t"e capita! structure) Interest Cover Ratio *or telecom service @rovi+er in+ustr4 *or 566<?5660 L 7(:5 Interest co-er ratio o 4)52 means t"at t"e te!ecom ser-ice industry "as 4)52 times more income to pay interest on t"eir debts) #"is indicates t"e industry can co-er its interest payments *e!!)

).".2

Pro it!#ility R!tiosF

#"e purpose o study and ana!ysis o pro itabi!ity ratios are to "e!p assessing t"e adeEuacy o pro its earned by t"e company and a!so to disco-er *"et"er t"e pro itabi!ity is increasing or decreasing) Gross 'ro*it Mar)in Ratio? #"e Gross Pro it Margin Ratio is gross pro it di-ided by sa!es and by mu!tip!ying it to 100) #"is assists in "e!ping us understand t"e inancia! "ea!t" o t"e company in terms o +no*ing *"et"er or not t"e company=s pro it is enoug" to pay o its ot"er e,penses) Gross 'ro*it Mar)in Ratio *or telecom service @rovi+er in+ustr4 *or 566<?5660 L C/(:C Gross Pro it Ratio o 10)51J means t"at t"e industry is ma+ing 10)51 J on t"e sa!es)

Net 'ro*it Ratio? #"is ratio is ca!cu!ated by di-ing net pro it a ter ta, *it" net sa!es and mu!tip!ying *it" 100) #"is ratio re !ects net pro it margin on t"e tota! sa!es a ter deducting a!! e,penses7 but be ore deducting interest and ta,ation) #"e comparison o t"is ratio7 *it" t"at o t"e pre-ious year7 *i!! gi-e a correct trend o t"e per ormance o t"e sector) Net 'ro*it Ratio *or telecom service @rovi+er in+ustr4 *or 566<?5660 L .:(7.

Return on Ca@ital Em@lo4e+ Ratio? It is ca!cu!ated by di-iding operation pro it be ore interest and ta, by capita! emp!oyed and mu!tip!ying it to 100) #"is ratio indicates t"at "o* muc" pro it is earned on t"e tota! capita! emp!oyed t"at consists o eEuity7 reser-e G surp!us and !ong-term debt) Return on Ca@ital Em@lo4e+ Ratio *or telecom service @rovi+er in+ustr4 *or 566<? 5660 L /(<5

Return on Net !orth?

Return on 2et Aort" is pro it a ter ta, di-ided by net *ort" *"ic" consists o eEuity s"are capita! and reser-e and surp!us and mu!tip!ying *it" 100) #"is ratio is an important yardstic+ o per ormance or eEuity s"are "o!der since it indicates t"e returns on t"e unds emp!oyed by t"em) Return on Net !orth *or telecom service @rovi+er in+ustr4 *or 566<?5660 L .6(..

*.!pter +

COMPANY ANALYSIS

+.1 I3TRO4U*TIO3
A brie o-er-ie* about eac" company "as been mentioned in t"is c"apter) #"is c"apter a!so dea!s *it" t"e ana!ysis o t"e companies on -arious inancia! ratios) #"e inancia!

ratios o t"ese companies are compared *it" t"e industry standard ratios) #"ere is comparison *it" t"e companies on -arious parameters !i+e >nterprise -a!ue7 Mar+et capita!i8ation7 >PS7 Sa!es and ot"er income) #"is comparison gi-es us an o-er-ie* in terms o position o companies in eac" parameter) #"ese ratios gi-e us an insig"t to t"e inancia! stabi!ity o t"e irm)
%i)ureD /(. Mar+et S"are o #e!ecom :ompanies as on 11st 3an=00

+.2 TOP FI5E *O2P%3IES

#"e #op i-e companies7 on t"e basis o MMar8et ShareJ as on 11st 3anuary7 2000 are% 1) 2) 1) 4) 5) B"arti Airte! ;td) Re!iance :ommunications ;td) Voda one >ssar ;td) BS2; Idea :e!!u!ar Z Spice

,0%RTI %IRTEL LT4.

#e!ecom giant B"arti Airte! is t"e !ags"ip company o B"arti >nterprises) #"e B"arti Group "as a di-erse business port o!io and "as created g!oba! brands in t"e te!ecommunication sector) Airte! comes rom B"arti Airte! ;imited7 India=s !argest integrated and t"e irst pri-ate te!ecom ser-ices pro-ider *it" a ootprint in a!! t"e 21 te!ecom circ!es) B"arti Airte! since its inception "as been at t"e ore ront o tec"no!ogy and "as steered t"e course o t"e te!ecom sector in t"e country *it" its *or!d c!ass products and ser-ices) #"e businesses at B"arti Airte! "a-e been structured into t"ree indi-idua! strategic business units 'SB@=s( - Mobi!e Ser-ices7 Airte! #e!emedia Ser-ices G >nterprise Ser-ices) #"e mobi!e business pro-ides mobi!e G i,ed *ire!ess ser-ices using GSM tec"no!ogy across 21 te!ecom circ!es *"i!e t"e Airte! #e!emedia Ser-ices business o ers broadband G te!ep"one ser-ices in 05 cities and "as recent!y !aunc"ed India6s best <irect-to-9ome '<#9( ser-ice7 Airte! digita! #V) #"e >nterprise ser-ices pro-ide end-to-end te!ecom so!utions to corporate customers and nationa! G internationa! !ong distance ser-ices to carriers) A!! t"ese ser-ices are pro-ided under t"e Airte! brand) #"e company ser-ed an aggregate o 8872/07104 customers as o <ecember 117 2008H o *"om 857?507/11 subscribed to GSM ser-ices and 27?1074?1 use t"e #e!emedia Ser-ices eit"er or -oice andMor broadband access de!i-ered t"roug" <S;) B"arti Airte! is t"e !argest *ire!ess ser-ice pro-ider in t"e country7 based on t"e number o subscribers as o <ecember 117 2008) #"ey a!so o er an integrated suite o te!ecom so!utions to t"eir enterprise customers7 in addition to pro-iding !ong distance connecti-ity bot" nationa!!y and internationa!!y) #"ey "a-e recent!y orayed into media by !aunc"ing t"eir <#9 and IP#V Ser-ices) A!! t"ese ser-ices are rendered under a uni ied brand SAirte!S)

#"e company a!so dep!oys7 o*ns and manages passi-e in rastructure pertaining to te!ecom operations under its subsidiary B"arti In rate! ;imited) B"arti In rate! o*ns 42J o Indus #o*ers ;imited) B"arti In rate! and Indus #o*ers are t"e t*o top pro-iders o passi-e in rastructure ser-ices in India) :ompany s"ares are !isted on #"e Stoc+ >,c"ange7 Mumbai 'BS>( and #"e 2ationa! Stoc+ >,c"ange o India ;imited '2S>()

RELI%3*E *O22U3I*%TIO3S LT4.

Re!iance :ommunications is t"e !ags"ip company o t"e Ani! <"irub"ai Ambani Group 'A<AG( o companies) ;isted on t"e 2ationa! Stoc+ >,c"ange and t"e Bombay Stoc+ >,c"ange7 it is India=s !eading integrated te!ecommunication company *it" o-er /1 mi!!ion customers) #"eir business encompasses a comp!ete range o te!ecom ser-ices co-ering mobi!e and i,ed !ine te!ep"ony) It inc!udes broadband7 nationa! and internationa! !ong distance ser-ices and data ser-ices a!ong *it" an e,"austi-e range o -a!ue-added ser-ices and app!ications) Cur constant endea-our is to ac"ie-e customer de!ig"t by en"ancing t"e producti-ity o t"e enterprises and indi-idua!s *e ser-e) Re!iance Mobi!e ' ormer!y Re!iance India Mobi!e(7 !aunc"ed on 28 <ecember 20027 coinciding *it" t"e .oyous occasion o t"e !ate <"irub"ai Ambani=s /0t" birt"day7 *as among t"e initia! initiati-es o Re!iance :ommunications) It mar+ed t"e auspicious beginning o <"irub"ai=s dream o us"ering in a digita! re-o!ution in India) #oday7 t"e company can proud!y c!aim t"at t"ey *ere instrumenta! in "arnessing t"e true po*er o in ormation and communication7 by besto*ing it in t"e "ands o t"e common man at a ordab!e rates) #"ey endea-our to urt"er e,tend t"eir e orts beyond t"e traditiona! -a!ue c"ain by de-e!oping and dep!oying comp!ete te!ecom so!utions or t"e entire spectrum o society) It *as estab!is"ed in t"e year 2004 as Re!iance In rastructure <e-e!opers Pri-ate ;imited7 Re!iance :ommunications started !aying ?07000 route +i!ometers o a pan-India ibre optic bac+bone *it" "ig" capacity7 integrated '*ire!ess and *ire!ine(7 con-ergent '-oice7 data and -ideo( digita! net*or+ and to o er ser-ices spanning t"e entire in ocomm -a!ue c"ain) It is capab!e o de!i-ering a range o ser-ices spanning t"e entire in ocomm 'in ormation and communication( -a!ue c"ain7 inc!uding in rastructure and ser-ices or enterprises as *e!! as indi-idua!s7 app!ications7 and consu!ting)

5O4%FO3E ESS%R LT4.

Voda one >ssar in India is a subsidiary o Voda one Group P!c and commenced operations in 1004 *"en its predecessor 9utc"ison #e!ecom acEuired t"e ce!!u!ar !icense or Mumbai) Voda one >ssar no* "as operations in 22 circ!es *it" o-er ?5)02 mi!!ion customersVV) #"e company is a .oint -enture o >ssar :ommunication 9o!dings ;td and t"e @F-based Voda one Group) Voda one "as partnered *it" t"e >ssar Group as t"eir principa! .oint -enture partner or t"e Indian mar+et) #"ey are in t"e business o ce!!u!ar te!ep"ony) C-er t"e years7 Voda one >ssar7 under t"e 9utc" brand7 "as been named t"e IMost Respected #e!ecom :ompany=7 t"e IBest Mobi!e Ser-ice in t"e country= and t"e IMost :reati-e and Most > ecti-e Ad-ertiser o t"e Dear=) Voda one is t"e *or!d=s !eading internationa! mobi!e communications company) It current!y "as eEuity interests in 2/ countries across 5 continents and 40 partner net*or+s *it" o-er 280 mi!!ion proportionate customers *or!d*ide) Voda one "as partnered *it" t"e >ssar Group as its principa! .oint -enture partner or t"e Indian mar+et) >ssar G!oba! ;imited '>G;( is a di-ersi ied business group spanning t"e manu acturing and ser-ices sectors o Stee!7 >nergy7 Po*er7 :ommunications7 S"ipping G ;ogistics7 and Pro.ects) #"e group "as operations and in-estments in India7 :anada7 @SA7 A rica7 t"e Midd!e >ast7 t"e :aribbean and Sout" >ast Asia and emp!oys 107000 peop!e *or!d*ide) Voda one >ssar ;td pro-ides ser-ices !i+e 2G7 *"ic" are based on 1800 M"8 and 000M"8 GSM digita! tec"no!ogy) #"ey o ers -oice and data ser-ices) In addition7 t"ey o ers postpaid connections acti-ation7 prepaid SIM cards and rec"arge coupons sa!e7 ser-ice acti-ationMdeacti-ation7 postpaid tari p!an c"ange7 customer Euery reso!ution7 prepaidMpostpaid SIM card rep!acement and upgradation7 mobi!e number c"ange7 and in ormation on and subscription o -a!ue added ser-ices t"roug" stores) VVBigures rom :e!!u!ar Cperators Association o India7 Bebruary 287 2000

,0%R%T S%3*0%R 3IG%2 LT4.

B"arat Sanc"ar 2igam ;td) ormed in Cctober7 20007 is Aor!d6s /t" !argest #e!ecommunications :ompany pro-iding compre"ensi-e range o te!ecom ser-ices in India% Aire!ine7 :<MA mobi!e7 GSM Mobi!e7 Internet7 Broadband7 :arrier ser-ice7 MP;S-VP27 VSA#7 VoIP ser-ices7 I2 Ser-ices etc) Ait"in a span o i-e years it "as become one o t"e !argest pub!ic sector unit in India) It "as about 4/)1 mi!!ion !ine basic te!ep"one capacity7 4 mi!!ion A;; capacity7 20)1 Mi!!ion GSM :apacity7 more t"an 1/182 i,ed e,c"anges7 18000 B#S7 28/ Sate!!ite Stations7 48010? R+m o CB: :ab!e7 ?1/10 R+m o Micro*a-e 2et*or+ connecting ?02 <istricts7 /110 citiesMto*ns and 5)5 ;a+"s -i!!ages) BS2; is t"e on!y ser-ice pro-ider7 ma+ing ocused e orts and p!anned initiati-es to bridge t"e Rura!-@rban <igita! <i-ide I:# sector) In act t"ere is no te!ecom operator in t"e country to beat its reac" *it" its *ide net*or+ gi-ing ser-ices in e-ery noo+ G corner o country and operates across India e,cept <e!"i G Mumbai) BS2; is numero uno operator o India in a!! ser-ices in its !icense area) #"e company o ers -ide ranging G most transparent tari sc"emes designed to suite e-ery customer) BS2; ce!!u!ar ser-ice7 :e!!Cne7 "as more t"an 1/)8 mi!!ion ce!!u!ar customers7 garnering 24 percent o a!! mobi!e users as its subscribers) #"at means t"at a!most e-ery ourt" mobi!e user in t"e country "as a BS2; connection) In basic ser-ices7 BS2; is mi!es a"ead o its ri-a!s7 *it" C:(. million Basic 'hone suAscriAers i)e) 85 per cent s"are o t"e subscriber base and 02 percent s"are in re-enue terms) BS2; "as more t"an 2)5 mi!!ion A;; subscribers and 2)5 mi!!ion Internet :ustomers *"o access Internet t"roug" -arious modes -i8) <ia!-up7 ;eased ;ine7 <IAS7 Account ;ess Internet ':;I() BS2; "as been ad.udged as t"e 2@MB>R C2> ISP in t"e country) BS2; "as set up a *or!d c!ass mu!ti-gigabit7 mu!ti-protoco! con-ergent IP in rastructure t"at pro-ides con-ergent ser-ices !i+e -oice7 data and -ideo t"roug" t"e same Bac+bone and Broadband Access 2et*or+) At present t"ere are 6(; million DataOne Aroa+Aan+ customers(

