Telecom Industry

o Presented By
Garima Grewal
Joydeep Tamuli
Kshitij Dethe
Mrinal Mukharjee
Shivam Jaiswal
MARKET SIZE

Access Service Provider-wise

Market Shares in term of
Wireless Subscribers as on
31st August, 2018
 Market Share By
Revenue, as on August
2018
Market Share after
the Merger of
Vodafone and Idea
 Net Additions in Wireless
Subscribers of Access Service
Providers in the Month of
August, 2018
 Highlights of
Telecom
Subscription Data
as on 31st
August, 2018
• In the month of August, 2018, 4.73 million subscribers submitted their requests for Mobile Number Portability (MNP)
• Number of active wireless subscribers in August, 2018 was 1,013.21 million.

Circle Category-wise
Net Additions in
Telephone Subscribers
in the month of August,
2018
 Overall Tele-density
(Circle/State Wise) –
As on 31st August,
2018
Access Service Provider-
wise Market Shares of
Wireline Subscribers as
on 31st August, 2018
 Access Service
Provider-wise Net
Additions/declines in
Wireline Subscribers
during the Month of
August, 2018
 Segment–wise
Broadband
Subscribers and
Monthly Growth Rate
in the month of
August, 2018
 Segment–wise
Broadband
Subscribers and
Monthly Growth Rate
in the month of
August, 2018
In forthcoming years the telecom sector -

 Expected to create a total economic value of Rs 14 trillion (US$ 217.37 billion) by 2020.

 Will generate around 3 million direct job opportunities and 2 million indirect jobs.

 Smartphone market grew 14 per cent year-on-year to a total of 124 million shipments in 2017.

 Will add 500 million new internet users in India over the next five years.

 Monthly data usage per smartphone in India is expected to increase from 3.9 GB in 2017 to 18 GB by 2023.
 Investment/Major development

 Industry has attracted FDI worth US$ 30.08 billion during the period April 2000 to December 2017.

 During the first quarter of 2018, India became the world’s fastest-growing market for mobile applications.

 Nokia is going to collaborate with Bharti Airtel and BSNL to work on the roadmap for development of 5G technology in

India.

 India telecommunication companies will be investing US$ 20 billion over the next two years for expansion of network and

operations, stated Mr Akhil Gupta, Vice Chairman, Bharti Enterprise.

 Government Initiatives

 The Government of India is soon going to come out with a new National Telecom Policy 2018. The policy has envisaged

attracting investments worth US$ 100 billion in the sector by 2022.

 The Government of India is working to digitally connect the rural and remote regions in the country and has decided a new

affordable tariff structure with the principle of more you use, less you pay.
 Government Initiatives
Continued…

 Smart city

 Increase in pace of delivering broadband connectivity .

 Thrust on Infrastructure sharing

 Twitter Sewa

 Offer free internet services

 National action plan for skill development

SWOT Analysis
STRENGTHS
• In January 2018, India’s
Huge Customer telephone subscriber base
reached 1,175.01 million.
potential •

1
7 out of 8 users access
internet through their mobile.

• Since 2012 the share of time

High Growth
2 Rate
spent on watching videos on
mobile has increased by 200
hours per year.

•
3 Allowed FDI limit Industry has attracted FDI
worth US$ 30.08 billion
ranging from during the period April 2000
49% to 100% to December 2017.

4 High return on
• Easier
economies
to
of
create
scale
Investment thereby increasing return
on investment
 WEAKNESS

Poor Late adopters of 5G yet to be Most competitive A market strongly

Telecommunication New Technology planned in India market regulated by
Infrastructure Government.

• India was almost • A matter of pulling • 10 to 12 • A total of 2354.55

• Result is large
10 years late with stakeholders companies MHz of spectrum
number of
2G and almost together which offer mobile was put up for sale
call drops.
Six (6) years late includes the services in most across 22 different
with 3G as government which parts of India, circles in 2016.
compared to the has spectrum globally, the Only 40% of the
global market. control and average is 4. spectrum put up
regulatory actions for auction was
that need to be sold as the base
taken. price set was high.
 OPPORTUNITY

1. Horizontal Integration 3. More scope in

• Entry Into other content related
consumer segments services, since, the
leveraging the consumer is influenced
present channels
2 by local culture.

