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Micro Analysis On Telecommunication Industry in India
Micro Analysis On Telecommunication Industry in India
Micro Analysis On Telecommunication Industry in India
Telecommunication industry In
India
Presented By
Vyas Bhargav
Modi Maunish
Barot Pooja
Chauhan Dhaval
Parmer Ajay
Nallabariki Laxmi
Presented To
[13044311145]
[13044311039]
[13044311006]
[13044311016]
[13044311048]
[13044311040]
Date : 16th December
Introduction to
Telecommunication Industry
In
1850,
the
first
experimental
electric
telegraph
line
was
started
between Calcutta and Diamon Harbour. In 1851, it was opened for the use of the British East
India Company.
William O'Shaughnessy who pioneered the telegraph and telephone in India, A separate
department was opened in 1854 when telegraph facilities were opened to the public.
Telecom Regulatory Authority of India (TRAI) was created in 1997. It was formed
to act as a regulator to facilitate the growth of the telecom sector.
During this period that the Narsimha Rao-led government introduced the National
Telecommunications policy (NTP) in 1994 which brought changes in the areas like
Ownership, service and regulation of telecommunications infrastructure.
Internet
The history of the Internet in India started with launch of services by VSNL on 15
August 1995. They were able to add about 10,000 Internet users within 6 months.
Broadcasting
Television broadcasting began in India in 1959 by Doordarshan, a state run
medium of communication, and had slow expansion for more than two
decades. The policy reforms of the government in the 1990s attracted private
initiatives in this sector.
On 16 November 2006, the Government of India released the radio policy which
allowed agricultural centers, educational institutions and civil society organizations
to apply for community based FM broadcasting license
Strategic Analysis
Airtel
Y axis
40000
Net sales
(in Crores)
VODAFONE
Idea
20000
Reliance
10000
5000
BSNL
National
TATA
Geographical Scope
Global
X axis
Weight
0.12
0.10
0.06
0.07
0.05
0.11
0.11
0.04
0.12
0.10
0.02
0.02
0.08
1
VODAFONE
Bharti Airtel
Reliance Communication
Rating
Score
Rating
Score
Rating
Score
3
4
2
4
2
3
3
4
4
4
2
2
4
0.36
0.4
0.12
0.28
0.1
0.33
0.33
0.16
0.48
0.4
0.04
0.04
0.32
3.04
4
3
4
3
4
4
3
3
3
4
3
4
3
0.48
0.3
0.24
0.21
0.2
0.44
0.33
0.12
0.36
0.4
0.06
0.08
0.24
3.46
3
2
2
4
3
3
2
2
2
1
1
1
2
0.36
0.2
0.12
0.28
0.15
0.33
0.22
0.08
0.24
0.10
0.02
0.02
0.16
2.28
Weight
Rating
Weighted
Score
Population
0.30
1.2
0.19
0.38
0.12
0.12
FDI
0.12
0.36
Government Policies
0.15
0.45
New Technology
Total
0.12
1
0.48
2.99
Opportunities
Threats
PEST Analysis
Political
Economic
Regulations
Bane.
Middle class consumer base growing
due to accelerated economic growth.
Socio-Cultural
High End Phones becoming status
Technology
Strong Fiber Optic Network.
symbol.
Due to Intimate family bonding in
OT Analysis
OPPORTUNITY
Factor Conditions
Demand Conditions
Government
Factors Conditions
world profitably.
Many new handsets have been launched.
Handset players are setting up manufacturing bases in India for better operation
management.
Various value added service providers and content developers are present in India.
Demand Conditions
India has a large middle class.
Growing affordability and lifetime free
schemes have created a market at the bottom of
the pyramid.
Low tele density offers huge future
potential.
Governments
The government extends full
support to industry through
reform processing.
Policies are in place to safeguard
the interests of service providers
as well as those of consumers.