I4E% *ELLUL%R LT4. H SPI*E

<>A :e!!u!ar is a pub!ic!y !isted company7 "a-ing !isted on t"e Bombay Stoc+ >,c"ange 'BS> and t"e 2ationa! Stoc+ >,c"ange '2S>( in Marc" 200/) Idea :e!!u!ar ;td) is India6s !eading GSM mobi!e ser-ices operator) It "as !icenses to operate in 11 circ!es) #"e company "as a customer base o o-er 1/ mi!!ion) It is t"e irst ce!!u!ar company to !aunc" music messaging *it" :e!!u!ar 3oc+ey7 Bac+ground #ones7 Group #a!+7 a -oice porta! *it" Say I<>A and a comp!ete suite o mobi!e emai! Ser-ices) A brand +no*n or many irsts7 Idea *as t"e irst to !aunc" GPRS and ><G> in t"e country) Idea "as recei-ed internationa! recognition or its pat"-brea+ing inno-ations *"en it *on t"e GSM Association A*ard or SBest Bi!!ing and :ustomer :are So!utionS or 2 consecuti-e years) I<>A :e!!u!ar is part o t"e Aditya Bir!a Group7 India6s irst tru!y mu!tinationa! corporation) #"e group operates in 25 countries7 and is anc"ored by o-er 17257000 emp!oyees be!onging to 25 nationa!ities) #"e combined "o!ding o t"e Aditya Bir!a Group companies in Idea stands at 08)1 per cent) Mr) Fumar Manga!am Bir!a "as been named t"e :"airman o t"e company) #"e Indian te!ecommunications mar+et or mobi!e ser-ices is di-ided into 22 SSer-ice AreasS c!assi ied into SMetroS7 :ategory SAS7 :ategory SBS and :ategory S:S ser-ice areas by t"e Go-ernment o India) #"ese c!assi ications are based principa!!y on a Ser-ice Area6s re-enue generating potentia! :ustomer Ser-ice and Inno-ation are t"e dri-ers o t"is :e!!u!ar Brand) A brand +no*n or t"eir many irsts7 I<>A is t"e on!y operator to !aunc" Genera! Pac+et Radio Ser-ice 'GPRS( and ><G> in t"e country) I<>A "as seen p"enomena! gro*t" since its inception7 t"e company6s ootprint idea is to irst ac"ie-e critica! mass7 t"en dri!! deep instead o spreading t"in7 "o*e-er7 does not increasing geograp"ic ootprint on!y7 it a!so dri!!s deep and success u!!y attempts to pro-ide e,ce!!ent net*or+ co-erage in a!! its circ!es o operations)

+.& ,OTTO2 FI5E *O2P%3IES

#"e Bottom i-e companies7 on t"e basis o MMar8et ShareJ as on 11st 3anuary7 2000 are% 1) Airce! :e!!u!ar ;td) Z <is"net 2) Ma"anagar #e!ep"one 2igam ;td) 'M#2;( 1) BP; Mobi!e :ommunications ;td)

4) 9B:; In ote! ;td) 5) S"yam #e!ecom ;td)

%IR*EL H 4IS03ET
#"e Airce! Group is a .oint -enture bet*een Ma,is :ommunications Ber"ad o Ma!aysia and Apo!!o 9ospita! >nterprise ;td o India7 *it" Ma,is :ommunications "o!ding a ma.ority sta+e o /4J) Airce! commenced operations in 1000 and became t"e !eading mobi!e operator in #ami! 2adu *it"in 18 mont"s) In <ecember 20017 it !aunc"ed commercia!!y in :"ennai and Euic+!y estab!is"ed itse! as a mar+et !eader & a position it "as "e!d since) Airce! began its out*ard e,pansion in 2005 and met *it" unprecedented success in t"e >astern rontier circ!es) It emerged a mar+et !eader in Assam and in t"e 2ort" >astern pro-inces *it"in 18 mont"s o operations) #i!! today7 t"e company gained a oot"o!d in 14 circ!es inc!uding :"ennai7 #ami! 2adu7 Assam7 2ort" >ast7 Crissa7 Bi"ar7 3ammu G Fas"mir7 9imac"a! Prades"7 Aest Benga!7 Fo!+ata7 Fera!a7 And"ra Prades"7 Farnata+a and <e!"i) #"e :ompany "as current!y gained a momentum in t"e space o te!ecom in India post t"e a!!ocation o additiona! spectrum by t"e <epartment o #e!ecom7 Go-t) o India or 11 ne* circ!es across India) #"ese inc!ude <e!"i 'Metro(7 Mumbai 'Metro(7 And"ra Prades"7 Gu.arat7 9aryana7 Farnata+a7 Fera!a7 Mad"ya Prades"7 Ma"aras"tra G Goa7 Ra.ast"an7 Pun.ab7 @P 'Aest( and @P '>ast() Airce! "as *on many a*ards and recognitions) Voice and <ata ga-e Airce! t"e "ig"est rating or o-era!! customer satis action and net*or+ Eua!ity in 200?) Airce! emerged as t"e top mid-si8e uti!ity company in Business *or!d=s I;ist o Best Mid-Si8e :ompanies= in 200/) Additiona!!y7 #e!e)net recogni8ed Airce! as t"e best regiona! operator in 2008)

Ait" o-er 1? mi!!ion customers in t"e country7 Airce!7 t"e astest gro*ing te!ecom company in India7 "as re--ed up p!ans to become a u!!- !edged nationa! operator by end o 2000)

2T3L

Ma"anagar #e!ep"one 2igam ;imited 'M#2;( *as set up in 1st Apri! o t"e year 108? by t"e Go-ernment o India to upgrade t"e Eua!ity o te!ecom ser-ices7 e,pand t"e te!ecom net*or+7 introduce ne* ser-ices and to raise re-enue or te!ecom de-e!opment needs o India6s +ey metros7 <e!"i 't"e po!itica! capita!( and Mumbai 't"e business capita! o India() #"e company "as a!so been in t"e ore ront o tec"no!ogy induction by con-erting 100J o its te!ep"one e,c"ange net*or+ into t"e state-o -t"e-art digita! mode) M#2; as a company7 o-er !ast nineteen years7 gre* rapid!y by moderni8ing t"e net*or+7 incorporating t"e State-o -t"e-art tec"no!ogies and a customer riend!y approac") #"e :ompany pro-iding -arious types o te!ecommunication ser-ices inc!uding #e!ep"one7 te!e,7 *ire!ess7 data communication7 te!ematic and ot"er !i+e orms o communication 'Internet() Birst digita! e,c"ange *or!d tec"no!ogy broug"t to India by t"e company during t"e year 108?) P"one P!us ser-ices *as o ered by t"e company in t"e year 10887 it gi-es mu!tip!ied bene its to te!ep"one users) <uring t"e year 10027 t"e company introduced Voice Mai! Ser-ice) M#2; "ad introduced t"e Integrated Ser-ices <igita! 2et*or+ 'IS<2( ser-ices in t"e period o 100?) Apart rom t"is IVRS 'Interacti-e Voice Response System( !i+e !oca! assistance c"anged number in ormation7 and au!t boo+ing system ensuring round t"e c!oc+ ser-ice7 a :<-RCM -ersion o t"e te!ep"one directory and an on-!ine directory enEuiry t"roug" P: *as introduced during t"e year 100/) #o aci!itate t"e c!iente!e7 M#2; !aunc"ed t"e country6s irst to!!- ree ser-ice in <e!"i in t"e period o 1008) <uring t"e year 10007 M#2; broug"t in t"e most *ide!y using ser-ice ca!!ed Internet '2et*or+ o 2et*or+s(7 t"e e,treme !e-e! o in ormation e,c"ange) <uring t"e year 20017 t"e company !aunc"ed GSM :e!!u!ar Mobi!e ser-ice under t"e brand name <o!p"in and in t"e same year M#2; a!so !aunc"ed Aire!ess in ;oca! ;oop 'A;;( Mobi!e ser-ices under t"e brand name Garuda)

#"e :ompany estab!is"ed Ai-Bi G digita! certi ication ser-ices in t"e identica! year) M#2; bagged t"e a*ard or e,ce!!ence in cost reduction in t"e year 2004) State o t"e art training centre o t"e company 6:>##M6 *as commissioned in t"e year o 2004) #"e :ompany introduced t"e broadband ser-ices under t"e brand name o 6#RI BA2<6 during t"e year 2005) M#2;-S#PI I# Ser-ices ;td is a 50%50 3oint Venture bet*een So t*are #ec"no!ogy Par+s o India 'S#PI( and t"e company) #"e :ompany "as restructured Mi!!ennium #e!ecom ;td 'M#;( as a 3oint Venture company o M#2; and BS2; *it" 51J and 40J eEuity participation respecti-e!y)

#o remain mar+et !eader in pro-iding *or!d c!ass #e!ecom and I# re!ated ser-ices at a ordab!e prices7 t"e company parta+ing its a!! e orts in t"e same business area and M#2; *ants to become a g!oba! p!ayer7 a!so ind a p!ace in t"e Bortune 5006 companies)

,PL 2O,ILE *O22U3I*%TIO3S LT4.

BP; Mobi!e :ommunications ;imited popu!ar!y +no*n as BP; Mobi!e is an India-based te!ecommunication ser-ice pro-iding company) BP; Mobi!e :ommunications ;imited is an o s"oot o t"e !egendary business cong!omerate >SSAR group) BP; Mobi!e :ommunications ;imited *as estab!is"ed in t"e year 1005 and it is present!y operating in on!y in t"e city o Mumbai) BP; Mobi!e :ommunications ;imited "as re-o!utioni8ed t"e Indian mobi!e te!ecommunication industry) Ait"in a s"ort span o time t"e subscriber base o BP; Mobi!e :ommunications ;imited "as reac"ed t"e 1 mi!!ion mar+) #"is gigantic mobi!e te!ecommunication company o India "as gro*n in !eaps and bounds and it o ers seam!ess ser-ice to its customers spread across Mumbai) Burt"er7 BP; Mobi!e "as gained tremendous popu!arity due to its competiti-e pricing o tari s) BP; Mobi!e o ers "ig"-c!ass mobi!e ser-ice to its *ide poo! o Mumbai subscribers) Burt"er7 it ran+s -ery "ig" on parameters !i+e7 customer satis action7 bi!!ing per ormance7 -oice Eua!ity etc and *as t"us ran+ed irst in t"e category o G!oba! System or Mobi!e :ommunications 'GSM( and :ode <i-ision Mu!tip!e Access ':<MA( o mobi!e ser-ice pro-iders7 operating in Mumbai) Superior co-erage and optimum sound c!arity are t"e strengt"s o BP; Mobi!e) BP; Mobi!e :ommunications ;imited pro-ides its customers *it" *or!d c!ass mobi!e ser-ices7 t"roug" t"e use o state-o -t"e-art tec"no!ogy and net*or+ and t"is inc!udes use o uniEue net*or+ design7 t"e Nua!net7 :ame! P"ase 2 Inte!!igent 2et*or+ 'I2( p!at orm and GPRS aci!itating u!tra modern ser-ices !i+e Mu!timedia Messaging Ser-ices 'MMS(7 mobi!e bro*sing and 3a-a based mobi!e p"one games) Mr) S) Subramaniam7 :>C o t"e company7 "eads t"is !eading te!ecommunication company o India) #"e products and ser-ices o ered by BP; Mobi!e :ommunications ;imited are as o!!o*s Prepaid :onnections Postpaid :onnections

Prepaid Rec"arge :oupons Bi!! Payments Va!ue Added Ser-ices 'VAS( Ser-ice InEuiries SIM Rep!acements 9andset Sa!es

0F*L I3FOTEL LT4.

Incorporated on 2 Aug)64?7 #"e In-estment #rust o India 'I#I( is managed by c"airman and managing director B F Fot"ari) <uring 2002-01 t"e name o t"e :ompany c"anged to 9B:; In ote! ;td7 as part o :ompany6s di-ersi ication and restructuring programme7 9B:; In ote! ;td '6trans eror :ompany6( a te!ecommunication :ompany operating in t"e Pun.ab :irc!e merged *it" t"e :ompany t"roug" a Sc"eme o Ama!gamation and decided to "i-e o t"e business o 9ire Purc"ase7 Binance7 ;easing and Securities #rading by *ay o an outrig"t sa!e *it" e ect rom 1st September 2002 to its *"o!!y o*ned subsidiary 6Ra.am Binance G In-estments :ompany 'India( ;td6 no* renamed as 6#"e In-estment #rust o India ;td6 Ct"er group companies are Fot"ari Sugars and :"emica!s and Madras Sa e <eposit) In Sep)6047 it came out *it" a rig"ts issue o 21)/0 !ac s"ares 'premium% Rs 10( aggregating Rs 8)/2 cr7 to augment !ong-term *or+ing capita!) #"e company is main!y engaged in "ire purc"ase7 !ease inancing and in-estments) Its c!ients inc!ude indi-idua!s7 irms as *e!! as corporate bodies) I#I6s business acti-ities inc!ude sugar7 petroc"emica!s7 industria! a!co"o!7 etc) It "as t*o subsidiaries -- I#I Pioneer AM: and I#I :apita! Mar+ets) I#I Pioneer AM: "as promoted Fot"ari Pioneer Mutua! Bund) I#I "as in-ested 55J o its capita! in I#I Pioneer AM: and t"e remaining 45J "as been subscribed to by Pioneering Management :orporation7 @S) <uring 1005-0?7 I#I Pioneer AM: ;imited ceased to be a subsidiary o t"e company) <uring 100/-087 #"e :ompany=s "o!ding in I#I :apita! Mar+et ;td *as so!d to Fot"ari Pioneer AM: ;td) <uring 2001-047 #"e :ompany !aunc"ed its Prepaid Mobi!e product and a comp!ete range o inno-ati-e -a!ue Added Ser-ices and <ata products *ere !aunc"ed in May 20047 by t"e introduction o <S;-"ig" speed Internet product) #"e company became t"e irst ser-ice pro-ider to "a-e !aunc"ed <S; ser-ices in t"e state o Pun.ab and :"andigar")

<uring 2004-057 #"e :ompany e,panded its ser-ices to 125 citiesMto*ns *it" 2)4/ !acs subscribers in Pun.ab) #"e company is p!anning a -enture into Video and :ab!e #V Ser-ices and ma+ing trip!e p!ay ser-ices by an e,pansion into t"e neig"bouring states o Pun.ab) A *"o!!y o*ned subsidiary7 :onnect Broadband Ser-ices ;imited *as ormed on 3u!y 20047 or t"e abo-e purpose) #"e :ompany6s ser-ices name!y7 Bi,ed ;ine #e!ep"oney7 Mobi!e #e!ep"oney7 Broadband Internet Access and <ata 2et*or+ing Access are o ered under t"e brand name 6:C22>:#6)

S01%2 TELE*O2 LT4.

