PRESENTED BY:

FAIZAN MAIRAJ & FAHAD RIYAZ

GLOBAL TELECOMMUNICATION

INDUSTRY

The analyst firm has issued a report that indicates the global

telecom analytics market could reach a whopping $4,296.6

MILLION by 2019, which will be up from $975.2 MILLION

by the end of this year. The Markets and Markets’ report sets

out to define and analyze the market based on various software

applications, hardware types, service types, and user types, while

also forecasting future market growth and identifying

opportunities, hurdles, and trends.

Global Telecom industry will witness growth, a CAGR (Compound

Annual Growth Rate) of 9.1 percent over the period 2012-2016. Top

key factors contributing to the market growth is unlimited demand for

bandwidth in wireless networks. Global Telecom industry will also be

witnessing an increased preference for greener technology. Currently,

there are 4.6 BILLION mobile users globally, and 2.8 BILLION

Internet. Researchers forecast that by 2020, the number of mobile

users will reach 6 BILLION and the number of people accessing the

Internet will reach 4.7 BILLION, primarily through their mobile

devices.

Rise of Cloud Services

• Cloud-based offerings from telecom operators and ICT providers

will grow in future. Cloud Computing market size is expected to

grow by $241 BILLION by 2020. Decentralized computing,

requires flexible, reliable and secure connectivity solutions else

“No cloud without a network”.

Wireless Network Infrastructure 2020

• It will be driven by the thriving ecosystem, in coming 6 years, TD-

LTE infrastructure investments on macro cell and small cell

equipment are expected to grow at a CAGR of 15% and eventually

reaching $13 BILLION by the end of 2020.

Telco 2.0 New Business Models

• It describes the six growth opportunity areas for the Telecoms

industry, identifies new categories of operators, benchmarks the

primary strategies needed by each to evolve and thrive in the new

industry environment and also highlights leading examples of Telco

business model innovation.

Mobile traffic forecasts 2010-2020

• Worldwide mobile traffic is expected to reach more than 127 EB by

2020, representing a 33 times increase compared with 2010. From

2010 to 2020, total daily mobile traffic in the representative Western

European country will grow 67 times from 186 TB to 12540 TB.

Well, it may lead to network congestion. But, Operator will have a

range of options having a significant impact on CAPEX. They will

also need to adapt backhauling capacity and should opt for Traffic

prioritization along with improved Radio Access Network.

Mobile M2M

• M2M Industry to hit $4.5T by 2020. M2M technology is beneficial

in many ways and is applicable to a number of industries and

technologies. The most frequent examples include automotive safety

such as sending out a distress signal at the moment a car impacts

another car or object with GPS coordinates. The same possibilities in

healthcare and in other sectors are equally helpful. M2M industry in

India has the potential to reach $100 million by 2016.

Big Data

• IDC Researcher’s forecasted that the revenues for big datatechnology infrastructure to grow by 40% per annum for the nextthree years. It grew to 1.8 zettabytes in 2011 and will reach 35ZETTABYTES by 2020. It means ten-fold increase over the lastfive years and an astounding 29-fold increase over the next tenyears. By end of this year, the world’s digital information isexpected to grow by 57%. Out of which the internet traffic willgrow by 35% and mobile data traffic will go up to 110%.

Emphasis of manufacturing base in India by 2020

• Global Telecom Equipment Scenario: A $290 BILLION industry-one of the top high-tech Industry. Out of which India consumednearly RS 54,000 CR of equipment last FY. Majority of networkinfrastructure equipment is imported & handset production hasmoved up in last few years. To become global leaders, focus shouldbe on building Indian Products, Build global economies of scale inmanufacturing & Create strong sales push in India as well asinternationally

INDIAN TELECOMMUNICATION

INDUSTRY

REVENUE GENERATION

• According to VOICE & DATA ANNUAL SURVEY, the

industry grew by a healthy rate of 10.8 % thanks the robust

growth witnessed in services space. In FY 2013-14, Indian

Telecom Industry registered total revenues of Rs. 4,29,087

Crore are compared to Rs 3,87,298 Crore in the previous

financial year.

FUTURE TRENDS

• According to the estimates of the consulting firm,

RANDSTAD INDIA, the sector is going to be responsible for

generation of 40 LAKH direct and indirect jobs over the next 5

years. This is owing to the government’s efforts to increase

penetration in rural areas along with the growth in the

smartphone numbers and internet usage.

The number of telephone subscribers in India increased from 951.84

MILLION at the end of August, 2014 to 957.61 MILLION at the

end of September, 2014, thereby showing a monthly growth rate of

0.61%.

NUMBER OF USERS

The overall Tele-density in India

increased from 76.36 at the end of

August, 2014 to 76.75 at the end of

September, 2014. The Urban Tele-

density increased from 147.54 to 148.07

and Rural Tele-density increased from

44.67 to 44.96 in the month of

September 2014. The shares of urban

subscribers and rural subscribers at the

end of September, 2014 were 59.48%

and 40.52% respectively.

TELE-DENSITYIts a measurement of how many telephones are available, expressed as the

number of telephone lines for every 100 people in a country.

OVERALL TELE-DENSITY (CIRCLE/STATE WISE)

AS ON 30TH SEPTEMBER, 2014

ACCESS SERVICE PROVIDER-WISE MARKET

SHARES IN THE WIRELESS SUBSCRIBERS AS

ON 30TH SEPTEMBER, 2014

Porter’s Five Forces

THREAT OF NEW ENTRANTS

• Ownership of a telecom

license

• Finance

THREAT OF SUBSTITUTES

• Cable TV direct lines,

broadband services

POWER OF SUPPLIERS

• Less power

• Talented managers & engineers

POWER OF BUYERS

• Increased choice high

bargaining power

• Switching costs individual &

large business customers.

RIVARLY AMONG EXISTING FIRMS WITHIN AN INDUSTRY

• Usage of phone,

competition is high

• Price

• Value added services

• Profitability low

WHAT IS SERVICES MARKETING

TRIANGLE?The marketing and selling of services requires a special set of tactics

and priorities compared with selling physical products. The service

marketing triangle breaks the marketing tasks of your business down

into three types. As a service business, you must market both to your

employees so they understand the focus of your business and to your

customers so they do more business with you.

INTERNAL MARKETING

• Internal marketing is the side of the triangle between your

organization and your employees who provide your services

to customers. Marketing issues include adequate training on

the services to be delivered and customer satisfaction service

techniques. Internal marketing requires you to be involved with

your employees and let them know the goals and even

problems facing the business.

EXTERNAL MARKETING

• External marketing goes from your business organization out

to customers. This is the traditional form of business

marketing, showing customers how the services provided by

your business benefit them. External marketing includes

advertising, your website and your company's social media

efforts.

INTERACTIVE MARKETING

• The side of the triangle between your employees and

customers is called interactive marketing. This form of

marketing revolves around how your employees deliver the

services your company provides. The goal is to have highly

satisfied customers who become long-term, repeat customers.

Also known as MOMENT OF TRUTH.