Financial Analysis
Ratio Analysis
Debt Equity Ratio
Name of Company
Year
2011
2012
2013
Vodafone South
0.61
0.71
0.64
TATA Communication
0.63
0.67
0.79
Hexacommunication
0.50
0.71
0.37
Bharti Airtel
0.43
1.17
0.35
Total
2.17
3.26
2.15
Industry total
0.54
0.82
0.53
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2011
2012
2013
Current Ratio
Name of Company
Year
2011
2012
2013
Vodafone South
0.39
0.36
0.38
TATA Communication
1.23
0.58
0.64
Hexacommunication
0.51
0.58
0.51
Bharti Airtel
0.49
0.54
0.50
Total
2.62
2.06
2.03
Industry total
0.66%
0.52%
0.51%
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2011
2012
2013
Name of Company
Year
2011
2012
2013
Vodafone South
7.51
12.06
13.97
TATA Communication
6.47
14.87
18.35
Hexacommunication
22.52
22.65
22.04
Bharti Airtel
Total
16.72
53.22
14.23
63.81
16.78
71.14
Industry total
13.305%
15.95%
17.785%
20
18
16
14
12
10
8
6
4
2
0
2011
2012
2013
Year
2011
2012
2013
Vodafone South
1.21
0.90
0.66
TATA Communication
0.43
0.42
0.53
Hexacommunication
3.07
4.71
3.57
Bharti Airtel
Total
0.17
4.88
0.16
6.19
0.16
4.92
Industry total
1.22%
1.5475%
1.23%
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2011
2012
2013
Year
2011
2012
2013
Vodafone South
6277.33
11512.4
12736.7
TATA Communication
3611.77
4091.77
4416.12
Hexacommunication
2943.45
3379.1
3666.1
Bharti Airtel
38017.7
41603.8
45350.9
Total
50850.25
60587.07
66169.82
Industry total
12712.56
15146.76
16542.45
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
2011
2012
2013
Expenditure Trend
Name of Company
Year
2011
2012
2013
Vodafone South
6277.33
11512.4
12736.7
TATA Communication
3611.77
4091.77
4416.12
Hexacommunication
2943.45
3379.1
3666.1
Bharti Airtel
38017.7
41603.8
45350.9
Total
50850.25
60587.07
66169.82
Industry total
12712.56
15146.76
16542.45
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
2011
2012
2013
Business Plan
Telewings Communications (operating under the brand name Uninor), is an Indian mobile network
operator based in Gurgaon, Haryana, India.
Uninor serves more than 3 crore customers in the states of Uttar Pradesh, Uttarkhand, Bihar,
Jharkhand, Maharashtra, Goa, Gujarat and Andhra Pradesh. The mobile service provider targets youth
and other communities within the Indian mass market
Vision
Empower societies we provide the power of digital communication, enabling everyone to
improve their lives, build societies and secure a better future for all.
Mission
Were here to help our customers, We exist to help our customers get the full benefit of
being connected. Our success is measured by how passionately they accept us and make
us a part of their life.
Objectives of company
Capture the market through provide innovative product in telecom segment.
To achieve higher level of satisfaction through quality telecom.
To achieve high market share in telecom segment.
Free sample
Sources of Finance
Bank Statement
Personal Savings
Friends and Relatives
Promoter Lock-in
Value Added Services
policy with respect to the previous regime where spectrum Tripartite agreement
was linked to the Unified Access Service Licence (UASL). Performance Guarantee
Substantial Equity/Cross-Holding Requirement
The draft of the UL (AS) makes reference to the crossholding restriction that prohibited any shareholder from
holding no more than 10% of the equity.
Penalties
Cost Of Project
Sr.no.
Particulars
Amount
Site on Rent
25000
Computer (23500*3)
70500
Furniture
50000
5000
2000
Staff Salary
Computer operator
3 * 7500
Labor
1 * 2500
Other Expenses
Total
40000
10000
2,02,500
Cash on Hand
47500
Cost of project
2,50,000
Year (2014-15)
345000
Commission
6,900
13800
Total income
3,65,700
Expenditure
Salary
40,000
Electricity bill
6,000
Rent
25,000
Miscellnious exp.
10,000
Total Exp.
81,000
Net Profit
2,84,700
Findings
New entrants can take advantage of gaps in the offerings
of these aging pioneers, or find innovation ways to market
product or service.
Re-examining high levies.
Limitation
We have collected the secondary data where we cannot able to get exact information
About the telecommunication industry privilege in the market as based in past data
and hence cannot be reliable guide to future performance as future is dependent on
other factors.
Conclusion
The technology improvement has helped the sector to perform better and has also
expanded the meaning of the term "telecommunication" from just audio message
transformation to virtual presence of person. the sector clearly shows a scope for
future.
In our opinion, instead of taking a short-term view of paying capacity, the telecom
companies should focus on a long -term game. There is one word that telecom
companies are hearing a lot these days-"Volumes".
There are challenges like porting time, allocation of capital and operational porting
costs among positive and will be set once the committee submits its final report
on he same.
The margins and profits of almost the telecom companies have been increasing.
In fact there are cases where significant portions of profit of international telecom
companies have been from their operations in India.
India has the advantage of using the latest technology and so it is in a
better
position when compared to many other countries as far as introduction of NGN is