Unlocking The Indian Telecom Industry'S Potential: U Djnfkdu

Unlocking the Indian Telecom
Industry’s Potential
U djnfkdU
Unlocking Indian Telecom Industry’s PotentialPage 1

A Project Report
Submitted By:
Akansha Agarwal
Roll No.: 08
BBA (H) – 2nd Year
Project Guide : Prof. S. Banerjee
St. Xavier’s College, Kolkata (Autonomous)
Preface
The telecom services have been recognized the world over as an important tool for the
socioeconomic development of a nation. Telecommunication is one of the prime support
services needed for rapid growth and modernization of various sectors of the economy. It has
become especially important in the recent years because of enormous growth of information
technology and its significant potential for the impact on the rest of the economy.
Therefore, making the development of an adequate telecommunication infrastructure has become
one of the major goals of policymakers. The ‘adequate’ level of telecommunication
infrastructure in a country is necessary from both a policy and business point of view. The
Government of India has already taken a number of initiatives in this direction. As a result,
telecommunication infrastructure has registered a remarkable growth in India. This paper mainly
aims at studying the present status of telecommunication infrastructure in India and to study the
growth over past five years in different segments of the telecom industry. The paper also
provides an overview of the uphill journey of Indian Telecom sector. It gives us a detailed
information regarding the emerging trends in the Indian telecom industry and also the trends that
may penetrate the industry in the near future.
ACKNOWLEDGEMENT
First of all I want to express my gratitude towards almighty god without whose
blessings this study would not have come to an end with such a great success.
I am deeply indebted to my Faculty Guide Prof. Dr. S. Banerjee from St. Xavier’s
College(Autonomous), Kolkata whose help, stimulating suggestions and
encouragement helped me in all the time of research for and writing of this report.
Especially, I would like to thank my friends and colleagues who supported me in

my report. I want to thank them for all their help, support, interest and valuable
hints.
Table of Contents

==========================================================
Content Page No
1. Chapter 1- Introduction 1-8
2. Chapter 2- A Brief Overview 9-19
3. Chapter 3- Growth & Emerging Trends in Telecom Industry 20-39
4. Chapter 4- Conclusion 40-42
5. Reference & Bibliography 43

List of tables
Table no. Particulars Page no.
2.1 Telecom subscriber base in 13
india
3.1 Subscriber base in wire line 22
segment
3.2 Subscriber base in wire less 24
segment
3.3 Subscriber base in broadband 25
& Internet segment
3.4 Subscriber base in vsat 27
segment
3.5 Government plan and target 38
for future growth

List of diagrams
Fig no. Particulars Page no.
2.1 Telecom subscriber base in India 13
2.2 Functions of TRAI 15
3.1 Subscriber base in wire line segment 23
3.2 Subscriber base in wire less segment 24
3.3 Subscriber base in broadband & 26
Internet segment
3.4 Subscriber base in vsat segment 27
3.5 MNP (Mobile number portability) 31

CHAPTER ONE:
Introduction
The Indian telecommunications industry is one of the fastest growing in the world. The industry
has witnessed consistent growth during the last year on the back of rollout of newer circles by
operators, successful auction of third-generation (3G) and broadband wireless access (BWA)
spectrum, network rollout in semi-rural areas and increased focus on the value added services
(VAS) market.
Telecommunication, infrastructure and economic development are tightly linked. The ‘adequate’
level of telecommunication infrastructure in a country is necessary both from a policy and a
business point of view. Rapid expansion of Information Technology Enabled Services (ITES),
especially e-commerce and e-governance, in the past few years has forced the government to
provide adequate telecommunication infrastructure. Therefore, making the development of an
adequate telecommunication infrastructure has become one of the major goals of policymakers.
Telecommunication infrastructure consists of many components. It is a combination of civil
works, towers, antennae and cables, coupled with hardware and software comprising access,
switches and transmission systems that constitutes the telecommunication infrastructure. Optical
fiber cables, terrestrial wireless, satellite systems and Internet are all key components of the
modern infrastructure. Rapid growth of the Internet has also created a huge demand for the
broadband access.
The world is waiting at our doorsteps, waiting for us to open the gates to an economy bubbling
with opportunities. The India growth story has already got the world to sit up and take a note of
the changing economic scenario. Factors, like the liberalization in the government stance and the
daring entrepreneurs of the Indian soils, have helped the sectors achieve the highs like never
before.
According to the Telecom Regulatory Authority of India (TRAI), the number of telephone
subscriber base in the country reached 742.12 million as on October 31, 2010, an increase of
2.61 per cent from 723.28 million in September 2010. With this the overall tele-density
(telephones per 100 people) has touched 62.51. The wireless subscriber base has increased to

706.69 million at the end of October 2010 from 687.71 million in September 2010, registering a
growth of 2.76 per cent. 1
Meanwhile, Indian Global System of Mobile Communication (GSM) telecom operators added
17.45 million new subscribers in November 2010, taking the all-India GSM cellular subscriber
base to 526.18 million, according to the Cellular Operators Association of India (COAI). The
GSM subscriber base stood at 508.72 million at the end of October 2010.
The research involves study of the history of the telecommunication industry and various players
of the industry. The industry is full of small and big players. To carry out my research I have
chosen few big players like MTNL, BSNL, Bharti Airtel, Reliance and also some small players
like Aircel, TATA, unitech etc. The service providers are selected on the basis of their popularity
and growth in the industry and amongst the subscribers.
Research problems
Indian Telecom Industry is one of the fastest growing telecom markets in the world with the
telecom subscriber base standing at ~ 742.12 million as of October, 2010. This also has a huge
impact in the Indian Economy specially the service sector. Thus with the growth of the
telecommunication industry the service sector has also grown in India. Thus it would be
interesting to study the different stages of evolution and growth in the telecommunication
industry. The industry has gone through many stages, form wireline to wireless service, then
including the internet service in the industry. The different segments of the industry is discussed
along with the share of different service providers in each segment. The recent 3G connection
development has shown a great impact in the telecommunication industry along with the mobile
number portability (MNP). The government has also realized the importance of the industry and
thus had made plans for the development which is discussed towards the end of the project.
LITERATURE REVIEW
The telecommunication industry having a high and attractive growth rate has attracted many
people to study, research and analyze this industry. While going through my research I came
across the some of them which are stated as below:

1) Ernst & Young in consultation with India Brand Equity Foundation (IBEF): They have in
their research discussed about the different market segment along with the investment
potential in the market.
2) S.P.Jain Institute of management & research Post Graduate Program in management

Information management: In their research they have basically discussed the history and
the upcoming reforms in the telecommunication industry. They have also discussed about
VAS and why VAS..
3) Indian Institute of Planning & Management (IIPM): In the research carried out by the
IIPM they have given an overview of the telecom industry. Their main focus was on the
advertisement campaign carried out by the different service providers and the effect of
the same on the revenue of the respective service provider and economy on whole.
4) Institute for Integrated Learning in Management: The research carried out by the Institute
of Integrated Learning in Management deals with the penetration in Indian rural
telecommunication Industry. It also dealt with the reasons of growth along with the
problems faced and the government initiatives.
5) OECD Global Conference on Telecommunication Policy: In the research carried out by

Mr. Tapan Sikdar he has shown the three phases of growth of telecom industry, first
phase the eighties, second phase early nineties and the third phase the late nineties
onwards. He has also discussed the reform process, the players of the industry and the
market segment wise growth.
RESEARCH GAP
The studies of above researchers are towards the marketing strategy or with a view of
investment analysis. They have not fully discussed about the growth in the industry by the
analysis of past data. In my study I have emphasized on the growth of the industry on the
basis of past data and also the trend analysis of the telecom industry. In addition to this I
have also discussed about the factor that led to growth in the industry and the government
action plan for the future.

