HARSHIT
HARSHIT
India is the second largest telecom market in the world and is amongst the fastest growing
markets. The country offers robust growth fundamentals, increasing urbanization, rising
income levels and favorable demographics. The majority of new customers are likely to
come from the rural areas with inadequate basic infrastructure and limited or no
connectivity, demanding lower tariffs for voice calls and value-added services like
information about market and commodity prices, weather updates, health updates coupled
with vernacular support at the user interfaces. The urban consumer demands high speed
internet connectivity, audio video streaming, navigation and location maps, music
downloads, gaming, m-commerce, IPTV and mobile TV. Innovations like shared
infrastructure, new low-cost technology and energy saving devices .
M-Commerce will emerge as the future growth engine as the industry shifts from voice to
data services. The convenience of the mobile phone as an instrument for conduct of
financial transactions and its potential in the process of financial inclusion and growth’s
been well recognized. There is a large untapped potential for these services in the Indian
market.
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Postal courier services were used primarily to communicate with the armed forces.
Overtime, new communication methods, such as the telegraph and the telephone, came
into being. Soon, important operating companies such as Bell Telephone Company and
American Telegraph and Telephone Company (AT&T) were formed.
The liberal and reformist policies of the Government of India have been instrumental
along with strong consumer demand in the rapid growth in the Indian telecom sector. The
Government has enabled easy market access to telecom equipment and a fair and
proactive regulatory framework, that has ensured availability to telecom services to
consumer at affordable prices. The deregulation of Foreign Direct Investment (FDI)
norms have made the sector one of the fastest growing and the top five employment
opportunity generator in the country.
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OBJECTIVES
Liberalization and Privatization of the sector with the introduction of Private players.
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EVOLUTION
In the first stage, the telecom sector was owned and run by the government. The
telephone services began in India with a manual telephone exchange in 1882 in Kolkata.
The telecom industry evolved only after the Department of Telecommunication (DoT)
was separated from the Indian post and telecommunication department in 1985. DoT was
responsible for telecom services of the entire country till 1986. Subsequently, MTNL and
VSNL were carved out of the Department of Telecommunication (DoT) for separation of
its policy functions and telecom operations in metro cities like Mumbai and Delhi and
International long-distance operations.
This gives rise to the 2nd part of the telecom industry in India in which the government
allows private players to enter the Telecom Industry.
In 1994, the government introduced the National Telecom Policy (NTP) for private
players. This policy clearly laid down the role of private operators. Cellular services were
first launched in 1995 in Kolkata.
Another milestone during this Era was the formation of TRAI in 1997. TRAI was formed
to regulate the fair environment between operators and subscribers.
In 2000, the third organization called TDSAT was formed to settle the disputes between
operators, between operators and government, and between operators and subscribers.
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During this period telecom subscriptions were growing rapidly, Operators brought in new
innovations like prepaid, this reduces the mobile fees and allows cell phones affordable to
common men.
After march 2000, the government became more liberal and started issuing more licenses
and reduced license fees. This starts the 3rd stage of the telecom industry.
The third stage of the telecom sector can be categorized into 2 parts. The first part from
2000 to 2010 telecommunication grew phenomenally is called the Golden Era. The
second part from 2010 and beyond is called the Re-definition Age.
In the golden Era, in 2005, 2G gave rise to mobile users. The number of mobile
connections rapidly crosses the number of fixed-line connections.
Indian telecom market is one of the fastest growing and most competitive markets in the
world. In the same year, the government increased the foreign Direct Investment (FDI)
limit in the telecom sector from 49% to 74%.
The most significant contributors of the Re-definition age are the introduction of 3G in
2008 and 4G in 2012. The introduction of 3G and 4G networks gives advent to the Smart
Phones. This brought in mobile advertising, mobile commerce, video calling, streaming,
full movie download, live TV, and multi-player gaming to everyone’s handset.
After 2G, 3G and 4G, the 5G is now all set to launch in India.
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IMPORTANCE
Thanks to telecom advancements, things like searching the internet, placing phone calls,
emailing, and text messaging has become integrated into our personal and professional
lives on a near-ubiquitous level.
It Empowers Participation
Communities in remote regions were once unable to access vital resources. Now, because
of telecommunications, these locations can procure goods and services via ships or
aircraft and systematize development initiatives. This type of accessibility allows for the
growth and development of our entire society.
Encourages Education
Some of the largest institutions are now leveraging telecommunications to deliver long-
distance or remote education. This is extremely cost-effective for students, allowing them
to conserve money that would otherwise be spent on housing and travel.
