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    Analysis of the Indian Telecom Industry

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    Analysis of the Indian telecom industry

    JAI HIND COLLEGE

    BASANTSING INSTITUTE OF SCIENCE &

    J.T. LALVANI COLLEGE OF COMMERCE

    Bachelor of Management Studies

    Yashh Berry

    YEAR : 2011-2012

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    JAI HIND COLLEGE

    BASANTSING INSTITUTE OF SCIENCE &

    J. T. LALVANI COLLEGE OF COMMERCE

    23-24, Backbay Reclamation, A Road, Churchgate, Mumbai 400 020

    Bachelor of Management Studies

    Analysis of the Indian telecom industry

    Name of the Student: Yashh Berry

    Seat No.: _____________

    Name of the Guide: Mrs. Adarsh Suri

    Date: ________________

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    DECLARATION

    I, Yashh Berry of Jai Hind College of T.Y.B.M.S. (Semester V) hereby

    declare that I have completed this project on Analysis of the Indian

    Telecom Industry in the Academic year 2011-2012. The information

    submitted is true and original to the best of my knowledge.

    Signature of the Student

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    CERTIFICATE

    I, Mrs. Adarsh Suri hereby certify that Yashh Berry of Jai Hind College of

    T.Y.B.M.S. (Semester V) has completed this project on Analysis of the

    Indian Telecom Industry in the Academic year 2011-2012. The

    information submitted is true and original to the best of my knowledge.

    Signature of the Signature of the Principal

    Project Coordinator of the College

    Signature of the Signature of External

    Course Coordinator Examiner

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    ACKNOWLEDGEMENT

    It has always been my sincere desire as a management student to get an opportunity to

    express my views, skills, attitude and talent in which I am proficient. A project is one such

    avenue through which a student who aspires to be a future manager does something creative.

    This project has given me the chance to get in touch with the practical aspects of

    management.

    I am extremely grateful to the University of Mumbai for having prescribed this project work

    to me as a part of the academic requirement in the Bachelor of Management (BMS) course.

    I wish to appreciate the BMS Coordinator of Jai Hind College, Dr. Rakhi Sharma for her

    valuable inputs. I would also like to thank the management and staff of Jai Hind College,

    BMS for providing the entire state of the art infrastructure and resources to enable the

    completion and enrichment of my project.

    I wish to extend a special thanks to my project Guide Mrs. Adarsh Suri without whoseguidance, the project may not have taken shape.

    Finally, I thank all my friends and family members who have directly or indirectly helped me

    towards the execution of this project.

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    Executive Summary

    In todays information age, the telecommunication industry has a vital role to play.

    Considered as the backbone of industrial and economic development, the industry has been

    aiding delivery of voice and data services at rapidly increasing speeds, and thus, has been

    revolutionising human communication.

    Although the Indian telecom industry is one of the fastest-growing industries in the world,

    the current teledensity or telecom penetration is extremely low when compared with global

    standards. As majority of the population resides in rural areas, it is important that the

    government takes steps to improve rural teledensity. No doubt the government has taken

    certain policy initiatives, which include the creation of the Universal Service Obligation

    Fund, for improving rural telephony. These measures are expected to improve the rural tele-

    density and bridge the rural-urban gap in tele-density.

    Over the years, the Indian Telecom Industry has contributed significantly towards Indias

    economic as well as social development.

    The size of the telecom industry in terms of subscriber base has grown by more than 5 times

    in a span of 5 years. The subscriber base has increased from 77.64 mn in FY04 to 429.72 mn

    in FY09, which can be largely attributed to the significant reduction in tariffs during the last

    few years on account of intense competition.

    Teledensity in India has also witnessed substantial improvement backed by robust growth in

    subscriber base. While the teledensity has improved substantially to 36.98% by end of FY09

    from just above 2% in FY99, there still exists a huge digital divide between the urban and

    rural areas. On one hand the urban teledensity at 89% indicates a rapidly saturating urban

    market and on the other hand teledensity of less than 20% in rural areas points to a huge

    potential for growth in the telecom industry.

    Despite the Indian economy witnessing a significant slowdown in growth on account of the

    global economic crisis, the Indian telecom industry has shown resilient performance - with

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    revenue growth of approximately 18% (y-o-y) during FY09.

    The subscriber base of internet services reached 13.5 mn on March 31, 2009, as compared to

    0.09 mn in 1997, primarily driven by the rapid growth in subscriber base of the incumbent

    public sector. However, internet penetration in India is substantially lower than international

    standards. Limited fixed line coverage, low PC adoption, cost of operation and maintenance,

    low penetration in urban and rural population, service pricing and low computer literacy has

    affected internet penetration in India.

    The Indian telecom sector offers unprecedented opportunities in various areas, such as rural

    telephony, 3G, virtual private network, value-added services, et al. Nonetheless, the lack of

    telecom infrastructure in rural areas, lowering telecom tariffs, falling ARPU of telecomservice providers, lack of telecom infrastructure in semi-rural and rural areas, could inhibit

    the future growth of the industry.

    Over the years, the telecom industry in India has emerged as the third highest recipient of

    FDIa clear indication that the sector has tremendous potential. Moreover, the Indian

    telecom industry has been able to offer the lowest tariffs in the world due to the competitive

    environment that prevails in the sector. However, despite being the most competitive and

    high growth telecom market in the world, the rural market remains highly underpenetrated.

    This is a huge opportunity for further growth and service providers are expected to tap into

    this nascent opportunity in the near future. Combined with the proliferation of newer

    technologies involving wireless communications and initiatives such as e-Agriculture, e-

    Health, e-Education, and rural BPOs, telecom penetration in rural areas is likely to increase

    manifold.

    Indias high potential in telecommunications will eventually be realised on the back of

    improving telecom infrastructure, favourable investment climate, competitive tariffs,

    positive reforms and policy focus on increasing rural telecom coverage.

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    INDEX

    SR

    NO.CONTENTS

    PG

    NO.

    1. Introduction to the Indian Telecom Industry 9

    2. History of Cellular Telephony In India 11

    3. Evolution of Indian Telecom Industry 12

    4. Indepth Analysis of Indian Telecom Industry 14

    6. Mobile Network Operators in Recent Times 21

    7. Government Policy 30

    8. Case Study on Airtel 37

    9. Circles in India 43

    10. Research Methodology 44

    11. Information Analysis 50

    12. Project MOST 54

    13. Bibliography 57

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    Introduction to the Indian Telecom Industry

    Last year, the telecom industry saw an intense tariff war as a result of which tariffs fell to

    rock bottom levels and the rediscovery of the value of a paisa. Growth in the mobile voice

    segment continued robustly, however, broadband continued to lag behind. While significant

    inroads were made into the rural areas by private operators, the pace of rural penetration

    could have been further enhanced with the launch of new schemes supported by the USO.

    The most important event of the year was the launch of 3G (Mobile Broadband) services in

    the country. After the successful auctions of 3G spectrum, operators have now started rolling

    out the services.

    3G will not only lead to introduction of new VAS applications but will also give a boost to

    initiatives on new revenue streams such as m-education, m-governance, telemedicine and

    most importantly will become the backbone for the broadband penetration. There will be

    significant increase in the number of persons accessing the internet from their mobile

    platforms. Other trends expected with 3G are that data will be segmented and the plans will

    be tailor-made for different segments of the population. The tariff plans are expected to be

    competitive and innovative. Though I believe that initially the take up of 3G services will be

    concentrated more among urban subscribers and gradually it will move towards rural areas.

    Another important event of the year was the successful implementation of Mobile Number

    Portability (MNP) in the country. COAI took a lead in this initiative and made the launch of

    MNP a success due to its untiring efforts along with the Ministry of Communication, TRAI

    and the Telecom Industry. No other country had introduced MNP as quickly when there was

    this level of complexity with ten to twelve players operating in twenty two telecom circles,

    two MNPOs, several ILD and NLD carriers and over 700 million subscribers. This laudable

    achievement was made possible due to the successful Public-Private Partnership of Ministry,

    DoT, TRAI, Service Providers and the MNPOs.

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    In fact, within two months of introduction of MNP, the predictions made by COAI regarding

    the preferred service providers selected by customers were also confirmed. In the data

    released by TRAI, it was evident that the GSM players are the preferred option selected by

    the cellular subscribers. It is a world-wide trend that consumers of mobile services preferGSM over CDMA. GSM networks are hailed for their better network quality, wide selection

    of valued added services and a variety of handsets and open networking systems.