Incorporated in 10027 S"yam #e!ecom ;imited7 a !eading manu acturer o #e!ecom >Euipment in India is t"e !ags"ip company o t"e S"yam Group o India) #"e e,panding "ori8on o t"e te!ecom sector in India "as gi-en S"yam ne* -istas and a-enues or gro*t" and e,pansion) #o concentrate main!y on its core acti-ities i)e) in-estment in #e!ecom acti-ities7 t"e company restructured its business and a resu!t it "as de-merged its manu acturing business to a *"o!!y o*ned subsidiary -i8) S"yam #e!ecom Manu acturing ;td ' ormer!y +no*n as S"yam #e!ecom In rastructure Pro.ects ;td() SubseEuent!y t"e company *i!! be an in-estor in S"yam #e!ecom Manu acturing ;imited 'de-e!oper o *ire!ess product or GSM G :<MA( and S"yam #e!e!in+ ;td 'basic te!ep"ony ser-ices in Ra.ast"an() S"yam #e!ecom a!so too+ a strategic decision by de-subsidiarise S"yam Internationa! ;td by *"ic" S"yam A:eS a!so got de-subsidiarised) It "as a!so acEuired t"e entire capita! o S"yam #e!ecom Manu acturing ;td G S"yam #e! Singapore P-t) ;td) S"yam6s RG< *"ic" is u!!y recogni8ed by t"e <epartment o Science and #ec"no!ogy "as been ab!e to design ne* products) S"yam6s RG< *ing is *e!!-eEuipped *it" t"e !atest and sop"isticated testing instruments7 :A<M:AM or design and assemb!y *or+ besides "a-ing "ig"!y Eua!i ied engineers) #"e company current!y manu actures Aire!ess in ;oca! ;oop7 Biber in !oca! !oop7 <igita! ;oop :arriers '<;:(7 <igita! Radios7 Spread Spectrum Radios7 <igita! Subscriber ;ine '<S;( or Internet Access7 Remote >nergy Meeting Systems 'R>MS( G Super-isory

contro! G data accusation systems 'S:A<A() #"e company "as an internationa! presence in 2/ countries spread o-er America7 >urope7 A rica7 Indian sub-continent and AsiaPaci ic) #"e company "as e,tended its basic te!ep"ony ser-ice to 3aipur and 3od"pur) #"e company6s ser-ice co-ered a!! t"e t"ree tec"no!ogies in basic te!ep"ony - *ire!ine7 :<MA and :or<ect)

+." R%TIO %3%L1SIS OF *O2P%31

+.".1 ,.!rti %irtel Ltd.
TaAle /(.D Fey Ratios o B"arti Airte! ;td)

In+ustr4 DTelecommunications ? Service 'rovi+er

0? Mar DeAt?EGuit4 Ratio Lon) Term DeAt? EGuit4 Ratio Current Ratio Turnover Ratios %iBe+ Assets Inventor4 DeAtors Interest Ratio 'BIDTM -F1 'BITM -F1 'BDTM -F1 C'M -F1 A'ATM -F1 ROCE -F1 RON! -F1 0)18 0)15 0)51

<? Mar 0)54 0)5 0)4? 0)8 500)0 1 12)1 15)81 40)/ 2/)52 18)0? 15)/8 22)50 14)0/ 41)04

;? Mar 0)81 0)/? 0)4? 0)/2 44/)/ 4 12)54 10)?5 1?)21 22)4? 14)11 11)?0 1/)01 22)55 11)82

:? Mar 0)? 0)5 1)1 1)10 500)5 1 22)08 5)01 1?)/ 21)8 12)?0 28)22 15)12 21)0? 21)88

7 ? Mar 0)0/ 0)01 1/)1 0 0 0 0)10 0 0 0 0 0 0)1? -0)2/

C? Mar 0)01 0 40)15 0 0 0 0)2/ 0 0 0 0 0 0)1/ -0)4/

5? Mar 0)02 0 1?)14 0 0 0 -4)22 0 0 0 0 0 -1)1/ -1)4/

.? Mar 0)00 0)00 11)05 0 0 0 0)04 0 0 0 0 0 0)11 -2)55

Mar? 66 0)1/ 0)1/ ?0)18 0 0 0 0)58 0 0 0 0 0 0)41 -0)4

0)04 4?2)1 2 11)08 Cover 12)4/ 41)/2 20)41 10)1? 1?)51 24)24 14)88 10)51

#"e Current Ratio o B"arti Airte! ;td) is 0)51 or t"e year 200/-2008) #"is means t"at t"e company is "a-ing e*er assets to co-er t"e !iabi!ity and a!so t"e in-estors s"ou!d be *eary o t"e act t"at t"e company cannot pay o its s"ort-term debt i necessary DeAt?to?EGuit4 Ratio o B"arti Airte! ;td) is 0)18 or t"e year 200/-2008 *"ic" means t"at company is not using its debt instruments *"i!e it is re!ying more on t"e s"are"o!ders capita!) #"is a!so indicates t"e company=s assets are primari!y supp!ied *it" eEuity) %iBe+ Assets Turnover Ratio o B"arti Airte! ;td) is 0)04 or t"e year 200/-2008) #"is ratio is "ig"er t"an t"e industry ratio or B"arti Airte! *"ic" indicates t"at assets are being air!y uti!i8ed by t"e company in order to generate sa!es) Inventor4 Turnover Ratio o B"arti Airte! ;td) is 4?2)12 or t"e year 200/-2008) So t"e stoc+ -e!ocity o B"arti is 1?5M4?2)12 *"ic" is eEua! to 0)/0 *"ic" is air!y good i *e compare it *it" t"e industry standard *"ic" is as "ig" as 14)21) #"ere ore7 B"arti Airte! ta+es !ess t"an a day to rotate its stoc+)

DeAtor Turnover Ratio o B"arti Airte! ;td) is 11)08 or t"e year 200/-2008) So t"e debtor -e!ocity is 1?5M11)08 *"ic" comes out as 12)04 days i)e) B"arti ta+es on an a-erage 11 days to co!!ect its money bac+ rom t"e debtors7 *"ic" is again !o*er t"an as compared to t"e industry) Interest Cover Ratio o B"arti Airte! ;td) is 12)4/ or t"e year 200/-20087 *"ic" means t"at B"arti "as 12)4/ times more income to pay interest on t"eir debts) So t"e company is in a com ortab!e situation) Gross 'ro*it Mar)in Ratio o B"arti Airte! ;td) is 41)/2J or t"e year 200/-20087 means t"at B"arti is ma+ing a pro it be ore interest7 depreciation and ta, o 41)/2J) Net 'ro*it Ratio o B"arti Airte! ;td) is 24)24J or t"e year 200/-2008 *"ic" is "ig"er in comparison *it" t"e industry ratio7 so t"is goes to s"o* t"e e iciency o t"e operation o t"e company) Return on Ca@ital Em@lo4e+ Ratio o B"arti Airte! ;td) is 14)88 or t"e year 200/2008 *"ic" indicate t"at t"e company is earning 14)88 times t"e pro it on t"e tota! capita! emp!oyed t"at consists o >Euity7 Reser-es G Surp!us and !ong-term debt) Return on Net !orth o B"arti Airte! ;td) is 10)51 or t"e year 200/-2008 *"ic" is more t"an t"e industry a-erage and t"ere ore s"o*s a pro it o 10)51 times per rupee in-ested by t"e in-estors)

+.&.2

Reli!nce *ommunic!tions Ltd.

TaAle /(5D Fey Ratios o Re!iance :ommunications ;td)

In+ustr4 DTelecommunications ? Service 'rovi+er

0?Mar e4 Ratios DeAt?EGuit4 Ratio Lon) Term DeAt?EGuit4 Ratio Current Ratio Turnover Ratios %iBe+ Assets Inventor4 DeAtors Interest Cover Ratio 'BIDTM -F1 'BITM -F1 'BDTM -F1 C'M -F1 A'ATM -F1 ROCE -F1 RON! -F1 6(<< 6(:< .(5: 6(< /0(< .:(;. C(// C:(/: 5C(7/ C6(6< 5/(/: .<(7/ 0(;; ..(7

<?Mar 6(7. 6(C/ .(/7 6(/0 56<(./ 5:(7: ;(C C;(/: 55(:; CC(C< CC(50 .0(00 /(5C .6(/5

:?Dec 6 6 :(.C 6 6 6 6 6 6 6 6 6 6(.; 6(.

:?Mar 6 6 6 6 6 6 6 6 6 6 6 6 6 6

Current Ratio o Re!iance :ommunications is 1)25 or t"e year 200/-2008) #"is indicates t"at t"e company can success u!!y pay o its debt *"i!e at t"e same time sti!! "a-e cas" !e t o-er to continue operating) DeAt?to?EGuit4 Ratio o Re!iance :ommunications is 0)// or t"e year 200/-2008 indicating t"at t"e company=s assets are primari!y supp!ied *it" eEuity) %iBe+ Assets Turnover Ratio o Re!iance :ommunications is 0)/ or t"e year 200/2008) #"is ratio is "ig"er7 or t"e company7 t"an t"e industry ratio *"ic" indicates t"at assets are being air!y uti!i8ed by t"e company in order to generate sa!es) Inventor4 Turnover Ratio o Re!iance :ommunications is 08)/ or t"e year 200/-2008) So t"e stoc+ -e!ocity o Re!iance is 1?5M08)/ *"ic" is eEua! to 1)?0 *"ic" is air!y good i *e compare it *it" t"e industry standard *"ic" is as "ig" as 14)21) #"ere ore7 Re!iance :ommunications ta+es !ess t"an our days to rotate its stoc+) DeAtor Turnover Ratio o Re!iance :ommunications is 15)?1 or t"e year 200/-2008) So t"e debtor -e!ocity is 1?5M15)?1 *"ic" comes out as 21)18 days i)e) Re!iance ta+es on an a-erage 21 days to co!!ect its money bac+ rom t"e debtors7 *"ic" is again !o*er t"an as compared to t"e industry)

Interest Cover Ratio o Re!iance :ommunications is 1)00 or t"e year 200/-20087 *"ic" means t"at Re!iance "as 1)00 times more income to pay interest on t"eir debts) So t"e company is in a good situation) Gross 'ro*it Mar)in Ratio o Re!iance :ommunications is 15)05J or t"e year 200/20087 means t"at Re!iance is ma+ing a pro it be ore interest7 depreciation and ta, o 15)05J) Net 'ro*it Ratio o Re!iance :ommunications is 1/)40J or t"e year 200/-2008 *"ic" is "ig"er in comparison *it" t"e industry ratio7 so t"is goes to s"o* t"e e iciency o t"e operation o t"e company) Return on Ca@ital Em@lo4e+ Ratio o Re!iance :ommunications is 8)?? or t"e year 200/-20087 *"ic" indicate t"at t"e company is earning 8)?? times t"e pro it on t"e tota! capita! emp!oyed t"at consists o >Euity7 Reser-es G Surp!us and !ong-term debt) Return on Net !orth o Re!iance :ommunications is 11)4 or t"e year 200/-20087 *"ic" is a !itt!e more t"an t"e industry a-erage and t"ere ore s"o*s a pro it o 11)4 times per rupee in-ested by t"e in-estors)

+.&.&

5od! one Ess!r Ltd.

TaAle /(CD Fey Ratios o Voda one >ssar ;td)
In+ustr4 DTelecommunications ? Service 'rovi+er 0?Mar ;?Dec :?Dec

e4 Ratios

DeAt?EGuit4 Ratio Lon) Term DeAt?EGuit4 Ratio Current Ratio Turnover Ratios %iBe+ Assets Inventor4 DeAtors Interest Cover Ratio 'BIDTM -F1 'BITM -F1 'BDTM -F1 C'M -F1 A'ATM -F1 ROCE -F1 RON! -F1

0)2/ 0 1)4 1)52 17?5?)82 15)2 2)44 10)81 22)18 21)/1 21)00 11)1? 4)21 1)22

0)2 0 1)51 1)2? 1711/)42 11)48 1)01 14)02 2/)51 2/)01 20)1? 21)/5 4)22 4)01

0)1/ 0)14 1)?1 1)1 17414)18 10)48 12)18 10)2? 10)85 1?)/1 15)25 2?)84 5)18 5)5

Current Ratio o Voda one >ssar is 1)4 or t"e year 200/-2008) #"is indicates t"at t"e company can success u!!y pay o its debt *"i!e at t"e same time sti!! "a-e cas" !e t o-er to continue operating) DeAt?to?EGuit4 Ratio o Voda one >ssar is 0)2/ or t"e year 200/-2008 indicating t"at t"e company=s assets are primari!y supp!ied *it" eEuity) %iBe+ Assets Turnover Ratio o Voda one >ssar is 1)52 or t"e year 200/-2008) #"is ratio is "ig"er7 or t"e company7 t"an t"e industry ratio *"ic" indicates t"at assets are being -ery *e!! uti!i8ed by t"e company in order to generate sa!es) Inventor4 Turnover Ratio o Voda one >ssar is 1?5?)82 or t"e year 200/-2008) So t"e stoc+ -e!ocity o Voda one is 1?5M1?5?)82 *"ic" is eEua! to 0)22 *"ic" is air!y good i *e compare it *it" t"e industry standard *"ic" is as "ig" as 14)21) #"ere ore7 Voda one >ssar ta+es !ess t"an a day to rotate its stoc+)

DeAtor Turnover Ratio o Voda one >ssar is 15)2 or t"e year 200/-2008) So t"e debtor -e!ocity is 1?5M15)2 *"ic" comes out as 24)01 days i)e) Voda one ta+es on an a-erage 24 days to co!!ect its money bac+ rom t"e debtors7 *"ic" is again !o*er t"an as compared to t"e industry)

Interest Cover Ratio o Voda one >ssar is 2)44 or t"e year 200/-20087 *"ic" means t"at Voda one "as 2)44 times more income to pay interest on t"eir debts) So t"e company is in a good situation) Gross 'ro*it Mar)in Ratio o Voda one >ssar is 10)81J or t"e year 200/-20087 means t"at Voda one is ma+ing a pro it be ore interest7 depreciation and ta, o 10)81J) Net 'ro*it Ratio o Voda one >ssar is 11)1?J or t"e year 200/-20087 *"ic" is "ig"er in comparison *it" t"e industry ratio7 so t"is goes to s"o* t"e e iciency o t"e operation o t"e company) Return on Ca@ital Em@lo4e+ Ratio o Voda one >ssar is 4)21 or t"e year 200/-20087 *"ic" indicate t"at t"e company is earning 4)21 times t"e pro it on t"e tota! capita! emp!oyed t"at consists o >Euity7 Reser-es G Surp!us and !ong-term debt) Return on Net !orth o Voda one >ssar is 1)22 or t"e year 200/-20087 *"ic" means it s"o*s a pro it o 1)22 times per rupee in-ested by t"e in-estors)

+.&."