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RESEARCH METHODOLOGY
For my project most of the finance related books have been considered.
The best websites are considered which gives all the efficient and effective information.
References for the project are from the websites and books and the company’s annual
reports.
It is assured that the project has been completed with full dedication, sincerity and required
intensity of hard work
Research Design
It helps to tackle the problem of bringing various phases of research under control. Their
searchdesign helps to design the decision with respect to:
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INTRODUCTION TO TECHNOLOGY ADVANCEMENT
ISDN switch-off
The idea is that each person uses their own devices to work, being able to communicate
and access the company’s systems through cloud technology. Among the advantages of
BYOD are employee satisfaction and reduced costs. However, the company is required to
guarantee an appropriate deployment strategy, a solid network infrastructure (with high
availability and high performance) and a strong cybersecurity plan. This represents a huge
opportunity for new telecom projects.
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5G
The market for telecom services has also witnessed significant improvements in data
speeds, from the old Global System for Mobile communications (GSM) and Code
Division Multiple Access (CDMA) to Third Generation (3G), Fourth Generation (4G),
and (pretty soon, we hope), into the commercialization of Fifth Generation (5G)
networks.
Both customers and companies will for sure benefit from the mass-introduction of 5G. All
the specialists are unanimous on saying that mobile voice services will be greatly
enhanced with these technologies. Could we ever imagine that the advent of data
connectivity made possible the reduction in the duration of transferring large data size
files from days to hours and now, from hours to just a few seconds? Don’t miss the world
of possibilities that it will bring!
Internet of Things
And, if we talk about a really disruptive technology, then we have to mention Internet of
Things (IoT). The big impact is still to come, but IoT is leading the way into an
exponential growth in connected devices. Smartphones talking to refrigerators or AC
devices, printers or washing machines. But it is important to know this reality is
generating billions of new data sources that will most certainly push the data to be
handled by networks to zettabytes per year. Carrying with it some potential incredible
business.
Artificial Intelligence
Smartphones with artificial intelligence (AI) capabilities will be the next big thing in the
telecom market. Enabling smartphones to perform highly sophisticated functions –
augmented reality or speech recognition.
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EMERGING TECHNOLOGIES IN TELECOM INDUSTRY
Telecom Operators have faced their fair share of structural challenges, especially in view
of the past two years of global crisis. However, there has also been a remarkable growth
in areas like mobile connectivity, consumption of digital services, and digital
transformation of businesses, with this growth wave still nowhere near saturation point.
In light of this, telecom CIO’s sector-wide are considering new ways to improve their
digital engagement and to keep their operations running smoothly. Therefore, the big
question becomes: What steps can telecom companies take to thrive in 2022?
The advancement of technology has been a double-edged sword for telecoms bringing
forth its own set of benefits and challenges for companies. While the new and innovative
platforms have afforded a much larger subscriber base or geographical reach to telecoms,
the security risks, heavy loads, and the need for 24/7 support availability has also been a
cross to bear for them.
On top of this, the telecom sector is evolving at such a rapid pace that it is crucial for
companies to catch the wave of opportunity, or else risk being swept by it. From the
dramatic shift to cloud platforms and microservices architecture to the adoption of 5G
technologies, CIOs are making heavy investments in automation and digitization of
business processes.
This makes it pivotal for OPCC’s to find the right technologies that fits their needs, and
not only enables them to take advantage of the tech wave but also do it cost-efficiently.
So without further ado, the five most predominant market trends and emerging
technologies that have taken the telecom industry by storm include:
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5G Technology
Wireless connectivity, which is a key catalyst for growth, is enabled by the deployment of
5G technology which is an essential building block for the interaction and connection of
billions of devices of almost any kind. Therefore, despite the continuous growth and
dominance of 4G in the markets, many have taken a leap and upgraded to 5G, which is
now rapidly gaining pace. The motivation for the investment of resources in 5G is driven
by the desire to be the industry leader and to be ahead of the curve.
In the post 5G era, where digital giants are spending tens of billions of dollars on content
creation, many telecoms are not equipped with the right technology platforms to deal with
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this major digital shift. This makes it critical for them to double down on what they know
best; renewing focus on better infrastructure by harnessing the power of 5G for the use of
digital solutions and platforms.
In a nutshell, 5G technology will also change the role of telecom operators from
technology distributors to service providers.