Objective of the proposed study
In the recent past and also in the present we have been hearing a lot about the telecommunication
industry, its growth and diversification. With the proposed study I would like to highlight the
following areas in my study.
 To study and analyze the growth and the emerging trends of the telecommunication
industry.
 To study upcoming trends of telecom industry.
 To get an idea about the share of different service providers in the Industry.
 Overview of the telecommunication market along with the different segments of the
industry.
 To analyze the different factors that led to the reform in the telecom industry.
 To study the development that has taken place in the recent past in telecommunication
industry.
 To study the opportunities that is still there in the telecommunication industry for further
reform.
 The government plan and support towards the growth of the industry.
METHODOLOGY
For the purpose of my study and analysis I have collected data for five year period F.Y. 2010-
11, 2009-10, 2008-09, 2007-08 and 2006-07 as it would reflect a true and fair picture as at today
and it would show a true and fare picture of the growth of the industry while comparing with the
past data. The data basically consists five subscribers i.e. the Airte, BSNL, Vodafone, idea and
reliance as they are the leading market players of the telecom industry, under different segments

of the industry such as wire line, wireless, internet etc. The data is collected via secondary source
i.e. by articles published over the internet, magazine etc. The industry is selected on random
sampling basis which constitute the major share of the market and thus showing the true and fair
picture of the industry as a whole. Thus my study is based on the selected service providers. The
further analysis is done by representing the same in a tabular format and then via different forms
of charts on a comparison basis.
SCHEME OF WORK
Chapter 1: Introduction
Chapter 2: A Brief Overview
Chapter 3: Growth & Emerging Trends in Telecom industry
Chapter 4: Conclusion.
LIMITATIONS
The following are the limitations to my research and project:
 The basis of collection of data is secondary and not primary and hence the question of
reliability on the same arises. If the data would have been collected from the primary
source it might had been more reliable and accurate.
 Further detailed analysis on the subject could have been done which is not carried out due
to the given time constraint.
 Again if some other service providers would have been selected it may have given
another set of data for analysis which could have again affected the view about the
industry.
 Study and analysis drawn in the report is suggestive and not conclusive in nature.

CHAPTER TWO:
A Brief Overview
Introduction
History of Indian Telecommunications started in 1851 when the first operational land lines were
laid by the government near Calcutta (seat of British power). In 1883 telephone services were
merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923.
After independence in 1947, all the foreign telecommunication companies were nationalized to
form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry
of Communications. Telecom sector was considered as a strategic service and the government
considered it best to bring under state's control. Let us have a brief idea about the reforms that
has taken place in the Indian telecommunication industry:
Evolution of the industry- Some Important Reforms in the Indian

Telecommunications Years
1851 – First operational landline were laid by the government near Kolkata
1881 – Telephone service introduced in India
1883 – Merger with the postal system
1923 – Formation of India Radio Telegraph Company
1932 – Merger of ETC and IRT into the Indian Radio and Cable Communication Company
(IRCC)
1947 – Nationalization of all foreign telecommunication companies to form the Posts, Telephone
and Telegraph (PTT), a monopoly run by the government’s Ministry of Communications
1985 – Department of Telecommunications (DOT) established, an exclusive provider of

domestic and long-distance service that would be its own regulator (separate from the postal
system)

1986 – Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar
Nigam Limited (VSNL) for international Telecommunications and Mahanagar Telephone Nigam
Limited (MTNL) for service in metropolitan areas.
1997 – Telecom Regulatory Authority of India was formed
1999 – Cellular Services are launched in India. New National Telecom Policy is adopted.
2000 – Dot becomes a corporation, BSNL
2001 – Private participation in NLD and ILD services
2004 – Universal service telecom license
2006 – FDI limit rose from 49% to 75%
2007 – Merger of world’s leading Mobile Communication company Vodafone with India’s
fourth largest telecom company Hutch or Hutchison Essar.
2010 – Launch Of 3G Technology in India.
2011 – Mobile Number Portability (MNP)
Market overview
2
The telecom industry is an important infrastructure industry. The industry is highly capital
intensive and the payback period for investments can often be very long. An efficient telecom
network is vital for the economic development of a nation.
The telecom services available in India include basic fixed line services, mobile services (based
on both GSM and CDMA technology), national long distance services, international long
distance services, internet services and pager services.
Teledensity, which is defined as the number of telephone connections per 100 persons, is used to
measure the reach of telecom services. As of October, 2010, India had a teledensity of 62.51%,
up from 26.22% at the end of March 2009. This growth was achieved on account of a stupendous
Years No of subscribers in lacs
2
TRAI: The Indian Telecom Services Performance Indicators (April -June 2010),‖ TRAI website,
http://www.trai.gov.in/Default.asp, accessed 20 November 2010; ―TRAI Press Release No 53 /2010,‖ TRAI
website, http://www.trai.gov.in/Default.asp, accessed 20 November 2010
Jan, 2011 806.13
Jan, 2010 581.81
Jan, 2009 464.82
Jan, 2008 325.79
Jan, 2007 225.05
increase in the number of GSM cellular subscriptions. The telecom subscriber base as of
October, 2010 was 742.12 million.
The growth is being led by companies like BSNL, Bharti, Reliance Communication and
Vodafone Essar, which together accounts for over 75% of the telecom market share. As of
quarter ended March 2009.
Indian Telecom Industry is one of the fastest growing telecom markets in the world with the
telecom subscriber base standing at ~ 742.12 million as of October, 2010. The DoT has indicated
that it has a target of 1 Billion wireless connections in India by 2014.
The wireless service market has seen tremendous growth over the past few years owing to a
series of factors like favourable demographics, increasing affordability, availability of handsets
at dirt-cheap prices and decline in tariff plans thanks to the cut-throat competition amongst the
Telcos to grab the largest slice of the telecom pie. As of October 2010, there were approximately
706.69 million wireless telecom services subscribers in India. Currently, there are 12 wireless
carriers operating in India with the leading six players holding approximately 92% market share.
The number of wireline subscribers has been registering a fall with exception of this quarter.
Subscribers prefer wireless phones to the wireline counterpart. Mobiles have a mass appeal
owing to the affordable prices at which the services can be availed. The easy-to-get feature of the
mobile connection is another area where it ups the wireline connections which take a lot of time
is become operational. The mobile tariffs have come down considerably, making mobile phones
attainable even for the low-income groups. This leads to the next point - the recent trends in
ARPUs and MOUs.
The growth in the number of subscribers in the telecom industry over the past five years can be
read as following:
Table No :2.1