,.!r!t S!nc.!r 3i-!m Ltd. ?,S3L@

TaAle /(7D Fey Ratios o BS2;
In+ustr4 DTelecommunications ? Service 'rovi+er 0? <? ;? :?Mar 7? Mar Mar Mar Mar C? Mar 5? Mar .? Mar

e4 Ratios DeAt?EGuit4 Ratio Lon) Term DeAt?EGuit4 Ratio Current Ratio Turnover Ratios %iBe+ Assets Inventor4 DeAtors Interest Cover Ratio 'BIDTM -F1 'BITM -F1 'BDTM -F1 C'M -F1 A'ATM -F1 ROCE -F1 RON! -F1

0)05 0)05 1)02 0)2/ 10)4/ 5)8? ?)1 4?)41 1?)45 41)/2 10)2? 0)1 5)84 2)02

0)08 0)08 1)8 0)1 12)22 5)81 11)21 52)28 25)85 40)08 48)08 22)55 10)02 0)14

0)1 0)1 1)5? 0)11 11)01 5)50 8)51 52)41 2?)4? 40)11 50)?8 24)/4 11)44 11)01

0)12 0)12 1)25 0)14 14)58 ?)1 210)// 4/)21 18)4? 4/)14 54)4? 25)?0 8)1/ 11)01

0)11 0)11 0)80 0)15 11)?4 0)0/ /?)8/ 51)05 21)? 52)// 45)?1 14)1? 10)02 8)44

0)1/ 0)1/ 0)// 0)12 /)10 5)84 2)08 40)/5 2)00 10)11 18)?1 0)84 1)15 0)44

0)24 0)24 0)/ 0)15 /)5/ 5)00 10)18 5?)8 20)81 54)/? 51)28 1/)20 8)? 0)58

0)20 0)20 0)5/ 0)11 /)?1 5)22 1)/2 41)81 8)/? 10)48 10)48 ?)4 1)40 1)20

Current Ratio o BS2; is 1)02 or t"e year 200/-2008) #"is indicates t"at t"e company can success u!!y pay o its debt *"i!e at t"e same time sti!! "a-e cas" !e t o-er to continue operating) DeAt?to?EGuit4 Ratio o BS2; is 0)05 or t"e year 200/-2008 *"ic" means t"at company is not using debt instruments *"i!e it is re!ying more on t"e s"are"o!ders capita!) #"is a!so indicates t"e company=s assets are primari!y supp!ied *it" eEuity) %iBe+ Assets Turnover Ratio o BS2; is 0)2/ or t"e year 200/-2008) #"is ratio is "ig"er t"an t"e industry ratio *"ic" indicates t"at assets are being air!y uti!i8ed by t"e company in order to generate sa!es) Inventor4 Turnover Ratio o BS2; is 10)4/ or t"e year 200/-2008) So t"e stoc+ -e!ocity o BS2; is 1?5M10)4/ *"ic" is eEua! to 14)8? t"at is "ig"er t"an t"e industry standard o 14)21) #"ere ore7 BS2; ta+es 15 days to rotate its stoc+)

DeAtor Turnover Ratio o BS2; is 5)8? or t"e year 200/-2008) So t"e debtor -e!ocity is 1?5M5)8? *"ic" comes out as ?5)20 days i)e) BS2; ta+es on an a-erage ?5 days to co!!ect its money bac+ rom t"e debtors7 *"ic" is again "ig"er t"an t"e industry standards) It is "ig"est among a!! t"e ma.or p!ayers in t"e mar+et)

Interest Cover Ratio o BS2; is ?)1 or t"e year 200/-20087 *"ic" means t"at BS2; "as ?)1 times more income to pay interest on t"eir debts) So t"e company is in a good situation) Gross 'ro*it Mar)in Ratio o BS2; is 4?)41 or t"e year 200/-20087 means t"at BS2; is ma+ing a pro it be ore interest7 depreciation and ta, o 4?)41J) BS2; being a pub!ic sector company "as been ab!e to generate gross pro it more t"an t"e industry standards and a!so ot"er ma.or p!ayers) Net 'ro*it Ratio o BS2; is 0)1 or t"e year 200/-20087 *"ic" is !o*er in comparison *it" t"e industry ratio) #"is s"o*s t"at BS2; "ad to pay ot"er indirect e,penses *"ic" !ed to a!! in t"e net pro it) Return on Ca@ital Em@lo4e+ Ratio o BS2; is 5)84 or t"e year 200/-20087 *"ic" indicate t"at t"e company is earning 5)84 times t"e pro it on t"e tota! capita! emp!oyed t"at consists o >Euity7 Reser-es G Surp!us and !ong-term debt) Return on Net !orth o BS2; is 2)02 or t"e year 200/-20087 *"ic" is !o*er t"an t"e industry a-erage and t"ere ore s"o*s a pro it o 2)02 times per rupee in-ested by t"e in-estors)

+.&.$

Ide! *ellul!r Ltd.

TaAle /(:D Fey Ratios o Idea :e!!u!ar ;td)
In+ustr4 DTelecommunications ? Service 'rovi+er 0 < ; : 7 C 5 ?Mar ?Mar ?Mar ?Mar ?Mar ?Mar ?Mar . ?Mar Ma r?66 Mar? //

e4 Ratios DeAt?EGuit4 Ratio Lon) Term DeAt?EGuit4 Ratio Current Ratio Turnover Ratios %iBe+ Assets Inventor4 DeAtors Interest Cover Ratio 'BIDTM -F1 'BITM -F1 'BDTM -F1 C'M -F1 A'ATM -F1 ROCE -F1 RON! -F1

1)88 1)?1 0)??

2)14 1)55 0)84

2)54 1)41 0)/?

2)41 1)55 0)8

2)02 1)?4 0)01

2 2 0)80

1)5 1)5 0)51

? ? 0)41

1)21 1)21 0)4/

2)11 2)11 0)41

0)58 205) 10 18)2 8 1)18 1?)? 5 21)? 20)? / 28)5 0 15)5 4 15)5 0 21)8 1

0)?1 12?) 81 15)8 0 2)40 14)8 5 10)4 / 2/)0 4 2?)8 8 11)5 11)?1 14)1 /

0)4? 180) 11 1/)2 1 1)5 1?)? 1 10)1 1 21)/ 2 21)5 / ?)2? ?)8? 5)12

0)41 141) 04 11)5 1 1)1 12)1 1/)5 1 1?)1 / 1?)1 / 1)? ?)40 1)8

0)14 11/) 44 11)4 0 0)2 21)? 1 4)44 -0)5? -0)5? -1/)/ 5 0 0

0)11 11/)1 1 11)15 0)21 15)1 8 4)00 11)?2 11)?2 -18)/ / 1)/2 -28)8 1

0)10 114)1 1 0)/2 -0)14 24)8 2 -1)/0 -1)01 -1)01 -11)? 5 -1)81 -?2)1 1

0)18 04)1 5 /)84 -0)51 -12)/ -25)1 4 -?2)? ? -?2)? ? -/5)2 0 -14)4 / -112) /1

0)2/ /8)0 5 /)12 0)21 42)4 / 24)1 5 -?0) 08 -?0) 08 -/0) 11 4)/5 -41) 50

0)21 40)/2 5)50 -1)?1 -1?/) 11 -180) 22 -281) 4 -281) 4 -105) 20 -20)/ 5 -00)0 /

Current Ratio o I<>A is 0)?? or t"e year 200/-2008) #"is means t"at t"e company is "a-ing e*er assets to co-er t"e !iabi!ity and a!so t"e in-estors s"ou!d be *eary o t"e act t"at t"e company cannot pay o its s"ort-term debt i necessary DeAt?to?EGuit4 Ratio is 1)88 or t"e year 200/-20087 *"ic" means t"at company using more o debt instruments) #"is a!so indicates t"e company=s assets are primari!y supp!ied *it" debt) %iBe+ Assets Turnover Ratio o I<>A is 0)58 or t"e year 200/-2008) #"is ratio is "ig"er t"an t"e industry ratio *"ic" indicates t"at assets are being air!y uti!i8ed by t"e company in order to generate sa!es) Inventor4 Turnover Ratio o I<>A is 205)10 or t"e year 200/-2008) So t"e stoc+ -e!ocity o I<>A is 1?5M205)10 *"ic" is eEua! to 1)24 t"at is !o*er t"an t"e industry standard o 14)21) #"ere ore7 it ta+es on!y a day to rotate its stoc+)

DeAtor Turnover Ratio o I<>A is 18)28 or t"e year 200/-2008) So t"e debtor -e!ocity is 1?5M18)28 *"ic" comes out as 0)54 days i)e) I<>A ta+es on an a-erage 10 days to co!!ect its money bac+ rom t"e debtors7 *"ic" is a good sign or t"e company) Interest Cover Ratio o I<>A is 1)18 or t"e year 200/-20087 *"ic" means t"at I<>A "as 1)18 times more income to pay interest on t"eir debts) So t"e company is in a good situation) Gross 'ro*it Mar)in Ratio o I<>A is 1?)?5 or t"e year 200/-20087 means t"at I<>A is ma+ing a pro it be ore interest7 depreciation and ta, o 1?)?5J Net 'ro*it Ratio o I<>A is 15)54 or t"e year 200/-2008 *"ic" is "ig"er in comparison *it" t"e industry ratio7 so t"is goes to s"o* t"e e iciency o t"e operation o t"e company) Return on Ca@ital Em@lo4e+ Ratio o I<>A is 15)50 or t"e year 200/-20087 *"ic" indicate t"at t"e company is earning 15)50 times t"e pro it on t"e tota! capita! emp!oyed t"at consists o >Euity7 Reser-es G Surp!us and !ong-term debt) Return on Net !orth o I<>A is 21)81 or t"e year 200/-20087 *"ic" means it s"o*s a pro it o 21)81 times per rupee in-ested by t"e in-estors)

+.&.'

%ircel *ellul!r Ltd.

TaAle /(;D Fey Ratios o Airce! :e!!u!ar ;td)
In+ustr4 DTelecommunications ? Service 'rovi+er ;?Dec ;? :?Mar 7?Mar C?Mar 5? .?Mar Mar Mar

Mar? 66 1)58 1)58 0)?/

Mar? // 1)21 1)21 0)?8

Fey Ratios <ebt->Euity Ratio Lon) Term DeAt? EGuit4 Ratio Current Ratio Turnover Ratios %iBe+ Assets Inventor4

0)41 0)41 1)01

0)?1 0)5/ 1

1)21 1)15 0)00

1)8/ 1)8/ 1)18

2)01 2)01 0)88

1)85 1)85 0)//

2)?8 2)?8 0)82

0)0 52/)1 /

0)// ?05)?

0)?? /84)/ ?

0)55 ?11)08

0)// ?85)0 8

1)01 512)5

1)04 200)/ 2

0)/2 11?)10

0)?/ 88)0/

DeAtors Interest Cover Ratio 'BIDTM -F1 'BITM -F1 'BDTM -F1 C'M -F1 A'ATM -F1 ROCE -F1 RON! -F1

15)22 0)1/ 44)0? 14)? 41)10 1?)04 25)?8 41)1 45)11

15)1/ 8)2? 41)52 12)/8 10)55 15)01 25)10 41)88 51)84

11)0/ 2)01 14)?1 1/)01 28)/8 12)?8 15)0? 1/)/8 12)18

10)0? 1)0/ 44)01 2?)08 10)11 20)55 12)52 10)11 10)44

12)21 1)?0 1/)/? 1/)1 2/)54 2/)54 /)08 1/)20 1?)12

11)8/ 2)14 11)8/ 21)// 22)/4 22)/4 12)?5 14)/ 42)01

10)0/ 2)01 11)0/ 21)21 22)51 22)51 11)/8 11)?0 /8

?)11 0)/4 28)81 12)40 11)02 11)02 -4)41 12)20 -12)4?

