Download - Cellular Service Providers
AProject Report
On
CELLULAR SERVICE PROVIDERS
FOR MRP-I
In
Partial fulfillment of the requirements forM.B.A. Program
In
V. M. Patel Institute of ManagementGanapat Vidyanagar, Kherva
Submitted by:
Shikha Agarwal-02Darshana Barot-03Vaishali Rathod-49
Sejal Tandel-56
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Preface
In the changing scenario, service sector is a major contributor GDP, and also is a major service provider in our country. Our report revolves around one of the service provider’s known as cellular operators, which is part of telecom industry.
It is a growing new wave of business, which has started attracting a lot of government attention, foreign direct investment private players. We have tried to study the cellular sector from various aspects, which directly or indirectly have an impact on it.
We were dependent on Internet and print media to collect information. the telecom sector as a whole is very dynamic, so figures keep changing every fortnight and because of that we had to use slight old data for analyzing the sector.
This report shows the telecom industry, various organizations that are part of the industry, and highlights the cellular sector from marketing as well as financial perspectives.
This report enlightens the reader about the sector in a phase manner and ultimately ends with a conclusion that this industry is the key to generate prospering economies in India.
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Acknowledgement.
“ Teamwork is the key to success in any project”. In the same way, to make this project report successful, number of persons deserves their rightful credit.
We would like to thank our north Gujarat University, for giving us this opportunity that has really enlightened our vision.
Our sincere thanks to shri surya mukherjee (director) without whom this report would not have seen the light at the end of the day.
Also we are grateful to all our faculties especially miss Priyanka Pathak, and shri Prashant Sharma for their valuable guidance.
Last but not the least we are grateful to our librarian shri deepakbhai for his constant support all throughout the process of reportmaking.
Shikha AgarwalDarshna BarotVaishali RathodSejal Tandel
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Executive Summary
Our report on telecom industry especially, the cellular sector is a collection and analysis of the various sides of the cellular sector.
It is segmented into four parts, starting from background and ending at the profiles of prominent players in the industry.
This report initially focuses on the birth of cellular services, their background, and various govt. organizations playing a vital part on the sector and their implications.
The second phase is a window to the technology that shows a glimpse of the high tech age in which this service is operating.
Now in the third phase the focus is on marketing aspects, the key players, number of cellular subscribers, competitors, their analysis via porter’s model, and by swot.
The last phase concentrates on financial parameters about the industry as well as some companies.
Thus, overall, this study encompasses, the cellular sector’s surrounding enviourment along with characteristics pertaining to the inside of the industry. It becomes clearly visible after carrying out this research that the cellular sector is growth oriented, focused, techno-savvy, and prospering in the mixed economy of our nation in a very rapid manner.
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Contents
PART-I “INTRODUCTION”
Chapters:1. Introduction: Indian Cellular Industry 2. Background 3. Chronology of Indian Cellular Industry 4. Contribution of The Cellular Industry to The Indian Economy
PART-II “TECHNOLOGICAL OVERVIEW OF CELLULAR INDUSTRY”
Chapters:1. Introduction to Cellular Technology2. GSM Technology3. WAP Technology 4. Roaming
PART-III “CELLULAR INDUSTRY FROM MARKETING PERSPECTIVE”
Chapters:1. The Mobile Customer2. Performance of Cellular Industry in 20033. Porter’s Five Force Model4. SWOT Analysis
PART-IV “CELLULAR INDUSTRY FROM FINANCIAL PERSPECTIVE”
Chapters:1. Investment Pattern and FDI inflow2. Impact of Budget on Cellular Sector3. Performance Analysis of Bharti4. Performance Analysis of BSNL
CONCLUSIONBIBLIOGRAPHY
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PART-I
“INTRODUCTION”
Chapters:
1. Introduction: Indian Cellular Industry
2. Background
3. History of Indian Cellular Industry
4. Chronology of Indian Cellular Industry
6. Contribution of The Cellular Industry to The Indian Economy
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Chapter 1: Introduction: Indian Cellular Industry
Cellular industry is one of the fastest growing services industries in the country and world as well. The cellular market in India continues to grow at an annual reat of 75%. A number of stumbling blocks have fallen and many more are expected to come tumbling down soon. According to the Gartner Report, the Indian telecom services market will touch Rs. 700 billion by 2006.
