Telecom Industry Ver 1.0
Content
Telecom Industry Connecting the World
N Arjun
Telecom in the real sense means transfer of information
between two distant points in space
Telecom is a huge and varied bastion of technologies, companies, services and politics that is truly global in nature
Introduction
Telecom stands as one of the most essential elements of the business world in terms of ³Connecting the World´ Volatile Sector
Regulatory discord Cut-throat competition Emergence of Technologies
Emergence of broadband & wireless technologies pose threat to carriers relying on aging infrastructure To survive, telecom carriers need to consider various options
Consolidation, Convergence, Costly Technological upgrades
Global Growth Patterns
Emerging Markets
Driving Volume Growth Low Tariffs (ARPUs)
Developed Markets
Low Subscriber Base Technological Advancements
Indian Telecom depends on the global telecom industry for technology platforms & network management While Indian market size attracts telecom giants
Indian Telecom - Scenario
India ± Fastest growing market in World ± 190 mn subscribers 4th largest mobile market growing at 6 mn Sub/month 4th largest internet market, 3rd largest by 2007 Voice Revenue dropping; PCOs - 4.5 mn @ CQGR of 7.22% Paying highest taxes and regulatory charges; Variable License fee
OPPORTUNITIES
Data revenues ± 8.5% of service revenue against world avg of 16.5%
Content Services ± Music/Video etc Applications ± m Commerce/PVR Ticketing
Tele-density ± From 2% in 2000 to 15.44% in 2006 TEMA target of $100 bn for equipments in next 3 yrs IT & ITES Industry ± $35 bn with CAGR of 35%
Indian Telecom ± Global Reach
Playe
Bharti Seychelles Fixed, FWP, cellular 34000 (March 2006) Emtel of Mauritius, (Since 1998) private investors and the Gov of Seychelles
Co n ie
Se vice
S b c ibe
Pa ne
Telecom Seychelles
Jersey Telenet MTNL United Telecom (Since 2002) MTML (Since 2005) Reliance
State of Jersey
2G and 3G, ILD
Services from Oct 2006 45,032 (March 2006) 20000 (March 2006) TCIL VSNL, and NVPL Wholly owned subsidiary
Nepal
CDMA-based WLL services CDMA-based WLL services ILD services to India, Australia, Canada, France, Germany, Malaysia, NZ, Singapore, and UK
Mauritius
ndiaCall services (Since 2005)
US, UK and Canada
500,000 +
-
VSNL (acquired license in 2005)
South Africa Fixed (Services to commence in Aug-Sep 2006)
Transnet/ Transtel, Eskom, Nexus, Two, CommuniTel
Source: Voice & Data
Indian Telecom - Global Connecti it
Submarine Cable System Landing at Chennai, Mumbai, Cochin & Tuticorin
Mumbai Cochin Chennai Tuticorin FLAG SMW3 SMW2 SMW4 i2i TIIC SAFE Bharat Lanka
Year 1997 1998 1994 2005 2004 2005 2002 2006
Mumbai
Chennai Cochin Tuticorin
International Bandwidth Growth - India
400
348
350 300 I 250 G bps 200 150 100 50 0 2005-06 2006-07 2007-08 Ye a r 2008-09 2009-10 B a n d w id th
205 118 61 33
I L Ma n a e d Da ta er i e To ta l
Source : Telegeography
on ersion: 1 Gbps ~ 6.4 TM 1
International Bandwidth Usage
Gbps
2000 Australia China India Indonesia Japan Singapore Taiwan Thailand 9 16 2 1 39 7 8 1 2001 21 34 4 1 70 12 18 2 2002 27 56 5 2 87 19 30 3 2003 33 93 8 3 179 37 45 5 2004 54 178 16 5 283 57 88 6 2005 93 352 2006 157 602 2007 250 954
33
9 443 97 196 10
61
16 733 159 311 16
101
25 1176 256 508 26
*Source : Telegeography
The above figure is for usage of bandwidth
China has more than 10 times of higher bandwidth usage as comparison to India
Global Trends ± Connecting World
Con ergence & Mobility
Mobile Devices with voice, data & video Mobile Wireless Broadband Communications Fibre to Home
Public Safety
Mobile Police &
Fire personnel devices Interoperable Communications
Computers & IT
Entertainment
becomes Digital Mobile Personal Digital Devices prevail