4)55 0)18 20)01 1)5 0)12 0)12 -1?)2 1)2? -111)2 2

Current Ratio- 1)01 or t"e year 2005-200?) #"is indicates t"at t"e company can success u!!y pay o its debt *"i!e at t"e same time sti!! "a-e cas" !e t o-er to continue operating) DeAt?to?EGuit4 Ratio- 0)41 or t"e year 2005-200? *"ic" means t"at company is re!ying !ess on debt instruments *"i!e it is re!ying more on t"e s"are"o!ders capita!) #"is a!so indicates t"e company=s assets are primari!y supp!ied *it" eEuity) %iBe+ Assets Turnover Ratio o Airce! is 0)0 or t"e year 2005-200?) #"is ratio is "ig"er t"an t"e industry ratio *"ic" indicates t"at assets are being air!y uti!i8ed by t"e company in order to generate sa!es) Inventor4 Turnover Ratio o Airce! is 52/)1/ or t"e year 2005-200?) So t"e stoc+ -e!ocity o Airce! is 1?5M52/)1/ *"ic" is eEua! to 0)?0 t"at is !o*est in t"e industry) #"ere ore7 Airce! ta+es a day to rotate its stoc+) DeAtor Turnover Ratio o Airce! is 15)22 or t"e year 2005-200?) So t"e debtor -e!ocity is 1?5M15)22 *"ic" comes out as 21)08 days i)e) Airce! ta+es on an a-erage 24 days to co!!ect its money bac+ rom t"e debtors7 *"ic" is again !o*er t"an as compared to t"e industry standards o 5/ days) Interest Cover Ratio o Airce! is 0)1/ or t"e year 2005-200?7 *"ic" means t"at Airce! "as 0)1/ times more income to pay interest on t"eir debts) So t"e company is in a good situation) Gross 'ro*it Mar)in Ratio o Airce! is 44)0? or t"e year 2005-200?7 means t"at Airce! is ma+ing a pro it be ore interest7 depreciation and ta, o 44)0?J) Net 'ro*it Ratio o Airce! is 25)?8 or t"e year 2005-200?7 *"ic" is "ig"er in comparison *it" t"e industry ratio7 so t"is goes to s"o* t"e e iciency o t"e operation o t"e company)

Return on Ca@ital Em@lo4e+ Ratio o Airce! is 41)1 or t"e year 2005-200?7 *"ic" indicate t"at t"e company is earning 41)1 times t"e pro it on t"e tota! capita! emp!oyed t"at consists o >Euity7 Reser-es G Surp!us and !ong-term debt) Return on Net !orth o Airce! is 45)11 or t"e year 2005-200?7 *"ic" means it s"o*s a pro it o 45)11 times per rupee in-ested by t"e in-estors)

+.&./

2!.!n!-!r Telep.one 3i-!m Ltd. ?2T3L@

TaAle /(<D Fey Ratios o M#2;
In+ustr4 DTelecommunications ? Service 'rovi+er

0? Mar e4 Ratios DeAt?EGuit4 Ratio Lon) Term DeAt? EGuit4 Ratio Current Ratio Turnover Ratios %iBe+ Assets Inventor4 DeAtors Interest Cover 0 0 1)15

<? Mar 0 0 1)14

;? Mar 0 0 1)12

:? Mar 0 0 1)20

7? Mar 0 0 1)28

C? Mar 0)14 0)14 1)45

5? Mar 0)12 0)12 1)/8

.? Mar 0)10 0)10 1)04

Mar? 66 0)52 0)52 2)00

Mar? // 0)01 0)01 2)58

0)1 24)/1 4)05 202)8

0)11 2/)14 4)08 502)?

0)18 14)1 1)48 28)50

0)4 40)54 1)28 14)04

0)40 51)4 4)11 40)/

0)48 2/)10 5)?8 10)18

0)55 21)8 0)15 ?1)10

0)5? 20)08 0)2 20?)2

0)55 21)05 /)04 140)?

0)50 20)81 /)05 2/)01

Ratio 'BIDTM -F1 'BITM -F1 'BDTM -F1 C'M -F1 A'ATM -F1 ROCE -F1 RON! -F1

0 12)15 1/)24 12)00 2/)14 12)41 /)01 4)08

0 14)5 20)58 14)4? 2/)8 11)80 8)0/ 5)0?

24)18 12)55 21)/4 22)0? 10)41 ?)11 5)21

12)05 22)41 12)11 2/)52 1?)00 11)/? 8)02

15)55 2/)01 15)01 2/)02 10)18 1/)1? 12)4?

1/)10 22)2? 1?)?1 10)41 15)40 12)28 0)/?

42)05 20)?? 42)48 14)4? 21)1/ 15)00 15)05

42)80 20)50 42)/4 10)02 2?)?1 15)0/ 10)01

1 1/)0/ 24)28 1/)8 14)?8 20)00 12)41 1?)2/

52)21 10)1/ 50)/8 18)81 25)/8 18)1 22)/4

Current Ratio o M#2; is 1)15 or t"e year 200/-2008) #"is indicates t"at t"e company can success u!!y pay o its debt *"i!e at t"e same time sti!! "a-e cas" !e t o-er to continue operating) DeAt?to?EGuit4 Ratio is 0 or t"e year 200/-20087 *"ic" means t"e company is tota!!y dependent on >Euity) %iBe+ Assets Turnover Ratio o M#2; is 0)1 or t"e year 200/-2008) #"is ratio is !o*er t"an t"e industry ratio *"ic" indicates t"at assets are not being air!y uti!i8ed by t"e company) Inventor4 Turnover Ratio o M#2; is 24)/1 or t"e year 200/-2008) So t"e stoc+ -e!ocity o M#2; is 1?5M24)/1 *"ic" is eEua! to 14)/? t"at is s!ig"t!y "ig"er t"an t"e industry standard o 14)21) #"ere ore7 M#2; ta+es 14 days to rotate its stoc+) DeAtor Turnover Ratio o M#2; is- 4)05 or t"e year 200/-2008) So t"e debtor -e!ocity is 1?5M4)05 *"ic" comes out as /4 days i)e) M#2; ta+es on an a-erage /4 days to co!!ect its money bac+ rom t"e debtors7 *"ic" is again "ig"er *"en compared to t"e industry standards o 5/ days) Interest Cover Ratio o M#2; is 202)80 or t"e year 200/-2008 *"ic" means t"at M#2; "as 202)80 times more income to pay interest on t"eir debts) #"is is "ig"est among a!! t"e p!ayers in t"e mar+et) Gross 'ro*it Mar)in Ratio o M#2; is 12)15 or t"e year 200/-20087 means t"at M#2; is ma+ing a pro it be ore interest7 depreciation and ta, o 12)15J) Net 'ro*it Ratio o M#2; is 12)41 or t"e year 200/-20087 *"ic" is !o*er in comparison *it" t"e industry ratio)

Return on Ca@ital Em@lo4e+ Ratio o M#2; is /)01 or t"e year 200/-20087 *"ic" indicate t"at t"e company is earning /)01 times t"e pro it on t"e tota! capita! emp!oyed t"at consists o >Euity7 Reser-es G Surp!us and !ong-term debt) Return on Net !orth o M#2; is 4)08 or t"e year 200/-20087 *"ic" means it s"o*s a pro it o 4)08 times per rupee in-ested by t"e in-estors)

+.&.)

,PL 2o#ile *ommunic!tions Ltd.

TaAle /(0D Fey Ratios o BP; :ommunications ;td) '200?-200/(
In+ustr4 DTelecommunications ? Service 'rovi+er

<?Mar e4 Ratios DeAt?EGuit4 Ratio Lon) Term DeAt?EGuit4 Ratio Current Ratio Turnover Ratios %iBe+ Assets Inventor4

:?Dec

:? Mar 14)12 12)01

7?Mar

C?Mar

5? Mar 10)0? 10)0?

.? Mar 4)/5 4)/5

Mar? 66 1)21 1)21

Mar? // 2)51 2)51

Mar? /0 2)/1 2)/1

11)52 11)4/

20)2 10)/0

0 0

18)8? 1?)?0

1)15

1)2

1)04

0)/0

0)84

1)2/

1)/5

1)5?

1)1

1)01

0)45 17458)

0)48 8/4)1

0)51 841)5

0)44 17410)

0)5 17/00)

0)? 055)5

0)?1 /8)?1

0)? 24)8

0)54 1?)84

0)4/ 1?)4

DeAtors Interest Cover Ratio 'BIDTM -F1 'BITM -F1 'BDTM -F1 C'M -F1 A'ATM -F1 ROCE -F1 RON! -F1

18 0)12 1)?/ 1/)/? 10)18 2?)28 2?)22 /)?4 12)52 10)/5

1 8)01 0)51 2/)24 ?)14 15)?4 15)51 -5)50 0 0

2 11)12 1)?0 40)18 21)20 2/)81 2/)/8 8)?0 14)05 28)54

41 10)28 0)80 42)1 10)15 20)/5 20)/5 -2)41 0 0

28 8)2? 0)/0 41)10 20)12 15)?1 15)?1 -5)41 0 0

5 4)8 0)11 24)?1 ?)/1 2)// 2)// -15)1 5 4)84 -10/) 41

2)02 -0)12 14)22 -1)01 -10)? 5 -10)? 5 -2/)8 8 -1)80 -8/)0 1

1 1)01 18)?? 10)04 0)?1 0)?1 1)01 1/)?1 2)11

4)1/ 0)/? 10)1/ 21)51 2)15 2)15 -?)/ 12)41 -11)0

4)1? 0)11 20)51 10)50 -11)4 ? -11)4 ? -21)4 5)28 -15)0 0

Current Ratio or BP; is 1)15 or t"e year 200?-200/) #"is indicates t"at t"e company can success u!!y pay o its debt *"i!e at t"e same time sti!! "a-e cas" !e t o-er to continue operating) DeAt?to?EGuit4 Ratio o BP; is 11)52 or t"e year 200?-200/7 *"ic" means t"at company raises its capita! t"roug" debt instruments) It is more t"an t"e industry standards and "ig"est among t"e ot"er p!ayers) %iBe+ Assets Turnover Ratio o BP; is 0)45 or t"e year 200?-200/) #"is ratio is c!ose to t"e industry ratio *"ic" indicates t"at assets are being air!y uti!i8ed by t"e company in order to generate sa!es) Inventor4 Turnover Ratio o BP; is 1458)18 or t"e year 200?-200/) So t"e stoc+ -e!ocity o BP; is 1?5M1458)18 *"ic" is eEua! to 0)25 t"at is !o*est in t"e industry) #"ere ore7 BP; ta+es !ess t"an a day to rotate its stoc+) DeAtor Turnover Ratio o BP; is 0)12 or t"e year 200?-200/) So t"e debtor -e!ocity is 1?5M0)12 *"ic" comes out as 10 days i)e) BP; ta+es on an a-erage 10 days to co!!ect its money bac+ rom t"e debtors7 *"ic" is again !o*er t"an as compared to t"e industry standards o 5/days) Interest Cover Ratio o BP; is 1)?/ or t"e year 200?-200/ *"ic" means t"at BP; "as 1)?/ times more income to pay interest on t"eir debts) Gross 'ro*it Mar)in Ratio o BP; is 1/)/? or t"e year 200?-200/7 means t"at BP; is ma+ing a pro it be ore interest7 depreciation and ta, o 1/)/?J)

Net 'ro*it Ratio o BP; is /)?4 or t"e year 200?-200/7 *"ic" is !o*er in comparison *it" t"e industry ratio7 so t"is goes to s"o* t"e e iciency o t"e operation o t"e company) Return on Ca@ital Em@lo4e+ Ratio o BP; is 12)52 or t"e year 200?-200/7 *"ic" indicate t"at t"e company is earning 12)52 times t"e pro it on t"e tota! capita! emp!oyed t"at consists o >Euity7 Reser-es G Surp!us and !ong-term debt) Return on Net !orth o BP; is 10)/5 or t"e year 200?-200/7 *"ic" means it s"o*s a pro it o 10)/5 times per rupee in-ested by t"e in-estors)

+.&.+

0F*L In otel Ltd.

TaAle /(/D Fey Ratios o 9B:; In ote! ;td)
In+ustr4 DTelecommunications ? Service 'rovi+er 0? < ; : 7 C? 5 Mar ? ? ? ? Mar ? Mar Mar Mar Mar Mar . ? Mar 1)88 1)/0 1)1 M ar? 66 2)8? 2)/4 1)80 M ar? // 4)08 4)21 2)?1

e4 Ratios DeAt?EGuit4 Ratio Lon) Term DeAt?EGuit4 Ratio Current Ratio Turnover Ratios %iBe+ Assets Inventor4 DeAtors Interest Cover Ratio 'BIDTM -F1

0 0 0)15

0 0 0)22

??)? 1 ?5)5 1 0)11

14)? 2 14)4 8 0)24

8)41 0 0)2

4)/1 0 0)4/

2)08 1)02 2)0

0)2 240)4 ? ?)15 -1)1/ 5)12

0)24 0 ?)82 -0)8 2 12)5 ?