TELECOM SUBSCRIBERS BASE IN INDIA (Fig: 2.1)
900
806.13
800
700
581.81
600
464.82
500
400 325.79
No of subscribers
300 225.05
200
100
0
Jan, 2011 Jan, 2010 Jan, 2009 Jan, 2008 Jan, 2007
THE REGULATORS - DoT, TRAI, TDSAT
3
The telecommunication sector started to open up to privatization in the early 1990s. Prior to
that, the Department of Telecom acted as a service provider, regulator, policy maker and also the
arbitrator in case of disputes. The Telecom Regulatory Authority of India came into being in
March 1997, with a view to providing an effective regulatory framework and adequate
safeguards to ensure fair competition in the provision of telecom services and protection of
consumer interests. TRAI was vested with powers to issue directions to service providers, make
regulations, notify tariffs by giving orders and adjudicate in cases of disputes.
In 1999, the government created the Department of Telecom Services from DoT, the idea being
to separate the roles of the DoT as service provider and policy formulator. In October 2000, the
DTS was corporatized as BSNL. In January 2000, the TRAI Act-1997 was amended by an
ordinance. The amendment separated the adjudicatory function of TRAI and assigned it to a new
entity called the Telecom Dispute Settlement and Appellate Tribunal. Appeals against TDSAT
judgments can only be filed only in the Supreme Court.
3
www.trai.gov.in
The 1990s also saw two telecom policies being announced, the National Telecom Policy, 1994
and the National Telecom Policy, 1999. The NTP, 1999 changed the fixed license fee system,
envisaged in NTP, 1994, to a revenue sharing regime. This change took place after it was felt
that the amounts paid during the first round of bidding for basic and cellular services licenses in
1994 were too high and if the system was not changed, it may lead to large scale bankruptcy in
the sector. The migration to the revenue sharing regime and the onset of cutthroat competition
has led to telecom tariffs crashing over the last few years, beginning 2000.
TRAI FUNCTIONS
(FIG 2.2)
SE
TIR
ON
VI CE
EO R
TAD
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R
CTIONSRSIF
D
PR
EFIR EC
MENDA
QUFOR
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LIT
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BL
IOS,
INTE R CONN E
S,
RCREGU
ENS
ON
EN
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U
SU
LAATE
M
R EE
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RE CO M
Analysis of chart: The above chart gives an idea about the primary functions of the TRAI.
The actions and policies adopted by TRAI are based on the principles of consumer protection, to
ensure Quality Service, Effordable tarrif for the common people, to regulate interconnection, and

other regulations, directions, orders. It also provides recommendation to the different service
providers. Thus the TRAI can also be called as a watchdog of activities of the telecom industry.
Players of Telecom Industry

Indian Telecom sector, like any other industrial sector in the country, has gone through many
phases of growth and diversification. Starting from telegraphic and telephonic systems in the
19th century, the field of telephonic communication has now expanded to make use of advanced
technologies like GSM, CDMA, and WLL to the great 3G Technology in mobile phones. Day by
day, both the Public Players and the Private Players are putting in their resources and efforts to
improve the telecommunication technology so as to give the maximum to their customers. Let us
discuss about some of the important players of the telecom industry:
A. BHARTI AIRTEL: AN OVERVIEW
Bharti Airtel founded in 1985, is one of Asia‟s leading

providers of telecommunication services with presence
in all the 22 licensed jurisdictions (also known as
Telecom Circles) in India, and in Srilanka. They served
an aggregate of 105,195,762 customers as of June 30,
2010; of whom 102,367,881 subscribe to their GSM
services and 2,827,881 use Telemedia Services either for
voice and/or broadband access delivered through DSL.
 They also offer an integrated suite of telecom

solutions to their enterprise customers, in addition
to providing long distance connectivity both
nationally and internationally. They have
launched DTH and IPTV Services also. All these services are rendered under a unified
brand "Airtel".
 The company also deploys, owns and manages passive infrastructure pertaining to
telecom operations under its subsidiary Bharti Infratel Limited. Bharti Infratel owns 42%
of Indus Towers Limited.

 Bharti Infratel and Indus Towers are the two top providers of passive
infrastructure services in India.
 Airtel comes to you from Bharti Airtel Limited, India‟s largest integrated and the
first private telecom services provider with a footprint in all the 23 telecom circles.
 Bharti Airtel is structured into three strategic business units - Mobile services,
Telemedia
services and Enterprise services.
 The mobile business provides mobile & fixed wireless services using GSM
technology.
 Airtel was voted as the “Best Cellular Service” in the country for four consecutive years.
B. VODAFONE: AN OVERVIEW
Vodafone, founded in the year 1983 as Racal Telecom, independent 1991, is the world's largest
mobile telecommunications community, employing over 65,000 staff and with over 130 million
customers. The business operates in 26 countries worldwide. Vodafone is a public limited
company with listings on the London and New York stock
exchanges.
Global recognition of the Vodafone brand is growing as

the company rolls out its identity into new markets.
However, it retains local names and imagery in markets
where this is essential to maintaining the trust of
customers. To help promote its image worldwide,
Vodafone uses leading sports stars from high profile
global sports, including David Beckham and Michael
Schumacher.
C. IDEA: AN OVERVIEW
Idea Cellular is a wireless telephony company operating in all the 22 telecom circles in India. It
initially started in 1995 as a joint venture among the Tatas, Aditya Birla Group and AT&T by
merging "'Wings Cellular'" operating in Madhya Pradesh, Uttar Pradesh (UP) West, Rajasthan
and Tata Cellular as well as Birla AT&T Communications.
Initially having a very limited footprint in the GSM arena, the acquisition of Escotel in 2004
gave Idea a truly pan-India presence covering Maharashtra, Goa, Gujarat, Andhra Pradesh,
Madhya Pradesh, Chhattisgarh, Uttar Pradesh (East and West), Haryana, Kerala, Rajasthan,
Delhi (inclusive of NCR) and West Bengal.
The company has its retail outlets under the "Idea n' U" banner. The company has also been the
first to offer flexible tariff plans for prepaid customers. It also offers GPRS services in urban
areas. Idea Cellular won the GSM Association Award for "Best Billing and Customer Care
Solution" for 2 consecutive years.
D. BSNL: AN OVERVIEW
Bharat Sanchar Nigam Limited (known as BSNL) is a public sector telecommunication
company in India. It is India's largest telecommunication company with, 24% market share as on
March 31, 2010. Its headquarters are at Bharat Sanchar
Bhawan, Harish Chandra Mathur Lane, Janpath, New
Delhi. It has the status of Mini Ratna, a status assigned to
reputed public sector companies in India.
BSNL is India's oldest and largest Communication Service

