Market Analysis Over

Telecom Market Analysis 201 2

REPORT ON TELECOM MARKET ANALYSIS

Submitted To:
Dr. Renita Dubey

Submitted By:
Rahul Aggarwal Manish Kumar (MBA CI & SM)

DECLARATION
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We hereby declare that the project Report on “TELECOM MARKET ANALYSIS” Submitted is our original work and the same has not been submitted for any other fellowship or similar title or prizes. However certain references have been made through books articles, journals, magazines, websites, perception of author, practitioners in the relevant field.

Rahul Aggarwal

Manish Kumar

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CERTIFICATE
This project report entitled “TELECOM MARKET ANALYSIS” is being submitted by us to Amity Institute of Competitive Intelligence and Strategic Management, Amity University, for the degree of Master of Business Administration. This work has been carried out under the supervision and guidance of Dr. Renita Dubey. I hereby declare that to the best of my knowledge, the work included in this project has not been submitted either in part or in full, to this or any other university for the award of any degree or diploma.

Dr. Renita Dubey (Faculty AICISM)

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ACKNOWLEDGEMENT
The present work is an effort to throw some light on “TELECOM MARKET ANALYSIS” The work would not have been possible to come to the present shape without the able guidance, supervision and help to us by number of people. With deep sense of gratitude we acknowledge the encouragement and guidance received by our institutional guide Dr. Renita Dubey and our group. We convey our affection to all those people who helped and supported me during the course, for completion of my project report.

Rahul Aggarwal

Manish Kumar

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TABLE OF CONTENTS
Table of Contents........................................................................................................ 5 1. INTRODUCTION....................................................................................7 2. EXECUTIVE SUMMARY.............................................................................................9 3. OVER ALL MARKET SCENARIO...............................................................................10 4. TECHNOLOGICAL SERVICES...................................................................................18 4.1SERVICES IN WIRELESS TECHNOLOGY...............................................................18 4.1.1 LTE/4G SERVICES:......................................................................................18 4.1.2 3G SERVICES:.............................................................................................21 4.1.3 2G SERVICES:.............................................................................................25 4.2 Services In Wireline Technologies.....................................................................28 ................................................................................................................................. 31 ................................................................................................................................. 32 ................................................................................................................................. 32 ................................................................................................................................. 33 ................................................................................................................................. 33 ................................................................................................................................. 34 ................................................................................................................................. 34 ................................................................................................................................. 35 ................................................................................................................................. 35 ................................................................................................................................. 36 4.3 DATA CENTRE SERVICE:...................................................................................45 5. ALL COMMON STATISTICS......................................................................................52 6. NEW Services In Wireless And Wireline..................................................................57 5 | Amity University

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7. GROWTH PATTERNS..............................................................................................63 7.1 GLOBAL ANALYSIS:...........................................................................................64 7.2 INDIAN SCENARIO:...........................................................................................72 ................................................................................................................................. 78 8. MACRO environment, GOVERNMENT POLICIES, TECHNOLOGY RELATED TO INDIA. 79 9. CONCLUSION AND ANALYSIS:................................................................................84 BIBLIOGRAPHY.......................................................................................................... 91

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1. INTRODUCTION

Indian Telecom sector has emerged as a major sector of growth in India during the last decade. Wireless telephones are increasing at faster rate. Indian telecom sector has achieved exponential growth with teledensity from 18.22% to 73.97% (as on 30.06.11). However, this is marked by disparities with rural areas exhibiting teledensity of about 35.64 as against urban tele-density of 162.74 during the same. The industry has witnessed exponential growth especially in the wireless segment in the last few years. The plethora of telecom services evolved over the years, ranging from basic telephony to voice, video and data services, Wimax, WLAN and VPN, and bandwidth on demand to virtual private networks have catalyzed revolutionary changes in the business operations for the service sector, i.e., IT, BPO and also the manufacturing sectors etc, besides providing millions of people access to new technology Internet is slowly emerging as an integral component of service delivery in number of sectors. ICT infrastructure and services are becoming all pervasive. This scenario offers a unique opportunity to leverage upon this strength of the country in all facets of ICT in next five years. Indian telecom sector need to make substantial progress in terms of broadband penetration. There is a positive co‐relation between the teledensity as well as broadband penetration and the GDP of a Country. The growth in the telecommunication services acts as a force multiplier and has a significant impact in the growth of other sectors of the economy. 7 | Amity University

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The Indian telecommunication industry is at the brink of entering a fresh round of growth, to be stimulated by the launch of wireless data services. The policy makers and the private players have successfully come together with various initiatives to ensure that the industry continues to remain a shining star for India.

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2. EXECUTIVE SUMMARY

Ranked amongst some of the fastest growing economies of the world, India has registered steady growth over the last few years, especially in comparison other similar emerging economies. The strengthening domestic market and enhanced domestic consumption helped India to successfully weather the global economic turmoil. The Indian telecom sector particularly, witnessed aggressive growth during the last two years, emerging as a global benchmark for other developed countries as well. All major international operators are exploring opportunities to make inroads into the Indian telecommunication sector, both for the vast customer base as well as to leverage on the low cost outsourcing model which India has been successful in pioneering.

The recently concluded 3G and BWA auctions are likely to be the catalyst that furthers the government’s agenda of providing broadband connectivity to the remotest parts of India. The governments as well as other telecom stakeholders believe that these wireless technologies will help overcome the barriers of expensive wireline infrastructure, especially in the low revenue generating zones.

This report comprises of the various telecom services running in India in wireline and wireless technologies and the operator’s overview on 2G, 3G, and LTE services in India.

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This report also includes growth pattern in different telecom services in and the newer developments adopted by operators in their services in India to increase the subscriber base.

Overall analysis and conclusions will help in understanding the business environment of Indian telecom industry on a global scale and the forthcoming scenario of Indian telecom industry for achieving sustainable growth and to meet benchmarking standards.

3. OVER ALL MARKET SCENARIO
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Item

Phones (In Lakh)

Tele‐ Density (%)

March'07 March'08 Total 2058.68 3004.92 Wireline 407.74 394.13 Wireless 1650.94 2610.79 Public 713.91 795.49 Private 1344.77 2209.44 Rural 471.00 765.00 Urban 1587.68 2239.93 Overall 18.22 26.22 Public 6.32 6.94 Private 11.90 19.28 Rural Urban Public Private Rural Urban 5.89 48.10 34.68 65.32 22.88 77.12 9.46 66.39 26.47 73.53 25.46 74.54

Position at the End of March'09 March'10 March'11 June'11 4297.25 6212.80 8463.28 8859.97 379.65 369.57 347.30 342.93 3917.61 5843.23 8115.98 8517.04 895.46 1058.71 1260.02 1274.02 3401.79 5154.09 7203.26 7585.95 1235.13 2007.73 2822.89 2980.99 3062.12 4205.07 5640.39 5878.98 36.98 52.74 70.89 73.97 7.71 8.99 10.55 10.64 29.27 43.75 60.34 63.34 15.11 90.76 20.84 79.16 28.74 71.26 24.31 119.45 17.04 82.96 32.32 67.68 33.83 156.94 14.89 85.11 33.35 66.65 35.64 162.74 14.38 85.62 33.65 66.35

% share of

Switching Capacity (In Lakh) Village

Public

888.17

959.76

1103.68

1242.49

1376.75

1380.72

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Public Telephones Public [VPTs] PCOs (In Public Lakh) OFC Route Public Kms Foreign Direct Investment (FDI) (in million US$) 564610 23.65 519155 532281 22.91 564166 549294 20.89 609223 565960 18.58 658548 575663 15.71 698557 575996 15.03 700852

478

1261

2558

2554

1665

1212

Table 3.1 Overall telecom market statistics This table describes current Indian telecom statistics with number of telephone phones continuously rising especially in urban areas with person having more than one phone and with more usage & teledensity as compared to rural areas. In rural areas public telephones are still important modes of communication so 2G is here to stay in spite of declining ARPU it can still generate significant revenue in rural areas. With focus on OFC & increasing number of OFC route managing OFC will be huge business prospect. Foreign investors are keen to invest in Indian telecom industry but with 2G scam and uncertainty in the new policies they are not so positive about investment in India.

Fig:3.1 Number of phones in different domains

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Fig: 3.2: Teledensity in different sectors

Fig 3.3: percentage share under different sectors

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Fig 3.4: Switching capacity in public sector

Fig 3.5: village public telephones

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Fig 3.6: Number of PCO’s in public sector

Fig 3.7: OFC route in public sector 2007-2011

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Fig 3.8: FDI in Indian telecom sector from 2007 to 2011.

Fig 3.9: subscriber base of Indian telecom in wireless and wireline from 2007 to 2011

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Fig 3.10: subscriber base trend of rural sector from 2007-2011.

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4. TECHNOLOGICAL SERVICES

4.1SERVICES IN WIRELESS TECHNOLOGY
4.1.1 LTE/4G SERVICES:
An acronym for Long Term Evolution, LTE is a 4G wireless communications standard developed by the 3rd Generation Partnership Project (3GPP). 4G technologies are designed to provide IP-based voice, data and multimedia streaming at speeds of at least 100 Mbit per second and up to as fast as 1 GBit per second. Table4.1: Indian 4G operators & vendors circle wise and their Game plan Players Reliance Infotel Bharti Airtel 4G License Areas Pan India – 22 Circles Progress on Roll out Proposed roll out in 2012 but delayed couple of times. Have adopted LTE-TDD. Most probably partner with Network 18 for content. Has launched services in Kolkata and Bangalore (Karnataka). Has adopted LTE-TDD. Eying on Qualcomm’s Mumbai and Delhi licenses. Partnered with ZTE for Kolkata, Huawei for Karnataka and Ericsson for Punjab and Nokia Siemens for Maharashtra.