Private operators have made mobile telephony the fastest growing (over 100% p.a.) in India. Now they are venturing into more traditional areas such as long distance and international fixed line calling. Three main private groups – Bharti, Tata and Reliance are braving the hazards of competing with the private sector incumbents. This is boom time for the consumers, who have been paying among the world’s highest tariffs so far.
The Indian government has merged the IT and Telecom Ministries to speed up reform and has tabled the Communication Convergence Bill in the Parliament to enable the common regulation of the Internet, broadcasting and telecom. An independent regulatory body and dispute settlement body is fully functional.
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Chapter 2: Background
The Indian cellular industry is controlled by the state. The Department of Telecommunication (DOT), reporting to the ministry of communication is the key body for policy issues and regulation, apart from being a basic service provider in rest of country. Mahanagar Telephone Nigam Ltd. (MTNL) is the operator in Mumbai and Delhi circles. By an act of the regulatory agency. The key players in the sectors are,
Government Bodies:
1. Ministry of Communications: (MOC)All the operator of this sector come under the preview of MOC, It is responsible for all major policy changes, planning, supervision, spectrum control etc.
2. Department of Telecommunication: (DOT)DOT was formed in 1985 when the department of posts and Telecommunication was separated into department of posts and Telecommunication. Till 1986, it was only telecom services provider in India. It played a role beyond services provider by acting as a policy maker, planner, developer as well as an implemented body. In spirit of being profitable, non-corporate entity status ensured that it did not have to pay taxes. DOT depends on Govt. for its expansion plans and funding. Its pivotal role in the Indian telecom sector has got diluted after formation of TRAI.
3. Telecom Regulatory Authority of India: (TRAI)TRAI was founded to act as an independent regulatory body different tariff packages for different services areas, this become important, as DOT was a regulatory as well as player. Founded by an act of parliament. The main function of the body was to finalize the toll rates and settle disputes between players. An independent regulatory in critical as the sector witnesses the competition.
The other entities in the sector under the control of MOC are the two public sector telecom equipment manufacturers, namely Indian Telephone Industries Ltd. (ITI) and Hindustan Teleprinters Ltd. (HTL). Both these companies are facing financial problems because of product obsolesces, poor management and over staffing. Telecommunication consultants India Ltd. (TCIL) another PSU was founded in 1978 to undertake consultancy services in the field of telecom.
In addition there are a number of telecom equipment manufacture in private sector. Of this jelly field cables is the biggest segments. The Govt. through DOT and other player and enjoys an effective monopoly. DOT orders are finalized by tender system. Given the resources crunch and delays in finalizing orders most of these companies are facing financial problems.
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Cellular Operators Association of India (COAI):
To establish and sustain a world-class cellular infrastructure and deliver the benefits of affordable mobile communication services to the people of India.
The Cellular Operators Association of India (COAI) was constituted in 1995 as a registered, non - profit, non - governmental society dedicated to the advancement of communication - in particular of modern communication through Cellular Mobile Telephone Services.
The main objective of the COAI is to protect, promote and upgrade mobile cellular operations in India and also to look after the common and collective interests of its members.
COAI has emerged as the official voice for the Indian cellular industry and interacts directly with.
