Telecom Industry in India

Avneet kaur,jasmeet kaur,manish,neha (sec c)

PGDM 3rd sem
 With the recession hitting global economies
in 2008, times have been difficult for the
telecoms industry to raise the funding
necessary for growth and expansion,
concurrent with the views of a report by the UN
on the global telecoms industry
 Mergers and acquisitions are expected to
once again become the order of the day with
almost all companies trying to increase their
footprint in the global arena.
 THE STRATEGIC MANAGEMENT PRACTICES OF
VODAFONE AND ITS SIGNIFICANT IMPACT TO THEIR
BUSINESS PROGRESS

 Vodafone Group Plc, the self-proclaimed

world’s leading mobile
telecommunications company, is a
public limited company incorporated in
England with a significant presence in
Europe, the Middle East, Africa, Asia
Pacific and the United States (2007 ).
 Expansion has always been one of the strategies of
the firm, enabling it to have 93 million subscribers in 29
countries (2003).


the significant impact of strategic management of
Vodafone to the operations and growth of the company.
Vodafone has been known for tactics such as
expansion, merger and acquisition, innovation and
being agile but the changing conditions of the industry
might have changed them or added some strategies to
their list.
 The aim of the company is to become the
no.1 mobile communication in the world. For
this the company has six strategic goals:
  1. To provide superior shareholder returns
  2. To delight it customers
  3. To leverage global scale and scope,
especially in delivering 3G services
  4. To expand market boundaries
  5. To build the best global Vodafone team
  6. To be a responsible business and manage
its impact on society, the environment and
economy
Benefit that Vodafone got over this
merger:
 New Entry in the Indian telecommunication
industry would have been difficult as it
would have to directly compete with well
established player in the
telecommunication industry like Bharti
Airtel, Reliance, Tata telecom, Idea, BSNL
and other.
 Cell-phone Network Technologies: 3G

 3G technology is the latest in mobile

communications. 3G stands for "third
generation
 this makes analog cellular technology generation
one and digital/PCS generation two. 3G
technology is intended for the true multimedia
cell phone -- typically called smartphones --
and features increased bandwidth and
transfer rates to accommodate Web-based
applications and phone-based audio and video
files.
 3G phones are like mini-laptops and can
accommodate broadband applications like
video conferencing, receiving streaming
video from the Web, sending and
receiving faxes and instantly
downloading e-mail messages with
attachments.
 The rate of growth of telecom

 penetration in urban India has been very

high as compared to rural.
 Total subscribers as on September 2008
are 353.66 million, out of which
 only 29% is the contribution from rural
India which constitutes 70% of the total
population of the country
 UNESCO's Intergovernmental Councils in the Area of
Communication and Information Prepare Biennial
Sessions
25-02-2004 (Paris)
 UNESCO's Programme for the Development of Communication
(IPDC) aims at contributing to sustainable development, democracy
and good governance by fostering universal access to and
distribution of information and knowledge through strengthening the
capacities of the developing countries and countries in transition in
the field of electronic media and print press.


UNESCO's Information for All Programme (IFAP) provides a
platform for international policy discussions and guidelines for action
on preservation of information and universal access to it, on
participation of all in the emerging global information society and on
ethical, legal and societal consequences of ICT developments.
 The members of both Councils -
representatives of 39 Member States for
the IPDC Council and of 26 Member
States for the IFAP Council - are
responsible for policy-making, guiding the
planning and implementation of the
Programmes.
Challenges to Telecom penetration in
rural market
The challenges include:
difficulty in the acquisition of rural consumers due to
the low affordability of telecom services,
the low average revenue per user (ARPU),
lack of locally relevant content
 the prevalent literacy levels

discretionary spend

said the report prepared by FICCI and KPMG

 STRATEGIES TO ALLURE RURAL
CONSUMERS
Some of the strategies are listed as:
 micro-financing
 Tie-ups with state-owned banks
 Convincing to purchase telecom equipment and services
at affordable rates
 To increase adoption, the report stated that it was
essential to develop services like news in local language,
weather alerts for fishermen, and comparative 'mandi‘
rates, among other services.
 Contd…
 To derive maximum benefits from these
services, it is essential for the consumers
to have basic reading and writing skills in
place
 infrastructure-related roadblocks lead to a
steep escalation in costs, reducing the
attractiveness of the rural market
Telecom products launched in rural
India
Launched by RCOM:
 BharatNet plan,
 Grameen VAS &
 M2M (Machine to Machine) solutions.
 Introduction to Indian Telecom Industry – Recent facts &
figures

 The total wireless subscriber base {GSM, CDMA} stood at 391.76

million at the end of financial year.
 Wire line subscribers on 31st March 2009 was 37.96 million.
 More than 10 million subscribers were added every month.
 There were 13.54 million internet subscribers on 31st March
2009 as compared to 11.09 million on 31st March 2008.
 The number of broad-band connections on 31st March 2009 was
6.22 million compared to 3.87 million for the same period during
previous year.
Major Players in different segments of Indian telecom industry

Basic Services Operators

MOBILE SERVICES GSM Services Operators
BSNL
Airtel
MTNL

Vodafone
Reliance

Idea
TTSL

Reliance

BSNL
Internet Services Operators

BSNL
CDMA Services Operators

MTNL Reliance

Reliance
TTSL
TTSL
BSNL

Airtel

MTNL – Mahanagar Telecom Nigam Ltd. TTSL – Tata Teleservices Ltd.

BSNL – Bharat Sanchar Nigam Ltd.
Subscribers (Rural & Urban) & Market share (GSM & CDMA) - 2009
Growth of Subscriber base from 1999 to 2009
Growth of Indian Telecom Sector

Wirelline Subscriber in Million

Growth of Indian Telecom Sector

Wireless Subscriber in Million

Growth of Indian Telecom Sector

Internet Subscriber in Million

 Prospects and problems of Indian Telecom sector

 Fifth largest telecom network in the world; second largest among the
emerging economies after China
 On an average, about 6–7 million new users added per month
 FDI limit increased.
Problems:
 Lowest call tariffs in the world
 Market strongly regulated by Government body – Governing both ISP and
Telecom sectors
 Low cost service providers – no possibility of breaking even in short term
 Conclusion
 World fastest growing wireless market
 Rural market is untapped market
 Decline in wireline subscribers
 Low cost market
Thank You