1 3
Local festivals like
Baisakhi, Chhath Puja,
religious festivals like
Diwali, Christmas etc.,
2. Providing fibre Connectivity. National festivals like
Independence Day etc.
 THREATS

1 2 3 4
Telecommunication Higher Efficiency and Partiality on the part Content Piracy
Policies Lower Cost Expectations of the Govt.
 e.g. TRAI's 2G  The challenge for  E.g. Allowing 3G
direction `
telecom service provider service in a
affecting new in the coming years PSU (MTNL,BSN
players most would be to provide one L) before
notably Tata Rupee per Gigabit over auctioning to
Teleservices, 100 Mbps by 2020 to Private Sector .
Norway’s everyone”, says Mr.
Telenor Vipin Tyagi, Director &
and Essar- Member of Board,
owned Loop Centre for Development
Telecom of Telematics (C-DOT)
PEST Analysis
POLITICAL

Regulations

Revised FDI

`
Proposal of 32.3 billion dollar investment in 3
phase
o 9.2 billion for telecom R and D
o 4.6 Billion for telecom entrepreneurship promotion
o 8.4 billion to telecom manufacturing promotion funds
during the 12th 5 year plan
ECONOMICAL

Cost of calls being

driven down

Middle class
Untapped Market
consumer
in emerging
growing due to
economies – new
accelerated
opportunities
economic growth
SOCIAL

High end phones becoming

social symbol

Tech savvy generation

Due to intimate family bonding

in Indian culture, there is a
need to remain connected
 TECHNICAL

Rapid
industrial Utilization
Efficient Equipped 5g to be
growth rate of e-
customer with new launched by
induced by commerce
care service technology 2020
emerging facilities
technologies
 October, 2015: In an industry first, Airtel 4G in Madhya Pradesh and
Chhattisgarh has been rolled out on 10 MHz spectrum in 1800 MHz
band using the FD LTE technology to deliver a superior mobile
broadband experience to customers.

December, 2016: Airtel Payments Bank became the first payments

bank in the country to go LIVE as it rolled out services nationally.
Customers in towns and villages will be able to open bank accounts at
Airtel retail outlets, which will also act as Airtel banking points and
offer a range of basic and convenient banking services.

March, 2017:Bharti Airtel entered into a definitive agreement with

Tikona Digital Networks to acquire Tikona’s 4G Business including the
Broadband Wireless Access 100 MHz spectrum and network
infrastructure, in five telecom circles giving it tremendous advantage
to handle the surging data demand in the country.
 Bharti Airtel’s 5G
They are facing a stiff competition from Reliance Jio, the latest entrant with direct
& only offering 4G services. Moving on, Airtel will be one among the five cellular
service provider to come up with 5G network.

Tentative Airtel 5G launch in India could happen in 2019-2020. It will be first out
for testing basis in a remote location.

Currently, the company is trying to deploy the VoLTE network and testing is
going in 5 Indian cities. Company will start their services by the end of the year
and will become the second mobile operator in India to do so after Reliance Jio.

Competition in 5G network deployment is strong as Nokia is helping BSNL to

deploy 5G.

The Airtel Speed on 5G network will touch to 3.6 Gbps which is 30 times than
the current Airtel 4G speed.
 Airtel 5G Features

All 5G providers will provide

advanced features like –
Data rates of Allowing
A higher
100 Mbps per Enhanced maximum
Improved Low power number of
second in signal numbers of
coverage consumption broadband
cities and efficiency connections
users per unit
towns simultaneously
 Financial Analysis
No. of Months Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 954,683 836,879 -12.3%
Other income Rs m 1,206 2,488 106.3%
Total Revenues Rs m 955,889 839,367 -12.2%
Gross profit Rs m 380,920 323,799 -15.0%
Depreciation Rs m 197,730 192,431 -2.7%
Interest Rs m 95,466 93,255 -2.3%
Profit before tax Rs m 88,930 40,601 -54.3%
Tax Rs m 34,819 10,835 -68.9%
Profit after tax Rs m 42,414 21,835 -48.5%
Gross profit
% 39.9 38.7
margin
Effective tax rate % 39.2 26.7
Net profit margin % 4.4 2.6
 Balance Sheet
No. of Months Year Ending 12 Mar-17* 12 Mar-18* % Change

Networth Rs m 674,563 695,344 3.1

Current
Rs m 634,597 782,399 23.3
Liabilities
Long-term Debt Rs m 896,373 849,420 -5.2

Total Liabilities Rs m 2,332,652 2,505,816 7.4

Current assets Rs m 182,038 334,990 84.0

Fixed Assets Rs m 1,890,736 2,056,355 8.8

Total Assets Rs m 2,332,652 2,505,816 7.4

 Cash Flow

No. of months 12 12
Particulars % Change
Year Ending Mar-17 Mar-18
Cash Flow
from
Rs m 282,799 298,538 5.6%
Operating
Activities
Cash Flow
from Investing Rs m -306,044 -279,676 -
Activities
Cash Flow
from
Rs m -3,514 19,205 -
Financing
Activities
Net Cash Flow Rs m -27,515 38,348 -
Key Ratio Analysis

No. of Months Year Ending 12 Mar-17* 12 Mar-18*

Current ratio x 0.3 0.4
Debtors’ Days Days 18 26
Interest
x 1.9 1.4
coverage
Debt to equity
x 1.3 1.2
ratio
Return on assets % 5.9 4.6
Return on equity % 6.3 3.1
Return on capital
% 11.0 8.2
employed
Idea And Vodafone Merger
Customer review
 On IDEA-VODAFONE Merger:

New Technology: Voice,

Data, Mobile payments, IoT,
Superior experience across advanced enterprise
Free voice calling and free
Better Network. offerings, high speed and Competitive offers
2G,3G and 4G platforms. internet.
secure leased lines, digital
wallets, MIMO and cloud
services.
Airport Wi-Fi
 The Wi-Fi service is free Firefly Networks is
Wi-Fi services at AAI Initially, airports are
for Airtel and Vodafone providing the
airports are divided linked with 100 Mbps
Airports authority of users event after complete infrastructure
into two clusters - bandwidth and this
India and Firefly 45 minutes but for at all 21 airports in the
Cluster A is led by increases with the
provides free Wi-Fi other operators it will country and in turn will
Chennai airport increase in traffic
services at 21 airports. be charged at the rate pay a
whereas Cluster B is led to provide excellent
of 1 paisa/10KB of minimum amount to
by Kolkata airport. Wi-Fi service.
data. AAI.
Railway Wi-Fi
 History of WiFi and Indian Railways

 Back in 2006, RailTel’s then AGM (Business Development & Public Relations) Shailesh Tiwari had mentioned in

an interview that they had plans to create Wi-Fi hotspots at more than 500 stations and extend services to areas near the

stations as well.

 Wi-Fi service had been introduced on a pilot basis on the Mumbai-Ahmedabad Shatabdi Express, in January 2009.

 In April 2013, Indian Railways launched a pilot project to provide Wi-Fi facility on the Howrah Rajdhani Express (after initially

announcing it in February 2011).

 Wi-Fi service was launched on a pilot basis at New Delhi railway station, in July 2013. It took
about one-and-a-half years for this service to get out of pilot mode. In December 2014,
passengers at Delhi station started getting free Wi-Fi access for half an hour everyday. After
half-hour of free usage, the service costs Rs 25 for 30 mins, and Rs 35 for an hour of extra
time.
 A few months earlier, in October 2014, free Wi-Fi service had been introduced at Bangalore
City railway station. Similar to Delhi, passengers got 30 minutes free access after which they
had pay for extra browsing time.
 In November 2014, MTS India had partnered with the Indian Railways to set up Wi-Fi
hotspots at Agra, Ahmedabad & Varanasi railway stations by the first quarter of 2015.
Google and Rail Tel

After launching its first free WiFi service from Mumbai Central station in
January 2016, Google has today announced the completion of the free service
at 400 railway stations across India in collaboration with RailTel, the telecom
arm of Indian Railways.

Indian Railways had signed an MoU with Google in December, 2015 to launch
the service, which offers thirty minutes of free internet access. The average
data consumption per user per session has been recorded around 350MB.
Rail Wire
 Current Scenario
Statewise Status of Station Wi-Fi
S.No State/UT Commissioned Stations Coming Soon
Tirupati, Vijayawada, Visakhapatnam, Guntur,Palasa, Rajahmundry, Kakinada Town, Nellore, Srikakulam Road, Bhimavaram
1 Andhra Pradesh Town, Samalkot Jn., Eluru, SatyaSai Prashanti Nilayam,Kadapa,Renigunta, Anakapalle,Anantapur, Ongole, Guntakal Jn., Cuddapah, Chirala.
Gudur Jn,Tadepalligudem,Tenali Jn.,Tuni & Vizianagaram
2 Assam Jorhat Town,Guwahati,Barpeta Road, Lumding, Kamakhya,Rangiya Jn, Dibrugarh, Silchar, New Tinsukia New Bongaigaon
Patna, Hajipur, Muzaffarpur, Gaya, Danapur, Mokama,Barauni Jn., Katihar Jn, Kiul Jn.,Samastipur Jn.,Jamui,Anugraha
Bapudham Motihari, Betiah, Dehri-On-Sone,
3 Bihar Narayan Road, Siwan Jn.,Khagaria Jn.,Purnia, Madhubani, Darbhanga,Bakhtiyarpur Jn., Chhapra & Bhagalpur,
Buxar, Sasaram Jn.
Jayanagar,Patna Sahib Jn, Rajendra Nagar(T), Jamalpur, Kishanganj, Ara Jn.
4 Chandigarh Chandigarh -

5 Chhattisgarh Raipur, Bilaspur, Champa Jn.,Bhilai Power House, Raigarh & Durg,Rajnandgaon Power House
Surat, Ahmedabad, Viramgam, Jamnagar,Bhavnagar Terminus, Palanpur,Valsad, Surendranagar,Udhana,
6 Gujarat Mahesana , Veraval, Anand
Gandhidham,Navsari, Nadiad,Ankleshwar,Bharuch, Vapi,Bhuj,Vadodara & Rajkot
Haryana,Faridabad
7 Faridabad Old,Ambala Cantt., Ballabgarh,Karnal,Kalka, Rohtak, Panipat, Sonipat, Gurugram, Rewari, Hissar, Bhiwani City Jagadhri
New