Kolkata, Karnataka, Maharashtra, Punjab

Aircel

AP, TN, W. Bengal, Intends to start services in 2012. No specific plans disclosed yet. Bihar, Orissa, Assam, N.E., J&K Settled the dispute over licenses in March 2012. No specific plans disclosed yet. Claims to be the first company to launch 4G in India on LTE-TDD. Has partnered with Ericsson.

Qualcomm Mumbai, Delhi, Kerala, Haryana Augere 18 Madhya Pradesh | Amity University

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Tikona Gujarat, UP (E), UP (W), It already offers fixed broadband to households and Rajasthan, HP corporate using WiFi technology. 4G roll out is in progress. 20 Circles – All India Intends to surrender its BWA spectrum in some all the except Mumbai and Delhi 20 circles.

BSNL

MTNL

Mumbai and Delhi

No specific plans disclosed yet.

Reliance with Pan India 4G licenses(22 circles) with 95% stake in Infotel broadband services is all set to make a move in 4G with an investment of 22000 crore in broadband business whereas BSNL intending to outsource all 4G services.

AIRTEL SERVICES:

• •

Airtel’s 4G-LTE is expected to be launched over a range of devices, which are inclusive of the airtel 4G-LTE USB modem(huaweiE392) and Airtel’s indoor wireless gateway (huawei B593). Airtel has already launched 4G enabled Mi-Fi devices (which can be connected to PC and mobile both) for consumers not having 4G on their mobile phones and its main target are considered to be tablets.

•

Airtel will promote its premium services like Airtel movies, Airtel games and broadband TV. It’s a win-win situation for Airtel customers, there are a lot of Indians out there who are willing to pay for the premium Internet broadband services

RELIANCE SERVICES:

•

RIL has also initiated talks with media and entertainment firms, including Walt Disney's Indian venture UTV Software, to acquire content for its wireless broadband offerings. It will enable the company to offer games and applications for the younger customers | Amity University

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The strategy of enticing customers with low prices is similar to the strategy followed in 2003, when it took mobile telephony to the masses with its "Monsoon Hungama" handsets at Rs 501, helping it win 1 million customers in just 10 days. • RIL focusing on value chain comprises of devices, relevant local content, customer support and network. Globally, many operators have focused primarily on the creation of the broadband network. However, Reliance will focus on making available all the components of the entire digital value chain.

OTHER OPERATORS STARTEGIES IN 4G/LTE SERVICES

•

MTNL which owns BWA spectrum in most lucrative Delhi and Mumbai circles, hired global consultancy firm PricewaterhouseCoopers (PwC) for framing the expression of interest (EoI) for renting out BWA-LTE spectrum to a franchisee.

•

Tikona roped in consulting firm Deloitte Touche Tohmatsu to define its go-to-market strategy, channel strategy and related executions for the enterprise segment in LTE.

SOME VENDORS STRATEGY:

• •

ZTE has taken a clear lead in successfully developing a wide variety of LTE devices, ranging from USB dongles to Smartphone’s and tablets. Alcatel Lucent is banking upon an end-to-end LTE solution, which the company believes is helping them address the explosion in the mobile data traffic with innovations like Light Radio and High Leverage Network to meet end-to-end demands. All vendors have set up or re-located their manufacturing facilities to China to take the best advantage of the cost arbitrage. So the initial advantage enjoyed by Huawei and ZTE purely in terms of equipment cost may no longer be very significant. Considering the fact that there are no 4G phones available in country Huawei have launched huawei USB modems for penetrating into the market. | Amity University

•

•

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CONCLUSION:

Operators will have difficulty in defining the Unique Selling Proposition of 4G. Both 3G and 4G have speed as their differentiating factor. Besides, as the 3G penetration figures show, subscribers have not lapped up 3G on speed alone. This effectively means that operators need to think of some other killer proposition to sell 4G services.

4.1.2 3G SERVICES:
3G is a generation of standards for mobile phones and mobile telecommunication services fulfilling the International Mobile Telecommunications-2000 (IMT-2000) specifications by the Union. Application services include wide-area wireless voice telephone, mobile Internet access, video and mobile TV, all in a mobile environment.

Operators

3G Circles Won
13 13 9 13 9 11 68

Number of 3G Circles Awarded To Ericsson NSN Huawei ZTE
7 3 3 5 3 (Mum, ND, Kol) 6 (TN) 6 (TN, GJ, MH) 3 (Punjab, Kol) 4 4 20 0 3 5 2 18 9 1 8

Airtel RComm Vodafone Essar Aircel TTSL Idea Total

5 21

Abbreviations: Mum=>Mumbai, ND=> New Delhi, Kol=>Kolkata, TN: TamilNadu, GJ=>Gujarat, MH=>Maharashtra

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Only S-tel (3 circles) has not disclosed/decided its vendor Table 4.2: 3G circle wise operators & vendors India’s only pan India 3G service provider Bharat sanchar nigam limited(BSNL) is voted as “Best 3G service provider year 2011” 3G users as per polls conducted by www.telecomnewsindia.com website during year 2011.

Fig 4.1: customer feedback in 3G services New services in 3G include various menu based services, mobile TV, streaming, M-commerce,Mobilebanking and mobile ticketing.

BSNL SERVICES:
• • • • Affordable prices. No hidden charges, transparent billing, correct bandwidth and most important PAN India coverage for 3G users BSNL is an 3G service provider, providing 3G servie throughout the country except in new delhi and mumbai under the brand name of “BSNL 3G” and with largets 3G network in india. BSNL alone held more then 60% of Broadband market share in india.BSNL 3G services usually covering the adjoining suburbs and rural areas as well.

BHARTI AIRTEL SERVICES:

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• Airtel started offering services only in January 2011 and has gone on to become the largest private 3G operator with two million customers in the first week of April 2011 through their brand name and reach ability and quality. Airtel have slashed 3G mobile broadband rates for non pack users from 10 paisa per 10m kb to 3paise per 10 kb and company planning to offer 'Smart bytes', an additional usage pack, for 3G post-paid users who exhaust their monthly limit of high speed internet usage Services in entertainment, utility, commerce and health, all this is available on the customer’s mobile phone.

•

•

VODAFONE SERVICES:

•

Under the agreement between Ericsson and Vodafone, Ericsson will supply the RAN system, network rollout services along with the 3G common core platform and transmission over the coming months. The radio access network will include the latest multi-standard radio base station RBS 6000 and mobile soft-switching technology, which will boost the capacity of the network and evolve it into an IP network. With such solutions, Ericsson will also help Vodafone to achieve their energy saving goals.

•

•

Vodafone are exploring opportunities to provide 3G services in other circles as well; it’s likely that it is referring to roaming agreements with other telcos.

TATA DOCOMO SERVICES:
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•

Tata Docomo is at the fourth place with 1.5 million customers. Docomo, Tata's Japanese partner, which is credited with the first 3G network in the world, also became the first private operator in India to launch the service.

•

Tata Docomo's success can be attributed to its convenient tariff plans that include unlimited data usage options, along with some of the best value added services in the industry. Its VAS services have been very successful

RCOM SERVICES:

•

RCom is one of the biggest losers in the mobile number portability game, the early launch of 3G and rapid expansion to reach more than 150 towns and cities have helped it to attract a large number of subscribers fast. Google and Reliance have partnered to offer 1GB free data to Indian 3G Android users as an introductory offer. Reliance 3G Tabs has hit the sweet spot with a terrific combination of a fully loaded Tablet and a seamless IP enabled 3G network leading to an unmatched customer experience.

• •

OTHER OPERATORS SERVICES:

•

Idea is now offering the next level of mobile experience with high speed data, gaming and infotainment services to its over 70 lakh subscribers in the Kerala circle and working on same set of plans to cover other regions.

CONCLUSION:

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Indian mobile operators already generate significant revenues from non-SMS data services and3G will see new, exciting data services available to the Indian public. It’s worth noting that India already has a dynamic mobile content industry. In the enterprise, e-mail may be a major driver for this market. As far as retail is concerned, video streaming could be a driver. This depends upon the pricing of video clips and the download speeds that 3G can guarantee. 3G services are at a nascent phase with only state owned companies offering 3G services in limited pockets—so real price cuts cannot be seen. MVAS will be a key component of the 3G value proposition(expected to touch Rs.48000 crore in 3G ready Indian telecom industry), heavy usage and revenues are also expected to result from big-screen usage (laptops and PCs) with 3G dongles

4.1.3 2G SERVICES:
2G is short for second-generation wireless telephone technology. Second generation 2G cellular telecom networks were commercially launched on the GSM . Three primary benefits of 2G networks over their predecessors were that phone conversations were digitally encrypted; 2G systems were significantly more efficient on the spectrum allowing for far greater mobile phone penetration levels; and 2G introduced data services for mobile, starting with SMS text messages. • In India GSM still strengthening its position as the dominant mobile technology with 85% of the mobile subscriber market, as CDMA slipped further behind. • The number of broadband Internet subscribers is finally on the increase, reaching 13.3 million for a penetration of 1.1% by population by end-2011. The share of Urban Subscriber has marginally decreased from 65.41 % to 65.20% where as share of Rural Subscribers has marginally increased from 34.59% to 34.80%. Private operators hold 88.64% of the wireless market share where as BSNL and MTNL, two PSU operators hold only 11.36% market share.

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Fig 4.2: Operator wise 2G market share Idea and Uninor added the maximum number of subscribers. Even after the 2G saga – licenses cancellation case Uninor managed to add 2.2 million odd subscribers and had a 4.52% market share in the Indian telecom sector. According to market share Bharti leads with 19.62% market share in India. With roughly 1/5 of the Indian market share.

