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Customer Relation Managment Assignement On CUSTOMER RELATION MANAGMENT ASSIGNEMENT ON TELECOM SECTOR SUBMITED BY T.SASIDHAR 1225111147 SECTION- A MBA II YEAR History of telecom industry in India The history of telephone services in India found its beginning when a 50-line manual telephone exchange was commissioned in Kolkata in the year 1882 in less than five years after Alexander Graham Bell invented the telephone. While India became independent in the year 1947, the country had about 82,000 telephone connections, which slowly rose up to 3.05 million by the year 1984. The telecom sector in India was a government monopoly until the year 1994 when liberalization was gradually unrolled. For the first time, cellular services were launched in India in TIMELINE: Mid 1980s Department of Telecommunications set up Mar 1986 VSNL incorporated to provide international telecom services Apr 1986 MTNL incorporated to provide fixed-line telephone services in Mumbai and New Delhi Dec 1991 DoT invites bids from Indian companies for cellular licenses in the four metropolitan circles May 1994 Government announces the National Telecom Policy, opening up the basic service sector to private players Sep 1994 Entry guidelines for basic services announced Kolkata in the year 1995. Nov 1994 Licenses were issued to cellular operators in the four metros Mar 1995 Paging services by private operators commence Oct 1996 Licenses for 20 cellular circles issued Jan 1997 Telecom Regulatory Authority of India established by government Nov 1998 ISP business opened up to operators other than DoT and VSNL Mar 1999 Government announces NTP 1999 Jul 1999 DoT announces Migration Package for existing operators ‘licensing costs, subject to compliance with certain condition Aug 2000 Government announces guidelines for opening up domestic long distance telephony for carrying both inter-circle and intra-circle traffic, with no restriction on the number of players TRAI issues the first tariff order and cuts domestic and international long distance telephone charges. Jan 2001 The Department of Telecom opens up basic services to unlimited competition and allows basic operators to provide WLL services on a restricted basis. Aug 2001 Opening of National Long Distance Service to competition Jan 2002 Bharti starts cellular to cellular long distance services with sharp cuts in tariffs. Apr 2002 ILD sector opened to competition. End of VSNL monopoly. May 2002 Bharti offers ILD services with sharp cuts in tariffs Sep 2002 TRAI decides to 'forbear' from regulating cellular tariffs Mar 2002 WPC set subscriber thresholds for GSM and CDMA operators for spectrum allocation Mar 2007 9 distinct operators had been allocated GSM spectrum. Out of these, only Bharti has a pan-India presence. Aug 2007 Subscriber thresholds were revised by TRAI as operators could support more subscribers with lower spectrum as compared to WPC allocation Jan 2008 Govt of India allocated start-up spectrum to all prior licensees awaiting spectrum (does not include LOIs issued in January2008). These include Aircel (14 circles), Idea (2 circles), Comm. (14 circles) and Vodafone (6 circles). Jun 2009 TRAI plans to introduce MNP (Mobile Number Portability) on apan-India basis Status of Telecom Sector: The Indian Telecommunications network with 621 million connections (as on March 2010) is the third largest in the world. The sector is growing at a speed of 45% during the recent years. This rapid growth is possible due to various proactive and positive decisions of the Government and contribution of both by the public and the private sectors. The rapid strides in the telecom sector have been facilitated by liberal policies of the Government that provides easy market access for telecom equipment and a fair regulatory framework for offering telecom services to the Indian consumers at affordable prices. Presently, all the telecom services have been opened for private participation. The Government has taken following main initiatives for the growth of the Telecom Sector An Overview of the Telecommunication Industry in India: A mobile handset Talking of telecommunications sector in India today, we can primarily identify two segments namely Fixed Service Provider (FSPs) and Cellular Services. Some of the essential and basic telecom services forming part of Indian telecom industry include telephone, radio, television and Internet. Telecom industry in the country lays a special emphasis on some of the advanced and the latest technical innovations like GSM ( Global System for Mobile Communications), CDMA (Code Division Multiple Access), PMRTS (Public Mobile Radio Trunking Services), Fixed Line and WLL (Wireless Local Loop ). Especially, India has a flourishing market in GSM mobile service, while the number of subscribers is on rapid and dramatic increase. The Indian telecommunications industry boasts as being one among the most rapidly growing chunks on