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Telecom Industry

The telecom industry in India is the second largest in the world based on total telephone users. It includes various technologies for transmitting voice, data, and video over long distances, such as telephony, the internet, television broadcasting, and satellites. In India, the telecom sector has grown significantly in recent decades, with over 300 million internet connections as of 2015. The industry is dominated by private companies but also includes state-run businesses. The future of the industry is expected to see continued growth in internet and mobile users, as well as disruption from new technologies and the integration of content.

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Telecom Industry By:- Amrender Singh
Introduction  Telecommunications, also known as telecom, is the exchange of information over significant distances by electronic means and refers to all types of voice, data and video transmission.  Telecom Industry includes a wide range of information transmitting technologies such as telephones (wired and wireless), microwave communications, fiber optics, satellites, radio and television broadcasting, the internet and telegraphs.
Indian Telecom Sector  India's telecommunication network is the second largest in the world based on the total number of telephone users (both fixed and mobile phone).  According to the Department of Telecommunication of India (DoT), as on March 2015, India has 302.35 million internet connections.  Telecommunication in India has greatly been supported by the INSAT system of the country, one of the largest domestic satellite systems in the world.
History  1850 – First experimental electric telegraph line was started between Calcutta and Diamond Harbour.  1902 – First wireless telegraph station established between Sagar Island and Sandhead.  1913–1914 – First Automatic Exchange installed in Shimla.  1960 – First subscriber trunk dialing route commissioned between Lucknow and Kanpur.  1976 – First digital microwave junction
 1979 – First optical fiber system for local junction commissioned at Pune.  1980 – First satellite earth station for domestic communications established at Sikandarabad, U.P.  1989 – Department of Telecommunication (DoT) established.  1995 – First mobile telephone service started on non-commercial basis on 15 August 1995 in Delhi.  1995 – Internet Introduced in India starting with Laxmi Nagar, Delhi 15 August 1995.  1997 – Telecom Regulatory Authority of India (TRAI) established.
Major Sectors  Telephony  Television Broadcasting  Internet
Telephony  Telephony segment consist of landline and mobile telephony.  The telephony segment is dominated by private-sector and two state-run businesses.  Foreign Direct Investment policy which increased the foreign ownership cap from 49% to 74%. Now it is 100%.
1. Landline  Until the New Telecom Policy was announced in 1999, only the Government-owned BSNL and MTNL were allowed to provide land-line phone services through copper wire in India.  Major landline providers are BSNL, MTNL, Airtel, Tata, Reliance.
Market Share of wireline service providers in Urban Areas 53.12% 16.54% 15.89% 7.56% 5.50% 0.37% Subscribers till 31st march 2015 BSNL MTNL Airtel Tata Reliance Vodafone Source:- TRAI Annual Report 2014-15
Market Share of wireline service providers in Rural Areas 97.73% 0.96% 0.04% Subscribers till 31st March 2015 BSNL Tata Reliance Source:- TRAI Annual Report 2014-15
2. Mobile Telephony  In August 1995, then Chief Minister of West Bengal, Jyoti Basu made the first mobile phone call in India to then Union Telecom Minister Sukhram.  The Wireless Subscriber base was 969.89 million as on 31st March 2015 in comparison to the subscriber base of 904.51 million as on 31st March 2014.  India is divided into 22 telecom circles.  As of 2016, India has deployed telecom operations in a total of 8 radio frequency bands.
Major Players in Mobile Telephony  Airtel  Idea Cellular  BSNL  Vodafone  Reliance Infocomm
Market Share of Wireless Service Providers 23.30% 18.95% 16.27% 11.29% 7.96% Market Share of wireless service providers Airtel Vodafone Idea Reliance BSNL Source:- TRAI Annual Report 2014-15
Swot Analysis of Airtel & Vodafone Strengths  Renowned Telecom company  High Brand Equity  Extensive infrastructure  Strategic Alliances  Torchbearer of the telecom Industry  Diversified Geographical Portfolio  Network Infrastructure  Leading Presence in emerging markets  Adaption to the local market needs
Weaknesses  Outsourced Operations  Venturing into African operations  High Debt  Less network coverage in rural areas  Negative returns on assets (ROA)
Opportunities  Strategic Partnership  Market Development  VAS (Value Added services)  Untapped geography of the current market  LTE  Focus on cost reduction improving returns  Good tariff packages  Majority stake in wireless communication  Acquisitions fuelled growth of company  Less penetrated 4G sector
Threats  Government Regulatory Framework  Competition  MNP (Mobile number portability)  Highly competitive market  Lags behind Airtel  Extremely high penetration rates in key market areas  Government giving licenses for 4G spectrum to other competitors.
Television Broadcasting  Television broadcasting began in India in 1959 by Doordarshan, a state run medium of communication.  The growth in the number of satellite channels was triggered by corporate business houses such as Star TV group and Zee TV.  There are over 554 million TV consumers, 462 million with satellite connections.  829 registered TV channels in march 2015.
Internet  The history of the Internet in India started with launch of services by VSNL on 15 August 1995.  Initial speed offered was 56 kbit/s & later in 2005 speed offered was 256 kbit/s.  In 2010, government auctioned 3G spectrum for high speed transmission of data.
 These days variety of technologies and media including dial-up (PSTN), xDSL, coaxial cable, Ethernet, FTTH, ISDN, HSDPA (3G), WiFi, WiMAX, etc. are offered at a wide range of speeds and costs.  Today there are more than 300 million internet users in India.
 According to the Internet And Mobile Association of India (IAMAI) internet user base will cross 500 million by 2018 and that India's internet economy will grow to US$200 billion by 2020 and will contribute 5 percent to the GDP of the country.
Recent Events  On September 5, 2016, Jio commercially launched its 4G services.  In June 2010, Reliance Industries (RIL) bought a 96% stake in Infotel Broadband Services Limited (IBSL) for Rs 4,800cr.  With its free internet & calling services till December 2016, Jio has toppled the telecom industry.  A price war has been started between competitors for surviving in market hence resulting in downfall of prices of services.
Future of Telecom Industry The six major disruptions that will drive the most change in telecommunications by 2020 are: 1) Integration: The content contest 2) IoT: The traffic explosion 3) Mobility: The great wireless migration 4) Saturation: The search for growth 5) Security: The network is the threat 6) Ascension: Skynet finally gets real
References  http://searchtelecom.techtarget.com/definition/ telecommunications  https://en.wikipedia.org/wiki/Telecommunicatio ns_in_India  http://www.trai.gov.in/Content/Annual_Reports .aspx  http://www.iamai.in/aboutus/annual-reports  https://en.wikipedia.org/wiki/Jio  http://qz.com/354164/these-six-forces-will- disrupt-the-telecommunications-industry-by- 2020/
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Telecom Industry