18373773 report on telecom sector in india
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7/29/2019 18373773 Report on Telecom Sector in India
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Contents:1Introduction
2TelecomSectorinIndia
3HistoryofIndianTelecommunication
4TelecomServiceAvailableinIndia
5RestraintsonTelecomSector
6Conclusion7References
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INTRODUCTIONTheworldiswaitingatourdoorsteps,waitingforustoopenthegatestoaneconomybubblingwithopportunities.TheIndiagrowthstoryhasalreadygottheworldtositupandtakeanoteofthechangingeconomicscenario.TheIndiangovernmentisdoingeverythingthatispossibletoensurethatthisstoryremainsintact.Factors,liketheliberalizationinthegovernmentstanceandthedaringentrepreneursoftheIndiansoils,havehelpedthesectorsachievethehighslikeneverbefore.Andcurrently,theflavourofthemonthseemstobethetelecomindustry.
TELECOMSECTORININDIAThetelecomindustryisoneofthefastestgrowingindustriesinIndia.Indiahasnearly200milliontelephonelinesmakingitthethirdlargestnetworkintheworldafterChinaandUSA,withagrowthrateof45%.Indiantelecomindustryhasthehighestgrowthrateintheworld.Arecord5.9MillionnewmobilephonesubscribersweredrawnbytheTelecomsectorinIndiainthemonthofAugust2006,accordingtotheCOAI(CellularOperatorsAssociationofIndia).India,whichisseeingover8millionwirelesssubscribersbeingaddedeverymonth(8.62millioninMay2008),isthefastestgrowingtelephonemarketintheworld.NowonderthewholeworldhassetitseyesonIndia,aglimpseofwhichcanseenfromtherecentacquisitionofHutchbyVodafoneandconsolidationphasewhichhasjustbegun.Thegovernmenthasreiteratedthetarget
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of500milliontelecomsubscribersand20millionbroadbandconnectionsby2010.Undoubtedly,theIndiantelecomindustryisataninflexionpointandeveryonewantstohaveasliceofthislucrativemarket,giventheunder-penetratedmarketanduntappedpotential.
Fromamonopolisticmarketin1995tomorethan10operatorsnowâ¦IndiahascomealongwayTheAugustof1995sawthelaunchofthefirstmobileserviceinIndia,âModiTelstraâinCalcutta.However,thecallratestructure;withanoutgoingcallrateofRs.16aminute,incomingcallrateofRs.8aminuteandcellphonescostingaroundRs.15,000weretheprimereasonswhythecellularcommunicationdidnotgetthedesiredpopularity.TheNewTelecomPolicyin1999introducedseveralconsumer-friendlyinitiatives.OnlyaftertheentryofprivateoperatorslikeBhartiAirtel,Hutch,Reliance,Tata,BPL,Idea,etc.,whocreatedacompetitivemarketwhichfurtherreducedoperationalcosts,didtheupwardtrendinthenumberofmobilesubscribersstarted.ThetariffshavecomedownsubstantiallywithIndianMobileratesbeingthelowestintheworld.Thenumberofwirelesssubscribersrosefrom16millionin2003to317millionattheendofMay2008.Withthis,Indiahasbecomeoneofthefastestgrowingmobilemarketsintheworld.Already,TheIndianmarketleader,BhartiAirtelhasalreadycrossedthe50millioncustomermarktobecomeoneoftheworldâstop10operatorsandhasbecomethefastestprivatetelecomcompanyintheworldtoachievethismilestone.