Consumer Electronics
Laptops & Handheld
PCs Entertainment major PC driver IP to & in the Home VoIP handsets
Connecting India to the World
ENABLERS
Unified Licensing Telecom Technologies - Internet/Wimax/VOIP Reduced License Fees in Long Distance Sector Outsourcing Network Management to Global Manufacturers India - Telecom Equipment Manufacturing Base Convergence - ICT FDI Relaxation in Telecom (26% to &74%) - $2.67 bn Aug,06 Emergence of IT & ITES Sector Consolidation & Partnerships between Indian & Foreign Players viz. BT, AT&T , Aircel & Maxis
Telecom has attracted significant FDI and technology which has resulted in huge benefits to the Indian Telecom Growth
Connecting India to the World
CHALLENGES
Regulatory Policies
Lack of level playing field Across the world and within India Seamless Roaming Manufacture telecom equipment in India Passive Infrastructure Sharing
Penetration Level
Infrastructure Program
VoIP Value Added Services Unutilized software capability Digital Divide
Non Availability of technology, equipment, network access for millions of poor
Indian Telecom
± Way Forward to being Global
Transparent and truly technology-neutral Government policies
Allow full range of private & Public Sector telco's to compete fairly and fully
Adequate spectrum in useable frequency bands advocated by the ITU to wireless service providers Low regulatory restrictions over new services such as Push-to-talk, IPenabled services, particularly Voice-Over IP (VoIP)
Ensure level playing field and ³No´ worse-off position for existing license holders
Duties on imported telecommunications and related equipment must be reduced to zero To promote competition in IPLC ³Put in Right Policies´ for technology multinationals to build business in consumer end user device segments like mobile, handset, PC¶s and networking product manufacturing Acquisitions with ³Strategic´ intent
Thank You
N Arjun
Telecom in the real sense means transfer of information
between two distant points in space
Telecom is a huge and varied bastion of technologies, companies, services and politics that is truly global in nature
Introduction
Telecom stands as one of the most essential elements of the business world in terms of ³Connecting the World´ Volatile Sector
Regulatory discord Cut-throat competition Emergence of Technologies
Emergence of broadband & wireless technologies pose threat to carriers relying on aging infrastructure To survive, telecom carriers need to consider various options
Consolidation, Convergence, Costly Technological upgrades
Global Growth Patterns
Emerging Markets
Driving Volume Growth Low Tariffs (ARPUs)
Developed Markets
Low Subscriber Base Technological Advancements
Indian Telecom depends on the global telecom industry for technology platforms & network management While Indian market size attracts telecom giants
Indian Telecom - Scenario
India ± Fastest growing market in World ± 190 mn subscribers 4th largest mobile market growing at 6 mn Sub/month 4th largest internet market, 3rd largest by 2007 Voice Revenue dropping; PCOs - 4.5 mn @ CQGR of 7.22% Paying highest taxes and regulatory charges; Variable License fee
OPPORTUNITIES
Data revenues ± 8.5% of service revenue against world avg of 16.5%
Content Services ± Music/Video etc Applications ± m Commerce/PVR Ticketing
Tele-density ± From 2% in 2000 to 15.44% in 2006 TEMA target of $100 bn for equipments in next 3 yrs IT & ITES Industry ± $35 bn with CAGR of 35%
Indian Telecom ± Global Reach
Playe
Bharti Seychelles Fixed, FWP, cellular 34000 (March 2006) Emtel of Mauritius, (Since 1998) private investors and the Gov of Seychelles
Co n ie
Se vice
S b c ibe
Pa ne
Telecom Seychelles
Jersey Telenet MTNL United Telecom (Since 2002) MTML (Since 2005) Reliance