Mobile subscriber’s net addition in a year (2010-11), source: buddy.com

Fig 4.3: Mobile subscriber net addition in a year (2010-2011) 26 | Amity University

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SOME OPERATORS SERVICES STRATEGY IN 2G:
AIRTEL SERVICES:
After changing a corporate identity, Airtel is trying to get re-position in market by targeting on youth market. The new campaign is focusing on “Har Eak Friend Zaroori Hai” in order to take strong position in youth market Airtel has released so many various kind of campaign like Curious Friend, chipku friend, proxy friend, LOL friend, Facebook friend, Sharing friend, etc. Overall, Airtel has lost its position from market in terms of brand equity, market share after changing logo.

VODAFONE SERVICES:
Vodafone is getting good success and built up strong brand image in market. The Zoo zoo campaign was getting huge positive feedback and on that base Vodafone got good image. Still, the Zoo Zoo concept is running and already released various VAS services campaign as well as 3G service campaigns. Vodafone is much strong rival of Airtel and Vodafone has also covered good market share with growth.

UNINOR SERVICES:
Uninor brand is a joint venture between Telenor Norway & Unitech which entered late in India and now Uninor have already taken good brand position in Indian market. Strategy: - Uninor brand adopted “Pricing Strategy” since launching period. However, pricing strategy already been used by other service provider but no one brand come yet like Uninor pricing strategy . As well, it is coming with various kinds of unique ideas & concept on pricing part

MORE FINDINGS ON 2G:
In India, mobile subscribers have access to predominantly 2G services and feature phones. Mobile subscribers are predominantly prepaid, typically consuming voice and SMS bundles. For GSM, which comprise nearly 87 percent of all subscribers, and CDMA services, the percentage of prepaid subscribers was 96.9 percent and 93.8 percent, respectively, in September 2011.15 Mobile subscribers in India choose prepaid because they like to pay-as-they-go, are price-sensitive, and enjoy the freedom to switch carriers. The growth in multi-SIM card phones has been phenomenal. In 2011, 57 percent of the total shipments of phone handsets were capable of holding multi-SIM cards: GSM +GSM or GSM +CDMA 27 | Amity University

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With the evolution of technologies voice and SMS services by 2G has been updated to WAP (wireless application protocol), MMS for internet communication and improved data communication with 2.5G and EDGE. Multi-SIM card phones to facilitate switching from one carrier to another, in combination with prepaid and unlocked service, lead to low ARPU and low barriers to exit for subscribers Thus, it is clear that the 2G and 3G are clearly identifiable different services working in different frequency bands. A 2G unified access service (UAS) licensee is not automatically allowed to provide the 3G services without allotment of 3G spectrum.

CONCLUSION:
Telecom operators have been facing issues of declining ARPU and MPU on voice services in 2G which has bought call charges to as low as half a paisa per minute and even lower questioning sustainability of these players. VAS has bettered the viability of this sector but as far as percentage is concerned 2G is here to stay as there are huge chunk of market share in rural areas which is yet to be exploited and reluctance of Indian customers to switch to newer technology.

4.2 SERVICES IN WIRELINE TECHNOLOGIES
• Vodafone Business Services offers a range of products/services such as Machine to Machine (M2M) Solutions, Leased Lines (Internet Leased Lines, NPLC and IPLC), MPLS VPN, Office Wireline Voice (E1-DID), Toll Free Service, Audio Conferencing, Mobilisation of Enterprise Applications, Email & Connectivity and 3G Solutions for business', to help enterprises (big and small) to enhance their productivity and efficiency. Its customer experience center (CEC) for enterprises will kick off operations in Mumbai from June 2012. At the CEC, customers will see interactive presentations, innovative live demos and discussions, to identify their communication needs. CEC will offer customized solutions for their business needs.

• • •

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Vodafone India leads wireline telephony market in net additions in February 2012

Fig 4.4: Service provider share in net addtion during february 2012 • • • • TRAI said wireline subscriber base declined from 32.39 million at the end of January 2012 to 32.33 million at the end of February 2012. The share of urban Subscribers has increased from 76.32 percent to 76.43 percent where as share of rural subscribers has declined from 23.68 percent to 23.57 percent. The overall wireline teledensity in India has remained, more or less, stable at 2.68 with urban and rural teledensity being 6.76 and 0.90 respectively. BSNL and MTNL, two PSU operators, hold 80.76 percent of the wireline market share. Broadband subscription reached to 13.54 million in February 2012 from 13.42 million in January 2012.The number of telephone subscribers in India increased to 943.49 million at the end of February, 2012 from 936.12 million at the end of January 2012, registering a growth rate of 0.79 percent. The share of urban subscribers has declined to 65.59 percent from 65.79 percent whereas share of rural subscribers has increased to 34.41 percent in the month of February 2012. With this, the overall Tele-density in India reaches to 78.10 at the end of February, 2012 from 77.57 of the previous month. Subscription in urban areas grew from 615.83 million in January, 2012 to 618.82 million at the end of February, 2012. Subscription in rural areas increased from 320.29 million to 324.68 million during the same period. The growth of urban and rural subscription is 0.49 percent and 1.37 percent respectively. The overall urban teledensity has increased from 168.84 to 169.37 and rural teledensity increased from 38.04 to 38.53. | Amity University

•

• • • •

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Fig 4.5: Service provider wise market share or wireline till feb 2012

Fig -4.6 : circle wise teledensity of wireline industry

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The share of urban subscribers has declined to 65.23% from 65.59% whereas share of Rural Subscribers has increased to 34.77% in the month of March 2012. With this, the overall Tele-density in India reaches to 78.66 at the end of March, 2012. Private operators hold 88.65% of the wireless market share where as BSNL and MTNL, two PSU operators hold only 11.35% market share.

WIRELINE SUBSCRIBERS BASE
LANDLINE SUBSCRIBERS OF BSNL:-

Fig 4.7: Regionwise landline subscriber of BSNL

LANDLINE SUBSCRIBERS OF MTNL :-

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Fig 4.8: Regionwise landline subscriber of MTNL

LANDLINE SUBSCRIBERS OF BHARTI :-

Fig 4.9: Regionwise landline subscriber of Bharti

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LANDLINE SUBSCRIBERS OF RELIANCE :-

Fig 4.10: Regionwise landline subscriber of Reliance

LANDLINE SUBSCRIBERS OF TATA :-

Fig 4.11: Regionwise landline subscriber of TATA LANDLINE SUBSCRIBERS OF HFCL :-

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Fig 4.12: Regionwise landline subscriber of HFCL

LANDLINE SUBSCRIBERS OF SISTEMA :-

Fig 4.13: Regionwise landline subscriber of SISTEMA LANDLINE SUBSCRIBERS OF VODAFONE :-

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Fig 4.14: Regionwise landline subscriber of Vodafone

TOTAL CIRCLE-WISE SUBSCRIBERS :-

Fig 4.15: circle wise total landline subscriber COMPARATIVE ANALYSIS OF ALL OPERATORS :35 | Amity University

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Fig 4.16: Comparative analysis of all operators This data defines the wireline subscriber base of 2012 in India . This data is circle wise and operator wise which determines that each operator in particular circle consists of no. of subscribers which helps in analyse that which operator can increase or should improve its subscriber base in a circle. As it is already mentioned in graphs given above that overall public operators (MTNL and BSNL) is leading as number of subscribers in wireline business and following them Bharti Airtel is having second largest no. of subscribers in this business and so on. But if we talk about circlewise except all other circles Sistema and HFCL has Rajasthan and Punjab circle in which they are on 2nd position in case on no. of subscribers after public Operators. So this database of subscriber can help operators as well as vendors to focus on the weak points of other competitiors in particular circle.

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WIRELINE SUBSCRIBER BASE

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Table 4.3: circle wise total wireline subscriber base

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STATUS OF TELEPHONE EXCHANGES AND DIRECT EXCHANGE LINES :BSNL:No. of telephone exchanges in India:-

Fig 4.17: Regionwise telephone exchange in India

DIRECT EXCHANGE LINES:-

Fig 4.18: Regionwise direct exchange lines

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This data defines the status of number of exchanges and direct exchange lines of BSNL in different circles in 2010 with these graphs shown above its easy to conclude no. of exchanges BSNL had at the start of the particular year but as these graphs shows at the end of the year there are decline in no. of exchanges and that to in direct exchange lines as per data the main and major decline affected circles are U.P (West) and Uttaranchal. Except all these declines there are few circles where no. of exchanges and direct exchange lines got a massive incline and one out of those is U.P (East). So as per this data it is easy to conclude that which are the circles where Public operator needs improvement and losing its business whereas this will help other private operators to understand the areas where to attack on the subscriber of public operators to grab business.