the globe. Experts around the world estimate that India holds the promise of emerging as the second largest telecom market of the world. Figures published by the Telecom Regulatory Authority of India (TRAI), reveal that the number of telecom connection subscribers in India reached 562.21 million in December 2009, marking a 3.5 percent increase over the number 543.20 million reported in November 2009. This figure indicates that the average teledensity (number of telephones per 100 persons) has gone up to 47.89. On account of a dramatic increase in the earnings from mobile and landline connections, the telecom industry in India made revenue of US$ 8.56 billion during the quarter ending on December 31, 2009 thereby witnessing a recovery from the economic downturn. Business Monitor International has stated that at present, India is adding up about 8-10 million mobile subscribers every succeeding month. Estimates have revealed that by June2012, almost half India’s population will be in possession of a mobile phone. This will result in about 612 million mobile subscribers, making up a teledensity of about 51 per cent by the year 2012. Over and above, a study undertaken by Nokia has brought out that the communications sector will grow as the single largest chunk of the India’s GDP making up about 15.4 per cent by the year 2014. Estimates made in February 2009 show that the Indian equipment market valued at US$ 24 billion, while Nokia was glowing as the market leader reporting more than US$ 3.4 billion revenues in 2008-09. Ericsson followed Nokia with revenue of about US$ 2.11 billion. The latest reports published by Evalue serve state that the availability of the 3G spectrum has given hopes of finding about 275 million Indian subscribers using 3G-enabled services. This will take up the number of 3G-enabled handsets to reach near to 395 million by the end of 2013. A Frost & Sullivan industry analyst has predicted that by the year 2012, revenues from fixed line subscriptions in India will reach up to US$ 12.2 billion, while the revenue from mobile connections will reach up to US$ 39.8 billion. In a significant step taken to boost up the auction of 3G spectrum, the Indian Government has permitted prospective bidders to call for short-term funds from the domestic market in the country, while allowing refinancing out of external commercial borrowings (ECBs) within a period of 12 months. Estimates show that the government can mop up US$ 7.53 billion from the auction of 3G spectrum to be completed shortly. The reserve price has been fixed at US$ 753.74 million. BSNL, the state-managed telecom operator has introduced 3G services in more than 318 cities benefitting 856,000 subscribers. BSNL has been venturing to cross more than 400 cities in the near future eventually rolling this service across 760 cities by September 2010. While the debate on 3G is seen continuing, TRAI has already started consulting on the next higher level of telecom services. 4G or the fourth generation enables downloads faster than all the earlier versions. Today, India is the largest market in the world adding up a dramatic number of about 20 million mobile subscriber lines every month in an average. On the other hand, the number of landlines is found gradually decreasing. At the end of the first quarter in 2010, we find that the overall telecom subscriber penetration has gone up by more than 52 %. Though this might occur as a relatively low volume compared with a number of other nations, this comes as a quantum leap noting the figures recorded a few years back. Mumbai and Delhi (NCR) enjoy the status among a few other metro areas around the globe boasting of more than 25 m mobile subscribers in each of these regions. At present, The FDI cap in the telecom sector in India is 74 %. In a recent move, UK’s Vodafone Group has purchased a 52 % stake in Hutchison Essar, the fourth largest mobile service provider in the country. BhartiAirtel has the credit of being the first Indian operator to cross a subscriber base of 50 million. It is predicted that mobile number portability (MNP) will be available throughout India by the second quarter of 2010, initially in the cities of Chennai, Delhi, Kolkata and Mumbai, the four metros of India. Also, 3G (third generation) mobile services are found being introduced in all the major cities across the nation. The country has auctioned three 3G spectrum slots to private bidders. However, the number of subscribers for broadband connections is increasing at a slow pace. Liberalization: The process of liberalization in the country began in the right earnest with the announcement of the New Economic Policy in July 1991. Telecom equipment manufacturing was DE licensed in 1991 and value added services were declared open to the private sector in 1992, following which radio paging, cellular mobile and other value added services were opened gradually to the private sector.
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