Provider (CSP). Currently has a customer base of 90
million as of June 2010. It has footprints throughout India
except for the metropolitan cities of Mumbai and New
Delhi which are managed by MTNL. As mon March 31,
2010 BSNL commanded a customer base of 31.55 million
Wire line, 4.58 million CDMA- WLL and 54.21 million
GSM Mobile subscribers. BSNL's earnings for the
Financial Year ending March 31, 2010 stood at INR 397.15b (US$ 9.67 b) with net profit of INR
78.06b (US$ 1.90 billion). BSNL has an estimated market value of $ 100 Billion. The company
is planning an IPO within 6 months to offload 10% to public in the Rs 300-400 range valuing the
company at over $100 billion.
E.RELIANCE: AN OVERVIEW

Reliance Communications, formerly known as Reliance Info comm, along with Reliance
Telecom and Flag Telecom, is part of Reliance Communications Ventures. It is an Indian
telecommunications company. According to National Stock
Exchange data, Anil Dhirubhai Ambani controls 66.77 per
cent of the company, which accounts for more than 1.36
billion shares. It is the flagship company of the Reliance-Anil
Dhirubhai Ambani Group, comprising of power (Reliance
Energy), financial services (Reliance Capital) and telecom
initiatives of the Reliance ADAG. It uses CDMA2000 1x
technology for its existing CDMA mobile services, and GSM-
900/GSM-1800 technology for its existing/newly launched
GSM services.
RelCom is also into Wire line Business throughout India and

has the largest optical fiber communication (OFC) backbone
architecture [roughly 110,000 km] in the country.
Reliance Communications has launched its Direct To Home

(DTH) TV also, known as "Big TV". RelCom have presence across all B2C communications
channel in one of the fastest growing markets in the world.
CONCLUSION
Thus from the above data we have had a brief overview of the Indian Telecom Industry. We have
studied the function of TRAI, DOT and TDSAT, the regulators of the industry who can also be
called the WATCHDOG of the activities of the telecom Industry. We have seen the major
reforms that have taken place over the past few years in brief. We have also had a brief idea
about the different major players of the telecom industry in India i.e. airtel, vodafone, idea,
BSNL and reliance. In the next chapter we will study the major reforms in the telecom industry
in the recent past in details and also the share of the major players of the market in different
segments of the telecom industry as on date. We will also study the reasons along with the
further growth opportunities in the next chapter.

CHAPTER THREE:
Growth & Emerging Trends In

Telecom Industry
INTRODUCTION
We have already had a brief idea about the market overview of the Indian Telecom Industry, the
major players of the Indian Telecom Industry and also an overview on the major reforms in the
Indian telecom industry since 1851. Now let us discuss about the growth in the different market
segments of the Telecom Industry like the wire line, wireless, internet, VSAT and Radio paging
& GMPCS along with the contribution of the different service providers.
Market segments
Due to the continuous reforms in the telecom industry the Telecom sector has been divided into
different market segment namely Basic Service, Wireless Service, Internet Service, Radio Paging
& GMPCS and VSATs and PMRTs. Let us study the features of the different market segments
along with the share of the different players of the Telecom Industry in each segment
respectively.
Telecom Sector
Basic
Services Wireless Internet VSAT
Services Services

Market segments —wire line
 The subscriber base of wire line services stood at 36 million as on August 2010, with a
teledensity of 3 per cent.
 Public sector undertakings —BSNL and MTNL —have a major share of the wire line
market covering more than 80 per cent.
 MTNL is present in Delhi and Mumbai, while BSNL covers the rest of the country.
 Although private players such as Tata Teleservices, Bharti Airtel and Reliance have
registered significant growth, BSNL continues to dominate the segment in terms of wire
line subscriber base.
Table No 3.1 (figures in millions)
Sl. Name of Service 2007 2008 2009 2010 2011

No Provider
1 Airtel 3.62 3.50 2.9 3.20
3 3.30
2 MTNL 3.95 3.82 3.5 3.49

2 3.60
3 BSNL 30.16 29.17 28.4 2 26.64

5 7.45
4 Reliance 1.27 1.23 1.1 1.12
5 1.15
5 Others 1.75 1.70 1.7 1.55

0 1.60

35
30
25
Airtel
20 MTNL
BSNL
15
Reliance
10 Others
0
2007 2008 2009 2010 2011
Fig: 3.1
Analysis: From the above data from 2007-2011 it is very clear that the wire line segment of the
telecom industry is having a decreasing trend. The total subscribers in 2011 have fallen to 36
million from 40.75 million in 2007. Also we can see that the BSNL is the leading service
provider in this segment.
Market segments —wireless
 The wireless segment includes GSM and CDMA services and is much larger than the
wire line segment in India. The segment is growing steadily because of the convenience
and utility it offers.
 The subscriber base of wireless services stood at 670.6 million as of August 2010 with
tele-density of 56.6 per cent.
 As of June 2010, the wireless market recorded 527. 6 million GSM subscribers
accounting for 83 per cent of the market and 107.9 million CDMA subscribers
accounting for the remaining 17 per cent.

 Private players such as Bharti Airtel Limited, Reliance Communication, Vodafone, Tata,
BSNL, Idea Cellular and Aircel cumulatively hold a major share of the wireless market.

No Provider
1 Airtel 39.20 61.99 70.1 103 1
1 .72 41.50
2 Vodafone 27.90 44.13 67.7 100 1
4 .21 14.00
3 BSNL 25.79 40.78 23.5 3
8 4.88 75.78
4 Reliance 28.96 45.80 63.8 9 1

7 4.48 15.34
5 Idea 15.17 24.00 34.2 5
1 0.60 73.10

160
140
120
100 Airtel Vodafone
80
BSNL Reliance
60
idea
40
20
0
2007 2008 2009 2010 2011
Fig: 3.2
Analysis: From the above data from 2007-2011 it is very clear that the wireless segment of
the telecom industry is having a incremental trend. The total subscribers in 2011 have shoot up to
670.6 million from 137.01 million in 2007. Also we can see that the Airtel is the leading service
Market segments —broadband and the Internet

 High growth in broadband outreach is expected to drive the next phase of growth in the
telecom industry. While broadband connections are increasing rapidly, their reach in
India is still at 0.7 per cent, as against the worldwide outreach of 8.1 per cent.
 As on August 31, 2010, the subscription base of broadband was 10.1 million. Broadband
subscribers are expected to grow to 30 million, while Internet subscribers are expected to
grow to 45 million by 2012.
 Key players in the segment are BSNL, MTNL, Bharti, Tata Communication, Reliance
Communication, Sify Technologies, YOU Telecom, Data Infosys and Hathway Cables.