    Growth of Wireless Industry in India

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    History of Cellular Telephony In India

    1992 Telecommunication sector in India liberalized to bridge the gap through government

    spending & to provide additional resources for the nations telecom target. Private

    sector allowed participating

    1993 The telecom industry gets an annual foreign investment Rs 20.6 million

    1994 License for providing cellular mobile services granted by the government of India

    for the Metropolitan cites of Delhi, Mumbai, Kolkata & Chennai. Cellular mobile

    service to be duopoly (i.e. not more than two cellular mobile operators could be

    licensed in each telecom circle), under a fixed license fee regime for 10 years.

    1995 19 more telecom circles get mobile licenses

    1995(August) Kolkata became the first metro to have a cellular network

    1997 Telecom Regulatory Authority of India is set up

    1998 Annual foreign investment in telecom stands at Rs 17,756.4 million.

    1999 FDI inflow into telecom sector falls by almost 90% to Rs. 2126.7 million

    1999 Tariff rebalancing exercise gets initiated

    1999(March) National Telecom Policy is announced.

    2000(June) FDI inflow drops further down to Rs 918 million coming

    2000 (January) Amendment of TRAI Act.

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    Evolution of the Indian Telecom Industry

    Indian telecom sector is more than 165 years old. Telecommunications was first introduced in India in 1851

    when the first operational land lines were laid by the government near Kolkata (then Calcutta), although

    telephone services were formally introduced in India much later in 1881. Further, in 1883, telephone

    services were merged with the postal system. In 1947, after India attained independence, all foreign

    telecommunication companies were nationalised to form the Posts, Telephone and Telegraph (PTT), a body

    that was governed by the Ministry of Communication. The Indian telecom sector was entirely under

    government ownership until 1984, when the private sector was allowed in telecommunication equipment

    manufacturing only. The government concretised its earlier efforts towards developing R&D in the sector by

    setting up an autonomous bodyCentre for Development of Telematics (C-DOT) in 1984 to develop state-

    of-the-art telecommunication technology to meet the growing needs of the Indian telecommunication

    network. The actual evolution of the industry started after the Government separated the Department of Post

    and Telegraph in 1985 by setting up the Department of Posts and the Department of Telecommunications

    (DoT).

    The entire evolution of the telecom industry can be classified into three distinct phases.

    Phase I- Pre-Liberalisation Era (1980-89)

    Phase II- Post Liberalisation Era (1990-99)

    Phase III- Post 2000

    Until the late 90s the Government of India held a monopoly on all types of communicationsas a result of

    the Telegraph Act of 1885. As mentioned earlier in the chapter, until the industry was liberalised in the

    early nineties, it was a heavily government-controlled and small-sized market, Government policies have

    played a key role in shaping the structure and size of the Telecom industry in India. As a result, the Indian

    telecom market is one of the most liberalised market in the world with private participation in almost all of

    its segments. The New Telecom Policy (NTP-99) provided the much needed impetus to the growth of this

    industry and set the trend for liberalisation in the industry.

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    In-depth Analysis of the Indian Telecom Industry

    The Indian telecommunications has been zooming up the growth curve at a feverish pace, emerging as one

    of the key sectors responsible for India's resurgent economic growth. India is has surpassed US to become

    the second largest wireless network in the world with a subscriber base of over 300 million in April,

    according to the Telecom Regulatory Authority of India (Trai).

    Segment-wise growth

    Wireless segment has emerged as the preferred mode of telephone service by the consumers, reflected in the

    rising share of mobile phone connections to total connections.

    1. The share of mobile phones has increased from 71.69 per cent at the end of March 2009 to 87.68 per

    -cent at the end of May 2010.

    2. While total mobile subscriber base was 277.92 million, wire line subscriber base was 39.05 million.

    3. Consequently, overall tele-density has increased to 27.59 per cent at the end of May 2010. India is

    likely to be second largest mobile market in the BRIC nations, with560 million mobile users representing the

    next great growth curve for both mobile and interactive marketing industries, according to a report by

    Marketers.

    Investment

    The booming domestic telecom market has been attracting accelerating amount of investment. During April

    2000 to March 2008, cumulative FDI inflows into the Indian telecommunications sector amounted to US$

    3.84billion, accounting for 6.81 per cent of the total FDI inflows into the country.In fact, the surge in mobile

    services market is likely to see huge amount of investment implying a mobile in the hands of every second

    person in the country. Buoyed by the rapid surge in the subscriber base, huge investments are being made

    into this industry by companies like

    Maxis Communications-owned mobile service provider Aircel

    Isrei Group's Quippo Telecom Infrastructure Ltd (QTIL)

    The Central public sector enterprises(CPSEs) have lined upinvestments for infrastructure sectors like

    telecom energy and power for2008-09.

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    Vodafone Essar will invest US$ 6 billion over the next three years in a bid to increase its mobile

    subscriber base from 40 million at present to over100 million.

    ManufacturingIndia is emerging as a handset super-power as more manufacturers set up base in the country, it is not only

    the world's fastest-growing telecom market but it is also making remarkable progress in the telecom

    manufacturing space. The Indian telecom equipment manufacturing sector is set to become one of the largest

    globally by 2010.Simultaneously, India's surging domestic market is also providing excellent investment

    opportunities in other segments of telecom equipment industry.

    Nokia Siemens Networks (NSN) is shifting its global services business unit headquarters from

    Munich to India.

    Nokia set up its manufacturing plant in Chennai

    Samsung has set up its GSM mobile manufacturing base in Manesar.

    Motorola has established a manufacturing plant in Sriperumbedur.

    Sony Ericsson has set up GSM Radio Base Station Manufacturing facility in Jaipur and R&D centre

    in Chennai.

    LG Electronics set up plant of manufacturing GSM mobile phones near pune.

    Elcoteq has set up handset manufacturing facilities in Bangalore

    Value Added Services Market

    India's runaway success in mobile telephony has also given a boost to the mobile value added services

    (MVAS) market. According to a study by Stanford University and consulting firm BDA, the Indian MVAS

    is likely to grow at a CAGR of 44 per cent 2012.

    Government Initiatives

    The Government has taken many proactive initiatives which has provided a framework for the rapid growth of

    the telecom industry.

    Opening the industry for private sector participation.

    100 per cent FDI is permitted in telecom equipment manufacturing through the automatic route.

    FDI ceiling in telecom services has been raised to 74 per cent.

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    Establishment ofan independent regulator - the Telecom Regulatory Authority of India (TRAI)-for the

    telecom sector.

    Introduction of a Unified access licensing regime for telecom services on a pan-India basis.

    Implementation of New Telecom Policy (NTP'99).

    Introduction of Calling Party Pay (CPP) regime and lowering of access deficit coupled with introduction of

    revenue share regime in ADC.

    Introduction of Mobile Number Portability in a phased manner, starting with the fourth quarter of 2008.

    Allowing service providers to share active infrastructure.

    Road Ahead

    According to a report by Boston Consulting Group, while only one in 20of the world's first two billion

    mobile subscribers live in India, as many as one in every four of the next billion subscribers will be an

    Indian.

    The department of telecommunication estimates the total subscriber base to total 500 million by 2012, out

    of which 80 million are expected to be from rural areas.

    The Indian telecom industry's revenue, likewise, is estimated to increase, which according to Ernst &

    Young is expected to total US$ 35billion, accounting for 3.6 per cent of the total GDP of the country .With

    such growth projection, this industry is likely to see increased investments. In fact, total investment is

    projected at US$ 76.6 billion during the eleventh plan period (2007-12). Private sector is estimated to

    continue its dominant share, accounting for 67 per cent of the total projected investment while public sector

    accounts for the rest.

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    Top players

    The top players based on cellular subscriber (in millions) base were

    Cellular services can be divided into two categories:

    1) Global System for Mobile Communications (GSM)

    2) Code Division Multiple Access (CDMA).

    The GSM sector is dominated by Airtel, Vodafone-Hutch, and Idea Cellular, while the CDMA sector is

    dominated by Reliance and Tata Indicom.

    Surprisingly, CDMA market has increased its market share up to 30% thanksto Reliance Communication.

    However, across the globe, CDMA has been losing out numbers to popular GSM technology, contrary to

    the scenario in India

    Reasons for growth

    The two major reasons that have fuelled this growth are

    1.Low tariffs

    2.Falling handset prices.

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    Problems faced by the bottlenecks for ' Indian Telecom Industry ' are:

    Slow reform process.Low penetration.

    Service providers bears huge initial cost to make inroads and achieving break-even is difficult.

    Lack of infrastructure in semi-rural and rural areas, which makes it difficult to make inroads into this

    market segment as service providers have to incur a huge initial fixed cost.