5G is expected to have a strong presence in the European, Asian, and North American
markets. To support this generational shift and further drive consumer engagement,
operators are expected to invest around $1.1 trillion worldwide between 2020 and 2025 in
mobile CAPEX, roughly 80% of which will be in 5G networks. By 2025, 5G will account
for 20% of global connections, with take-up particularly strong across developed Asia,
North America, and Europe. (GSMA, 2020)
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Internet of Things (IoT)
IoT growth is a major long-term opportunity for telecom operators. Through this, you have
the scope to leverage current experience and knowledge about customer engagement to
improve retention rates.
The usage and value of IoT for telecom operators is more than just providing better
connectivity to consumers. Instead of focusing solely on expanding network connectivity,
telecoms can also reposition themselves as IoT access providers. They can further equip their
supply chain partners with the right tools and knowledge to promote this technology. It also
presents an opportunity for telecoms to not only turn unstructured data into actionable
insights but also offer a range of diversified products and services which extend
beyond their existing offerings. From location information to data usage patterns, telecoms
can extract valuable information from the data running through their system with IoT
technology.
The growth for telecom operators will come from a combination of the consumer and
enterprise market, where the major contributor will be the enterprise. Connectivity is one part
of the revenue opportunity but it also opens up opportunities for completely new service
offerings.
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In stagnant telecom industries where products and services are primarily commoditized, IoT
solutions enable telecom operators to expand their horizons with new and innovative
offerings. They provide greater connectivity within the distribution chain which leads to
greater cohesion and synergy between platform players like service providers and resellers.
With the help of IoT technology, telecom operators will also be able to monitor and control
their data centres and base stations remotely. This not only enables them to build trust with
the other network players but is also highly relevant in the time of unprecedented
coronavirus pandemic. Through this, companies can also improve their customer experience
by minimizing their downtime.
Cloud platforms
According to a 2020 Annual Industry survey by Telecoms.com Intelligence state, 42% of the
companies have made cloud a priority as a critical investment area.
Cloud based platforms and cloud clouding acts as an enabler for technological
transformation for telecom operators.
We can safely say that cloud computing has catalysed change and driven innovation in the
telecom industry. By providing new platforms for creating and delivering business values,
cloud allows companies to explore unique revenue growth opportunities. This has shifted the
competitive landscape for telecoms, making it pivotal for them to follow suit.
Keeping in mind the global pandemic that has taken the telecom industry by storm these past
two years, cloud computing is one of the few technologies that can not only facilitate
companies to recover from the crisis but help them thrive in spite of it.
It establishes high and flexible scalability for telecoms by giving them the ability to scale up
when the demand is at an all-time high and allow them to scale back down when the chart
falls to optimize costs. Since automation and adaptability are the building blocks for cloud
and it is based on a well-architecture approach, it also allows for the timely self- healing of a
system.
By leveraging cloud computing, telecom operators can achieve faster time to market and
minimize costs as they only pay for the services that they actually use. Aside from the
automation of processes and operations, cloud computing serves as the foundation for
generating new revenue streams and market growth opportunities through tech solutions like
data analytics and 5G.
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Artificial Intelligence
In the era of advanced digitization and fast technological development, the use of Artificial
Intelligence and Big Data is becoming increasingly popular in the telecom industry. From
developing automatic, self-optimizing networks to predicting anomalies and proactively
fixing problems before they snowball into bigger issues, Artificial Intelligence solutions are
the gateway for achieving strategic growth objectives for telecoms.
A competent analytics platform can facilitate telecom companies in deriving value from
sophisticated algorithms and machine learning by predicting the future from historical data.
Companies can get to the root causes of their problems and not only fix prevailing issues but
also take preventive measures to avoid future roadblocks. In the long term, it can allow
telecoms to deal effectively with their emerging and unique business needs.
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SMART CAPEX
Network investment decisions are among the most difficult for operators to address.
According to network operators are expected to spend 1.1 trillion dollars in CapEx
infrastructure between 2020 and 2025, making CapEx optimization at the top of the agenda
for telecom executives.
By using a High fiber technology eases this decision-making. Telecom operators can select
their optimal network investment candidates that maximise the impact of the entire plan
while matching the operator’s commercial, financial and technical constraints. What’s even
better is that the CapEx efficiency gained can then be translated into overall budget savings
or reallocated to other projects.
Telecoms can further use the insights offered by the solution to make informed, timely, and
data-driven granular investment decisions to achieve higher ROI.
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EFFECTS OF TELECOM INDUSTRY AFTER ADAPTION
Advanced Communication
Telecom services provide the platform necessary for data to be exchanged electronically –
whether that be through wireless or wired means.
Documents, analytics, reports, emails, you name it, can be shared with your colleagues in the
cubicle next to you, to a client on the other side of the country, or one of your offices abroad.