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STATUS OF TELEPHONE EXCHANGES AND DIRECT EXCHANGE LINES DECEMBER 31, 2010 & MARCH AS ON 31, 2010
S. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
41

Circles

No. of Telephone Exchanges as on 31.12.2010 31.3.2010 46 4,267 604 1,214 580 3,113 1,354 1,186 368 489 2,789 1,245 2,416 4,923 366 222 1,174 1,519 2,308 2,022 47 4,213 605 1,238 613 3,220 1,343 1,189 366 506 2,777 1,243 2,560 4,939 363 225 1,169 1,526 2,330 2,031

Direct Exchange Lines (Fixed+WLL+CMTS) as on 31.12.2010 203,459 8,328,246 1,623,735 5,059,300 1,438,845 5,543,638 3,645,018 1,956,817 982,934 1,883,297 7,117,589 8,990,135 4,529,645 8,579,517 737,346 871,033 4,140,844 5,566,542 6,757,903 8,478,781 31.3.2010 144,162 6,623,545 1,449,647 4,393,360 1,312,914 5,128,392 3,360,608 1,629,323 1,206,500 1,721,506 6,043,318 7,507,638 4,106,731 7,690,988 699,099 699,764 3,111,765 4,946,226 5,909,457 6,642,879

Andaman & Nicobar Andhra Pradesh Assam Bihar Chhattisgarh Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra North East - 1 North East - 2 Orissa Punjab Rajasthan Tamilnadu

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21 22 23 24 25 26 Uttar Pradesh (East) Uttar Pradesh (West) Uttaranchal West Bengal Kolkata Chennai 2,185 1044 481 1,380 523 323 459 2189 1069 1,384 532 325 11,152,124 3,474,512 1,541,215 3,640,395 3,644,295 2,471,365 1,363,623 9,608,722 3,435,103 3,137,479 3,109,242 2,298,581

BSNL TOTAL 38,141 38,461 112,358,530 97,280,572 Table 4.4: status of direct exchange line and telephone exchange in India

STATUS AND %AGE OF RURAL TELEPHONE CONNECTIONS AS ON DECEMBER 31, 2010 & MARCH 31, 2010:2010-11 (as on December 31, 2010) :-

Fig 4.19: status of rural telephone connections 2010-11

2009-10 (as on March 31, 2010):-

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Fig 4.20: status of rural telephone connections 2009-10 As per the given data and above graph related to percentage of Rural telephone connections in year 2010 it is easy to conclude that at the start of the year and at the end of the year there is a great change in percentage in most of the circles the rural telephone connections were declining . It has already been explained that the wireline market in India is declining in which still public operators are leading with no. of subscribers because of its massive infrastructure in wireline also its base in rural areas. This data is showing that out of total subscriber base in India almost 24% of subscribers are from rural areas. So this helps in operators to attack on the particular circles where there is higher subscriber base in rural areas. Also if it is seen through the vendors point of view one can suggest operators different manage services which will help in reduce OPEX specially in case of public operators which are losing its subscribers at massive rate as compare to private operators which are still gaining some revenue and subscribers as well. In this data as it is shown that Kolkata is the only circle where there is no rural area is covered.

STATUS AND %AGE OF RURAL TELEPHONE CONNECTIONS ON DECEMBER 31, 2010 & MARCH 31, 2010 AS
2010-11 (as on December 31, 2010) S. No.
1 2 3 4 5 6

2009-10 (as on March 31, 2010) Rural
66,479 2,977,585 481,092 1,685,704 429,861 1,757,234

Circles
A&N A.P Assam Bihar Chhattisgarh Gujarat

Rural
91,913 4,063,461 551,016 1,914,557 500,384 1,883,861

Total
203,459 8,328,246 1,623,735 5,059,300 1,438,845 5,543,638

%age of Rural
45.18 48.79 33.94 37.84 34.78 33.98

Total
144,162 6,623,545 1,449,647 4,393,360 1,312,914 5,128,392

%age
46.11 44.95 33.19 38.37 32.74 34.26

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7 8 9 10 11 12 13 14 15 16 17 18 19 20 22 23 24 25 26 26 TOTAL Haryana H.P J&K Jharkhand Karnataka Kerala M. P Maharashtra N. E- 1 N. E- 2 Orissa Punjab Rajasthan Tamilnadu U. P(East) U. P(W est) Uttaranchal West Bengal Kolkata Chennai BSNL 2,198,395 1,271,913 153,512 559,448 1,440,102 4,849,556 1,686,185 3,036,428 260,363 331,729 1,805,627 2,169,290 2,366,703 1,664,351 3,341,366 813,146 666,318 1,891,598 0 118,969 39,630,191 3,645,018 1,956,817 982,934 1,883,297 7,117,589 8,990,135 4,529,645 8,579,517 737,346 871,033 4,140,844 5,566,542 6,757,903 8,478,781 11,152,124 3,474,512 1,541,215 3,640,395 3,644,295 2,471,365 112,358,530 60.31 65.00 15.62 29.71 20.23 53.94 37.23 35.39 35.31 38.08 43.61 38.97 35.02 19.63 29.96 23.40 43.23 51.96 4.81 35.27 1,993,384 1,095,005 181,652 511,072 1,365,195 4,298,039 1,602,228 2,917,366 251,036 261,593 1,422,670 2,162,279 2,210,131 1,522,716 2,709,114 846,408 553,750 1,600,280 0 120,952 35,022,825 3,360,608 1,629,323 1,206,500 1,721,506 6,043,318 7,507,638 4,106,731 7,690,988 699,099 699,764 3,111,765 4,946,226 5,909,457 6,642,879 1,363,623 9,608,722 3,435,103 3,137,479 3,109,242 2,298,581 97,280,572 59.32 67.21 15.06 29.69 22.59 57.25 39.01 37.93 35.91 37.38 45.72 43.72 37.40 22.92 198.67 8.81 16.12 51.01 5.26 36.00

Table 4.5: STATUS AND %AGE OF RURAL TELEPHONE CONNECTIONS ON DECEMBER 31, 2010 & MARCH 31, 2010 AS

India wireline telecom subscriber base touched 34.40 million at the end of May 2011 …
• • • • • • Indian landline telecom market ends May 2011 with subscriber base of 34.40 million. Due to cord-cutting trend about 0.15 million users disconnected their wireline connections resulting into negative monthly growth rate of -0.44%. Overall wireline teledensity stands at 2.88% (Urban: 7.19%, Rural: 1.02%). Urban to rural subscriber ratio is 75.19% to 24.81%. Going forward, wireline telephony is unlikely to witness any positive momentum mainly driven by increasing adoption of mobile phones among Indian consumers. Landline market is most likely to restrict in corporate & government offices and affluent households. 44 | Amity University

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• As far as the limited growth in mobile telephony is concerned, it has been attributed to higher competitive mobile market, delay in capacity augmentation resulting in congestion and poor quality of services, and lack of marketing activities and poor visibility of products. While distribution network is weak, particularly in rural areas, the uptime of mobile towers has been adversely affected due to indifferent attitude of IP vendors, which impacted the performance of the public firms. Even in wireline segment, private operators have added more subscribers whereas in the case of public operators, there is a decline in the user base.

• •

Broadband Subscribers in India
• • Total Broadband subscriber base has increased from 13.30 million at the end of December 2011 to 13.42 million at the end of January 2012, there by showing a monthly growth of 0.90%. Yearly growth in broadband subscribers is 19.74% during the last one year (Jan. 2011 to Jan. 2012). As on 31st Jan. 2012, there are 155 Internet Service Providers (ISPs) which are providing broadband services in the country. Top three ISPs in terms of market share are: BSNL with 8.68 million subscribers, Bharti Airtel with 1.36 million and MTNL with 1.03 million subscribers.
Month on Month increase in the number of Telecom subscribers:

Fig 4.24: Broadband market share 2011\

4.3 DATA CENTRE SERVICE:
Data in India usually comes from Telco’s, financial services, and banks, call centers and the new source now being added in is social media. These organizations require customer/supplier interaction over the organizational network.

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Types of Data Centers:
Co-Location Data Centers-For an organization with a small IT team, hosting at an external Internet Data Center (IDC) is more viable. All the data and applications are owned by the organization. Only the hosting services are hired. In-house data centers-In the case of large organizations, it is always best to use the organization's own data center to have the best performance, management, security, and accessibility • • • Indian data center services market is projected to grow at a 23-percent CAGR till 2012 to touch Rs. 11,800 crore. Indian data center capacity is poised to touch 6.6 million square feet by 2016, with service providers driving majority of the growth. The data center co-location and hosting market in India is estimated to reach US$609 million this year and $1.3 billion in 2016. • Third Party Data Centre – Vertical Mix

Fig 4.25: Third Party Data Centre – Vertical Mix

•

Currently there are 46 co-location data centers from 13 areas in India (India) 46 | Amity University

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Ahmedabad (1) (2.2 % Market) 1. NESSA TECHNOLOGIES (Gujarat's First tier III data centre to offer co-location and business applications on SaaS platform) Bangalore (6) (13.3 % Market) 1. SPECTRANET (Spectranet started rather modestly with first Tier III Internet data center at its headquarters in New Delhi, in 2000. Combining the unparalleled experience and technical capabilities, the company now collaborates with most of Fortune 500 companies around the world to meet their data centre demands.) 2. RELIANCE DATA CENTRE (Secure and scalable hosting space with services like colocation, managed hosting and range of managed services.) 3. BHARTI AIRTEL LTD. (Airtel Datacenters in India. NCR, Pune, Bangalore, Chennai, Tier III facilities, Carrier neutral) 4. NET4INDIA (Net4's fully managed, state-of-the-art Cisco-powered, ISO 27001 Data Centers offers redundant, secure facility with multiple bandwidth options, and offer services that you need - security, storage, recovery, consulting, and people to help manage and optimize your data and its performance) 5. NETMAGIC SOLUTIONS (State-of-the-art Internet Datacenter with Managed IT Services Support in Vikhroli, Mumbai) 6. SAVVIS INC. (Savvis, a Century Link company, is a global leader in cloud, managed hosting, and co-location solutions for enterprises.) Chennai (5) (11.1 % Market) 1. RELIANCE DATA CENTRE (Largest individual third party data center in Chennai. Customised hosting space available from 1U space to full rack to data center space. Over 100 dedicated data center professional working round the clock to ensure availability and security.) 2. BHARTI AIRTEL LTD. 3. NET4INDIA 4. NETMAGIC SOLUTIONS 5. SPECTRANET Cochin (3) (6.7% Market) 47 | Amity University

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1. SPECTRUM SOFTTECH SOLUTIONS (P) LTD. (Spectrum provides world class data center to co-locate your servers for your own applications, web services, and corporate mail services on high-speed redundant backbones.) 2. ARIDE OCEAN (Dedicated Servers, Colocation, VPS, Email Apps Colocation, VPS, Email Apps, ERP Hosting, shared Hosting, FTP Service, DNS Hosting, Load Balancers) 3. TECHMAP IT SOLUTION PVT. LTD. (Data zone provides data center colocation, virtual private server, hosting services and other customized networking services that enable our customers to focus on their core businesses while Data zone focuses on their IT infrastructure.) Coimbatore (2) (4.4% Market) 1. ABTINFO.NET DATA CENTRE (ABTInfo.net, Internet Data Center is a part of the $1.2 billion USD ABT Group of companies) 2. AKASHIQ DATA CENTRE INDIA PVT. LTD. (Outsourced Data Center and Cloud Services optimized to Small & Medium Enterprises)