8 Himachal Pradesh Solan, Shimla -

9 Jammu and Kashmir Jammu Tawi Udhampur

10 Jharkhand Ranchi, Dhanbad Jn., Jasidih Jn. ,Bokaro Steel City,Koderma,Madhupur, Hatia, N.S.C.B. Gomoh Jn., Parashnath & Tatanagar

Dharwad,Bangalore City, Bangarpet, Mangalore Central, Hubli, Kengeri, Gulbarga,Mangalore

11 Karnataka Belgaum, Davangere, Raichur, Bellary
Jn.,Krishnarajapuram,Bangalore Cantt.,Shimoga Town, Mysore & Yesvantpur (Bangalore),Yadgir,Hospet,Hassan Jn
Ernakulam Jn, Ernakulam Town,Thiruvananthapuram Central,Kottayam, Kanhangad, Thrissur, Kollam Jn & Kozhikode, Palakkad Jn., Shoranur Jn., Tiruvalla,
12 Kerala
Kannur, Chengannur, Payyannur, Kasaragod, Tirur, Aluva, Vatakara Jn Thalassery, Alappuzha, Kayankulam Jn
 Statewise Status of Station Wi-Fi
S.No State/UT Commissioned Stations Coming Soon
Tirupati, Vijayawada, Visakhapatnam, Guntur,Palasa, Rajahmundry, Kakinada Town, Nellore, Srikakulam Road, Bhimavaram Town,
1 Andhra Pradesh Samalkot Jn., Eluru, SatyaSai Prashanti Nilayam,Kadapa,Renigunta, Anakapalle,Anantapur, Ongole, Guntakal Jn., Gudur Cuddapah, Chirala.
Jn,Tadepalligudem,Tenali Jn.,Tuni & Vizianagaram

2 Assam Jorhat Town,Guwahati,Barpeta Road, Lumding, Kamakhya,Rangiya Jn, Dibrugarh, Silchar, New Tinsukia New Bongaigaon

Patna, Hajipur, Muzaffarpur, Gaya, Danapur, Mokama,Barauni Jn., Katihar Jn, Kiul Jn.,Samastipur Jn.,Jamui,Anugraha Narayan
Bapudham Motihari, Betiah, Dehri-On-Sone,
3 Bihar Road, Siwan Jn.,Khagaria Jn.,Purnia, Madhubani, Darbhanga,Bakhtiyarpur Jn., Chhapra & Bhagalpur, Jayanagar,Patna Sahib Jn,
Buxar, Sasaram Jn.
Rajendra Nagar(T), Jamalpur, Kishanganj, Ara Jn.

4 Chandigarh Chandigarh -

5 Chhattisgarh Raipur, Bilaspur, Champa Jn.,Bhilai Power House, Raigarh & Durg,Rajnandgaon Power House

Surat, Ahmedabad, Viramgam, Jamnagar,Bhavnagar Terminus, Palanpur,Valsad, Surendranagar,Udhana, Gandhidham,Navsari,

6 Gujarat Mahesana , Veraval, Anand
Nadiad,Ankleshwar,Bharuch, Vapi,Bhuj,Vadodara & Rajkot

Haryana,Faridabad
7 Faridabad Old,Ambala Cantt., Ballabgarh,Karnal,Kalka, Rohtak, Panipat, Sonipat, Gurugram, Rewari, Hissar, Bhiwani City Jagadhri
New

8 Himachal Pradesh Solan, Shimla -

9 Jammu and Kashmir Jammu Tawi Udhampur

10 Jharkhand Ranchi, Dhanbad Jn., Jasidih Jn. ,Bokaro Steel City,Koderma,Madhupur, Hatia, N.S.C.B. Gomoh Jn., Parashnath & Tatanagar

Dharwad,Bangalore City, Bangarpet, Mangalore Central, Hubli, Kengeri, Gulbarga,Mangalore Jn.,Krishnarajapuram,Bangalore

11 Karnataka Belgaum, Davangere, Raichur, Bellary
Cantt.,Shimoga Town, Mysore & Yesvantpur (Bangalore),Yadgir,Hospet,Hassan Jn

Ernakulam Jn, Ernakulam Town,Thiruvananthapuram Central,Kottayam, Kanhangad, Thrissur, Kollam Jn & Kozhikode, Kannur, Palakkad Jn., Shoranur Jn., Tiruvalla, Thalassery,
12 Kerala
Chengannur, Payyannur, Kasaragod, Tirur, Aluva, Vatakara Jn Alappuzha, Kayankulam Jn