Now with tablets and smartphones, businesses can leverage mobile communication to
streamline workflow and productivity. Employees can use their devices to access certain
applications, respond to emails, work on presentations, and participate in teleconference
conversations.
Improved Collaboration
In today’s business world, many organizations employ cross-functional teams to tackle new
products, corporate initiatives, marketing campaigns, etc.
To ensure projects are progressing as forecasted, these teams likely connect regularly to
discuss the status of the deliverables, share ideas, and address any unforeseen hurdles that
may arise.
With telecom services, these teams are equipped with the technology necessary to
collaborate from any location – allowing for optimal productivity, enhanced connectivity,
and increased teamwork.
Enhanced Flexibility
The number of people who work from home has increased a whopping 115% since 2005
according to Global Workplace Analytics. With that in mind, if your B2B business has
remote employees or your staff tends to travel frequently for meetings, telecom services are
an effective means for staying connected and in-the-know.
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Telecommunication has completely transformed how people communicate and navigate their
personal and professional lives. With an ever-present need for humans to connect and
communicate, this industry is slated to continue its upward growth.
Collaboration is a powerful tool which companies may leverage to produce more creative
and innovative products—but employees need the tools to do so. Telecommunications
providers can install technology such as video conferencing to make it easier for teams and
departments to work together for the good of all.
Good internal communication makes it easier for information to flow through the workplace.
Rather than sending an email—worse—having to walk to someone’s physical office, a
working internal phone system allows employees to communicate with one another quickly
and directly.
Making communication easier all around induces flexibility by giving employees more
options regarding how, where, and when they work. Planning becomes easier because it’s
now possible to keep everyone on the same page via direct communication rather than trying
to catch people at the opportune moment.
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COMPANIES IN TELECOM INDUSTRIES
In 1975, the Department of Telecom (DoT) was given separate authority for running the
telephone services in the country.
The Mahanagar Telephone Nigam Limited (MTNL)initiated its services in the year 1985 for
carrying out the telephone operations in the metros of India, viz. Delhi and Mumbai.
In October 2000, the Bharat Sanchar Nigam Limited (BSNL) was set up by the Department
of Telecom.
Thereafter several private companies as Reliance Communications, Tata Indicom, Airtel etc.
in the sector came up.
BSNL
The Bharat Sanchar Nigam Limited, country’s largest cellular service operator was set up in
the year 2000. It is a state owned telecom company with its headquarters located in New
Delhi. BSNL is also the largest land line telephone establishment in India. As of April, 2011
87.1 million users have been reported to be BSNL users.
MTNL
Mahanagar Telephone Nigam Limited (MTNL) was set up in the year 1985, to run telecom
operations in the major metro cities of India, Mumbai and Delhi. Its headquarters are based
in Mumbai. MTNL was the first company in India to initiate 3G services in India, having the
brand name of “MTNL 3G Jadoo Services” which provided options as Video call, Mobile
TV, Mobile Broadband etc to the customers.
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Airtel
Also known as Bharti Airtel Limited was started in July 1995, with its head office based
in New Delhi. Airtel runs its operations in as many as 19 countries across the world and is
also ranked fifth as telecom service provider globally. As of April 2011, figures show that
Airtel has over 164.61 million users which make it the biggest mobile service operator in
India. Its service includes both 2G and 3G facilities.
Reliance Communications
Also known as RCOM was set up in 2004, with its head office in Navi Mumbai. Reliance
Communications as of now has more than 128 million users all across the world.
Aircel
Aircel was founded in 1999, with its head office in New Delhi. It is a joint enterprise
between Maxis Communications and the Apollo Hospitals.
Vodafone Essar
Vodafone Essar was founded in 1994 with its head office at Mumbai. Vodafone provides
services to 23 telecom circles across India.
Tata Indicom
The Tata Teleservices was founded in 1996, with its headquarters in Navi Mumbai.
Idea Cellular
Idea Cellular was started in 1995, with its head office in Mumbai. It also provides 3G
services to its subscribers.
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DATA ANALYSIS
India is the world’s second-largest telecommunications market. The total subscriber base,
wireless subscriptions as well as wired broadband subscriptions have grown consistently.
Tele-density stood at 85.91%, as of December 2021, total broadband subscriptions grew
to 792.1 million until December 2021 and total subscriber base stood at 1.18 billion in
December 2021.
Gross revenue of the telecom sector stood at Rs. 64,801 crore (US$ 8.74 billion) in the
first quarter of FY22.