 Following the 3G and Broadband Wireless Access (BWA) auction, the data sector is
expected to grow rapidly.

No Provider
1 Airtel 0.48 0.67 0.7
4 0.78 0.71
2 MTNL 0.69 0.96 1.0

6 1.11 1.72
3 BSNL 3.52 4.91 5.4

1 5.66 5.15
4 Reliance 0.41 0.58 0.6

4 0.67 0.61

6
Airtel MTNL
3
BSNL Reliance
2
0
2007 2008 2009 2010 2011
Fig: 3.3
10.1 million from 5.10 million in 2007. Also we can see that the BSNL is the leading service
Market segments —VSAT

 4
At present, there are eight VSAT service providers in India, including BSNL, Bharti
Airtel, Hughes Communications India Ltd and HCL Comnet Ltd.
4
Sources:―TRAI: The Indian Telecom Services Performance Indicators (April -June 2010),‖
TRAI website, http://www.trai.gov.in/Default.asp, accessed 20 November 2010; ―TRAI Press
Release No 53 /2010,‖ TRAI website, http://www.trai.gov.in/Default.asp, accessed 20
November 2010
 The number of VSAT subscriber services grew by 4,311 to 128,406 for the quarter
ending June 2010. The market for VSAT services registered 3.5 per cent growth in the
quarter ending June 2010.
 Bharti Airtel is the current market leader, with a market share of 30.9 per cent, followed
by Hughes Communications India Ltd, which has a market share of 30.0 per cent.
Table No 3.4

No Provider
1 Airtel 15528 20704 25880 28468 39677
2 Hughes Communications 17610 23480 29350 32285 38,521.
Ltd. 00
3 HCL Comnet 15210 20280 25350 27885 27,478.
00
4 TATA Net Services 4926 6568 8210 9031 13,097.
00
5 BSNL 2010 2680 3350 3685 5,907.
00

40000
35000
30000
25000
Airtel
20000 Hughes Communications Ltd.
HCL Comnet
15000 TATA Net Services
BSNL
10000
5000
0
2007 2008 2009 2010 2011
Fig No 3.4
1,28,406 from 55,284 in 2007. Also we can see that the Hughes Communication Ltd is the
leading service provider in this segment.Growth Drivers
5
Reduction of Capital and Operating Expenditure
Telecom infrastructure development is imperative for growth of wireless telecom sector. A major
chunk of the rollout cost of the wireless network cost is constituted by passive infrastructure.
Thus, passive infrastructure sharing would provide much desired relief for the wireless service
providers in the sense that it would bring down their capex substantially by spreading capital
expenditure over an extended period of time in the form of rental payments. This would save the
service providers with significant cash reserves, which could be put to use in core areas of
operation. Similarly, sharing infrastructure will also lead to maintenance expenditure being
distributed over two/three occupants, reducing overall operating costs.
Wireless growth and increase in number of operators

5
Source: http://www.dot.gov.in/osp/Brochure/Brochure.htm
The high level of growth in the Indian wireless telecommunications market will continue to drive
huge investment in infrastructure as well as a speedy rollout of networks into new areas. In
addition to the rollouts by existing wireless service providers, many new players are evaluating
the Indian wireless market and DoT encourages multiple wireless service providers to operate in
the market to enhance competition and benefit consumers. As a result of this expanding market,
significant investments in infrastructure as well as a speedy rollout of networks into new areas
will be required. An inexpensive and speedy growth of infrastructure will be crucial to sustaining
the growth of the telecommunication industry.
Other Growth Drivers 6
 Emerging communication technologies such as WiMAX, 3G, Mobile TV and Radio

Trucking could generate additional demand for cell sites and towers.
 India has one of the highest MoU globally with USA having 838 minutes per month,
India
At 461 minutes per month, China at 303 minutes per month, Russia at 88 minutes per month. As
the penetration in the rural areas increase, the MOUs are expected to increase, which justifies
need for adequate infrastructure. As per a study conducted by TRAI, usages of cell services are
much higher in India compared with China and minutes of usage of GSM and CDM based cell
services in India are 32.0% and 70.0% respectively higher when compared with Chinese
services. Decreasing tariffs. The steadily declining ARPUs impact profitability and enhance the
need of sharing of infrastructure. Consequently, mobile operators need to reduce the overall cost
to maintain profitability and compete with other service providers.
Opportunities
India offers an unprecedented opportunity for telecom service operators, infrastructure vendors,
manufacturers and associated services companies. A host of factors are contributing to enlarged
opportunities for growth and investment in telecom sector:
o An expanding Indian economy with increased focus on the services sector

o Population mix moving favorably towards a younger age profile
o Urbanization with increasing incomes
6
o Huge consumer market.
Investors can look to capture the gains of the Indian telecom boom and diversify their operations
outside developed economies that are marked by saturated telecom markets and lower GDP
growth rates.
Inflow of FDI into India’s telecom sector during April 2000 to Feb. 2010 was about Rs 405,460
million. Also, more than 8 per cent of the approved FDI in the country is related to the telecom
sector.
INTRODUCTION TO TREND ANALYSIS

We have already had a brief idea about the market overview of the Indian Telecom Industry, the
major players of the Indian Telecom Industry and also an overview on the major reforms in the
Indian telecom industry since 1851. Now let us discuss in details about the major reforms that
has taken place in the recent past in the Telecom Industry like the MNP( Mobile Number
Portability), 3G spectrum, MVNO etc.
MNP (Mobile Number Portability)