The Policy Maker - the Ministry of Communications & IT,
The Licensor - the Department of Telecommunications (DoT);
The Regulator - the Telecom Regulatory Authority of India (TRAI);
The Spectrum Management Agency - Wireless Planning & Coordination Wing (WPC);
The incumbent PTT & National Long Distance Operator - Bharat Sanchar Nigam Ltd (BSNL);
The incumbent International Long Distance Operator - Videsh Sanchar Nigam limited (VSNL); Private sector participants in telecom;
Apex Chamber Of Commerce - Confederation of Indian industry (CII), Federation of Indian Chambers of commerce & Industry (FICCI), Associated Chambers of Commerce & Industry (ASSOCHAM);
Sectoral Telecom Associations; etc.
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The key objectives of the COAI include :
a). To continuously improve the standards and competitiveness of the Cellular Industry and to attain the status of world class infrastructure and deliver the benefits of affordable mobile telephony services to the people of India.
b). To study of Industry best practices & research and analysis of Cellular Experience worldwide.
c). To assist all concerned authorities through provision of requisite industry information to enable formulation of suitable policies to incentivise growth of the industry.
d). To facilitate enhancement of standards and quality of services in the consultation with GSM India - the Indian chapter of the GSM Association.
e). To maintain and upgrade the quality of services in terms of speech transmission, ability to access services, coverage, security etc., to facilitate the expansion of cellular services.
f). To help address the common problems of cellular operators relating to operational, regulatory, financial, or licensing through interaction of with Ministry of Communications & IT, Ministry of Finance, Ministry of Commerce, Department of telecommunications, Telecom Regulatory Authority of India, Financial Institutions etc.
g). To undertake continuous efforts to ensure customer satisfaction.
h). To dispense information and spread awareness among the operators and consumers alike on issues relating to service quality and other value added services provided by the operators to their subscribers.
i). To help facilitate the achievement of national objectives of increased tele density & improved Rural Access.
COAI also provides a forum for discussion and exchange of ideas between Cellular Mobile Service Providers, Policy Makers, Regulators, Technologists, Security Agencies, Radio Spectrum managers and lawyers who share a common interest in the development of mobile telephony in the country.
COAI also interacts with International Bodies & Regulators to facilitate international benchmarking of industry standards.
Source www.coai.com
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Licensing in Cellular Industry:
The Country is divided into 23 Service Areas consisting of 19 Telecom Circle Service Areas and 4 Metro Service Areas for providing Cellular Mobile Telephone Services(CMTS). In terms of old licensing scheme of NTP-1994, 8 licenses for Cellular Mobile Telephone Service in the 4 metro cities of Delhi, Mumbai, Calcutta and Chennai were issued to 8 companies in November 1994. 34 licenses for 18 Territorial Telecom Circles were also issued to 14 companies during 1995 to 1998. MTNL and BSNL were issued licenses for operation of Cellular Mobile Telephone Service as third operator in various parts of the country. In terms of NTP-99, 17 fresh licenses have been issued to private companies as fourth cellular operator in September/October, 2001, one each in 4 Metro cities and 13 Telecom Circles.
Presently there are 78 licenses held by 25 Companies including MTNL & BSNL for CMTS in 23 Service Areas.
The old licensees of cellular services were permitted for migration to NTP 1999 regime of revenue sharing which was effective from 1st August, 1999. The license fee, excluding spectrum charges for cellular services is 12% of "Adjusted Gross Revenue" (AGR) for Metro Service Areas and category `A' circles, 10% of AGR for category `B' Circles and 8% of AGR for category `C' Circles.
In addition to license fees, the cellular licensees pay spectrum charges on revenue share basis of 2% of AGR for spectrum up to 4.4 MHz or 3% of AGR for spectrum up to 6.2 Mhz, as the case may be. The charges will be 4% of AGR for spectrum beyond 6.2 Mhz, which shall be given if the subscriber base is more than 5 lacs. This spectrum charge of 4% of AGR would also cover allocation of further spectrum, which may become possible to allocate in future subject to availability, to add up to a total spectrum allocation not exceeding 10Mhz + 10Mhz per operator in a service area. Such additional allocation could be considered only after a suitable subscriber base as may be prescribed, is reached.