Hyderabad (6) (13.3% Market) 1. CTRLS DATACENTERS LTD (India's first Tier IV & Truly Carrier Neutral Datacenter offering Custom-Built Infra, Co-location, Managed Services, DR & BCP, Dedicated Hosting. 100% uptime since inception, Datacenter in Hyderabad, Datacenter in Mumbai, Datacenter in India) 2. KEDIA TECHNOLOGIES LIMITED (Largest data center at Hyderabad. ample hosting space and over 100 dedicated data center professional providing Co-location, Managed Hosting, Storage & Backup, Managed Security, and range of managed services.) 3. T-REX NETWORKS PVT. LTD. (Provides Affordable Dedicated servers from this facility which is custom built to hold bulk Tower machines) 4. NET4INDIA 5. RELIANCE DATA CENTRE 6. SPECTRANET 48 | Amity University

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Jaipur (2) (4.4% Market) 1. NEESA TECHNOLOGIES 2. HOSTRIGHTNOW TECHNOLOGIES (Reliable, secure and cost effective data center & Digester Recovery Site in India.) Kolkata (1) (2.2% Market) 1. NET4INDIA Mumbai (6) (13.3% Market) 1. WEB WERKS INDIA PVT. LTD. (Web Werks is a 13 year old company and our data center is 5 years old. 100% Network Availability Guaranteed. 99.999% Up Time. 24 x 7 Support. Experts Everywhere) 2. HONESTY NET SOLUTIONS (INDIA) PVT. LTD. (24/7 Access, security, remote hands, N+N redundant power cooling, uplinks, Carrier Neutral Tier-3 Datacenter, Multiple transit providers with multiple OC3/STM1 capacities from each provider, BGP4 Redundant Network, Core network based on Juniper) 3. NET4INDIA 4. NETMAGIC SOLUTIONS (2 centers) 5. CTRLS DATACENTRES LTD. Nashik (1) (2.2% Market) 1. ESDS SOFTWARE SOLUTIONS PVT. LTD. (ESDS - Data Center is a Fully Managed Tier III Data Center Facility based in India)

Navi Mumbai (2) (4.4% Market) 1. CYQUATOR TECHNOLOGIES (The IDC has a built up space of 20,000 sq ft out of which 13,000 sq ft is raised floor space.) 2. RELIANCE DATA CENTRE 49 | Amity University

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New Delhi (8) (15.6% Market) 1. BHARTI AIRTEL LTD. ( 2 CENTERS) 2. NET4INDIA 3. GO4HOSTING 4. SPECTRANET (2 CENTRES) 5. MICROHOSTING (Presently serving around 64900 customers all over India. Client list includes many government, semi government offices and corporate.) 6. TULIP

Pune (3) (6.7% Market) 1. BHARTI AIRTEL LTD.

2. NET4INDIA 3. DATAGALAXY

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Fig 4.26: Data centres regionwise

• Target Audience
1. Third party data center service providers like Reliance Communications, Tata Communications, Sify, Bharti Airtel, Netmagic, Wipro, Cyquator, Tulip, Net4, 3i, etc. 2. Technology providers like Sun, EMC, Cisco, Juniper, Intel, Dell, etc. 3. Power conditioning equipment vendors like APC, Emerson, etc. 4. Cooling equipment vendors like Blue Star, Hitachi, etc.

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5. ALL COMMON STATISTICS

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India: Key telecom parameters – 2009 - 2012
Fixed-line services: Total No. of subscribers Annual growth Fixed-line penetration (population) Fixed-line penetration (household) Broadband: Total No. of subscribers Annual growth Broadband subscriber penetration (population) Broadband subscriber penetration (households) Mobile services: Total No. of subscribers Annual growth Mobile penetration (population) 525 51% 45% 752 43% 63% e means expected figures. Source: BuddeComm 894 19% 73% 1050 17% 85% 8 44% 0.70% 3.50% 11 41% 0.9% 4.7% 13.3 21% 1.1% 5% 16 20% 1.3% 6% (in millions)2009 37.1 -2% 3% 18% (in millions)2010 35.1 -5% 3.30% 18% (in millions)2011 32.7 -7% 2.7% 18% (in millions)2012(e*) 32 -3% 2.6% 18%

Table 5.1: Indian telecom industry’s key telecom parameters. Indian telecom industry is fast changing from voice based to data based services. Fixed line subscribers are declining whereas broadband subscribers are continuously growing with an average growth rate of 35.33% in last three years.

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Ranking

Operator

Number of lines (millions) March 2011

Mobile market share

1 2

Bharti Airtel Reliance Communications

162.2 135.7

19.99% 16.72%

3 4 5 6

Vodafone Essar BSNL Idea Cellular Tata Teleservices

134.6 91.8 89.5 89.1

16.58% 11.32% 11.03% 10.98%

7 8 9

Aircel Uninor Sistema Shyam (MTS India)

54.8 22.8 10.1

6.76% 2.81% 1.24%

10 11 12 13 14 15

Videocon MTNL Loop Mobile S Tel HFCL Etisalat DB

7.1 5.5 3.1 2.8 1.5 0.9

0.88% 0.67% 0.38% 0.35% 0.18% 0.12%

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Total
Source: TRAI

811.6

100%

Table 5.2: India's Mobile Operators, March 2011

Fig 5.1: operator wise number of lines as on march 2011

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Fig 5.2: operator mobile market share, 2011

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6. NEW SERVICES IN WIRELESS AND WIRELINE

WIRELESS.
ENTERPRISE DATA MARKET:
India’s enterprise data service market is estimated to be Rs. 7,535 crore and the contribution is expected to rise to 36% at Rs. 16,779 crore by 2014. The upcoming enterprise data services market will include: 57 | Amity University

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1. 2. 3. 4. 5. 6. International private leased circuits(IPLC) Domestic private leased circuits (DLC) Multi protocol label switching (MPLS)/ Internet virtual private network (IPVPN) ATM/Frame relay VSAT Internet services

IPLC accounts for nearly 10% (approximately Rs. 748 crore ) of the total enterprise data market in India. It is anticipates that growth in enterprise data market will be mainly from the Ethernet & MPLS segmentswhich are estimated to be fastest growing markets with CAGR of 64.5% and 34.2% respectively and MPLS/VPN are expected to constitute about 58% of overall enterprise data service market (approx. Rs. 16,799 crore) by 2014. DLC offers a point to point private line which can be used by enterprise to communicate between offices that are geographically dispersed throughout the country. A DLC can be used for internet access, business exchange, video exchange and any other form of telecommunication and it accounts for 16% (Approx. Rs. 1216 crore) of total enterprise data market in India. VSATs are commonly used to transmit narrow band data (point of sales transaction such as credit card, polling or RFID data etc.) or broadband data (for provision of satellite internet access to remote location, VOIP or video) and it forms approximately 6% of total enterprise data market in India.

IPTV AND DTH:

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Internet protocol television (IPTV) also referred as ‘triple play’ offers internet, television and telephone services on a single platform. IPTV provides the telecom service providers an opportunity to widen the gamut of existing services and is likely to be beneficial for large players in the telecom sector and thus DTH market is a huge business prospect.

Fig 6.1: Estimated DTH market FROM 2010-14 NOTE:All are estimated figures WiMAX could be used as an alternative to cable and DSL for providing broadband access in rural areas which is economically feasible option in rural areas and hence could be a major factor driving the growth of Indian telecom services, it is likely to facilitate the propagation of the e-governance services such as telemedicine, e-learning through broadband, particularly in the rural areas. Investing in technologies such as NGN, 3G, WiMAX, is likely to open up new frontiers of business

Bharti Airtel chooses Alcatel Lucent to set up next generation IP Network across the country Alcatel lucent looking for more operators in similar sort of deals and also operators are now focusing on IP-based access network for reasons of both cost and performance and for bandwidth hungry applications like high speed data browsing, social network-based applications, online gaming, video conferencing and online collaboration on mobile RailTel Corporation of India has selected Juniper Network’s M-series multiservice edge routing platform to help transform RailTel's nationwide TDM-based railway network into a next generation IP/MPLS network. RailTel operates a vast Optical Fiber Cable (OFC) network featuring comprehensive national coverage. The network is currently comprised of 25,000 kilometers of cabling, and RailTel plans to grow this infrastructure to 40,000 kilometers in the next three to four years. RailTel points of presence (POPs) will be available at every railway station (totaling 59 | Amity University

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approximately 4,000 POPs by 2008), providing secure Internet connections to railway customers so OFC will be the next big thing in Indian telecommunication. BSNL has taken up a project that is expected to cost them Rs 200 billion. Under this project, National Optical Fiber Network (NOFN) will be created to provide Internet and telecommunications connectivity in all the rural areas by 2014.

PROVIDING VOICE SERVICES IN LTE:
Voice services in LTE networks are the billion-dollar question facing mobile operators who are deploying LTE. Several solutions have been proposed, some by 3GPP and others by industry consortia and as per the emphasis on network convergence voice over LTE could be the major inflection point in telecom convergence. The table below summarizes the different proposals.

Fig 6.2: voice options over LTE

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WIRELINE

In wireline business as Fixed wireline phone is saturated so that will decline more in future so the services which can provide revenue on this fixed wireline phone services are:

1. IPTV 2. VPN 3. VOIP 4. IHS 5. LMDS/WiMax
Except of these the market will move from the copper wireline phones to the Optical fiber cable network and microwave network. As per the network structure the connectivity of all the exchanges will be with the help of Optical fiber cables that is MSC, BSC, and BTS will also be connected with the help of Optical fiber cables.