0)2/ 0 8)12 -0)5 ? 25)8

0)25 0 0)52 -0)4 0 28)5 5

0)2 0 12)0 / -0)? 4 18)1 8

0)18 11)15 20)08 -0)/4 10)85

0)18 0)55 2)8/ -0)/ 0 -1)5 /

0)2/ 0)?1 1)0? 0)05 10)2 5

0)41 0)?1 5)21 1)21 /5)0 8

0)44 0)15 12)8 5 1)01 81)? 8

'BITM -F1 'BDTM -F1 C'M -F1 A'ATM -F1 ROCE -F1 RON! -F1

-10)? / -21)2 -21)4 8 -5/)2 / 0 0

-18) 02 -10) 4? -10) ?0 -42) 1? 0 0

-11) 55 5)25 5)00 -12) 2? 0 0

-12) 04 1)/0 1)?4 -1?) 05 0 0

-21) 10 -1/) /1 -1/) /1 -50) 2/ 0 0

-4?)8 2 -52)8 1 -54)? 5 -112) 12 0 0

-44) /0 -58) 15 -14) /1 -5/) 01 0 0

2)20 -0)2 -0)8 ? -4?) 82 0 0

52)5 2 11)5 4 25)4 5 2)80 14)? 1 1)11

?2)8 5 22)8 8 22)5 4 1)/1 14)1 8 2)14

Current Ratio o 9B:; is 0)15 or t"e year 200/-2008) #"is means t"at t"e company is "a-ing e*er assets to co-er t"e !iabi!ity and a!so t"e in-estors s"ou!d be *eary o t"e act t"at t"e company cannot pay o its s"ort-term debt i necessary DeAt?to?EGuit4 Ratio o 9<:; is 0 or t"e year 200/-20087 *"ic" means t"e company7 is tota!!y dependent on >Euity) %iBe+ Assets Turnover Ratio o 9B:; is 0)2 or t"e year 200/-2008) #"is ratio is !o*er t"an t"e industry ratio *"ic" indicates t"at assets are not being air!y uti!i8ed by t"e company) Inventor4 Turnover Ratio o 9B:; is 240)4? or t"e year 200/-2008) So t"e stoc+ -e!ocity o 9B:; is 1?5M240)4? *"ic" is eEua! to 1)52 t"at is !o*er t"an t"e industry standard o ) #"ere ore7 9B:; ta+es !ess t"an 2 days to rotate its stoc+) DeAtor Turnover Ratio o 9B:; is ?)15 or t"e year 200/-2008) So t"e debtor -e!ocity is 1?5M?)15 *"ic" comes out as 50 days i)e) 9B:; ta+es on an a-erage 50 days to co!!ect its money bac+ rom t"e debtors7 *"ic" is again s!ig"t!y "ig"er t"an as compared to t"e industry standards o 5/ days Interest Cover Ratio o 9B:; is '1)1/( or t"e year 200/-20087 *"ic" means t"at 9B:; does not "a-e su icient unds to pay interest on its debts) Gross 'ro*it Mar)in Ratio o 9B:; is '10)?/( or t"e year 200/-20087 means t"at 9B:; "as a gross !oss o '10)?/J( Net 'ro*it Ratio o 9B:; is '5/)2/( or t"e year 200/-20087 *"ic" means t"at t"e company "as incurred a net !oss and is t"e on!y company to incur !oss among t"e ot"er p!ayers) Return on Ca@ital Em@lo4e+ Ratio o 9B:; is 0 or t"e year 200/-2008

Return on Net !orth o 9B:; is 0 or t"e year 200/-2008

+.&.1:

S.y!m Telecom Ltd

TaAle /(.6D Fey Ratios o S"yam #e!ecom ;td
In+ustr4 DTelecommunications ? EGui@ment ? Me+ium I Small 0 < ; : 7? C 5 . ? ? ? ? Mar ? ? ? Mar Mar Mar Mar Mar Mar Mar M ar? 66 0)52 0)15 2)21 Se@? /0

e4 Ratios DeAt?EGuit4 Ratio Lon) Term DeAt?EGuit4 Ratio Current Ratio Turnover Ratios %iBe+ Assets Inventor4 DeAtors Interest Cover Ratio 'BIDTM -F1 'BITM -F1 'BDTM -F1 C'M -F1

0)/5 0)58 1)1/

0)2? 0)2 0)51

0)08 0)04 0)28

0)04 0)02 0)1/

0)0? 0)0? 0)01

0)14 0)12 0)42

0)24 0)10 0)00

0)11 0)24 1)04

1)18 0)?1 1)52

4)4/ 15)0 1 2)04 1)0? 5)? 4)1? 1)4/ 2)51

5)44 10)0 8 5)21 1)01 5)25 4)02 1)1/ 2)24

1)54 12)0 ? 1)1 1)18 0 /)22 1)/? 2)02

14)2 ? 40)5 1 0)? -4)1 1 -10) 8/ -11) ? -11) / -0)1

1?1)8 0 0 10)81 1)48 10)0/ 10)0/ ?)45 1)?4

0)0/ 1)50 1)51 1)2 1/)8 1 1/)8 1 2)00 1)12

4)?8 /)/1 4)5/ 1)18 11)4 1 10)2 1 8)10 5)/4

?)04 0)/5 4)18 1)15 11)5 4 12)/ 0)/5 8)?/

2)50 1)08 2)11 1)42 18)0 1 15)8 1 ?)80 ?)42

2)01 1)12 2)2/ 1)11 11)0 ? 0)05 4)5 1)08

A'ATM -F1 ROCE -F1 RON! -F1

1)08 11)4 2 5)1/

1)01 5)0/ 1)88

1)14 4)05 0)/

2 -0)8 4 -12) 0? -11) 45

1)?4 1)41 0)2/

1)12 1)01 0)14

4)55 8)05 4)01

/)81 11)1 1 0)1

4)2 /)4/ 1

1)0/ 10)5 8 4)41

Current Ratio o S"yam #e!ecom is 1)1/ or t"e year 200/-2008) #"is indicates t"at t"e company can success u!!y pay o its debt *"i!e at t"e same time sti!! "a-e cas" !e t o-er to continue operating)

DeAt?to?EGuit4 Ratio o S"yam #e!ecom is 0)/5 or t"e year 200/-20087 *"ic" means t"at company is re!ying !ess on debt instruments *"i!e it is re!ying more on t"e s"are"o!ders capita!) #"is a!so indicates t"e company=s assets are primari!y supp!ied *it" eEuity) %iBe+ Assets Turnover Ratio o S"yam #e!ecom is 4)4/ or t"e year 200/-2008) #"is ratio is "ig"er t"an t"e industry ratio and "ig"est among ot"er ma.or p!ayers7 *"ic" indicates t"at assets are being uti!i8ed to its optimum capacity in order to generate sa!es) Inventor4 Turnover Ratio o S"yam #e!ecom is 15)01 or t"e year 200/-2008) So t"e stoc+ -e!ocity o S"yam #e!ecom is 1?5M15)01 *"ic" is eEua! to 22)01 *"ic" is "ig"er t"an t"e industry standard o 14)21) #"ere ore7 S"yam #e!ecom ta+es c!ose to 21 days to rotate its stoc+) DeAtor Turnover Ratio o S"yam #e!ecom is 2)04 or t"e year 200/-2008) So t"e debtor -e!ocity is 1?5M2)04 *"ic" comes out as 124 days i)e) S"yam #e!ecom ta+es on an a-erage 124 days to co!!ect its money bac+ rom t"e debtors7 *"ic" is muc" "ig"er t"an as compared to t"e industry standards o 5/ days) Interest Cover Ratio o S"yam #e!ecom is 1)0? or t"e year 200/-20087 *"ic" means t"at S"yam #e!ecom "as 1)0? times more income to pay interest on t"eir debts) Gross 'ro*it Mar)in Ratio o S"yam #e!ecom is 5)? or t"e year 200/-20087 means t"at S"yam #e!ecom is ma+ing a pro it be ore interest7 depreciation and ta, o 5)?J) Net 'ro*it Ratio o S"yam #e!ecom is 1)08 or t"e year 200/-20087 *"ic" is !o*er in comparison *it" t"e industry ratio)

Return on Ca@ital Em@lo4e+ Ratio o S"yam #e!ecom is 11)42 or t"e year 200/-20087 *"ic" indicate t"at t"e company is earning 11)42 times t"e pro it on t"e tota! capita! emp!oyed t"at consists o >Euity7 Reser-es G Surp!us and !ong-term debt) Return on Net !orth o S"yam #e!ecom is 5)1/ or t"e year 200/-20087 *"ic" means it s"o*s a pro it o 5)1/ times per rupee in-ested by t"e in-estors)

+." I3TER9*O2P%31 %3%L1SIS

Inter-:ompany ana!ysis "a-e been done "ere on t"e basis o a e* parameters o e-a!uation or t"e top i-e companies on one "and and t"e bottom i-e companies on t"e ot"er)

+.".1

%n!lysis o Top $ comp!nies

TaAleD /(.. Inter-:ompany comparison o top 5 companies

(Rs in Crs)
Parameters Bharti Reliance Vodafone BSNL I !A "ell#lar $S%ice

Enterprise Value Sales Ot er !n"#$e E%S &ar'et Capitali(ati# n

1,62,852.92 25,761.11 359.91 32.9

1,25,007.91 14792.05 520.58 12.4

0 2733.76 115.68 7.06

0 32359.5 5878.1 4.16

33906.72 6719.99 199.05 3.96

156785.52

32683.76

18504.99

B"arti Airte! stands t"e mar+et !eader in t"e ce!!u!ar mar+et *it" a mar+et s"are o 24)4J as on 3anuary7 2000)

In terms o >nterprise -a!ue7 B"arti Airte! "as t"e "ig"est enterprise -a!ue among t"e top 5 p!ayers in t"e mar+et) Re!iance :ommunications stands ne,t to B"arti Airte!) A"en it comes to Sa!es BS2; "as more sa!e t"an t"e mar+et !eader as it "as a *ider presence in t"e rura! mar+et *"en compared *it" ot"er companies) In terms o Ct"er Income7 BS2; "as more income rom ot"er source t"an t"e ot"er companies) #"e mar+et capita!i8ation o B"arti Airte! is t"e "ig"est in t"e te!ecom sector) #"e mar+et capita!i8ation o BS2; and Voda one is 8ero as t"ey are not !isted on t"e BS>) #"e >arnings per S"are o B"arti is t"e "ig"est among a!! t"e te!ecom p!ayers in t"e mar+et) >arnings per S"are ser-e as an indicator o a company=s pro itabi!ity)

+.".2

%n!lysis o ,ottom $ comp!nies

TaAleD /(.5 Inter-:ompany comparison o bottom 5 companies

(Rs. in Crs) Parameters Enterprise Value Sales Ot er !n"#$e E%S &ar'et Capitali(ati#n Aircel 0 280.72 5.39 19.61 0 &TNL 2,713.29 4,722.52 804.01 8.64 6082.65 5.17 0 BPL 0 729.09 'F"L 1,709.44 248.88 6.53 0 943.31 Shyam Telecom 76.23 223.05 8.88 5.4 80.19

Airce! "as t"e "ig"est mar+et s"are o 4)?J7 o!!o*ed by M#2; as per 3anuray7 2000)

In terms o >nterprise -a!ue7 S"yam #e!ecom "as t"e !o*est enterprise -a!ue among t"e bottom 5 p!ayers in t"e mar+et) M#2; "a-ing t"e "ig"est enterprise -a!ue among t"e bottom 5 companies) A"en it comes to Sa!es M#2; "as more sa!e t"an t"e ot"er bottom 5 p!ayers e-en t"oug" it "as on!y 2 circ!es o operations i)e) <e!"i and Mumbai)

In terms o Ct"er Income7 M#2; "as more income rom ot"er source t"an t"e ot"er companies) #"e mar+et capita!i8ation o S"yam #e!ecom is among t"e !o*est in t"e te!ecom sector) #"e mar+et capita!i8ation o Airce! and BP; is 8ero as t"ey are not !isted on t"e BS>) #"e >arnings per S"are o BP; is t"e !o*est among t"e bottom 5 companies in t"e te!ecom sector *"i!e t"at o 9B:; being 8ero) >arnings per S"are ser-e as an indicator o a company=s pro itabi!ity)

+.$ *O3*LUSIO3
Ait" go-ernment increasing t"e B<I gap to /4J7 more oreign companies *ou!d be entering t"e Indian mar+et and t"ere *i!! be sti competition among t"e Indian p!ayers *it" t"e internationa! p!ayers and "ence t"e Indian p!ayers "a-e to sustain gro*t" and ma+e pro its) 9ence7 t"e e* companies t"at do not meet t"e industry standard ratios need to *or+ to*ards attaining t"e same)

*.!pter 1:

TRENDS AND FORECAST

1:.1 I3TRO4U*TIO3
#"e recent de-e!opment in in ormation tec"no!ogy and science "as made a great di erence in te!ecom industry by increasing its e iciency and opening doors to ma.or

de-e!opments o sector) :<MA7 GSM7 2GG1G SP>:#R@M7 AIMAP etc are some o t"e tec"no!ogy *"ic" "a-e discussed) Bot" de-e!opment and prob!em *a!+s "and in "and7 *it" increasing de-e!opment t"e industry is acing "uge c"a!!enges and prob!ems) #"e industry *i!! "a-e to *or+ more e icient!y in order to o-ercome t"e prob!ems) #"e industry in tota! "as got a great uture and "as a !ot o untapped potentia! mar+et)

1:.2

TE*03OLOGIES

#ec"no!ogy is -ery muc" re!ated to t"e *ay *e conduct business) #oday e-eryt"ing t"at *e ta!+ about in business7 !i+e7 t"e *ay *e conduct business7 t"e *ay *e do t"ings7 t"e *ay *e de!i-er to t"e customers7 etc) is using some orm o tec"no!ogy) #"ere ore7 ro!e o tec"no!ogy cannot be de ined because it is a mindset and it "appens o-er a period o time) #"e -arious tec"no!ogies used by t"e #e!ecom Ser-ice Pro-iders are as o!!o*s%

1:.2.1 GS2 ?Glo#!l *ommunic!tion@

System

or

2o#ile

GSM7 irst introduced in 10017 is t"e !eading digita! ce!!u!ar system) It uses narro*band #<MA '#ime <i-ision Mu!tip!e Access() >ig"t simu!taneous ca!!s can occupy t"e same radio reEuency) GSM simp!i ies data transmission to a!!o* !aptop and pa!mtop computers to be connected to GSM p"ones) It pro-ides integrated -oice mai!7 "ig"-speed data7 a,7 paging and S"ort Message Ser-ices 'SMS( capabi!ities7 as *e!! as secure communications) It o ers t"e best -oice Eua!ity o any current digita! *ire!ess standard) Crigina!!y a >uropean standard or digita! mobi!e te!ep"ony7 GSM "as become t"e *or!d6s most *ide!y used mobi!e system and is no* being used in more t"an 100 countries) GSM net*or+s operate on t"e 000M987 1800M98 and 1000M98 *a-ebands a!! o-er t"e *or!d)

1:.2.2

GPRS ?Gener!l p!c(et r!dio service@

GPRS is a pac+et oriented mobi!e data ser-ice a-ai!ab!e to users o t"e 2G ce!!u!ar communication systems g!oba! system or mobi!e communications 'GSM(7 as *e!! as in t"e 1G systems) In t"e 2G systems7 GPRS pro-ides data rates o 5?-114 +bitMs) GPRS data trans er is typica!!y c"arged per megabyte o tra ic trans erred7 *"i!e data communication -ia traditiona! circuit s*itc"ing is bi!!ed per minute o connection time7 independent o *"et"er t"e user actua!!y is using t"e capacity or is in an id!e state) GPRS is a best-e ort pac+et s*itc"ed ser-ice7 as opposed to circuit s*itc"ing7 *"ere a certain Eua!ity o ser-ice 'NoS( is guaranteed during t"e connection or non-mobi!e users) 2G ce!!u!ar systems combined *it" GPRS are o ten described as 2)5G7 t"at is7 a tec"no!ogy bet*een t"e second '2G( and t"ird '1G( generations o mobi!e te!ep"ony) It pro-ides moderate speed data trans er7 by using unused time di-ision mu!tip!e access '#<MA( c"anne!s in7 or e,amp!e7 t"e GSM system) Crigina!!y t"ere *as some t"oug"t to e,tend GPRS to co-er ot"er standards7 but instead t"ose net*or+s are being con-erted to use t"e GSM standard7 so t"at GSM is t"e on!y +ind o net*or+ *"ere GPRS is in use) GPRS is integrated into GSM Re!ease 0/ and ne*er re!eases) It *as origina!!y standardi8ed by >uropean #e!ecommunications Standards Institute '>#SI(7 but no* by t"e 1rd Generation Partners"ip Pro.ect '1GPP()

1:.2.& E4GE Evolution@

?En.!nced

4!t!

r!tes

or

GS2

><G>7 >n"anced GPRS '>GPRS(7 or IM# Sing!e :arrier 'IM#-S:( is a bac+*ardcompatib!e digita! mobi!e p"one tec"no!ogy t"at a!!o*s impro-ed data transmission rates7 as an e,tension on top o standard GSM) ><G> is considered a 1G radio tec"no!ogy and is part o I#@6s 1G de inition7[1\) ><G> *as dep!oyed on GSM net*or+s beginning in 2001T initia!!y by :ingu!ar 'no* A#G#( in t"e @nited States) ><G> is imp!emented as a bo!t-on en"ancement or 2G and 2)5G GSM and GPRS net*or+s7 ma+ing it easier or e,isting GSM carriers to upgrade to it) ><G> is a superset to GPRS and can unction on any net*or+ *it" GPRS dep!oyed on it7 pro-ided t"e carrier imp!ements t"e necessary upgrade) ><G> reEuires no "ard*are or so t*are c"anges to be made in GSM core net*or+s) ><G> compatib!e transcei-er units must be insta!!ed and t"e base station subsystem needs to be upgraded to support ><G>) I t"e operator a!ready "as t"is in p!ace7 *"ic" is o ten t"e case today7 t"e net*or+ can be upgraded to ><G> by acti-ating an optiona! so t*are eature) #oday ><G> is supported by a!! ma.or c"ip -endors or bot" GSM and A:<MAM9SPA)

1:.2."