In terms of NTP-99, cellular operators will be free to provide, within their area of operation, all types of mobile services including voice and non-voice messages, data services and PCOs utilizing any type of network equipment, including circuit and/or package switches that meet the relevant International Telecommunication Union (ITU) /Telecom Engineering Centre (TEC) standards.
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List Of Cellular Mobile Telephone Service Licencees
S. No.
Service Area (Metro City/ Telecom Circle)
No. of Licensees
Name of Licensee
1. DELHI 4 Bharti Cellular Ltd. Sterling Cellular Ltd.Mahanagar Telephone Nigam Ltd.IDEA Cellular Ltd.
2. MUMBAI 4 BPL Mobile Communication Ltd.Hutchison Max Telecom Ltd.Mahanagar Telephone Nigam Ltd.Bharti Cellular Ltd.
3. KOLKATA 4 Bharti Mobitel Ltd. Usha Martin Telekom Ltd.Bharat Sanchar Nigam Ltd.Reliable Internet Services Ltd.
4. CHENNAI 4 RPG Cellular Services Ltd.Bharti Mobinet Ltd.Bharat Sanchar Nigam Ltd.Hutchinson Essar South Ltd.
5. Andhra Pradesh 4 IDEA Cellular Ltd.Bharti Mobile Ltd.Bharat Sanchar Nigam Ltd.Hutchinson Essar South Ltd.
6. Assam 2 Reliance Telecom (P) Ltd.
Bharat Sanchar Nigam Ltd.7. Bihar 2 Reliance Telecom (P) Ltd.
Bharat Sanchar Nigam Ltd.8. Gujarat 4 Fascel Ltd.
IDEA Cellular Ltd.Bharat Sanchar Nigam Ltd.Bharti Cellular Ltd.
9. Haryana 4 Escotel Mobile Communication (P) Ltd.Aircel Digilink India Ltd.Bharat Sanchar Nigam Ltd.Bharti Cellular Ltd.
10. Himachal Pradesh 4 Bharti Telenet Ltd.Reliance Telecom (P) Ltd.Bharat Sanchar Nigam Ltd.Escorts Telecommunications Ltd.
11. J & K 1 Bharat Sanchar Nigam Ltd.
12. Karnataka 4 Spice Communications Ltd.
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Bharti Mobiles LimitedBharat Sanchar Nigam Ltd.Hutchinson Essar South Ltd.
13. Kerala 4 BPL Mobile Cellular LimitedEscotel Mobile Communications Ltd.Bharat Sanchar Nigam Ltd.Bharti Cellular Ltd.
14. Maharashtra 4 BPL Mobile Cellular Ltd.IDEA Cellular Ltd.Bharat Sanchar Nigam Ltd.Bharti Cellular Ltd.
15. Madhya Pradesh 4 BTA Cellcom Ltd.Reliance Telecom (P) Ltd.Bharat Sanchar Nigam Ltd.Bharti Cellular Ltd.
16. N.E. 3 Reliance Telecom (P) Ltd.Hexacom India Ltd.Bharat Sanchar Nigam Ltd.
17. Orissa 2 Reliance Telecom (P) Ltd.Bharat Sanchar Nigam Ltd.
18. Punjab 4 Spice Communications Ltd.Bharti Mobile Ltd.Bharat Sanchar Nigam Ltd.Escorts Telecommunications Ltd.
19. Rajasthan 4 Aircel Digilink India Ltd.Hexacom India Ltd.Bharat Sanchar Nigam Ltd.Escorts Telecommunications Ltd.
20.
Tamilnadu 4 BPL Mobile Cellular Ltd.Aircel Ltd.Bharat Sanchar Nigam Ltd.Bharti Cellular Ltd.
21.
UP(W) 3 Escotel Mobile Communications (P) Ltd.Bharat Sanchar Nigam Ltd.Bharti Cellular Ltd.