    Huge initial investments.

    Limited spectrum availability and interconnection charges between the private and state operators.

    Rural Telecom Marketan emerging market

    According to numbers compiled by the Telecom Regulatory Authority of India, nearly 21 per cent of the

    mobile user base now reside in the villages of India, where a few years ago none of the operators wanted to

    venture. As on September 2011, out of the 209 million mobile users in the entire country,43 million were in

    rural areas.

    Rural India will wrest 40 percent of new telecom market Indias rural telecom connectivity is poised for

    explosive growth in the next five to 10 years, grabbing a 40 percent share of the new market, a study

    released Wednesday said. Of the estimated new 250 million Indian wireless users, in next 5-10 years

    approximately 100 million will be from rural areas,said the study by the Federation of Indian Chambers of

    Commerce and Industry (Ficci) and Ernst and Young. Operators have demonstrated they can achieve

    profitability by reducing fixed costs, controlling variable costs and carefully tailoring services to the

    requirements of their customers. A similar model with minor customization could be emulated in the rural

    areas. The government will roll out new incentives for mobile networks in rural India. Its also planned that

    the ultra-low cost handset of approximately Rs.840($20) to the market with built-in subsidies, lifetime

    validity and minimal maintenance costs have promoted mobile usage in remote areas. Moreover, operators

    could learn from business models that have been experimented across the developing world for expanding

    rural connectivity.

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    Reasons for rural inclination

    Far from being considered as a social obligation , offering telecom services in rural areas has now become

    the hot spot for private telecom operators. Nearly 75 per cent of the mobile users in the villages are now

    owned by private operators as cellular phones catch the imagination of rural consumers. Until now, state-owned Bharat Sanchar Nigam Ltd was known to be the only significant rural telecom operator in the

    country .Analysts said that the share of rural telecom consumers will continue to increase as operators have

    initiated an aggressive roll-out plan to cover remote areas of the country. This is primarily driven by a slump

    in the growth rate of mobile user base in the metro and urban areas. According to the data released by the

    Cellular Operators Association of India Circle C and Circle B States such as Bihar, Kerala, Madhya Pradesh

    and Punjab are showing better growth rates compared to the metros. Therefore, most of the mobile operators

    are investing heavily in setting up infrastructure in these circles. The telecom regulator has suggested a

    number of initiatives to make mobile connection attractive , including lower entry cost to make it more

    affordable.

    .

    All India GSM Cellular Subscriber Base

    Industry added record highest number of163 Million GSM subscribers globally during 2010.

    India recorded the highest monthly GSM subscriber addition of over 17 Million.

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    All India Cellular Subscribers- Annual Net Additions

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    Mobile Network Operators in Recent Times

    Aircel

    Aircel group is an Indian mobile network operator headquartered in Chennai, Tamil Nadu,

    that provides wireless voice, messaging and data services in India. It is a joint venture

    between Maxis Communications Berhad of Malaysia and Sindya Securities & Investments

    Private Limited, whose current shareholders are the Reddy family of Apollo Hospitals Group

    of India, with Maxis Communications holding a majority stake of 74%. Aircel commenced

    operations in 1999 and is today the leading mobile operator in Tamil Nadu, Assam, North-East and Chennai.

    It is Indias fifth largest GSM mobile service provider & seventh largest mobile service

    provider (both GSM and CDMA) with a subscriber base of over 51.83 million, as of January

    31, 2011. It has a market share of 6.72% among the GSM operators in the country.

    Additionally, Aircel has also obtained permission from Department of

    Telecommunications (DoT) to provide International Long Distance (ILD) and National Long

    Distance (NLD) telephony services. It also has the largest service in Tamil Nadu.

    http://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/Chennai,_Tamil_Naduhttp://en.wikipedia.org/wiki/Department_of_Telecommunicationshttp://en.wikipedia.org/wiki/Department_of_Telecommunicationshttp://en.wikipedia.org/w/index.php?title=International_Long_Distance&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=National_Long_Distance&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=National_Long_Distance&action=edit&redlink=1http://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/w/index.php?title=National_Long_Distance&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=National_Long_Distance&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=International_Long_Distance&action=edit&redlink=1http://en.wikipedia.org/wiki/Department_of_Telecommunicationshttp://en.wikipedia.org/wiki/Department_of_Telecommunicationshttp://en.wikipedia.org/wiki/Chennai,_Tamil_Naduhttp://en.wikipedia.org/wiki/Mobile_network_operator
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    Airtel

    Bharti Airtel Limited, commonly known as Airtel, is an Indian telecommunications

    company that operates in 20 countries across South Asia, Africa and the Channel Islands. It

    operates a GSM networkin all countries, providing 2G or 3Gservices depending upon the

    country of operation. Airtel is the fifth largest telecom operator in the world with about

    230.8 million subscribers across 19 countries at the end of June 2011. It is the largest cellular

    service provider in India, with over 173.73 million subscribers at the end of October 2011.

    Airtel is the third largest in-country mobile operator by subscriber base, behind China

    Mobile and China Unicom.

    Airtel is the largest provider ofmobile telephony and second largest provider offixed

    telephony in India, and is also a provider ofbroadband and subscription television services. It

    offers its telecom services under the Airtel brand and is headed by Sunil Bharti Mittal. Bharti

    Airtel is the first Indian telecom service provider to achieve this Cisco Gold Certification. To

    earn Gold Certification, Bharti Airtel had to meet rigorous standards for networking

    competency, service, support and customer satisfaction set forth by Cisco. The company also

    provides land-line telephone services and broadband Internet access (DSL) in over 96 cities

    in India. It also acts as a carrier for national and international long distance communication

    services. The company has a submarine cable landing station at Chennai, which connects the

    submarine cable connecting Chennai and Singapore.

    http://en.wikipedia.org/wiki/Channel_Islandshttp://en.wikipedia.org/wiki/GSM_networkhttp://en.wikipedia.org/wiki/2Ghttp://en.wikipedia.org/wiki/3Ghttp://en.wikipedia.org/wiki/List_of_mobile_network_operatorshttp://en.wikipedia.org/wiki/List_of_mobile_network_operators_of_Indiahttp://en.wikipedia.org/wiki/List_of_mobile_network_operators_of_Indiahttp://en.wikipedia.org/wiki/China_Mobilehttp://en.wikipedia.org/wiki/China_Mobilehttp://en.wikipedia.org/wiki/China_Unicomhttp://en.wikipedia.org/wiki/Mobile_telephonyhttp://en.wikipedia.org/wiki/Fixed_telephonyhttp://en.wikipedia.org/wiki/Fixed_telephonyhttp://en.wikipedia.org/wiki/Broadband_Internet_accesshttp://en.wikipedia.org/wiki/Pay_televisionhttp://en.wikipedia.org/wiki/Ciscohttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Ciscohttp://en.wikipedia.org/wiki/Pay_televisionhttp://en.wikipedia.org/wiki/Broadband_Internet_accesshttp://en.wikipedia.org/wiki/Fixed_telephonyhttp://en.wikipedia.org/wiki/Fixed_telephonyhttp://en.wikipedia.org/wiki/Mobile_telephonyhttp://en.wikipedia.org/wiki/China_Unicomhttp://en.wikipedia.org/wiki/China_Mobilehttp://en.wikipedia.org/wiki/China_Mobilehttp://en.wikipedia.org/wiki/List_of_mobile_network_operators_of_Indiahttp://en.wikipedia.org/wiki/List_of_mobile_network_operators_of_Indiahttp://en.wikipedia.org/wiki/List_of_mobile_network_operatorshttp://en.wikipedia.org/wiki/3Ghttp://en.wikipedia.org/wiki/2Ghttp://en.wikipedia.org/wiki/GSM_networkhttp://en.wikipedia.org/wiki/Channel_Islands
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    Idea Cellular Limited

    IDEA Cellular is the 3rd largest mobile services operator in India with wireless revenuemarket share at 13.6 %. It recorded a subscriber base of over 93.75 mn as of 31st May 2011.

    Idea is a pan-India integrated GSM operator and has its own NLD and ILD operations, and

    ISP license. Idea won 3G spectrum in 11 service areas which contribute about 80% of the

    companys existing 2G revenues. Idea has now launched 3G services in 9 service areas and is

    committed to extend services in 10 new towns per day to progressively grow to cover 3,200

    towns by the end of FY 2012. Ideas service delivery platform is ISO 9001:2008 certified,

    making it the only operator in the country to have this standard certification for all 22 service

    areas and the corporate office. Idea emerged as the biggest gainer, post the launch of Mobile

    Number Portability in India. Idea Cellular, usually referred to as Idea, is an Indian wireless

    telecom company based in Mumbai, India. Idea has recorded of over 98.4 million customers

    as of August 2011.

    http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbai
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    Uninor

    Uninor is a young mobile operator in India. Uninor holds Unified Access Service Licenses tooffer mobile telephony services in each of Indias 22 circles with spectrum in 21 of these.