7
Mobile number portability came to India 0n 1st January, 2011. Telecom Regulatory Authority
of India (TRAI) announced, on November 20, 2009, that Mobile Number Portability (MNP) will
be introduced in India, on December 31, 2009.
TRAI said that subscribers in India will be able to change their service providers while keeping
the same mobile number, at a fee of no more than Rs 19. It doesn’t matter whether you want
switch from GSM to CDMA or vice-versa, or within GSM and CDMA operators; you can still
retain the same number. However, initially, you will be able to switch operators and retain the
number only within the same telecom circle. You cannot retain the same number and change
operators if you want to, say, move from Delhi to Mumbai.
7
Source: en.wikipedia.org/wiki/mobile_number_portabilitynews.oneindia.in
 Mobile Number Portability changeover charges
TRAI also said that service providers will be able to charge any amount less than or equal to Rs
19.
MNP will be introduced in India, in two phases. It will first be introduced in Indian metros and
Category A telecom zones, on December 31, 2009, and subsequently in the rest of the country,
by March 20, 2010.
 How to change mobile operator under MNP
Subscribers must pay up all pending bills before making an application for MNP. The porting
fees are to be paid to the new operator. No payment is required to be given to the operator you
are leaving. TRAI said that porting between mobile operators should be accomplished within
four days. You cannot switch operator and retain number if you have been with that operator for
less than three months. Prepaid users must remember that their balance talk time will disappear if
they switch to a different operator. The maximum downtime between deactivating the existing
connection and starting the new connection will be a maximum of two hours.
It will generate fierce competition between service providers and force big ones to improve their
services. At the same time, it will benefit new players immensely. Several surveys have found
that about 7-10% of all mobile users are unhappy with their current mobile service provider.
Introduction of mobile number portability will facilitate the easy exit of disgruntled users. This
also means Telcos will have to put more effort to retain those customers, who earlier stayed loyal
to the operator out of the necessity of retaining their number.
Mobile operators offering telecom services in India include state-owned BSNL and MTNL,
besides private operators like Airtel, Reliance Communications, Vodafone, Idea Cellular, Loop
Mobile, Aircel, MTS and Tata DoCoMo. Once MNP is applicable across India, every operator
will have to facilitate customers exit from and entry to their networks with the same number.
3 G Services
 INTRODUCTION
8
International Mobile Telecommunications–2000 (IMT-2000), better known as 3G or 3rd
Generation, is a generation of standards for mobile phones and mobile telecommunications
services fulfilling specifications by the International Telecommunication Union. Application
8
Source: www.economictimes.indiatimes.com
services include wide-area wireless voice telephone, mobile Internet access, video calls and
mobile TV, all in a mobile environment. Compared to the older 2G and 2.5G standards, a 3G
system must provide peak data rates of at least 200 kbit/s according to the IMT-2000
specification. Recent 3G releases often denoted 3.5G and 3.75G also provide mobile broadband
access of several Mbit/s to laptop computers and smartphones.
A new generation of cellular standards has appeared approximately every tenth year since 1G
systems were introduced in 1981/1982. Each generation is characterized by new frequency
bands, higher data rates and non backwards compatible transmission technology. The first
release of the 3GPP Long Term Evolution (LTE) standard does not completely fulfill the ITU 4G
requirements called IMT-Advanced. First release LTE is not backwards compatible with 3G, but
is a pre-4G or 3.9G technology, however sometimes branded "4G" by the service providers.
WiMAX is another technology verging on or marketed as 4G.
 History
The first pre-commercial 3G network was best launched by NTT DoCoMo in Japan branded
FOMA, in May 2001 on a pre-release of W-CDMA technology. The first commercial launch of
3G was also by NTT DoCoMo in Japan on 1 October 2001, although it was initially somewhat
limited in scope; broader availability was delayed by apparent concerns over reliability. The
second network to go commercially live was by SK Telecom in South Korea on the 1xEV-DO
technology in January 2002. By May 2002 the second South Korean 3G network was by KT on
EV-DO and thus the Koreans were the first to see competition among 3G operators.
By June 2007, the 200 millionth 3G subscriber had been connected. Out of 3 billion mobile
phone subscriptions worldwide this is only 6.7%. In the countries where 3G was launched first –
Japan and South Korea – 3G penetration is over 70%. Europe the leading country is Italy with a
third of its subscribers migrated to 3G. Other leading countries by 3G migration include UK,
Austria, Australia and Singapore at the 20% migration level. A confusing statistic is counting
CDMA2000 1x RTT customers as if they were 3G customers. If using this definition, then the
total 3G subscriber base would be 475 million at June 2007 and 15.8% of all subscribers
worldwide.

 Adoption
In December 2007, 190 3G networks were operating in 40 countries and 154 HSDPA networks
were operating in 71 countries, according to the Global Mobile Suppliers Association (GSA). In
Asia, Europe, Canada and the USA, telecommunication companies use W-CDMA technology
with the support of around 100 terminal designs to operate 3G mobile networks.
Roll-out of 3G networks was delayed in some countries by the enormous costs of additional
spectrum licensing fees. In many countries, 3G networks do not use the same radio frequencies
as 2G, so mobile operators must build entirely new networks and license entirely new
frequencies; an exception is the United States where carriers operate 3G service in the same
frequencies as other services. The license fees in some European countries were particularly
high, bolstered by government auctions of a limited number of licenses and sealed bid auctions,
and initial excitement over 3G's potential. Other delays were due to the expenses of upgrading
equipment for the new systems.
 India
In 2008, India entered the 3G arena with the launch of 3G enabled Mobile and Data services by
Government owned Bharat Sanchar Nigam Ltd. (BSNL). Later, MTNL launched 3G in Delhi
and Mumbai. Nationwide auction of 3G wireless spectrum was announced in April 2010.
The first Private-sector service provider that launched 3G services is Tata DoCoMo, on
November 5, 2010. And the second is by Reliance Communications, December 13, 2010. Bharti
Airtel launched their 3G services on 24 January, 2011 in Bangalore and also launched in Delhi &

Jaipur on March 4, 2011. Aircel also launched 3G in Kolkata in the month of February and
Vodafone in the month of March.
MOBILE VIRTUAL NETWORK OPERATOR

9
Mobile Virtual Network Operator (MVNO) is a GSM phenomenon where an operator or
company which does not own a licensed spectrum and generally without own networking
infrastructure. Instead MVNOs resell wireless services under their brand name, using regular
telecom operator's network with which they have a business arrangements. Usually they they buy
minutes of use from the licensed telecom operator and then resell minutes of usage to their
customers of MVNO. Currently MVNOs are emerging in fast pace in European markets and
beginning in USA also. Slowly MVNO phenomenon catching up in Asia and other parts of the
world also.
An example for MVNO is Virgin Mobile. Virgin Mobile plc is a mobile phone service provider
operating in the UK, Australia and Canada, and the US. The company was the world's first
Mobile Virtual Network Operator, launched in the UK in 1999. It does not maintain its own
network, and instead has contracts to use the existing network(s) of other providers. In the UK,
Virgin Mobile uses the T-Mobile network. In the US, the Sprint network is the carrier. In
Australia, Virgin Mobile operates on the Optus network. In Canada, it uses the Bell Mobility
network. These networks use different technology (GSM in the UK and Australia and CDMA in
the US and Canada). Usually MVNO's do not have their own infrastructure, some providers are
actually deploying their own Mobile Switching Centers (MSC) and even Service Control Points
(SCP) in some cases. Some MVNO's deploy their own mobile Intelligent Network (IN)
infrastructure in order to facilitate the means to offer value-added services. In this way, MNVO's
can treat incumbent infrastructure such as radio equipment as a commodity, while the MVNO
offers its own advanced and differentiated services based on exploitation of their own IN
infrastructure. The goal of offering value-added services is to differentiate versus the incumbent
mobile operator, allowing for customer acquisition and preventing the MVNO from needing to
compete on the basis of price alone. MVNO's have full control over the SIM card, branding,
marketing, billing, and customer care operations. While sometimes offering operational support
systems (OSS) and business support systems (BSS) to support the MVNO, the incumbent mobile
operators most keep their own OSS/BSS processes and procedures separate and distinct from
those of the MVNO. In the future a cell phone user may be able to subscribe to a network
operator plus multiple MVNOs for specific data services over the same phone. One MVNO
could provide sports news, another weather and traffic and still another could provide instant
9
http://en.wikipedia.org/telecomindustry/mobile-virtual-network-operator
messaging capabilities. In this way, each MVNO and the network operator could focus on their
own niche markets and form customized detailed services that would expand their customer
reach and brand.

