Telecom Market Analysis 201 2 REPORT ON TELECOM MARKET ANALYSIS Submitted To: Submitted By: Dr. Renita Dubey Rahul Aggarwal Manish Kumar (MBA CI & SM) DECLARATION 1 | Amity University Telecom Market Analysis 201 2 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 2 | Amity University Telecom Market Analysis 201 2 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) 3 | Amity University Telecom Market Analysis 201 2 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 4 | Amity University Telecom Market Analysis 201 2 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 Telecom Market Analysis 201 2 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 6 | Amity University Telecom Market Analysis 201 2 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 Telecom Market Analysis 201 2 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. 8 | Amity University Telecom Market Analysis 201 2 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. 9 | Amity University Telecom Market Analysis 201 2 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 10 | Amity University Telecom Market Analysis 201 2 Position at the End of Item March'07 March'08 March'09 March'10 March'11 June'11 Total 2058.68 3004.92 4297.25 6212.80 8463.28 8859.97 Wireline 407.74 394.13 379.65