    Uninor services are retailed across 320,000 points-of-sale and 622 exclusive stores and over

    1700 distributors. The company employs close to 10,000 direct and partner employees and

    has already crossed the 25 million subscriber mark across India. The 13 telecom circles

    where Uninors services are commercially available together account for over 900 million

    people or 75% of Indias population. Uninor is an Indian mobile network operator based in

    Gurgaon, India. The company holds Unified Access Service(UAS) licences to offer mobile

    telephony services in each of Indias 22 telecom circles, and has received spectrum to roll out

    services in 21 of these (excluding Delhi). The company is a joint venture between Telenor

    Group, a telecommunications company headquartered in Oslo, Norway, and Unitech Group,

    an Indian real estate company. Telenor owns a controlling majority stake in the company

    (67.25%), which has been branded Uninor in the Indian market.

    Uninor offers mobile voice and data services based on the GSM technology, currently on a

    4.4 MHz spectrum. Uninor services are commercially available in 13 circles across India.With a value for money proposition in the market, Uninor targets youth and other

    communities within the Indian mass market.

    http://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/Telenor_Grouphttp://en.wikipedia.org/wiki/Telenor_Grouphttp://en.wikipedia.org/wiki/Oslohttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Oslohttp://en.wikipedia.org/wiki/Telenor_Grouphttp://en.wikipedia.org/wiki/Telenor_Grouphttp://en.wikipedia.org/wiki/Mobile_network_operator
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    Videocon

    Videocon is an industrial conglomerate with interests all over the world, and is a Indian

    multinational company. The group has 17 manufacturing sites in India and plants

    in China, Poland, Italy and Mexico. It is also the third largest picture tube manufacturer in the

    world. The group is a USD 4 billion global conglomerate. Videocon Telecommunications

    Limited, a Videocon group company offers GSM mobile services under the brand name

    .Videocon Mobile Services. The GSM services are being provided in 16 service areas

    namely Andhra Pradesh, Bihar, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala,

    Madhya Pradesh, Maharashtra, Mumbai, Orissa, Rajasthan, Tamilnadu incl. Chennai, UP

    East, UP West & West Bengal and shall soon provide mobile services on a pan-India basis.

    The Videocon group has an annual turnover of 4 billion USD, making it the largest consumer

    electronic and home appliance companies in India. Since 1998, it has expanded its operations

    globally, especially in the Middle East.

    Today the group operates through six key sectors:

    Consumer electronics

    Mobile Phones

    Colour picture tube glass

    Oil and Gas

    DTH

    Telecommunication

    http://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Polandhttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Picture_tubehttp://en.wikipedia.org/wiki/Consumer_electronichttp://en.wikipedia.org/wiki/Consumer_electronichttp://en.wikipedia.org/wiki/Home_appliancehttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Home_appliancehttp://en.wikipedia.org/wiki/Consumer_electronichttp://en.wikipedia.org/wiki/Consumer_electronichttp://en.wikipedia.org/wiki/Picture_tubehttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Polandhttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Conglomerate_(company)
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    Vodafone

    The company now has operations across the country with over 139 million customers.

    Vodafone is one of the world's largest mobile communications companies by revenue with

    over 370 million customers in its controlled and jointly controlled markets as at March 31,

    2011. Vodafone currently has equity interests in over 30 countries across five continents

    Products promoted by the Group include Vodafone live!, Vodafone Mobile Connect USB

    Modem, Vodafone Connect to Friends, Vodafone Passport, Vodafone Freedom Packs,

    Vodafone at Home, Vodafone 710 and Amobee Media Systems. Between June and August

    2009, Vodafone suspended roaming charges within 35 different countries, allowing their

    customers to take their standard UK price plan abroad.

    In October 2009, it launched Vodafone 360, a new internet service for the mobile, PC and

    Mac. On 15 February 2010 Vodafone launched world's cheapest mobile phone known as

    Vodafone 150, will sell for below $15 (10) and is aimed at the developing world. It will

    initially be launched in India, Turkey and eight African countries including Lesotho, Kenya

    and Ghana.

    http://en.wikipedia.org/wiki/Vodafone_live!http://en.wikipedia.org/wiki/Vodafone_Mobile_Connect_USB_Modemhttp://en.wikipedia.org/wiki/Vodafone_Mobile_Connect_USB_Modemhttp://en.wikipedia.org/w/index.php?title=Vodafone_Connect_to_Friends&action=edit&redlink=1http://en.wikipedia.org/wiki/Amobee_Media_Systemshttp://en.wikipedia.org/w/index.php?title=Vodafone_150&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Vodafone_150&action=edit&redlink=1http://en.wikipedia.org/wiki/Amobee_Media_Systemshttp://en.wikipedia.org/w/index.php?title=Vodafone_Connect_to_Friends&action=edit&redlink=1http://en.wikipedia.org/wiki/Vodafone_Mobile_Connect_USB_Modemhttp://en.wikipedia.org/wiki/Vodafone_Mobile_Connect_USB_Modemhttp://en.wikipedia.org/wiki/Vodafone_live!
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    Ericsson

    Ericsson is the world's leading provider of technology and services to telecom operators.

    Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for

    networks with over 2 billion subscribers and has the leading position in managed services.

    The company's portfolio comprises mobile and fixed network infrastructure, telecom

    services, software, broadband and multimedia solutions for operators, enterprises and the

    media industry. Ericsson, one of Sweden's largest companies, is a provider of

    telecommunication and data communication systems, and related services, covering a range

    of technologies, including especially mobile networks. Ericsson is currently the world's

    largest mobile telecommunications equipment vendor with a market share of35%.

    Directly and through subsidiaries, Ericsson also has a major role in mobile devices and cable

    TV and IPTV systems. Ericsson was also the inventor ofBluetooth.

    Founded in 1876 as a telegraph equipment repair shop by Lars Magnus Ericsson, it was

    incorporated on August 18, 1918. Headquartered in Kista, Stockholm Municipality, since

    2003, Ericsson is considered part of the so-called "Wireless Valley". Since the mid-1990s,

    Ericsson's extensive presence in Stockholm has helped transform the city into one of Europe's

    hubs ofinformation technology (IT) research. Ericsson has offices and operations in morethan 180 countries, with more than 17,700 staff in Sweden, and also significant presences in,

    for example, Brazil, China, Finland, India, Ireland, Italy, Hungary, the UK and the US.

    In the early 20th century, Ericsson dominated the world market for manual telephone

    exchanges but was late to introduce automatic equipment. The world's largest ever manual

    telephone exchange, serving 60,000 lines, was installed by Ericsson in Moscow in 1916.

    http://www.reuters.com/article/idUSTRE61G0DS20100217http://en.wikipedia.org/wiki/Subsidiarieshttp://en.wikipedia.org/wiki/Cable_TVhttp://en.wikipedia.org/wiki/Cable_TVhttp://en.wikipedia.org/wiki/IPTVhttp://en.wikipedia.org/wiki/Bluetoothhttp://en.wikipedia.org/wiki/Telegraphhttp://en.wikipedia.org/wiki/Lars_Magnus_Ericssonhttp://en.wikipedia.org/wiki/Kistahttp://en.wikipedia.org/wiki/Stockholm_Municipalityhttp://en.wikipedia.org/wiki/Wireless_Valleyhttp://en.wikipedia.org/wiki/Stockholmhttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Telephone_exchangehttp://en.wikipedia.org/wiki/Telephone_exchangehttp://en.wikipedia.org/wiki/Telephone_exchangehttp://en.wikipedia.org/wiki/Telephone_exchangehttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Stockholmhttp://en.wikipedia.org/wiki/Wireless_Valleyhttp://en.wikipedia.org/wiki/Stockholm_Municipalityhttp://en.wikipedia.org/wiki/Kistahttp://en.wikipedia.org/wiki/Lars_Magnus_Ericssonhttp://en.wikipedia.org/wiki/Telegraphhttp://en.wikipedia.org/wiki/Bluetoothhttp://en.wikipedia.org/wiki/IPTVhttp://en.wikipedia.org/wiki/Cable_TVhttp://en.wikipedia.org/wiki/Cable_TVhttp://en.wikipedia.org/wiki/Subsidiarieshttp://www.reuters.com/article/idUSTRE61G0DS20100217
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    Reliance

    Reliance Communications Ltd. (commonly called RCOM) is anIndian broadband and telecommunications company headquartered in Navi Mumbai, India.