The total wireless data usage in India grew 16.54% quarterly to reach 32,397 PB in the
first quarter of FY22. The contribution of 3G and 4G data usage to the total volume of
wireless data usage was 1.78% and 97.74%, respectively, in the third quarter of FY21.
Share of 2G data usage stood at 0.48% in the same quarter.
Over the next five years, rise in mobile-phone penetration and decline in data costs will
add 500 million new internet users in India, creating opportunities for new businesses.
By 2025, India will need ~22 million skilled workers in 5G-centric technologies such as
Internet of Things (IoT), Artificial Intelligence (AI), robotics and cloud computing.
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• In January 2022, Google made a US$ 1 billion investment in Airtel through the
India Digitization Fund.
• In October 2021, Vodafone Idea stated that it is in advanced talks to sell a
minority stake to global private equity investors including Apollo Global
Management and Carlyle to raise up to Rs. 7,540 crore (US$ 1 billion) over the
next 2-3 months.
• In October 2021, British satellite operator Inmarsat Holdings Ltd. announced that
it is the first foreign operator to get India’s approval to sell high-speed broadband
to planes and shipping vessels. Inmarsat will access the market via Bharat Sanchar
Nigam Ltd. (BSNL) after BSNL received a license from the Department of
Telecommunications.
• In October 2021, Dixon Technologies announced plans to invest Rs. 200 crore
(US$ 26.69 million) under the telecom PLI scheme; this investment will include
the acquisition cost of Bharti Group’s manufacturing unit.
• In September 2021, Bharti Airtel announced an investment of Rs. 50 billion (US$
673 million) in expanding its data centre business to meet the customer demand in
and around India.
• In August 2021, Tata Group company Nelco announced that the company is in
talks with Canadian firm Tele sat to sign a commercial pact for launching fast
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satellite broadband services in India under the latter’s Lightspeed brand, a move
which will pit the combined entity against Bharti Enterprises-backed One Web,
Elon Musk’s SpaceX and Amazon.
• In March 2021, Vodafone Idea Ltd. (VIL) announced that the acquired spectrum
in five circles would help improve 4G coverage and bandwidth, allowing it to
offer ‘superior digital experience’ to customers.
• In March 2021, Advanced Television Systems Committee (ATSC) and
Telecommunications Standards Development Society, India (TSDSI) signed a
deal to boost adoption of ATSC standards in India in order to make broadcast
services available on mobile devices. This allows the TSDSI to follow ATSC
standards, fostering global digital broadcasting standard harmonisation.
• In the first quarter of FY21, customer spending on telecom services increased
16.6% y-o-y, with over three-fourths spent on data services. This spike in
consumer spending came despite of the COVID-19 disruption and lack of access
of offline recharges for a few weeks
• India had over 500 million active internet users (accessed Internet in the last one
month) as of May 2020.
• Department of Telecommunication launched ‘Tarang Sanchar’ - a web portal
sharing information on mobile towers and EMF Emission Compliances.
• Payments on unified payments interface (UPI) hit an all-time high of 3.65 billion
(by volume), with transactions worth ~Rs. 6.54 trillion (US$ 87.11 billion) in
September 2021.
• Over 75% increase in internet coverage from 251 million users to 446 million.
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SWOT Analysis
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Strengths
Weaknesses
Corroded cable lines, slow service and lackluster sales are three weaknesses that can hurt
a telecommunications company. Company weaknesses are competitive deficiencies that
place the company at a disadvantage in the marketplace. If corroded cable lines aren't
replaced then slow service continues.
Opportunities
Threats
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CONCLUSION
Indian telecom industry underwent a high pace of market liberalization and growth since the 1990s
and now has become the world's most competitive and one of the fastest growing telecom markets.
The industry has grown over twenty times in just ten years, from under 37 million subscribers in
the year 2001 to over 846 million subscribers in the year 2011. India has the world's second-largest
mobile phone user base with over 1157.04 million users as of July 2018.Telecommunication has
supported the socioeconomic development of India and has played a significant role to narrow
down the rural-urban digital divide to some extent. It also has helped to increase the transparency
of governance with the introduction of e- governance in India. The government has pragmatically
used modern telecommunication facilities to deliver mass education programmes for the rural folk
of India.
The main divisions of the Indian telecommunications industry are the telephone, internet, and
television broadcasting industry in the country, which is in the process of transforming into the
next-generation network.
Mobile switching centres, media gateways and core signaling gateways, unified by a wide
range of microwave or fiber optics radio relay networks. The connection network linking the
user to the heart is highly diverse with different copper-pair, optic- fiber, and wireless
technologies.
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