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• BSNL ties up with NTT Group to roll out data centre services
1. Dimension data firm of Japan’s NTT group is in the nature of a revenue-share model, would host services such as video-as-a-service for enterprises and offer other cloud services such as infrastructure on demand. 2. The current data centre market in Rs 2,400 crore and is expected to grow at a 21 per cent CAGR (compound annual growth rate). 3. NTT’s plan is not to sell space as most of other do, as this is a price war business, they will sell only services. 4. Already received business of Rs 100 crore.

•

PC-maker HP unveils its first net-zero energy data centre
1. 2. 3. 4. 5. Net-zero energy data centre that reduce data centre power costs and energy requirements. Use of solar and alternative renewable energy sources. Paying 2-3 times the total cost for electricity. Less Carbon Emission because use of local renewable resources. The data centre at HP Labs headquarters in Palo Alto in California, which uses solar and other local renewable sources. 6. The zero-net energy centers also introduce a first-of-its-kind demand-management approach that allows the scheduling of IT workloads based on resource availability and requirements.

•

Tulip Telecom income up 15% to Rs 2705 crore in FY2012:
1. Tulip launched world's third largest data center in Bangalore with an investment of Rs 900 crores in FY 11 and registered leading names such as, NTT, IBM and HP as some of its major customers. 2. Tulip has revived its business strategy by adopting a vertical approach, streamlining its business lines like enterprise services business, managed services business and government business. (EMC announced that Tulip Telecom will provide managed on-demand storage services and Backup-as-a-Service (BaaS) using EMC unified storage and backup and recovery technologies from the Tulip data center in Bangalore.) ….can sees for this service too.

•

MACH unveils Data Optimization solution for telecos:
• • • • MACH, a provider of cloud-based managed communication services, has introduced its new Data Optimization solution, which the company claims lowers the cost of delivering data roaming and domestic services to subscribers for mobile network operators and MVNOs. "By reducing roaming data costs, operators can improve bottom-line profitability, or pass on savings to customers, thereby increasing competitiveness and end-user satisfaction and lowering the risk of 'Bill Shock' scenarios”. Its new solution uses downlink data optimization technology which enables reductions of up to 70 percent on downstream data usage of Smartphone. The reduction in downstream data usage minimizes the wholesale cost of providing data roaming for operators and for MVNOs who have to purchase their wholesale data from host mobile network operators, and tackles bandwidth issues. | Amity University

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• Furthermore, other techniques such as data off-loading, data optimization allow network operators to reduce costs and meet bandwidth challenges.

7. GROWTH PATTERNS

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7.1 GLOBAL ANALYSIS:
At the end of 2011, there were 6 billion mobile subscriptions (The International Telecommunication Union (2011).) That is equivalent to 87 percent of the world population. And is a huge increase from 5.4 billion in 2010 and 4.7 billion mobile subscriptions in 2009. Mobile subscribers in the developed world has reached saturation point with at least one cell phone subscription per person. • China and India, the world's most populous nation’s collectively added 300 million new mobile subscriptions in 2010 – that’s more than the total mobile subscribers in the US. • At the end of 2011 there were 4.5 billion mobile subscriptions in the developing world (76 percent of global subscriptions). Mobile penetration in the developing world now is 79 percent, with Africa being the lowest region worldwide at 53 percent.

Key Global Telecom Indicators for the World Telecommunication Service Sector in 2011 (all figures are estimates)
Developed Global Mobile cellular subscriptions (millions) Per 100 people Fixed telephone lines (millions) Per 100 people Active mobile broadband subscriptions (millions) Per 100 people Fixed broadband subscriptions 1,186 17.00% 591 701 56.50% 319 484 8.50% 272 31 3.80% 1 48 13.30% 8 421 10.70% 243 42 14.90% 27 336 54.10% 160 286 30.50% 145 1,159 16.60% 494 39.80% 665 11.60% 12 1.40% 35 9.70% 511 13.00% 74 26.30% 242 39.10% 268 28.50% 5,981 86.70% 1,461 117.80% 4,520 78.80% 433 53.00% 349 96.70% 2,897 73.90% 399 143.00% 741 119.50% 969 103.30% nations Developing nations Africa Arab States Asia & Pacific The Americas

CIS

Europe

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(millions) per 100 people 8.50% 25.70% 4.80% 0.20% 2.20% 6.20% 9.60% 25.80% 15.50%

Source: International Telecommunication Union (November 2011)

via: mobiThinking

Table 7.1: Key Global Telecom Indicators for the World Telecommunication Service Sector in 2011

Fig 7.1: Key Global Telecom Indicators for the World Telecommunication Service Sector in 2011 Mobile subscriptions outnumber fixed lines 5:1 (more so in developing nations); Mobile broadband outnumbers fixed broadband 2:1.

CONCLUSION:
With stats like this, it is easy to predict that mobile Web usage will overtake PC-based Web usage. This will happen more quickly in developing nations (if it isn’t happening already) where fixed Web penetration remains low. In developed nations, this will happen more slowly. Regardless of the timescale, this inevitability makes mobile Web strategy more important than your PC Web strategy in the long term.

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• • • • 30 percent of the world’s mobile users live in India and China. Subscribers in each country are rapidly approaching 1 billion both dwarf the number of subscribers in third place USA. China: 963 million subscribers (71 percent of population) in November 2011 (see table for breakdown), 118 million of these are 3G users. India: 884 million subscribers (73 percent of population) in November 2011, up 154 million from November 2010. (TRAI, Jan 2012). 66 percent of mobile subscribers are urban dwellers. USA: 322.9 million subscribers (102.4 percent of population) in June 2011 (CTIA).

The top five mobile network operators worldwide: by number of subscribers, revenues, monthly average revenue per user (ARPU), monthly churn (i.e. loyalist customer base) and data as a percentage of total revenues, according to Portio Research: Top five operators by different KPIs – worldwide Total revenues China Mobile AT&T US Verizon US NTT DOCOMO Japan Monthly ARPU 3 UK Bouygues France Vodafone Ireland Monthly churn NTT DOCOMO Japan KDDI Japan SingTel Singapore Chunghwa Taiwan T-Mobile Germany Proportion of revenues derived from data Smart Philippines Globe Philippines SoftBank Japan

Rank 1 2 3

Subscribers China Mobile China Unicom Bharti Airtel India

4

AT&T US

O2 Ireland Orange Switzerland

NTT DOCOMO Japan

5

Verizon US

Sprint US

KDDI Japan

Source: Portio Research (June 2009) via mobithinking Table 7.2: Top five operators by different KPIs – worldwide

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CONCLUSION:
The most interesting thing is the predominance of Asian mobile operators coming top in both the customer loyalty and data revenues sections. Perhaps this represents different and longer-term priorities than the European networks that come top in average revenue per user. (Note: the analysis in this report is based on 2009 revenues).

MOBILE WEB:
There are almost 1.2 billion mobile web users in the world. According to estimate by the ITU (2011), there are 1.2 billion active mobile broadband subscription in the world. That is 17% of the global population. • Mobile broadband subscriptions have grown 45% annually over the last four years. • Mobile broadband subscription out number fixed broadband subscriptions 2:1. • In developed countries mobile broadband users often also have a fixed broadband connections, but in developing countries mobile broadband is often the only access method available to people.

Source: International Telecommunication Union (November 2011) via mobithinking 67 | Amity University

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Fig 7.2: Active mobile broadband subscriptions by region in 2010 and 2011 (2011 figures are estimates)

The percentage of people regularly accessing the mobile Web in Japan and urban China is more than double the US according to surveys by Forrester (June 2011)

Source: Forrester (June 2011) via: mobiThinking Fig 7.3: Percentage of mobile subscribers accessing mobile Web at least monthly 68 | Amity University

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Many mobile Web users are mobile-only, i.e. they do not, or very rarely also use a desktop, laptop or tablet to access the Web, according to On Device Research: • In many developing nations, the majority of mobile Web users are mobile-only, highest include Egypt at 70 percent and India at 59 percent. • In developed nations, including the US at 25 percent, a large minority of mobile Web users are mobile-only. • In developed nations, in the US particularly, many mobile-only are older people and many come from lower income households. • In Africa the 85 percent of the mobile-only Web users access the Web with a feature phone. • Many mobile-only Web users do not have a bank account, in India this is 57 percent of the mobile-only

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Source: morganstanley(april 2010) via mobithinking Fig 7.4: Top regions for penetration of 3G handsets according to Ovum

Source: morganstanley(april 2010) via mobithinking Fig 7.5: Top 10 countries for penetration of 3G handsets according to Informa 70 | Amity University

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Morgan Stanley states that "3G is key to success of mobile Internet", however while Japan (king of the mobile Web) appears to be testimony to this conclusion, China claims to have the highest mobile Internet usage in the world despite low 3G handset penetration. Mobile operators in developed countries could run out of profit in the next two to four years if they do not change their business models, according to research by Tellabs/Analysis Mason (February 2011). This assumes current trends in demand for data, revenues and costs associated with investing in high speed data networks. • Long-term growth in m-commerce will come from developing nations where mobile is virtually the only way to access the Internet. Asia will be the key market for MFS(mobile financial services), driven by initiatives to bank the unbanked and money transfers: • Berg Insight: More than half of global MFS customers will be in Asia Pacific – Middle East and Africa is also expected to be important market – as mobile operators drive initiatives to bank the unbanked. • GIA: Asia-Pacific will emerge as the predominant MFS market in terms of customer base. In Middle East and Africa, the need to provide financial services to remote areas will be central to the growth of m-banking

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7.2 INDIAN SCENARIO:
With 525 million mobile subscriptions and rising India is the world’s second largest mobile market after China. Cell phone penetration dwarfs both landlines and PCs, making the mobile channel the obvious channel for meeting the growing digital information and entertainment needs of this vast market. In India mobile phones now outnumber landlines 14:1 and are used by about 45 percent of the population. The sparseness of landlines, particularly in rural areas, coupled with the expense of PCs, has kept Internet use very low, with less than 6 percent of Indians (age 12 or above) accessing the Internet once a month.