*42% ?*ode division multiple !ccess@

:<MA is a c"anne! access met"od uti!i8ed by -arious radio communication tec"no!ogies) It s"ou!d not be con used *it" t"e mobi!e p"one standards ca!!ed cdmaCne and :<MA2000 '*"ic" are o ten re erred to as simp!y S:<MAS(7 *"ic" use :<MA as an under!ying c"anne! access met"od) Cne o t"e basic concepts in data communication is t"e idea o a!!o*ing se-era! transmitters to send in ormation simu!taneous!y o-er a sing!e communication c"anne!) #"is a!!o*s se-era! users to s"are a band*idt" o reEuencies) #"is concept is ca!!ed mu!tip!e,ing) :<MA emp!oys spread-spectrum tec"no!ogy and a specia! coding sc"eme '*"ere eac" transmitter is assigned a code( to a!!o* mu!tip!e users to be mu!tip!e,ed o-er t"e same p"ysica! c"anne!) By contrast7 time di-ision mu!tip!e access '#<MA( di-ides access by time7 *"i!e reEuency-di-ision mu!tip!e access 'B<MA( di-ides it by reEuency) :<MA is a orm o Sspread-spectrumS signa!ing7 since t"e modu!ated coded signa! "as a muc" "ig"er data band*idt" t"an t"e data being communicated)

1:.2.$

0S4P% ?0i-.9Speed 4ownlin( P!c(et %ccess@

9S<PA is a 1G 't"ird generation( mobi!e te!ep"ony communications protoco! in t"e 9ig"-Speed Pac+et Access '9SPA( ami!y7 *"ic" a!!o*s net*or+s based on @ni-ersa! Mobi!e #e!ecommunications System '@M#S( to "a-e "ig"er data trans er speeds and capacity) :urrent 9S<PA dep!oyments support do*n-!in+ speeds o 1)87 1)?7 /)2 and 14)4 MbitMs) Burt"er speed increases are a-ai!ab!e *it" 9SPAZ7 *"ic" pro-ides speeds o up to 42 MbitMs do*n!in+ #"e 9ig"-Speed <o*n!in+ S"ared :"anne! '9S-<S:9( !ac+s t*o basic eatures o ot"er A-:<MA c"anne!sT-ariab!e spreading actor and ast po*er contro!) Instead7 it de!i-ers t"e impro-ed do*n!in+ per ormance using adapti-e modu!ation and coding 'AM:(7 ast pac+et sc"edu!ing at t"e base station7 and ast retransmissions rom t"e base station7 +no*n as "ybrid automatic repeat-reEuest '9ARN()

1:.2.'

6LL ?6ireless Loc!l Loop@

Aire!ess !oca! !oop 'A;;(7 is a term or t"e use o a *ire!ess communications !in+ as t"e S!ast mi!e M irst mi!eS connection or de!i-ering p!ain o!d te!ep"one ser-ice 'PC#S( andMor broadband Internet to te!ecommunications customers) Various types o A;; systems and tec"no!ogies e,ist) A;; 'Aire!ess in ;oca! ;oop( is a communication system t"at connects subscribers to t"e pub!ic S*itc"ed #e!ep"one 2et*or+ 'PS#2( using radio reEuency signa!s as a substitute or con-entiona! *ires or a!! or part o t"e connection bet*een t"e subscriber and t"e te!ep"one e,c"ange) It is use u! or t"ose subscribers *"o are !ocated in poc+ets *"ere immediate te!ep"one connections cannot be pro-ided due to !ac+ o underground cab!e net*or+ but radio co-erage is a-ai!ab!e) Ct"er terms or t"is type o access inc!ude Broadband Aire!ess Access 'BAA(7 Radio In #"e ;oop 'RI#;(7 Bi,ed-Radio Access 'BRA( and Bi,ed Aire!ess Access 'BAA()

1:.2./

6i2!=

AiMa, 'Aor!d*ide Interoperabi!ity or Micro*a-e Access( is a tec"no!ogy designed to gi-e peop!e "ig" speed access to t"e net o-er re!ati-e!y !ong distances) A typica! AiMa, system cou!d t"eoretica!!y gi-e users in an area t"ree to 10 +i!ometers *ide a 40 Mbps connection to t"e net) #"is tec"no!ogy a!ready dep!oyed in some urban centres !i+e :"ennai 'Madras( and Mumbai 'Bombay( *ou!d o-ercome t"e need to !ay e,pensi-e cab!es or ibre optics to -i!!ages) At t"e moment t"ere is a *ired bac+bone t"roug"out India but many -i!!ages are 10 to 40+m a*ay rom t"e nearest connection) Aima, ser-ices can o-ercome t"at) Cne or t*o AiMa, base stations are enoug" to connect t"ree or our -i!!ages) #"e go-ernment te!ecoms operator BS2; is a!so in t"e process o ro!!ing out some AiMa, ser-ices) But it is sti!! e,pensi-e and at t"e moment is aimed sEuare!y at !arge businesses t"at need a Euic+- i, so!ution to broadband access)

1:.2.)

&G TE*03OLOGIES

1G or #"ird Generation tec"no!ogy is a con-ergence o -arious Second Generation te!ecommunication systems) #"e tec"no!ogy is intended or SMAR#P9C2>S mu!timedia ce!! p"ones) Video broadcasting and ot"er e-commerce ser-ices suc" as7 stoc+ transactions and e-!earning *i!! no* be made possib!e muc" aster) It o ers 1 Mbps speed or do*n!oading7 *"ic" is -ery "ig" as compared to t"at o t"e 2G tec"no!ogy) #"e 1G tec"no!ogy pro-ides or internet sur ing7 do*n!oading7 e-mai! attac"ment do*n!oading7 audio--ideo con erencing7 a, ser-ices and many ot"er broadband app!ications) 1G #ec"no!ogy *as imp!emented in 3apan or t"e irst time in t"e *or!d) #oday t"e tec"no!ogy is ser-ing 25 countries o-er more t"an ?0 net*or+s "a-ing its e,istence in Asia7 >urope and @SA) Video con erencing "as been a ma.or actor in t"e success o t"e tec"no!ogy) CG Technolo)4 in In+ian Telecom In+ustr4 Brom t"e time o te!egrap"s Indian te!ecom sector "as *itnessed an immense gro*t" and "as di-ersi ied into -arious segments !i+e7 Bi,ed ;ine #e!ep"ony7 mobi!e te!ep"ony7 GSM7 :<MA7 A;; etc) #"e te!ecom industry is gro*ing at a ast pace introducing ne*er tec"no!ogies) >-en t"e net*or+ operators and "andset pro-iders are a!so coming up *it" ne*er -a!ue added ser-ices and ad-anced tec"no!ogy ce!! p"ones *it" mu!timedia app!ications) 2o* it6s time to *e!come t"e muc"-a*aited 1G #ec"no!ogy) B"arat Sanc"ar 2igam ;imited is a!! set to !aunc" t"e tec"no!ogy by <ecember 200/) 2ot on!y t"e net*or+ pro-iders but a!so t"e "andset pro-iders in India are *aiting eager!y or t"e !aunc" o 1G to earn -ery "ig" re-enues rom t"e -a!ue added ser-ices pro-ided by t"e tec"no!ogy) #"e tec"no!ogy is initia!!y being !aunc"ed on :<MA p!at orm) #"e tec"no!ogy is being tested o-er -arious p!at orms and ce!!u!ar net*or+s)

1:.2.+

"G TE*03OLOG1

4G 'a!so +no*n as Beyond 1G(7 an abbre-iation or Bourt"-Generation7 is a term used to describe t"e ne,t comp!ete e-o!ution in *ire!ess communications) A 4G system *i!! be

ab!e to pro-ide a compre"ensi-e IP so!ution *"ere -oice7 data and streamed mu!timedia can be gi-en to users on an SAnytime7 Any*"ereS basis7 and at "ig"er data rates t"an pre-ious generations) As t"e second generation *as a tota! rep!acement o t"e irst generation net*or+s and "andsets7 and t"e t"ird generation *as a tota! rep!acement o second generation net*or+s and "andsets7 so too t"e ourt" generation cannot be an incrementa! e-o!ution o current 1G tec"no!ogies7 but rat"er t"e tota! rep!acement o t"e current 1G net*or+s and "andsets) #"e internationa! te!ecommunications regu!atory and standardi8ation bodies are *or+ing or commercia! dep!oyment o 4G net*or+s roug"!y in t"e 2012-2015 time sca!e) At t"at point it is predicted t"at e-en *it" current e-o!utions o t"ird generation 1G net*or+s7 t"ese *i!! tend to be congested) #"ere is no orma! de inition or *"at 4G isH "o*e-er7 t"ere are certain ob.ecti-es t"at are pro.ected or 4G) #"ese ob.ecti-es inc!ude% t"at 4G *i!! be a u!!y IP-based integrated system) 4G *i!! be capab!e o pro-iding bet*een 100 MbitMs and 1 GbitMs speeds bot" indoors and outdoors7 *it" premium Eua!ity and "ig" security) Many companies "a-e ta+en se! -ser-ing de initions and distortions about 4G to suggest t"ey "a-e 4G a!ready in e,istence today7 suc" as se-era! ear!y tria!s and !aunc"es o AiMAP) Ct"er companies "a-e made prototype systems ca!!ing t"ose 4G) A"i!e it is possib!e t"at some current!y demonstrated tec"no!ogies may become part o 4G7 unti! t"e 4G standard or standards "a-e been de ined7 it is impossib!e or any company current!y to pro-ide *it" any certainty *ire!ess so!utions t"at cou!d be ca!!ed 4G ce!!u!ar net*or+s t"at *ou!d con orm to t"e e-entua! internationa! standards or 4G) #"ese con using statements around Se,istingS 4G "a-e ser-ed to con use in-estors and ana!ysts about t"e *ire!ess industry)

1:.2.1: 0O6 IS &G 4IFFERE3T FRO2 2G %34 "G

A"i!e 2G stands or second-generation *ire!ess te!ep"one tec"no!ogy7 1G net*or+s used are ana!og7 2G net*or+s are digita! and 1G 't"ird-generation( tec"no!ogy is used to en"ance mobi!e p"one standards) 1G "e!ps to simu!taneous!y trans er bot" -oice data 'a te!ep"one ca!!( and non--oice data 'suc" as do*n!oading in ormation7 e,c"anging e-mai!7 and instant messaging) #"e "ig"!ig"t o 1G is -ideo te!ep"ony) 4G tec"no!ogy stands to be t"e uture standard o *ire!ess de-ices)

:urrent!y7 3apanese company 2## <o:oMo and Samsung are testing 4G communication) 1G ser-ices *i!! enab!e -ideo broadcast and data-intensi-e ser-ices suc" as stoc+ transactions7 e-!earning and te!emedicine t"roug" *ire!ess communications) A!! te!ecom operators are *aiting to !aunc" 1G in India to cas" in on re-enues by pro-iding "ig"-end ser-ices to customers7 *"ic" are -oice data and -ideo enab!ed) India !ags be"ind many Asian countries in introducing 1G ser-ices)