Future Technology Trends
Since there are so many factors and opportunities driving the growth which tends to future
technology trends in the telecom Industry. In this section we have listed down the future
technologies which are in roadmap and are speculated to make an impact on current business
model of telecom industry.
4G or Fourth Generation Networks

10
4G or Fourth Generation is future technology for mobile and wireless communications. It will
be the successor for the 3Rd Generation (3G) network technology. Currently 3G networks are
under deployment. Approximately 4G deployments are expected to be seen around 2015. The
basic voice was the driver for second-generation mobile and has been a considerable success.
Currently, video and TV services are driving forward third generation (3G) deployment. And in
the future, low cost, high
speed data will drive
forward the fourth
generation (4G) as short-
range communication
emerges. Service and
application ubiquity, with a
high degree of
personalization and
synchronization between
various user appliances,
will be another driver. At
the same time, it is
probable that the radio
access network will evolve
from a centralized
architecture to a distributed
one. The evolution from
3G to 4G will be driven by
services that offer better
quality (e.g. multimedia,
10
Indian Institute of Planning & Management (IIPM)
video and sound) thanks to greater bandwidth, more sophistication in the association of a large
quantity of information, and improved personalization. Convergence with other network
(enterprise, fixed) services will come about through the high session data rate. It will require an
always-on connection and a revenue model based on a fixed monthly fee. The impact on network
capacity is expected to be significant. Machine-to-machine transmission will involve two basic
equipment types: sensors (which measure parameters) and tags (which are generally read/write
equipment). It is expected that users will require high data rates, similar to those on fixed
networks, for data and streaming applications. Mobile terminal usage (laptops, Personal digital
assistants, handhelds) is expected to grow rapidly as they become more user friendly. Fluid high
quality video and network reactivity are important user requirements. Key infrastructure design
requirements include: fast response, high session rate, high capacity, low user charges, rapid
return on investment for operators, investment that is in line with the growth in demand, and
simple autonomous terminals.
IP Multimedia Subsystem (IMS)

11
IP Multimedia Subsystem (IMS) is a generic architecture for offering multimedia and voice
over IP services, defined by 3rd Generation Partnership Project (3GPP). IMS is access
independant as it supports multiple access types including GSM, WCDMA, CDMA2000,
WLAN, Wireline broadband and other packet data applications. IMS will make Internet
technologies, such as web browsing, e-mail, instant messaging and video conferencing available
to everyone from any location. It is also intended to allow operators to introduce new services,
such as web browsing, WAP and MMS, at the top level of their packet-switched networks. IP
Multimedia Subsystem is standardized reference architecture. IMS consists of session control,
connection control and an applications services framework along with subscriber and services
data. It enables new converged voice and data services, while allowing for the interoperability of
these converged services between internet and cellular subscribers. IMS uses open standard IP
protocols, defined by the IETF. So users will be able to execute all their services when roaming
as well as from their home networks. So, a multimedia session between two IMS users, between
an IMS user and a user on the Internet, and between two users on the Internet is established using
exactly the same protocol. Moreover, the interfaces for service developers are also based on IP
protocols.
Some of the possible applications where IMS can be used are:
 Presence services
 Full Duplex Video Telephony
11
Indian Institute of Planning & Management (IIPM)
 Instant messaging
 Multiparty gaming
 Video streaming
 Web/Audio/Video Conferencing
 Push-to services, such as push-to-talk, push-to-view, push-to-video
Effectively, IMS provides a unified architecture that supports a wide range of IP-based services
over both packet- and circuit-switched networks, employing a range of different wireless and
fixed access technologies. A user could, for example, pay for and download a video clip to a
chosen mobile or fixed device and subsequently use some of this material to create a multimedia
message for delivery to friends on many different networks. A single IMS presence-and-
availability engine could track a user's presence and availability across mobile, fixed, and
broadband networks, or a user could maintain a single integrated contact list for all types of
communications. A key point of IMS is that it is intended as an open-systems architecture:
Services are created and delivered by a wide range of highly distributed systems (real-time and
non-real-time, possibly owned by different parties) cooperating with each other. It is a different
approach to the more traditional telco architecture of a set of specific network elements
implemented as a single telco-controlled infrastructure.

Targets Set By the Government
12
The government has set the following target to be accomplished by the end of the year 2012.
1. Network expansion
· 800 million connections by the year 2012.
2. Rural telephony
. 200 million rural subscribers by 2012
· Reduce urban-rural digital divide from present 25:1 to 5:1 by 2010.
3. Broadband
. 20 million Broadband connections by 2010
· Broadband with minimum speed of 1 mbps.
· Broadband coverage for all secondary & higher secondary schools and public health care
centres by the end of year 2010.
· Broadband coverage for all Grampanchayats by the year 2010
. Broadband on demand is every village by 2012
4. Manufacturing
· Making India a hub for telecom manufacturing by facilitating more and more telecom
specific SEZs.
· Quadrupling production in 2010.
· Achieving exports of 10 billion during 11th Five year plan.
5. Research & Development
· Pre-eminence of India as a technology solution provider.
· Comprehensive security infrastructure for telecom network.
· Tested infrastructure for enabling interoperability in Next Generation Network.
8. International Bandwidth
12
· Facilitating availability of adequate international bandwidth at competitive prices to drive
ITES sector at faster growth.
Indian Telecommunications at a glance

Table No 3.5 (As on 31st March 2010)
Rank in world in network size 3rd

Tele–density (per hundred populations) 52.74
Telephone connection (In millions)
Fixed 36.95
Mobile 548.32
Total 621.28
Village Public Telephones inhabited (Out of 5,93,601 5,69,385
uncovered villages)
Foreign Direct Investment (in millions) (from April 4070
2000 till March 2010)
Licenses issued
Basic 2
CMTS 38
UAS 241
Infrastructure Provider I 219
ISP (Internet) 371
National Long distance 29
International Long Distance 24

CONCLUSION
Thus from the above research and study we can conclude that there is a continuous growth in the
different segments of the telecom industry. Along with the growth of different segments we have
also seen growth of the different service providers of the industry. The consumers have widely
accepted the wireless, internet, VSAT and other services in the telecom market. However we
have seen a slight decline in the wire line segment of the industry. Also we have seen the
emergence of trends like 3G connectivity for lightning fast speed, MNP (Mobile Number
Portability) and MVNO (Mobile Virtual Network Operator). These trends are acting as a catalyst
in the growth of the telecom industry. The government has also made plans for the telecom
industry keeping in mind the development of telecom industry in the rural India.