Fig 7.6: Proportion Of VLR

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Fig 7.7: Proportion Of VLR With Effective Rate

Particulars Total subscribers Total Net addition % of monthly growth Urban subscribers Rural subscribers Tele density Urban teledensity Rural teledensity Share of Urban subscriber Share of Rural subscriber

Wireless(millions) Wireline(millions) Total(millions) 911.17 32.33 943.5 7.44 -0.07 7.37 0.82% -0.21% 0.79% 594.11 24.71 618.82 317.06 7.62 324.68 75.42% 2.68% 78.10% 162.61% 6.76% 169.37% 37.62% 0.90% 38.53% 65.20% 76.43% 65.59% 34.80% 23.57% 34.41%

Source: http://www.indiatelecomonline.com/india-telecom-subscriber-statistics-february-2012/ Table 7.3: INDIA-Telecom subscriber market-Feb. 2012

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Fig 7.8: Trend In Rural And Urban Teledensity

SOME ADDITIONAL FACTS AND FIGURES OF INDIAN TELECOM INDUSTRY:
In urban areas mobile penetration is almost at saturation point with 270 million mobile subscribers, so growth (3-4 per cent per month) is predominantly from rural areas. When choosing a mobile-phone package the two most critical factors are: a) unlimited Internet access and b) more SMSbased value-added services. The most popular SMS-based services are jokes (accessed by 52 percent of mobile users); astrology (48 percent), news updates (44 percent), jobs (43 percent) and sports updates (42 percent). Yahoo Messenger is the most used IM application. Of mobile IM users, 18.3 percent use Yahoo and 17.8 percent use Google Talk.

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DATA CENTER SERVICES MARKET DIFFERS GLOBALLY:
• Third Party data centers are moving from co-location services, which presently contribute more than 55 percent of revenue, to managed services and cloud based services like Infrastructure-as-a-Service (IaaS) and Platform-as-aService (PaaS). • Growth is driven by enterprises that are looking to reduce IT infrastructure costs (CAPEX Costs) and reduce management focus on IT and focus on core processes. • Other pressures like increasing productivity, requirement of highly skilled technical consultants, huge maintenance costs are also forcing the enterprises to depend on third party data centers.

NORTH AMERICA:
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Data center outsourcing (DCO) in North America was $33 billion in 2011, while Web hosting and colocation were $23 billion. This market has the highest cloud adoption rate, with 60 percent of public cloud services worldwide, and the U.S. hosting market has continued to accelerate the pace of innovation and transformation. The North American DCO/IUS market has grown both organically and through new offerings, such as storage as a service. Traditional DCO services growth continues at a slower pace than previously, due to IUS solutions and lower-price IT outsourcing (ITO) industrialized models.

EUROPE:
DCO in Europe was $38 billion in 2011, while Web hosting and co-location were $8.6 billion and public cloud services adoption 22.9 percent. The European market used to be a fragmented puzzle of different and relatively small country markets, but since 2005 leading outsourcers have implemented low-cost remote control centers and then started developing IUS offerings to benefit from significant traction with infrastructure utility for SAP, particularly since 2008 and during the economic crisis.

ASIA/PACIFIC:
DCS in the region was $10 billion in 2011, while Web hosting and co-location were $2.5 billion, and public cloud services penetration was 9.8 percent in Japan and 3 percent elsewhere. Japan and South Korea are the most vibrant Web hosting markets for local content, while Singapore and Hong Kong are important regional hubs for multinationals. Other developed markets include Australia, New Zealand and Taiwan. A few large infrastructure vendors dominate the DCO market in the region, while regional and local providers operate in each country. A plethora of players, such as IT services providers, hosters and cloud specialists (from the U.S.) have recently joined the race, with more expecting to fill the marketplace in the next 12 months.

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Fig 7.9: Data Center Services Globally

CURRENTLY IN ASIA THERE ARE 109 CO-LOCATION DATA CENTERS FROM 12 COUNTRIES:

1. Azerbaijan (1) (0.9% Market) 2. Cambodia (1) (0.9% Market) 3. China (9) (8.3% Market) 4. Hong Kong (21) (19.3% Market) 5. India (45) (41.3% Market) 6. Japan (12) (11% Market) 7. Nepal (1) (0.9% Market) 8. Singapore (8) (7.3% Market) 9. South Korea (1) (0.9% Market) 10.Taiwan (2) (1.8% Market) 11.Thailand (4) (3.7% Market) 12.Vietnam (4) (3.7% Market)

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Fig 7.10: Asia Data Center Market

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8. MACRO ENVIRONMENT, GOVERNMENT POLICIES, TECHNOLOGY RELATED TO INDIA

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SPECTRUM REFARMING
1. TRAI recommended that the more efficient 900MHZ spectrum, which the early entrants have, will now have to be “refarmed” or relocated to 1800 MHZ. 2. In this three major players Airtel, Vodafone & Idea are angry whereas Tata & Reliance have no expression this shows may be they are happy with this suggestion. 3. The three major companies urging the government to refarm but the price should not be increased of auction. 4. Whereas “MTS” & “TELENOR” which already lost their license during scam are planning to rebid but TRAI’s move may hurt them hard. 5. Now government wants existing operators to pay for excess spectrum beyond 2*4.4 MHZ in case of GSM & 2*2.5 MHZ in case of CDMA. So dual technology users Tata & Reliance hold more than 2*2.5 MHZ of spectrum in 800 MHZ band in most circles. 6. TRAI just wants 5 MHZ of spectrum to be auctioned in 1800 MHZ band because it wants to preserve the balance for implementing the proposal to refarm 900 MHZ spectrum. 7. Here telecom commission has different point of view that even after refarming there is more spectrum available in 1800 MHZ & the refarming proposals would keep a lot of immediately useful spectrum in 1800 MHZ band idle for long. 8. There is also confusion to telecom commission that how the same pricing structure has been recommended for spectrum blocks of 1.25 MHZ &5 MHZ. As in earlier recommendations, TRAI had proposed two pricing structure one below 4.4 MHZ & Second above 4.4 MHZ. The logic was that spectrum held in small quantities is less valuable because it has small user capacity on account of poor trunking efficiency.

“ISSUES AROUND NON INCENTIVE BASED REFARMING”
1. There are other issues around this non-incentive based refarming of spectrum. TRAI seems to have unaware of the cost implications or services providers on refarming. 2. The sites required for deployment will be twice as many, especially in rural & semi urban areas.

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3. Also, TRAI have forgotten about the feasibility of migrating existing devices to liberalize technology like 3G & LTE, as all devices will not be compatible. As existing CDMA devices are not compatible with 1900 MHZ band.

“MACRO CHANGES FOR OPERATORS”

1. TRAI proposal of spectrum refarming, putting an additional burden of RS 100 billion on Vodafone India Ltd. 2. Vodafone has 10 circles on 900 MHZ so at the time of renewal of license i.e. 2014 will cost almost same as Vodafone spent at the establishment of network i.e. RS 167 billion. 3. Due to this proposal operators may hike tariffs which will add cost burden on consumers from RS 2 to RS 5/MIN. 4. This will also create a barrier for Vodafone to expand its network in new geographies which results no new business for vendors regarding their products. 5. Also TRAI suggested auction of 5 MHZ of spectrum in 1800 MHZ band at a total RS 36.22 billion per unit. 6. Due to higher than exacted reserve price of spectrum auction TELENOR ASA (Norway) planning to wind up its India Operations.

NEW TELECOM POLICY APPROVED: ROAMING CHARGES TO GO, ONE-NATIONONE-NUMBER CLEARED
• • • • Under the new policy broadband speed has been increased to minimum of 2 megabit per second (mbps). The NTP 2012 will allow operators to provide services based on any technology by using airwaves and will not restrict them to use it for particular service using any specific frequency band. At present, there are frequencies which are specifically used for providing GSM or CDMA services as per the permit given to the companies. "Making India a global hub for manufacturing. Till the time we will not set up industry here...India will not be able to become global. It is very important because along with this prices of device will also come down" National Policy of Electronics which is expected to be approved within JUNE 2012. The thrust areas of the New Telecom Policy-2012 are: 1. Increase rural teledensity from the current level of around 39 to 70 by the year 2017 and 100 by the year 2020. 2. Repositioning of Mobile phone as an instrument of empowerment 3. Broadband -"'Broadband For All" at a minimum download speed of 2 Mbps 4. Domestic Manufacturing - Making India a global hub 5. Convergence of Network, Services and Devices. 6. Liberalisation of Spectrum - any Service in any Technology 81 | Amity University

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7. Simplification of Licensing regime - Unified Licensing, delinking of Spectrum from License, Online real time submission and processing 8. Consumer Focus - Achieve One Nation - Full Mobile Number Portability and work towards One Nation Free Roaming 9. Resale of Services 10. Voice over Internet Protocol 11. Cloud Computing, Next Generation Network including IPV6

“OPPORTUNITES & EFFECTS IN DIFFERENT DOMAINS”

1. The fixed line segment has actually seen a decline in subscriber base due to introduction of mobile phone. 2. Broadband connections subscriber base is increasing rapidly to since 2008. 3. As far as fixed line segments goes, the low penetration levels is the country & the increasing demand for data base services also in this segment PSU’s will always lead position as it requires high capital investment for setting up a nationwide network. 4. Increasing choice & lowest tariffs made cellular services in India an attractive proposition for average consumer. Also due to mobile no. portability there is increase in revenue of some companies but that increase is also not that much i.e. 1%. 5. Also key development last year was rollout of 3G services. In which most operators were granted spectrum for selected circles. So these operators are in process of roaming agreement signed to provide services in other circles too which are not granted to them. Still 3G is a suspense to be a game changer in future. 6. Recently, few operators have raised their tariffs the reason given by them is to cover the increasing costs of servicing the existing as well as new customers however they tried it in few circles to view impact on minute of usage (MOU). As Indian customers are highly sensitive to price increase.