    RCOM is the world's 16th largest mobile phone operator with over 144 million subscribers.

    Established on 2004, a subsidiary of the Reliance Group. The company has five

    segments: Wireless segment includes wireless operations of the company; broadband

    segment includes broadband operations of the company; Global segment include national

    long distance and international long distance operations of the company and the wholesale

    operations of its subsidiaries; Investment segment includes investment activities of the Group

    companies, and Other segment is consists of the customer care activities and direct-to-

    home (DTH) activities.

    It ranks among the top 5 telecommunications companies. Reliance

    Communications corporate clientele includes 2,100 Indian and multinational corporations,

    and over 800 global, regional and domestic carriers. The company has established a pan-

    India, next-generation, integrated (wireless and wireline), convergent (voice, data and

    video) digital networkthat is capable of supporting services spanning the entirecommunications value chain, covering over 24,000 towns and 600,000 villages. Reliance

    Communications owns and operates the next-generation IP-enabled connectivity

    infrastructure, comprising over 190,000 kilometers offiber optic cable systems in India,

    USA, Europe, Middle East and the Asia Pacific region.

    http://en.wikipedia.org/wiki/Broadband_Internet_accesshttp://en.wikipedia.org/wiki/Telecommunicationhttp://en.wikipedia.org/wiki/Navi_Mumbaihttp://en.wikipedia.org/wiki/List_of_mobile_network_operatorshttp://en.wikipedia.org/wiki/Wirelesshttp://en.wikipedia.org/wiki/Broadband_Internet_accesshttp://en.wikipedia.org/wiki/Direct_To_Homehttp://en.wikipedia.org/wiki/Direct_To_Homehttp://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Wirelesshttp://en.wikipedia.org/wiki/Digital_electronicshttp://en.wikipedia.org/wiki/Internet_Protocolhttp://en.wikipedia.org/wiki/Optical_fiberhttp://en.wikipedia.org/wiki/Optical_fiberhttp://en.wikipedia.org/wiki/Internet_Protocolhttp://en.wikipedia.org/wiki/Digital_electronicshttp://en.wikipedia.org/wiki/Wirelesshttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Direct_To_Homehttp://en.wikipedia.org/wiki/Direct_To_Homehttp://en.wikipedia.org/wiki/Broadband_Internet_accesshttp://en.wikipedia.org/wiki/Wirelesshttp://en.wikipedia.org/wiki/List_of_mobile_network_operatorshttp://en.wikipedia.org/wiki/Navi_Mumbaihttp://en.wikipedia.org/wiki/Telecommunicationhttp://en.wikipedia.org/wiki/Broadband_Internet_access
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    Loop Mobile

    Loop Mobile (Formerly BPL Mobile), usually referred to as LOOP is a mobile phone serviceprovider in India. It offers both prepaid and postpaid GSM cellular phone coverage

    in Assam, Kolkata, North East, Mumbai, Madhya

    Pradesh, Haryana, Orissa, Punjab, Rajasthan after receiving a license to operate across 21

    telecom circles by DoT. BPL Mobile Communications is the countrys oldest mobile telecom

    service provider been established in 1994 and currently operates in Bombay, with over 3

    million subscribers. However, BPL Mobile was renamed to Loop Mobile in March 2009,

    following the expiry of its brand-use agreement with the TPG Nambiar-owned BPL

    Group. Having consistently met and exceeded TRAI benchmarks, is now ISO 9001:2008

    certified. Loop Mobile has had several firsts to its credit in the Value-added service (VAS)

    space which are technologically state-of-art and yet customer friendly. Being the country's

    oldest telecom service provider, Loop Mobile is the first operator in the country to offer

    services like MMS, GPRS and Caller Ring Tunes. Other VAS include Reply-All, Roaming

    on Prepaid, Intelligent network, General Packet Radio Service (GPRS), Multimedia

    Messaging Service(MMS), Missed Call Alert, Caller Ring Tune, Mobile Tracker, Doctor-on-

    Call, "1 paise per sec prepaid plan, Karaoke Messaging among others. Apart from Mumbai,

    it is among the new mobile services companies to be awarded licenses to operate across 21

    circles by DoT. Loop Mobile uses the latest NGIP (Next Generation Internet Protocol)

    and EDGE (Enhanced Data rates for GSM Evolution) technology.

    http://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Service_providerhttp://en.wikipedia.org/wiki/Service_providerhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Prepaid_mobile_phonehttp://en.wikipedia.org/wiki/Postpaidhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Northeast_Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Orissahttp://en.wikipedia.org/wiki/Punjab,_Indiahttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Department_of_Telecommunicationshttp://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/BPL_Grouphttp://en.wikipedia.org/wiki/BPL_Grouphttp://en.wikipedia.org/wiki/Value-added_servicehttp://en.wikipedia.org/wiki/Multimedia_Messaging_Servicehttp://en.wikipedia.org/wiki/General_Packet_Radio_Servicehttp://en.wikipedia.org/wiki/Value-added_servicehttp://en.wikipedia.org/wiki/Roaminghttp://en.wikipedia.org/wiki/Roaminghttp://en.wikipedia.org/wiki/Intelligent_networkhttp://en.wikipedia.org/wiki/General_Packet_Radio_Servicehttp://en.wikipedia.org/wiki/Multimedia_Messaging_Servicehttp://en.wikipedia.org/wiki/Multimedia_Messaging_Servicehttp://en.wikipedia.org/wiki/Missed_callhttp://en.wikipedia.org/wiki/Ringback_tonehttp://en.wikipedia.org/wiki/Mobile_phone_trackinghttp://en.wikipedia.org/wiki/Department_of_Telecommunicationshttp://en.wikipedia.org/wiki/EDGEhttp://en.wikipedia.org/wiki/EDGEhttp://en.wikipedia.org/wiki/Department_of_Telecommunicationshttp://en.wikipedia.org/wiki/Mobile_phone_trackinghttp://en.wikipedia.org/wiki/Ringback_tonehttp://en.wikipedia.org/wiki/Missed_callhttp://en.wikipedia.org/wiki/Multimedia_Messaging_Servicehttp://en.wikipedia.org/wiki/Multimedia_Messaging_Servicehttp://en.wikipedia.org/wiki/General_Packet_Radio_Servicehttp://en.wikipedia.org/wiki/Intelligent_networkhttp://en.wikipedia.org/wiki/Roaminghttp://en.wikipedia.org/wiki/Roaminghttp://en.wikipedia.org/wiki/Value-added_servicehttp://en.wikipedia.org/wiki/General_Packet_Radio_Servicehttp://en.wikipedia.org/wiki/Multimedia_Messaging_Servicehttp://en.wikipedia.org/wiki/Value-added_servicehttp://en.wikipedia.org/wiki/BPL_Grouphttp://en.wikipedia.org/wiki/BPL_Grouphttp://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/Department_of_Telecommunicationshttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Punjab,_Indiahttp://en.wikipedia.org/wiki/Orissahttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Northeast_Indiahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/Postpaidhttp://en.wikipedia.org/wiki/Prepaid_mobile_phonehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Service_providerhttp://en.wikipedia.org/wiki/Service_providerhttp://en.wikipedia.org/wiki/Mobile_phone
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    Government Policy

    First and foremost mandate of the policy should be to clearly state that the telecomsector is to be recognized and treated as part of the national critical infrastructure with

    the attendant benefits and responsibilities of this category. There is a need for a

    National Telecom Infrastructure Policy which is essential for a uniform procedure to

    be followed across all States. This should be defined by the Central Ministry for the

    optimal growth of telecom infrastructure in the country.

    The scientific and technological progress of a nation is a major determinant of its state

    of development. Innovation and knowledge will be the key factors in our nations

    progress in the 21st century. We must, therefore, foster an environment that promotes

    and nurtures technological achievement and makes us a world leader in creating

    intellectual property. Mobility or services on the move will drive adoption in India.

    Voice Networks will converge around data networks. Higher bandwidth coupled with

    technology innovations will bring about a radical change in the country's mobile

    market, as it would facilitate higher speed and data throughputs, enabling the delivery

    of a wide array of multimedia services, such as video streaming, music, movie

    downloads and mobile TV. Network equipment providers will increasingly provide

    backward and forward compatibility with various generations of networks and will

    provide for seamless migration.