1:.&

FUTURE PROBE*TIO3S

#"e Indian te!ecommunications industry is one o t"e astest gro*ing in t"e *or!d and India is pro.ected to become t"e second !argest te!ecom mar+et g!oba!!y by 2010) India added 111)2? mi!!ion ne* customers in 20087 t"e !argest g!oba!!y) In act7 in Apri! 20087 India "ad a!ready o-erta+en t"e @S as t"e second !argest *ire!ess mar+et) #o put t"is gro*t" into perspecti-e7 t"e country=s ce!!u!ar base *itnessed c!ose to 50 per cent gro*t" in 20087 *it" an a-erage 0)5 mi!!ion customers added e-ery mont") According to t"e #e!ecom Regu!atory Aut"ority o India '#RAI(7 t"e tota! number o te!ep"one connections 'mobi!e as *e!! as i,ed( "ad touc"ed 185 mi!!ion as o <ecember 20087 ta+ing t"e te!ecom penetration to o-er 11 per cent) #"is means t"at one out o e-ery t"ree Indians "as a te!ep"one connection7 and te!ecom companies e,pect t"is pace o gro*t" to continue in 2000 as *e!!) SAe are e,treme!y bu!!is" t"at t"e gro*t" *i!! continue in 2000) #"is year7 t"e number o additions *i!! be in e,cess o 110 mi!!ion7S according to #)V) Ramac"andran 7 <irector Genera!7 :e!!u!ar Cperators Association o India ':CAI(7 an industry body t"at represents a!! G!oba! System or Mobi!e communications 'GSM( p!ayers in India) According to :RISI; Researc" estimates7 eig"t in rastructure sectors7 *"ic" inc!ude t"e te!ecom sector7 are e,pected to dra* more t"an @SQ 145)28 bi!!ion in-estment in India by 2012) Ait" t"e rura! India gro*t" story un o!ding7 t"e te!ecom sector is !i+e!y to see tremendous gro*t" in India6s rura! and semi-urban areas in t"e years to come) By 20127 India is !i+e!y to "a-e 200 mi!!ion rura! te!ecom connections at a penetration rate o 25 per cent) And according to a report .oint!y re!eased by :on ederation o Indian Industry ':II( and >rnst G Doung7 by 20127 rura! users *i!! account or o-er ?0 per cent o t"e tota! te!ecom subscriber base) According to Business Monitor Internationa!7 India is current!y adding 8-10 mi!!ion mobi!e subscribers e-ery mont") It is estimated t"at by mid 20127 around "a! t"e

country6s popu!ation *i!! o*n a mobi!e p"one) #"is *ou!d trans!ate into ?12 mi!!ion mobi!e subscribers7 accounting or a te!e-density o around 51 per cent by 2012) It is pro.ected t"at t"e industry *i!! generate re-enues *ort" @SQ 41 bi!!ion in 2000-10)

1:.&.1

Growt. in Se-ments

According to a Brost G Su!!i-an industry ana!yst7 by 20127 i,ed !ine re-enues are e,pected to touc" @SQ 12)2 bi!!ion *"i!e mobi!e re-enues *i!! reac" @SQ 10)8 bi!!ion in India) Bi,ed !ine cape, is pro.ected to be @SQ 1)2 bi!!ion7 and mobi!e cape, is !i+e!y to touc" @SQ 0)4 bi!!ion) Burt"er7 according to a report by Gartner Inc)7 India is !i+e!y to remain t"e *or!d6s second !argest *ire!ess mar+et a ter :"ina in terms o mobi!e connections) According to recent data re!eased by t"e :CAI7 Indian te!ecom operators added a tota! o 10)?? mi!!ion *ire!ess subscribers in <ecember 2008) Burt"er7 t"e tota! *ire!ess subscriber base stood at 14?)80 mi!!ion at t"e end o <ecember 2008) #"e o-era!! ce!!u!ar ser-ices re-enue in India is pro.ected to gro* at a :AGR o 18 per cent rom 2008-2012 to e,ceed @SQ 1/ bi!!ion) :e!!u!ar mar+et penetration *i!! rise to ?0)/ per cent rom 10)8 per cent in 200/) #"e Indian te!ecommunications industry is on a gro*t" tra.ectory *it" t"e GSM operators adding a record 0)1 mi!!ion ne* subscribers in 3anuary 20007 ta+ing t"e tota! user base to 2?/)5 mi!!ion7 according to t"e data re!eased by :CAI) 9o*e-er7 t"is igure does not inc!ude t"e number o subscribers added by Re!iance #e!ecom) In AiMa,7 India is s!ated to become t"e !argest AiMAP mar+et in t"e Asia-Paci ic by 2011) A recent study sees India6s AiMAP subscriber base "itting 14 mi!!ion by 2011 and gro*ing annua!!y at near!y 110 per cent) And in-estments in AiMAP -entures are s!ated to top @SQ 500 mi!!ion in India7 according to a report by @S-based researc" and consu!ting irm7 Strategy Ana!ytics)

1:.&.2

2!nu !cturin-

India6s te!ecom eEuipment manu acturing sector is set to become one o t"e !argest g!oba!!y by 2010)

Mobi!e p"one production is estimated to gro* at a :AGR o 28)1 per cent rom 200? to 20117 tota!ing 10/ mi!!ion "andsets by 2010) Re-enues are estimated to gro* at a :AGR o 2?)? per cent rom 200? to 20117 touc"ing @SQ 11)? bi!!ion)

1:.&.&

Rur!l Telep.ony

Rura! India "ad /?)?5 mi!!ion i,ed and Aire!ess in ;oca! ;oop 'A;;( connections and 55170?4 Vi!!age Pub!ic #e!ep"ones 'VP#( as on September 2008) #"ere ore7 02 per cent o t"e -i!!ages in India "a-e been co-ered by t"e VP#s) #"e target o 80 mi!!ion rura! connections by 2010 is !i+e!y to be met during 2008 itse! ) @ni-ersa! Ser-ice Cb!igation '@SC( subsidy support sc"eme is a!so being used or s"aring *ire!ess in rastructure in rura! areas *it" around 187000 to*ers by 2010)

1:.&."

T.e Ro!d %.e!d

As on Cctober 1/7 20087 t"ere *ere 150 mi!!ion mobi!e and i,ed !ine subscribers in India7 *it" about 8 mi!!ion subscribers being added eac" mont") #"e @nion Minister or :ommunications and In ormation #ec"no!ogy7 Mr A Ra.a7 "as stated t"at t"e target or t"e 11t" P!an period '200/-12( is ?00 mi!!ion p"one connections *it" an in-estment o @SQ /1 bi!!ion) Apart rom t"e basic te!ep"one ser-ice7 t"ere is an enormous potentia! or -arious -a!ue-added ser-ices) In act7 t"e rea! potentia! or te!ecom ser-ice gro*t" is sti!! !ying untapped) #"e Indian rura! mar+et is going to be t"e ne,t big t"ing or *ire!ess te!ecom pro-iders) Ait" t"e te!e-density in rura! areas being sti!! about 10 per cent against t"e nationa! a-erage o about 21 per cent7 t"ere seems to be "uge untapped potentia! or mobi!e p"one penetration in rura! India) #"e go-ernment a!so p!ans an in-estment o @SQ 2 bi!!ion7 during 2008 to 20007 or t"e de-e!opment o around 1007000 community ser-ice centres in rura! India to pro-ide broadband connecti-ity) I past trend *ere any guide7 it *ou!d be reasonab!e to "ope t"at by 2020 India *ou!d comp!ete transition into digita! s*itc"ing and transmission7 VoIP7 broadband and 1G) #"oug" t"ere *ou!d be a!*ays a sma!! nic"e mar+et in India7 *"ic" *ou!d catc" up *it" t"e cutting age o t"e tec"no!ogy7 conso!idation and e,pansion o e-o!-ing tec"no!ogies across t"e !engt" and t"e breadt" o t"e country *i!! o!!o* *it" a !ag) Buture -ision o te!ecom is a -ision o I#) #e!ecom *i!! be t"e springboard o uture e,pansion o I# "era!ding in an in ormation society) I:# *i!! spread among t"e masses and *i!! spur inno-ation7 entrepreneurs"ip and gro*t") An e,panding domestic mar+et

*i!! deepen t"e synergy bet*een t"e domestic and t"e e,port mar+et and strengt"en India=s presence in t"e "ig"--a!ue segment o t"e g!oba! trade and in-estment) I:# bene its *i!! spread among a!!7 t"e ric" and t"e poor7 t"e young and t"e o!d7 t"e men and t"e *omen7 t"e organi8ed and t"e unorgani8ed and t"e go-ernment and t"e go-erned)

1:."

*0%LLE3GES TO ,E F%*E4

#"e c"a!!enge o t"e day is to searc" or ne* cost-e ecti-e *ays to ro!! out te!ecom ser-ices in rura! areas) It means one "as to c"oose proper and e ecti-e tec"no!ogy or dep!oyment and !e-erage on t"e use o a-ai!ab!e in rastructure to reduce cost and time o ro!e out o ser-ices) #"ose ser-ice pro-iders *"o create t"e rig"t business *ou!d emerge *inners and t"e rest *ou!d remain spectators) :onnecti-ity o net*or+s and cost o band*idt" are a!so important to aci!itate broadband usage) A-ai!abi!ity o !oca! app!ication and content is anot"er area o concern) Most o t"e content a-ai!ab!e on *ebsite as o today is in >ng!is") #"e content in !oca! and regiona! !anguage *i!! increase interest o t"e !oca! popu!ation in broadband uti!i8ation) #"e con-ergence o tec"no!ogies and emergence o ne* app!ications is anot"er t"ri!!ing area) ;ot o re-o!ution is round t"e corner in broadcasting and entertainment industries) #"e emergence o Internet protoco! #V7 mobi!e #V *i!! a!! c"ange t"e scenario in t"e coming years) Aire!ess tec"no!ogy is t"e uture gro*t" dri-er or *"ic" spectrum is t"e most important input) #"e tas+ o spectrum management in a mu!ti user and mu!ti usage scenario is more daunting and crucia! t"an e-er be ore) It *ou!d be increasing!y di icu!t or a ne* entrant to !ure customers7 as t"ere is not"ing e,tra or a ne* p!ayer to o er) Return on in-estment or capita! emp!oyed or a !ate entrant *ou!d be signi icant!y !o*er t"an t"e e,isting p!ayers) >,pansion "as to be done *it" a !ong sig"ted -ie* or pro itabi!ity) #"e ones *"o *ou!d "a-e !arge reser-es and pro its *ou!d c"eris" and !ea-ing ot"ers to peris") It *i!! be an era o strong regiona! p!ayers as e-ery strong p!ayer *i!! conso!idate "is position in t"e area "e is strong by eating up sma!!er p!ayers ti!! "e attains a point rom *"ic" t"e urt"er conso!idation becomes economica!!y un-iab!e) Cnce t"e i,ed !ine mar+et is matured7 mobi!e *i!! crosso-er i,ed !ine mar+et) A mobi!e re-o!ution is in t"e o ing in India)

In summary7 i t"e !ast e* years in te!ecom *ere e,citing7 it *i!! be e-en more e,citing in t"e coming years)

Critical %actors *or %uture Gro3th #pportunity in rural areas: A"en compared to Indian metros7 t"ere is a !arge gap in te!e-densityH - ?2 percent in t"e metros7 near!y eig"t times "ig"er t"an 8 percent in rura! areas) #o capita!i8e on t"e gro*ing popu!ation and disposab!e income in rura! India7 te!ecom operators *i!! "a-e to e,p!ore and e,pand into Iunco-ered6 geograp"ies) $e%e&aminin' hi'h le(ies: #"e Indian te!ecom sector is one o t"e "ig"est ta,ed sectors in t"e de-e!oping *or!d7 t"roug" !e-ies7 *"ic" comprise ser-ice ta,7 re-enue s"are7 spectrum cess7 and -a!ue added ta,) )rin'in' do*n operators+ cape&: #o e,pand t"e te!ecom ser-ices7 t"ere *i!! be greater in-estment needs in t"e uture) #e!co=s *i!! "a-e to engage on acti-e and passi-e in rastructure s"aring) $ational policy ,or spectrum allocation: #"e a!!ocation o adeEuate spectrum is an urgent reEuirement or ne* and e,isting operators) A c!ear roadmap or uture spectrum a!!ocation "as to be dra*n7 *"et"er it is a 2G or a 1G p!at orm) Cperators need to be cautious in Ibidding6 and s"ou!d not o-erpay or spectrum as t"at cou!d disturb pro.ect economics) -ata re(enues to pro(ide .bu,,er+: India6s data re-o!ution is going to be ue!!ed by 1G and AiMAP) Bor t"e data re-o!ution to reac" -i!!ages7 !o*-cost access de-ices7 -ernacu!ar content7 and community initiati-es suc" as e-go-ernance need to be in p!ace) /nhancin' s0ill sets: #"e sector *i!! reEuire specia!ist resources to support and sustain gro*t" o-er t"e ne,t our to i-e years) And pressure on ta!ent is e,pected to increase *it" t"e dep!oyment o 1G and AiMAP ser-ices) #"e pri-ate sector *i!! need to reorient its ocus on ta!ent de-e!opment t"roug" training sc"oo!s and aci!itation programs t"at cater to t"e needs o t"e te!ecom industry) Impact o, 'lobal economic do*nturn: #"e current inancia! crisis cou!d "a-e a !o*-tomedium impact on t"e te!ecom sector in terms o rising costs o capita! and reduction in discretionary spending on t"e part o customers7 among ot"er determinants)

1:.$

*O3*LUSIO3

#"e tec"no!ogy impro-ement "as "e!ped t"e sector to per orm better and "as a!so e,panded t"e meaning o t"e term $te!ecommunicationK rom .ust audio message trans ormation to -irtua! presence o person) #"e sector c!ear!y s"o*s a great scope or uture)

BIBLIOGRA'&$

In ormation "as been sourced rom name!y7 boo+s7 ne*spapers7 .ourna!s7 industry porta!s7 go-ernment agencies7 industry ne*s and de-e!opments and t"roug" access to database)

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)tt-011222.#e3a#se"4iceindia.c!$1

"ttp%MM***)dot)go-)inM "ttp%MM***)economictimes)indiatimes)comM "ttp%MM***)ibe )orgM "ttp%MM***)domain-b)comM "ttp%MM***)trai)go-)inM "ttp%MM***)perry4!a*)*ordpress)comM "ttp%MM***)indianembassy)orgM "ttp%MM***) inancia!e,press)com "ttp%MM***)pib)nic)inM "ttp%MM***)emera!dinsig"t)comM "ttp%MM***)searc")epnet)comM Brost G Su!!i-an '200/(7 $#e!ecom & :ata!y8ing India=s 2e* >conomyK Ban+a San.oy '200?(7 $Mergers and AcEuisitions in Indian #e!ecom Industry-A StudyK 3ain Re+"a '2001(7 $A re-ie* o #"e Indian #e!ecom SectorK Bortis In-estments '200?(7KG!oba! #e!ecom SectorK S"arma Seema and ;o+es" Sing!a '2000(7 $#e!ecom eEuipment Industry% :"a!!enges and ProspectsK B"attac"arya Manas '2000(7 $#e!ecom Sector in India% Vision 2020K