FEW KEY POINTS ARE:• • SUPPLY: - Intense competition has resulted in prompt services to the subscribers. DEMAND: - Given the low tariff Environment & relatively low rural & semi urban penetration levels, demand will continue increasing in future.

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• BARRIER TO ENTRY :- High capital investments, well established players who have a nation wide network, license fee, continuously evolving tech. & lowest tariff in world. • BARGAINING POWER OF SUPPLIER: - Improved competitive scenarios & commoditization of telecom services has led to reduced bargain power of service providers . • BARGAINING POWER OF CUSTOMER: - A wide variety of choices available to customers both in fixed as well as mobile telephony has resulted in increased bargaining power of the customers. • COMPETITION: - Competition has intensified with the entry of new cellular players in circles. Reduced tariffs have hurt all operators.

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9. CONCLUSION AND ANALYSIS:

WIRELESS:

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• Under the most of the ongoing Managed Services agreements in India (e.g., between Ericsson and Vodafone) supplying the RAN System with services like network optimization solutions, spare parts management and training services is a good option. Also in future, sharing of RAN and transport layer will happen, so managing RAN and transport layer may evolve as new solutions. • Wireless Broadband applications that must be those data colocations and data transmission that supports automation & precision. So new services may include universal ISLU (Integrated Short-to Long Unit) which upgrades machine to machine intranet solutions(e.g bluetooth intranet) to machine to machine internet solutions(e.g WiFi).

•

With 700852kms of OFC private line route as on June 2011 and with BSNL investing 200 Million for NOFN(national optical fiber connectivity) & Rail-tel planning to grow its OFC infrastructure to 40,000kms in next 3-4 years managing OFC network, effecive usage of optical fiber core & providing secure Internet connections to railway customers will increase the market share of vendors.

•

A plan has been finalized to provide Rural Broadband Connectivity to all 2, 50,000 Panchayats in the country in three years which will be implemented through Special Purpose vehicle (SPV) in which BSNL, RailTel, Power Grid, C-DoT, National Informatics Centre (NIC) and Universal Service Obligation Fund (USOF) are to be costakeholders and thus focusing on improved services for rural connectivity and managing those network services will be key in upcoming years. So vendors should focus on these organizations to provide network solutions in coming years especially in rural areas. Also rural connectivity can be enhanced through local ISP and using spare fiber cores in cable TV line.

•

Telecom industry is going for greener solutions & solutions which require less power will evolve in future as discussed under global analysis. So making improvements to radio frequency amplifiers, switches, network architectures & topologies, fresh air cooling & using other renewable sources of energy like wind & solar energy will pull emission levels down to a controllable level. For 3G and 4G market penetration operators lure customers with unlimited data plans in initial phase. So vendors can penetrate into those regions which are class-B/C cities and where they have free bandwidth available to provide unlimited data to every user with less congestion with high speed. After providing benchmarking solutions to class-B/C vandors can easily attack class-A cities. Vendors should provide comprehensive end-to-end LTE solution that includes radio, EPC (evolved packet core), voice core, transport, network management and professional services i.e. entire value chain services.

•

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• Current spectrum band will be unable to handle all the data traffic in the future. The focus is on how to manage this traffic thus solutions like WiFi offload solutions(offloading 3G network on to the WiFi network) will become an important diffrentiator, especially with the recent introduction of mobile phone number portability. Thus mobile operators will have to compliment their 4G network with a WiFi offload startegy to manage huge amount of data, as well as maintain a consistent Quality. With most portable devices having built-in Wifi radios, Wifi is here to stay.

•

Customers are becoming educated about their needs and the options available to them so vendors can provide customized billing model that diffrentiates between types of applications and that will boost ARPU and also improve network capabilities as the type of applications frequently used by customer would be well known in advance.

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Bharti airtel is moving towards IP based services for bandwidth hungry applications so services like region wise bandwidth control with real time monitoring of network performance data will provide quality solutions.

•

Subscriber usage pattern analysis to know which services are being launched by service providers to which subscriber base to provide a satisfactory & good quality of experience. For e.g., a gaming user, although his bandwidth requirement is not high, he’ll expect an extremely low latency. Similarly a VOIP or Video Call user will require a bandwidth guarantee and low jitter for a good quality of experience. These different parameters should be supported and configurable on a per service basis from the underlying network, in order to give a good Quality of Experience to the end-user.

•

Under the new services there is Internet protocol television (IPTV) also referred as ‘triple play’ offers internet, television and telephone services and DTH which are expected to be Rs. 97640 million businesses in 2014. So vendors can provide support services to this converged network solutions like utilizing spare fiber core, managing ethernet backhaul services or providing new improved automated switching solutions.

•

Telecom providers and their vendors are expected to focus on mobile networks because of their high energy use as discusses in global analysis. So with high data usage and new technologies consumers will require battery utilization services to protect their mobile from early battery drainage thus battery management solutions for both mobile networks and mobile will be required Emerging categories like M-Agriculture, M-governance, M-Law and E-Judiciary will help the common man in cities and in rural areas. With around 43% consumers in India having both bank account and mobile vendors can 86 | Amity University

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focus on providing new secured software solutions to operators to bank upon M-banking and M-commerce. WiMAX is likely to open up new frontiers of business for rural connectivity.

• • •

New VAS will include cloud based MVAS like: Home Security VAS, Energy VAS, Storage and Sharing Value-added Services, Convergence Broadband VAS, home automation, Entertainment MVAS. Personal information MVAS: • Digitized personal asset management • Contacts/Address book in cloud • Personal data archival over mobile • Cell data protection in cloud

• •

These services will require automated & converged network software solutions by vendors. Add some 3G data (double of 4G data) in 4G services and enable pan-India data roaming at zero extra cost. It will suit for enterprise customers so vendors need to converge these networks smartly.

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WIRELINE:
• • In wireline huawei as a service provider can provide vodafone enterprise buiness a service of managing enterprise network with a high class security service also to manage the complete data of calls. Public sector (MTNL and BSNL) is loosing enterprise market as private operators are gaining, Reason behind this is of providing better services on time to consumers. So Huawei here can attack on weak points of public operators and provide them the same services which they tends to provide to private operators. Like improving network performance , keep check on infrastructure, providing them with latest technology with after sales services. Along with the private operators one should target public operators as wireline business is not so strong in market these days and it keeps on declining but rural market is still untouch, means there is lot of scope. So vendor should target public operators as they have highest base in rural sector so managing their network over their with mainteinence of daily KPI. Broadband market is still mature and all are targeting that areas in which mostly operators providing broadband service with wireline, whereas Airtel is still providing services with wireline and through wireless in which its lagging with wireless technique. So huawei as vendor can manage their wireline cum wireless broadband service by providing better transport layer between BTS and modem. Vendors can target Public Operators (MTNL and BSNL) for wireline by providing solutions to make their network congestion free as that’s the main part, where Public Operators are lagging. In rural areas, the uptime of mobile towers has been adversely affected due to indifferent attitude of IP vendors. So this is the service on which vendors can focus for public operators.

•

•

• •

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DATA CENTRE:
• • • Data centre market in India till this year is of 23% i.e. Rs. 11,800 crore. The data center co-location and hosting market in India is estimated to reach US$609 million this year and $1.3 billion in 2016. In Third party data centre market major share is of BFSI sector i.e. 28% whereas Telecom sector consists of only 9% market and so on. So any new player if wants to enter in market should focus BFSI sector which has maximum chance of providing business. Asia consists of total 109 co-location data centers out of which India has 41% of data center market till now i.e. 46 co-location data centers. Hence Indian market has maximum share out of complete Asian market and yet to grow more in coming years. As Indian data centre market is vast and in that there are 13 areas in which 46 co-location data centers located. And out of these top 5 areas which consists maximum no. of shares are: 1. New Delhi 2. Mumbai 3. Bangalore 4. Chennai 5. Hyderabad • So Vendors strategy should be to focus the areas with less no. of data centers and shares which can help vendors to grab customers at higher end later.

•

•

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• • Recently BSNL gave Rs.100 crore of business to NTT out of its Rs.2400 crore of data centre business. Hence one should focus on the remaining 95% business of BSNL. Vendors can provide managed on-demand storage services and Backup-as-a-Service. So far the telecom sector is concerned; vendors can provide the reduction in downstream data usage to minimize the wholesale cost of providing data roaming for operators.

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BIBLIOGRAPHY

http://www.reuters.com/article/2012/05/21/augere-india-idUSL4E8GL36020120521 http://telecomtalk.info/tikona-to-launch-4g-lte-wireless-broadband-services-soon/91710/ http://thewirelesslandscape.blogspot.in/2010/12/3g-vendor-updates-in-india.html http://telecomtalk.info/4g-in-india-news-round-up/80256/ (http://www.mobithinking.com/guide-mobile-web-India) http://www.telecomindiaonline.com/ http://www.indiatelecombrief.com/ http://www.ibef.org/industry/telecommunications.aspx http://www.tct.or.th/userfiles/image/321/Asia_Factbook_2011.pdf 91 | Amity University

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http://www.budde.com.au/Research/India-Telecoms-Mobile-Broadband-and-Forecasts.html http://www.budde.com.au/Research/2010-India-Telecoms-Mobile-Broadband-and-Forecasts.html

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