    Another area of focus for the NTP should be that the convergence of markets and

    technologies is forcing a realignment of the industry. Telecom and broadcasting

    industries are encroaching upon each others territories and technology is blurring the

    difference between various conduit systems such as wireline and wireless. The

    growing trend of transmitting data in digital form is leading to a convergence that

    makes the distinction between voice, fax, data, video, and other forms less relevant as

    all are carried over the same networks. Thus, there is a need to work in sync with

    different ministries in India to come up with comprehensive guidelines for promotion

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    of services. Convergence of technology is happening rapidly but there is need for

    matching convergence of regulations.

    Certainty and confidence in the regulatory environment is essential for the steady

    growth of this sector. Micro-regulation should give way to a market based approach.

    The new policy also needs to focus more on strengthening research and development

    efforts in the country and provide an impetus to build world-class manufacturing

    capabilities.As the renewal of existing telecom licenses are around the corner, it

    should be done in a transparent and rational basis.

    There is also a dire need to make more and more wireless spectrum available to the

    industry to meet the growing demands of the industry. There is a need to lay down a

    clear roadmap for increased availability of spectrum introduce a simple, fair and

    transparent spectrum usage charges regime that is easy to administer and enforce and

    will help avoid arbitrage opportunities, Identification of new spectrum bands for

    commercial use, especially exploiting the digital dividend band (700 MHz) for

    delivering affordable & expeditious mobile broadband to all.

    The future technological developments in mobile/ broadband are all focused on higher

    data speeds, as the need of the future would be higher and higher data speeds. This is

    also the reason why international bodies like ITU have named them IMT-Advancedtechnologies. This would also limit access and competition in the market. Thus, it is

    suggested that in future, in the country, no spectrum band should be allocated/

    dedicated to a particular generation of technology. The choice of the technology

    should be left to the operators as they will decide which is best suited to customer

    demands.

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    We appreciate that the Government has realized the potential of Broadband and is working

    towards facilitating its penetration. The Government is working towards making a national

    optical fiber backbone to promote broadband in the country. However, the National

    Broadband Plan does not cover the last miletaking services from the towers to the homes/

    in the hands of the subscribers. It is a known fact that wireless is the quickest and most

    efficient medium to provide broadband services in the access network. The future growth of

    broadband in developing countries, especially India, will see wider deployment with greater

    emphasis on wireless networks. Thus, it is required that all available technologies should be

    leveraged for building up such a national broadband plan.

    The Government should fund broadband proposals that leverage existing

    underutilized infrastructure in innovative ways to deliver the needed services and

    significantly improve coverage. The funding must avoid costly overbuild or

    duplication of the existing network where it is capable of delivering acceptable

    broadband at a lower cost than fiber based alternatives. Special subsidies may be

    provided to specifically meet the national broadband objectives of the Government.

    For example, operators who provide broadband services by use of 3G & BWA

    services, a subsidy in the form of lower spectrum charges be provided to them.

    Another area of concern and immediate attention of the industry is that the revenues

    are stagnating and operating costs are constantly rising. Despite the drop in tariffs,

    MoU havent seen any increase. On the contrary, MoU have fallen by more than 25%

    in less than two years. As a result, the ARPU levels have almost halved during the

    same time frame. Other factors contributing in the falling ARPU levels are urban

    market saturation, expansion in rural markets, use of multiple SIMs and churning of

    subscribers.

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    Changes that the market will undergo in the coming year

    Market Consolidation:Next year will witness consolidation in the countrys crowdedtelecoms market, with new entrants scaling down their rollout plans and shying away from

    reducing tariffs further.

    Shift of Focus from Urban to Rural: With rural teledensity at about 30% as compared to

    urban teledensity of over 100%, the next wave of growth will come from rural areas.

    Connecting the unconnected will be the prime focus in the coming year 2011 as we look

    towards a great rural push by all service providers. Broadband will get a boost with the

    launch of the National Broadband Plan.

    Indigenous Telecom Manufacturing: In spite of being the second largest telecom market in

    the world, telecom equipment manufacturing in India is still to take off and the repercussions

    of this delay are now being felt. The growing demand, impetus from the Government will

    surely result in boosting the manufacturing of telecom infrastructure in India.

    Voice to Video and Data Applications: Increased utilization of Video and Data and other

    Applications will lead to more revenue streams and will contribute enhanced revenue. Voicewill see a gradual downward shift.

    Financial Services on Mobiles: There will be a significant increase in the banking and other

    financial services, as well as other payments being offered on the mobile platform. With

    dedicated efforts in the implementation of allocation of the UID, this has the potential to

    facilitate financial services significantly in the coming year.

    Brand differentiation: One of the key differentiator between operators would be the VAS

    offerings they have in their portfolio and the quality of service they are providing. This is

    expected to gain momentum, with the introduction of MNP and 3G.

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    Growth Drivers, Trends and Services for the coming year

    Mobile Banking: Another initiative expected to gather pace in this year is that of MobileBanking. Operators in India will increasingly leverage Mobile technology to open up

    channels beyond the branch network of the banks and create a banking footprint to reach

    banking services to the un-banked masses.

    Use of Non-Conventional Energy Sources: Some mobile operators are already in the

    process of carrying out trials on the use of non-conventional energy sources. This year will

    see a greater emphasis on use of alternate energy in telecom sector.

    Shift Towards smart handsets: Though the trend was started in last year, we believe that the

    demand for smart phones will pick-up this year because of growing economy, increasing

    demand and affordability.

    Keeping the above market changes and growth drivers in mind, COAI is all geared up to

    contribute incalculably towards the success of the industry.

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    Governments Commitment to the Telecom Sector

    Dec 8, 2011, 05.52AM IST

    Companies:

    Vodafone Group PLC

    Idea Cellular Ltd.

    NEW DELHI - The government is committed to sustaining growth of the country's telecoms

    sector, Prime Minister Manmohan Singh said on Wednesday, seeking to boost investor

    confidence in the once-booming sector that has been hit by regulatory uncertainties.

    "I am aware of some concerns of the telecom industry regarding government policies in the

    telecom sector," Singh told a gathering of telecoms industry executives on Wednesday.

    "I wish to reassure industry of the government's full commitment to sustaining growth,

    creativity and enterprise in this vitally important sector of our economy."

    India's telecoms market, the second-largest in the world after China, has struggled in recent

    years due to ferocious competition and a massive graft scandal, prompting authorities to

    overhaul the decade-old industry regulations.

    A former telecoms minister in Singh's government and a lawmaker of the ruling coalition are

    among the 14 individuals and three companies charged in a case involving alleged rigging in

    the grant of licences in 2007/08.

    The Comptroller and Auditor General has estimated a potential revenue loss of up to $39

    billion to the government due to sale of licences at below-market prices in that period.

    Telecoms firms are now bracing for a steep increase in prices of second-generation spectrum

    and other possible rule changes that may increase their costs of operations.

    The heads of leading telecoms firms including Bharti Airtel, Reliance Communications and

    Vodafone's Indian unit, last week met Singh and some other key ministers over the regulatory

    concerns.

    http://in.finance.yahoo.com/q?s=vod.lhttp://in.finance.yahoo.com/q?s=idea.nshttp://in.finance.yahoo.com/q?s=idea.nshttp://in.finance.yahoo.com/q?s=vod.l
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    In the new telecoms policy, which is expected to be finalised by early next year, the

    government seeks to relax rules for mergers and acquisitions in the telecoms sector to

    facilitate consolidation in the crowded 15-player market.

    India opened the sector for private participation in the mid-1990s. Lower call tariffs and

    aggressive network expansion by companies to smaller towns and rural areas has seen the

    sector adding mobile phone users at a fast pace to 870 million currently, from about 5 million

    in 2002.

    "The telecommunications sector is one of India's success stories," Singh said.

    "I would like to take this opportunity to assure all of you that our government will continue to

    formulate forward-looking policies that will encourage further growth of the telecom sector."

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    Case Study

    The Vision & promise by 2012, Airtel will be the most admired brand in India:

    Loved by more customers

    Targeted by top talent

    Benchmarked by more businesses We at Airtel always think in fresh and innovative ways about the

    needs of our customers and how we want them to feel. We deliver what we promise and go out of our way

    to delight the customer with a little bit more

    Bharti Airtel

    Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group, has a

    diverse business portfolio and has created global brands in the telecommunication sector.Airtel comes to

    you from Bharti Airtel Limited, Indias largest integrated and the first private telecom services provider

    with a footprint in all the 23telecom circles. Bharti Airtel since its inception has been at the forefront of

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    technology and has steered the course of the telecom sector in the country with its world class products and

    services. The businesses at Bharti Airtel have been structured into three individual strategic business units

    (SBUs) - Mobile Services, Airtel Telemedia Services& Enterprise Services. The mobile business

    provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the

    Airtel Telemedia Services business offers broadband & telephone services in 94cities. The Enterprise

    services provide end-to-end telecom solutions to corporate customers and national & international long

    distance services to carriers. All these services are provided under the Airtel brand.