OVERVIEW OF THE CHAPTERS
Research report is considered as major component of research study for the research task remains
incomplete till the report has been written and presented. The research report presented above is
related to the topic “INDIAN TELECOMMUNICATION INDUSTRY- GROWTH & TREND
ANALYSIS” The report consists of four chapters. Let us discuss about the previous chapters in
brief.
The first chapter is the introductory chapter. It basically gives an introduction to the overall
research project. The research problems dealing with the project is also discussed in this part of
the project. The objective of the project like discussing the trends in the telecom industry, the
market segments, growth factors etc are also discussed in details in that part. The methodology
of data collection is mentioned in the introductory part itself.
The second chapter i.e. a brief overview of the proposed study gives an idea about the different
regulators i.e. the TRAI, DOT, TDSAT. These are different regulatory bodies framed by the
government to carry out and control the activities of the tele communication industry. It also
gives a brief idea about the year wise growth of the tele communication industry along with the
growth of the overall telecom industry over past five years. An overview of different service
providers like Airtel, BSNL, Vodafone, Idea and Reliance is also discussed here. This helps us to
understand the next chapter i.e. the Growth andEmerging Trends in telecom industry in a much
better manner.
The third chapter i.e. the growth & trend analysis is the brain of the project. Here in we have
discussed in detail the growth of different segments of telecom industry with respect to the major
players of the market. We have also discussed the emerging trends of telecom industry. This
chapter gives us a detail information regarding the evolutions of trends in the telecom industry
like the MNP, 3G, MVNO. It also gives an idea regarding what are the growth factors that drive
growth of the industry along with the opportunities of further growth. We have also discussed
about the trends that might be seen in the near future of the telecom industry. The government
plan and target for future development is also stated in the report.

Concluding observations & Recommendations
Telecom sector plays a crucial role in achieving the socioeconomic objectives in India. India is
having a comparative advantage in IT and ITES, which highly depends on the high quality
telecommunication infrastructure Telecom infrastructure and have registered rapid growth in
India within few years. On the basis of the above study i hereby conclude the following:
 Increase in tele density to 62.51% in October 2010 indicates an increase in the number of
users in percentage terms.
 The public sector service providers such as BSNL, MTNL are still leading the wireline
and internet segment where as the wirelese and other segments are led by the private
service providers.
 There is still a high opportunity and scope for growth in the telecommunication industry
by factors such as introduction on 3G services, acceptance of wireless service at large.
 The government has also started paying special attention to this industry specially with
regard to development in the rural areas.
 The new trends that are proposed to emerge are expecting to have a great impact on the
telecom industry.
 There is still a long way to go by the Indian telecom industry.
Area of further research

Further study on this topic could be done by considering more service providers and with the
help of primary data collection source. Also the research does not mention about the effect of
growth of telecommunication industry on the economy of India as a whole. The impact of same
on the environment and society is also left untouched. Hence there is a lot of further scope of
study to be carried out in different areas which could not be done due to limitation on time and
other resources.
Suggestions
No doubt, government policies have had a very positive impact on the development of e-
commerce telecom infrastructure. However, still, even among many developing courtiers, India’s
telecom infrastructure is very poor. This is especially true in the context of Internet penetration.
In the world’s pie our share is negligible. But, the poor status of telecom infrastructure also
indicates that India has significant scope to grow, while many other countries do not have so
much. To maximize the efficiency of every possible medium of transmission, including copper
cable, fiber optic cables, radio, the Internet, telephone and satellite communications, the whole
purpose of enabling telecommunications need to be re examined. Added to this, the
policymakers should be open to external inputs. Policy formulation is not a onetime task.
Policies need to be continuously refined in the light of feedback received from their
implementation.

References & BIBLIOGRAPHY
 www.trai.gov.in
 www.dot.gov.in
 www.airtel.in
 www.bsnl.co.in
 www.vodafone.com
 www.ideacellular.com
 www.google.com
 www.ibef.org
 www.slideshare.net
 www.scribd.com
 www.doctoc.com
 www.wikipedia.org
 www.investopedia.com
 www.indiatelecomnews.com
 Business India, Article by Misbah Nayeem Quadri
 Graphiti, India Today etc.

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Unlocking the Indian Telecom

Unlocking Indian Telecom Industry’s PotentialPage 1

Especially, I would like to thank my friends and colleagues who supported me in

Unlocking Indian Telecom Industry’s PotentialPage 4

1. Chapter 1- Introduction 1-8

2. Chapter 2- A Brief Overview 9-19

3. Chapter 3- Growth & Emerging Trends in Telecom Industry 20-39

4. Chapter 4- Conclusion 40-42

5. Reference & Bibliography 43

Unlocking Indian Telecom Industry’s PotentialPage 5

Unlocking Indian Telecom Industry’s PotentialPage 6

Unlocking Indian Telecom Industry’s PotentialPage 7

Unlocking Indian Telecom Industry’s PotentialPage 8

Unlocking Indian Telecom Industry’s PotentialPage 9

2) S.P.Jain Institute of management & research Post Graduate Program in management

5) OECD Global Conference on Telecommunication Policy: In the research carried out by

Unlocking Indian Telecom Industry’s PotentialPage 10

 To study upcoming trends of telecom industry.

Unlocking Indian Telecom Industry’s PotentialPage 11

Chapter 2: A Brief Overview

Chapter 3: Growth & Emerging Trends in Telecom industry

The following are the limitations to my research and project:

Unlocking Indian Telecom Industry’s PotentialPage 12

Evolution of the industry- Some Important Reforms in the Indian

1881 – Telephone service introduced in India

1883 – Merger with the postal system

1923 – Formation of India Radio Telegraph Company

1985 – Department of Telecommunications (DOT) established, an exclusive provider of

Unlocking Indian Telecom Industry’s PotentialPage 13

1997 – Telecom Regulatory Authority of India was formed

2000 – Dot becomes a corporation, BSNL

2001 – Private participation in NLD and ILD services

2004 – Universal service telecom license

2006 – FDI limit rose from 49% to 75%

2010 – Launch Of 3G Technology in India.

2011 – Mobile Number Portability (MNP)

Years No of subscribers in lacs

Jan, 2010 581.81

Jan, 2009 464.82

Jan, 2008 325.79

Jan, 2007 225.05

Unlocking Indian Telecom Industry’s PotentialPage 15

THE REGULATORS - DoT, TRAI, TDSAT

Unlocking Indian Telecom Industry’s PotentialPage 17

Players of Telecom Industry

A. BHARTI AIRTEL: AN OVERVIEW

Bharti Airtel founded in 1985, is one of Asia‟s leading

 They also offer an integrated suite of telecom

Unlocking Indian Telecom Industry’s PotentialPage 18

services and Enterprise services.

Global recognition of the Vodafone brand is growing as

BSNL is India's oldest and largest Communication Service

Unlocking Indian Telecom Industry’s PotentialPage 20

RelCom is also into Wire line Business throughout India and

Reliance Communications has launched its Direct To Home

Unlocking Indian Telecom Industry’s PotentialPage 21

Growth & Emerging Trends In