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HISTORYOFINDIANTELECOMMUNICATIONHistoryofIndianTelecommunicationsstartedin1851whenthefirstoperationallandlineswerelaidbythegovernmentnearCalcutta(seatofBritishpower).TelephoneserviceswereintroducedinIndiain1881.In1883telephoneservicesweremergedwiththepostalsystem.IndianRadioTelegraphCompany(IRT)wasformedin1923.Afterindependencein1947,alltheforeigntelecommunicationcompanieswerenationalizedtoformthePosts,TelephoneandTelegraph(PTT),amonopolyrunbythegovernment'sMinistryofCommunications.Telecomsectorwasconsideredasastrategicserviceandthegovernmentconsidereditbesttobringunderstate'scontrol.Thefirstwindofreformsintelecommunicationssectorbegantoflowin1980swhentheprivatesectorwasallowedintelecommunicationsequipmentmanufacturing.In1985,DepartmentofTelecommunications(DOT)wasestablished.Itwasanexclusiveproviderofdomesticandlong-distanceservicethatwouldbeitsownregulator(separatefromthepostalsystem).In1986,twowhollygovernment-ownedcompanieswerecreated:theVideshSancharNigamLimited(VSNL)forinternationaltelecommunicationsandMahanagarTelephoneNigamLimited(MTNL)forserviceinmetropolitanareas.In1990s,telecommunicationssectorbenefitedfromthegeneralopeningupoftheeconomy.Also,examplesoftelecomrevolutioninmanyothercountries,whichresultedinbetterqualityofserviceandlowertariffs,ledIndianpolicymakerstoinitiateachangeprocessfinallyresultinginopeningupoftelecomservicessectorfortheprivatesector.NationalTelecomPolicy(NTP)1994was
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thefirstattempttogiveacomprehensiveroadmapfortheIndiantelecommunicationssector.In1997,TelecomRegulatoryAuthorityofIndia(TRAI)wascreated.TRAIwasformedtoactasaregulatortofacilitatethegrowthofthetelecomsector.NewNationalTelecomPolicywasadoptedin1999andcellularserviceswerealsolaunchedinthesameyear.
IndianTelecomIndustryisoneofthefastestgrowingtelecommarketsintheworldwiththetelecomsubscriberbasestandingat~300.48millionasof31stMarch2008.
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TELECOMSERVICEAVAILABLEININDIAThetelecomservicesavailableinIndiainclude1.2.3.4.5.6.BasicFixedLineServicesMobileServices(GSM&CDMA)InternetServicesInternationalLongDistanceServicesNationalLongDistanceServicePagerServicesThetelecomsubscriberbaseasof31stMarch2008was300.48millioncomparedto6.4millionand3.6millionattheendoftheMarchof2002and2001respectively.Telecomsubscriberason31stmarch20081.2.
Wirelinesubs39.42mnWirelesssubs261.07mn-GSM192.7mn-CDMA68.37mn
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GSMvs.CDMAGSMandCDMAarethetwomaincompetingnetworktechnologiesdeployedbycellularserviceproviderâsworldover.GSM(GlobalSystemforMobileCommunications)originatedinEuropein1990.TheGSMAssociationisaninternationalorganizationfoundedin1987,dedicatedtodeveloping,providingandoverseeingtheworldwidewirelessstandardofGSMWhileCDMA(CodeDivisionMultipleAccess)isaproprietarystandarddesignedbyQualcommIncinUnitedStatesandhasbeenthedominantnetworkstandardforNorthAmericaandpartsofAsia.Itbecameaninternationalstandardin1995.Howevernow,GSMnetworkshavepenetratedtheUnitedStatesandtheCDMAnetworkshavespreadinotherpartsoftheworld.Peopleofboththecampsclaimthattheirarchitectureissuperiortotheother.
RESTRAINTSONTELECOMSECTORïSluggishpaceofreformprocessï
Lackofinfrastructureinsemi-ruralandruralareas,whichmakesitdifficulttomakeinroadsintothismarketsegmentLimitedSpectrumavailability
ï
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CONCLUSIONIndiaishugemarketandnoneofserviceproviderscandaretoignoreitspotential.ThatâswhyIndianmobileserviceproviderindustryisgrowingleapandbounceforthelastdecade.Thisjourneyof1millionto50millionwillkeepitpaceuntileachcitizeninIndiawillhavehisownmobile.Industryhasmanyphasesinitsgrowth.Nowmobiledoesnâtmeanaonlyamediumofcommunication.Servicesprovidersarenowwillingtoprovidevariesfacilitieslikeentertainment(music,videoetc.)andevenbankingalso.Wecansaythatbusinessistransformingine-commercetomcommerce(mobile-commerce).Inshortwecansaydrasticchangehascameintheindustryalongwithexpandingitsbaseinsubscribers,theyarekeepingeyenotonlytooffernewfacilitiesbutalsotobethefirsttoprovideit.
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