State of Jersey
2G and 3G, ILD
Services from Oct 2006 45,032 (March 2006) 20000 (March 2006) TCIL VSNL, and NVPL Wholly owned subsidiary
Nepal
CDMA-based WLL services CDMA-based WLL services ILD services to India, Australia, Canada, France, Germany, Malaysia, NZ, Singapore, and UK
Mauritius
ndiaCall services (Since 2005)
US, UK and Canada
500,000 +
-
VSNL (acquired license in 2005)
South Africa Fixed (Services to commence in Aug-Sep 2006)
Transnet/ Transtel, Eskom, Nexus, Two, CommuniTel
Source: Voice & Data
Indian Telecom - Global Connecti it
Submarine Cable System Landing at Chennai, Mumbai, Cochin & Tuticorin
Mumbai Cochin Chennai Tuticorin FLAG SMW3 SMW2 SMW4 i2i TIIC SAFE Bharat Lanka
Year 1997 1998 1994 2005 2004 2005 2002 2006
Mumbai
Chennai Cochin Tuticorin
International Bandwidth Growth - India
400
348
350 300 I 250 G bps 200 150 100 50 0 2005-06 2006-07 2007-08 Ye a r 2008-09 2009-10 B a n d w id th
205 118 61 33
I L Ma n a e d Da ta er i e To ta l
Source : Telegeography
on ersion: 1 Gbps ~ 6.4 TM 1
International Bandwidth Usage
Gbps
2000 Australia China India Indonesia Japan Singapore Taiwan Thailand 9 16 2 1 39 7 8 1 2001 21 34 4 1 70 12 18 2 2002 27 56 5 2 87 19 30 3 2003 33 93 8 3 179 37 45 5 2004 54 178 16 5 283 57 88 6 2005 93 352 2006 157 602 2007 250 954
33
9 443 97 196 10
61
16 733 159 311 16
101
25 1176 256 508 26
*Source : Telegeography
The above figure is for usage of bandwidth
China has more than 10 times of higher bandwidth usage as comparison to India
Global Trends ± Connecting World
Con ergence & Mobility
Mobile Devices with voice, data & video Mobile Wireless Broadband Communications Fibre to Home
Public Safety
Mobile Police &
Fire personnel devices Interoperable Communications
Computers & IT
Entertainment
becomes Digital Mobile Personal Digital Devices prevail
Consumer Electronics
Laptops & Handheld
PCs Entertainment major PC driver IP to & in the Home VoIP handsets
Connecting India to the World
ENABLERS
Unified Licensing Telecom Technologies - Internet/Wimax/VOIP Reduced License Fees in Long Distance Sector Outsourcing Network Management to Global Manufacturers India - Telecom Equipment Manufacturing Base Convergence - ICT FDI Relaxation in Telecom (26% to &74%) - $2.67 bn Aug,06 Emergence of IT & ITES Sector Consolidation & Partnerships between Indian & Foreign Players viz. BT, AT&T , Aircel & Maxis
Telecom has attracted significant FDI and technology which has resulted in huge benefits to the Indian Telecom Growth
Connecting India to the World
CHALLENGES
Regulatory Policies
Lack of level playing field Across the world and within India Seamless Roaming Manufacture telecom equipment in India Passive Infrastructure Sharing
Penetration Level
Infrastructure Program
VoIP Value Added Services Unutilized software capability Digital Divide
Non Availability of technology, equipment, network access for millions of poor
Indian Telecom
± Way Forward to being Global
Transparent and truly technology-neutral Government policies
Allow full range of private & Public Sector telco's to compete fairly and fully
Adequate spectrum in useable frequency bands advocated by the ITU to wireless service providers Low regulatory restrictions over new services such as Push-to-talk, IPenabled services, particularly Voice-Over IP (VoIP)
Ensure level playing field and ³No´ worse-off position for existing license holders
Duties on imported telecommunications and related equipment must be reduced to zero To promote competition in IPLC ³Put in Right Policies´ for technology multinationals to build business in consumer end user device segments like mobile, handset, PC¶s and networking product manufacturing Acquisitions with ³Strategic´ intent
Thank You