    The Brand

    Airtel was born free, a force unleashed into the market with a relentless and unwavering determination to

    succeed. A spirit charged with energy, creativity and a team driven to seize the day with an ambition to

    become the most globally admired telecom service. Airtel, after just ten years, has risen to the pinnacle of

    achievement. As India's leading telecommunications company Airtel brand has played the role as a major

    catalyst in India's reforms, contributing to its economic resurgence. Today they touch peoples lives with

    their Mobile services, Telemedia services, to connecting India's leading 1000+ corporates.

    Business Divisions

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    FUTURE Development

    In the mobile business, Bharti Airtel plans to make considerable investments in Network expansion to

    establish presence in all census towns and over 500,000 villages across India by 2010, thereby covering

    95% of the countrys total population. The companys strategic focus will be on furtherstrengthening the

    Airtel brand through best-in-class customer service, which is backed by wide national distribution. The

    Airtel subscriber base according to

    COAI - Cellular Operator Association of India of May 2010 was:

    The total is 67,425,935 or 32.81% of the total 205,460,762 GSM mobile connections in India till May

    2008.

    Achievements

    Airtel was the first private player in telecom sector to connect all states of India.

    Airtel is the first mobile service provider to introduce the lifetime prepaid services and electronic

    recharge systems.

    The network has spread over 93 per cent along the National Highways and 88 per cent of key railroutes across the State .

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    Having achieved huge success in mobile services- postpaid and prepaid- Airtel has now entered

    fixed-line telephony providing broadband services in 92 cities across India.

    The company has an optical fiber network of 35,016 km and a customer base of 35,440,406 GSMmobile and 1,819,083 broadband subscribers.

    Airtel is listed on The Stock Exchange, Mumbai (BSE) and The National Stock Exchange of

    India Limited (NSE).

    Rapidly expands network, to roll out across all census towns and over 5,00,000 villages

    covering over 95% of the population.

    Bharti Airtel crosses the 50 million customer markOCT 1,2007( 65million is the latest figure &

    adding nearly 2 million subscribers every month)

    Becomes the fastest private telecom company in the world to achieve this milestone

    Enters into the league of the worlds top telecom companies, moves towards top 5 global mobile

    companies

    Adding 25000 towers every month expanding their network all over India.

    Wide range of Value Added Serviceslike ringtones, caller tunes, news etc

    Targets

    Aggressive efforts are on to provide a superior network service that is congestion-free and to help

    customers get connected the first time.

    Also, the SMS capacity is sought to be raised from the current 5,500messages per second to 6,500

    messages per second by March 2009.

    Advertisements

    Airtels advertising campaigns are always admired. Their idea of creating a signature ringtone with A R

    Rehman was brilliant; and they still continue to use that tone. In a masterstroke they elevated the brand

    without having to talk of talk time , rates etc.Then came the almost magical Express Yourself

    campaign stunningly executed with excellent imagery and creativity. It showcased the ubiquitous utility of

    the mobile phone through the situations ( a fighting couple, a bride entering church, an irate mob) but

    converted a rationalpurchase decision to an extension of ones voice. And from that Bhartis market share

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    has kept increasing to being the biggest mobile service provider. They chose the countrys most popular

    people i.e. SRK, Kareena and Sachin for their campaign & made connection with people. Its

    advertisements always touch the chord of the people.

    Airtel to focus on rural expansion

    Bharti Airtel, which had 48 million mobile users in September 2007, had 9.80million subscribers coming

    from rural areas.Airtel, the leading mobile service provider, has planned to increase the pace of its network

    expansion in rural areas during 2008-09.People in the rural markets are ready to go mobile and the growth

    depends on the strength and the quality of the network. Distribution has been growing at a rapid pace and

    Airtel will be in easy reach for all customers in the State.

    Organizational Structure of AIRTEL

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    LEVELS

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    The Cities/States under GSM circles are:

    Metros:

    1. Delhi

    2. Mumbai

    3. Chennai

    4. Kolkata

    A' Circle:

    1. Maharashtra

    2. Gujarat

    3. Andhra Pradesh

    4. Karnataka

    5. Tamil Nadu

    B' Circle

    1. Kerala

    2. Punjab

    3. Haryana

    4. Uttar Pradesh

    5. Rajasthan

    6. Madhya Pradesh

    7. West Bengal

    8. Andaman & Nicobar

    C' Circle

    1. Himachal Pradesh

    2. Bihar

    3. Orissa

    4. Assam

    5. North Eastern States6. Jammu & Kashmir

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    Research Methodology

    Primary data: It will be collected with the help of a self administered questionnaire.

    Secondary data: It will be collected with the help of books, research papers, magazines,

    news papers, journals, Internet, etc

    Data collection

    Sample size:

    1. Teens and Youth

    2. Housewives

    3. Corporates

    Total sample size: 35

    Sampling region:

    Mumbai

    Genre Vie

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    Questionnaire and Analysis

    1. Which mobile network operators do you use?

    I received information on network operators from 35 respondents. On average, the

    organisations they worked for used between one and two network operators each,

    giving a total of 25 responses. Vodafone and Airtel are the most widely cited

    operators:

    The other leading network operatorsIdea, Loop and Relianceall received less than 10

    responses in our survey.

    How do you rate the voice call quality from your mobile network operator?

    Voice calls on mobile networks can suffer from impairments like background noise, echoes

    and voice distortion. Improving voice call quality is a priority for network operators at the

    moment, and both Idea and Loop are planning trials ofHigh-Definition (HD) voicetechnology this year.

    As far as my survey respondents are concerned, there's room for improvement in mobile

    voice call quality, with only a smattering of 'excellent' responses being logged. Nine out of

    thirteen Idea customers (69 percent) judge call quality to be 'good', while the majority of

    responses for the other operators are either 'good' or 'average':

    Airtel

    Idea

    Vodafone

    Loop

    Reliance

    Other

    http://news.zdnet.co.uk/communications/0,1000000085,40038508,00.htmhttp://news.zdnet.co.uk/communications/0,1000000085,40038508,00.htm
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    Vodafone

    Airtel

    Idea

    Reliance

    Loop Mobile

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    How do you rate the mobile broadband coverage from your network operator?

    Mobile data usage is on the increase, and mobile operators are constantly extending their

    network coverage to keep pace with demandwitness recent announcements

    from IDEA and Airtel. But are they doing enough? Again, there certainly seems to be room

    for improvement, with both Vodafone's and IDEA's charts clustering around the 'average'

    category. Meanwhile, the two small-sample networks (Reliance and Loop Mobile) in our

    survey fail to muster an 'excellent' rating between them:

    How do you rate the mobile broadband speed from your network operator?

    The current headline speed for mobile broadband in the India is 14.4Mbps, which is an

    upgrade from 7.2Mbps currently being rolled out by Vodafone. Airtel offers up to 4.5Mbps,

    while IDEA, Reliance and Loop Mobile top out at 3.6Mbps. These are theoretical maximum

    download speeds: in practice, factors like the distance to the nearest base station and

    contention rates (the number of concurrent users) will result in variable, and generally

    considerably lower, data rates.

    'Average' is the modal judgement on speed for two most widely used network operators in

    our survey, Vodafone and IDEA. The latter has a noticeably wider spread of results, running

    the full gamut from 'abysmal' to 'excellent'.

    How do you rate the service restrictions imposed by your network operator?

    Mobile contracts often come with restrictions on the services you can useno accessing file

    sharing sites, or making VoIP calls, for example. Alternatively, if you want unrestricted

    service, you'll have to pay extra for it. More survey respondents find their network operator's

    service restrictions 'acceptable' than any other category, although there are enough 'limiting'

    and 'restrictive' responses to suggest that some contracts are not well matched to user

    expectations:

    http://news.zdnet.co.uk/communications/0,1000000085,39671918-1,00.htmhttp://news.zdnet.co.uk/communications/0,1000000085,39887558,00.htmhttp://news.zdnet.co.uk/communications/0,1000000085,39730201,00.htmhttp://news.zdnet.co.uk/communications/0,1000000085,39730201,00.htmhttp://news.zdnet.co.uk/communications/0,1000000085,39887558,00.htmhttp://news.zdnet.co.uk/communications/0,1000000085,39671918-1,00.htm
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    How do you rate the technical support from your network operator?Providing a good choice of handsets and services is a mobile network operator's lifeblood.

    But this means that operators are also faced with fielding a wide range of support queries, via

    some combination of phone, email and website. So how are they doing?

    In my survey, Vodafone gets mostly solid 'good' and 'average' ratings, with a smattering of

    'poor' and 'abysmal', while IDEA gains a couple of 'excellent' nominations. Among the low-

    sample-size remainder, Airtel comes off best.

    Loop Mobile

    Reliance

    Airtel

    Vodafone

    http://help.vodafone.co.uk/system/selfservice.controller?CONFIGURATION=1000&PARTITION_ID=1&CMD=STARTPAGEFRAMELESS&USERTYPE=1&LANGUAGE=en&COUNTRY=us&TIMEZONE_OFFSET=-3600000http://service.o2.co.uk/IQ/SRVS/CGI-BIN/WEBCGI.EXE?New,Kb=Companion,question=ref%28User%29:str%28Mobile%29http://www.t-mobile.co.uk/business/help-advice/http://www.t-mobile.co.uk/business/help-advice/http://service.o2.co.uk/IQ/SRVS/CGI-BIN/WEBCGI.EXE?New,Kb=Companion,question=ref%28User%29:str%28Mobile%29http://help.vodafone.co.uk/system/selfservice.controller?CONFIGURATION=1000&PARTITION_ID=1&CMD=STARTPAGEFRAMELESS&USERTYPE=1&LANGUAGE=en&COUNTRY=us&TIMEZONE_OFFSET=-3600000
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    How likely are you to repurchase business contracts from your network operator?All vendors of technology products and services set great store by customer retention, but this

    is particularly important to mobile network operators, for whom the basic mobile contract is

    potentially the gateway to a variety of lucrative add-on services.

    The positions of Vodafone and IDEA look pretty healthy in this regard in our survey, and

    also for Reliance among the low-sample-size remainder; there are indications of customer

    dissatisfaction for Loop Mobile and Airtel though.

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    Information Analysis

    Graph 1 & 2

    Hence we can easily conclude that B circle and A circle have the maximum number of subscribers.

    Maximum additions in October are in B circle and then A circle and minimum in the C circle.

    74.36

    215.11

    246.13

    89.8

    0

    50

    100

    150

    200

    250

    300

    Metro A Circle B Circle C Circle

    Number of Subscribers as of Oct 2011 (in millions)

    0.22

    2.35

    3.44

    1.11

    7.12

    0

    1

    2

    3

    4

    5

    6

    7

    8

    Metro A Circle B Circle C Circle Total

    Number of Subscribers Additions in Oct 2011 (in

    Millions)

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    Graph 3 & 4

    From here we can easily conclude as seen in the Research that Airtel, Vodafone and Idea have the maximum

    subscribers in India and Reliance ,Loop and Others are lesser in number.

    This graph is a clear indication of the recent trend that is taking place in the mobile services sector.The

    excessive marketing , Low costs and various new services has led to the increasing popularity and subscriber

    base of Uninor.Then comes Idea due to the new VAS offered by them.

    173.73

    145.92

    101.8291.58

    60.28

    32.32

    6.07 5.36 3.54 3.21 1.57

    0

    20

    40

    60

    80

    100

    120

    140

    160

    180

    200

    Airtel

    Vodafone

    IDEA

    BSNL

    Aircel

    Uninor

    Videocon

    MTNL

    Stel

    Loop

    Etisalat

    Number of Subscribers as of Oct 2011 (in Millions)

    0.95 0.92

    1.64

    0.51 0.49

    2.67

    -0.20

    0.03 0.04 0.01 0.05

    -0.5

    0.0

    0.5

    1.0

    1.5

    2.0

    2.5

    3.0

    Airtel

    Vodafone

    IDEA

    BSNL

    Aircel

    Uninor

    Videocon

    MTNL

    Stel

    Loop

    Etisalat

    Number of Subscribers Additions in Oct 2011 (in Millions)

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    Graph 5 & 6

    These clearly show the subscriber figures in millions. Highest being in the B Circle and then A Circle.We can

    also see the increase in subscriber base from Sebtember to October .

    This graph depicts the increase in subscriber base in millions from September to October.

    74.14

    212.76242.69

    88.69

    618.28

    74.36

    215.11246.13

    89.8

    625.4

    0

    100

    200

    300

    400

    500

    600

    700

    Metro A Circle B Circle C Circle Total

    Subscriber Figures in (millions)September October

    0.58

    1.95

    3.17

    0.82

    6.52

    0.22

    2.35

    3.44

    1.11

    7.12

    0

    1

    2

    3

    4

    5

    6

    7

    8

    Metro A Circle B Circle C Circle Total

    Subscriber Additions in (millions)September October

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    Graph 7 & 8

    This Pie Chart depicts the market shares of the major players in the telecom industry.

    Bharti Airtel,

    27.78

    Vodafone Essar,

    23.33IDEA, 16.28

    BSNL, 14.64

    Aircel, 9.64

    Uninor, 5.17

    Videocon, 0.97

    MTNL, 0.86Stel, 0.57

    Loop Mobile, 0.51

    Etisalat, 0.25

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    Project MOST

    COAI has played an active role in promoting infrastructure sharing in India. Project

    MOST (Mobile Operators' Shared Towers), which was aimed at promoting

    infrastructure sharing among all the service providers to primarily establish proof of

    concept of the possibility of multi-technology (GSM & CDMA) and multi operators

    (upto 6 operators) sharing a single tower with a view to bring down costs and enhance

    spread of affordable services continued to be carried out successfully by the industry.

    The prime objectives of this project are:

    To provide better coverage and quality to the subscribers.

    To avoid undue proliferation of towers by leveraging the benefits of

    technological innovations to improve the city skyline.

    To make Cellular Mobile Communications more affordable for the subscribers

    by reducing the costs for Service Providers.

    To gear up the Mobile Communication facilities for the Commonwealth Games

    in 2010 in New Delhi.

    The coming year will see a greater implementation of infrastructure sharing amongst

    the service providers so as to reduce costs and make available affordable service to far

    flung areas of the country.

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    Mobile Instant Messaging

    Instant Messaging is a means of text communication between person to person (or

    multi-person) / members of a predefined group. It is characterized by various features,

    like interactive nature of text dialogue box and presence, which allows users to see

    whether other members on their contact list are online and available (or not) to engage

    in communication.

    Mobile instant messaging in India is a classic example of true Public-Private

    partnership, where all nine, both public as well as private, GSM operators in the

    country have joined hand to ensure expansion of telecom horizons through

    implementation of interoperable Mobile Instant Messaging Services.

    Mobile Instant Messaging service is expected to gain popularity as it provides a real

    time, fast-paced, multi-party conversation environment. It helps people to stay in

    constant touch with their groups and also allow them to exchange text and other

    multimedia features like emoticons, pictures, tunes, etc This application thus enhances

    connectivity for the subscribers.

    Further, Mobile Instant Messaging is a unique solution that caters to multiple consumer

    requirements. Besides providing anytime anywhere connectivity, MIM also supports

    enhances security features to block unwanted messages. Further, Mobile Instant

    Messaging platform can be extended to enable Secured Mobile Money transfer.

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    Subscriber Verification

    The entire industry together with COAI had taken up the herculean task of re-verifying

    its entire existing prepaid subscriber base of nearly 85 million. This task performed by

    the Indian mobile Operators is one of its kind, the likes of which have not been seen

    anywhere else in the world.

    To accomplish this objective, the industry has put in enormous efforts to not only

    ensure complete documentary proof of identity and address of each subscriber but alsoeducate their subscribers as well as their retail chain on the identification issue. Mailers

    with details of the verification process were sent to each and every Point of Sale

    personally by the Operators.

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    Books

    1. India's Telecommunications Industry by Ashok Desai Pg. 85

    Newspaper

    1. Times of India

    Websites

    1.http://www.zdnet.co.uk/reviews/mobile-networks/2010/05/11/service-and-

    reliability-survey-2010-mobile-network-operators-40050744/3/2.http://www.dnb.co.in/IndianTelecomIndustry/RegulatoryFramework.asp

    3.www.ibef.org/industry/telecommunications.aspx

    4.www.cci.in/pdf/surveys_reports/indias_telecom_sector.pdf

    5.www.dot.gov.in/osp/Brochure/Brochure.htm

    6.asiancorrespondent.com/.../top-30-telecom-companies-in-india-by-m...

    Bibliography

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