22. UP(E) 3 Aircel Digilink India Ltd.Bharat Sanchar Nigam Ltd.Escorts Telecommunications Ltd.
23. Andaman, Nicobar & West Bengal
2 Reliance Telecom (P) Ltd.Bharat Sanchar Nigam Ltd.
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Chapter 4: overview of Cellular Industry in India
Cellular Telephony:
The technology that gives a person the power to communicate anytime, anywhere - has spawned an entire industry in mobile telecommunication. Mobile telephones have become an integral part of the growth, success and efficiency of any business / economy.
The most prevalent wireless standard in the world today, is GSM. The GSM Association (Global System for Mobile Communications) was instituted in 1987 to promote and expedite the adoption, development and deployment and evolution of the GSM standard for digital wireless communications.
The GSM Association was formed as a result of a European Community agreement on the need to adopt common standards suitable for cross border European mobile communications. Starting off primarily as a European standard, the Group Special Mobile as it was then called, soon came to represent the Global System for Mobile Communications as it achieved the status of a world-wide standard. GSM is today, the world's leading digital standard accounting for 68.5% of the global digital wireless market.
The Indian Government when considering the introduction of cellular services into the country, made a landmark decision to introduce the GSM standard, leapfrogging obsolescent technologies / standards.
Although cellular licenses were made technology neutral in September 1999, all the private operators are presently offering only GSM based mobile services. The new licensees for the 4th cellular licenses that were awarded in July 2001 too, have opted for GSM technology to offer their mobile services.
Cellular Industry in India:
The Government of India recognizes that the provision of a world-class telecommunications infrastructure and information is the key to rapid economic and social development of the country. It is critical not only for the development of the Information Technology industry, but also has widespread ramifications on the entire economy of the country. It is also anticipated that going forward, a major part of the GDP of the country would be contributed by this sector. Accordingly, it is of vital importance to the country that there be a comprehensive and forward looking telecommunications policy which creates an enabling framework for development of this industry.
New Telecom Policy 1999:
Telecommunications is now universally recognized as one of the prime movers of the modern economy; hence it's vital importance for a developing country like India. The
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availability of adequate infrastructure facilities is critical for acceleration of the economic development of any country. In fact international studies have established that for every 1% increase in tele-density, there is a 3% increase in the growth of GDP.
Accordingly, the Government of India has accorded the highest priority to investment and development of the telecommunications sector.
Telecom requires very heavy investment and it was not possible for the Indian Government to organize public funding of this sector on such a massive scale. In fact the national telecom Policy 1994, estimated a resource gap of Rs. 23,000 crores to meet the telecom targets of the eighth five-year plan of the Government of India (1992-97).
It was for this reason to bridge the resource gap between government funding and the total projected funds requirement and to provide the additional resources to achieve the nation's telecom targets that the telecommunications sector was liberalized in 1992 and the Government invited private sector participation in telecommunications.
Cellular mobile services were one of the first areas to be opened up to private competition. The whole country was divided into the 4 metropolitan cities of and 19 telecom circles, which were roughly analogous with the States of India.
Cellular Licenses were awarded to the private sector - first in the metropolitan cities of Delhi, Mumbai, Kolkata and Chennai in 1994 and then in the 19-telecom circles in 1995.
The first metro cellular network started operating in August 1995 in Calcutta.
When cellular mobile services were first introduced in 1994 it was as a duopoly (that is a maximum of two cellular mobile operators could be licensed in each telecom circle), under a fixed license fee regime and for a license period of 10 years.
The initial response of the private sector was very encouraging. The attractiveness of the Indian market - the low tele density, the high latent demand and a burgeoning middle class - brought in some of the largest global telecom players, foreign institutional investors and the major Indian industrial houses to invest in telecom, especially the Indian cellular industry.
Telecom proved to be a powerful attractor of foreign investment. The cumulative FDI inflow into telecom since 1993 has exceeded Rs. 43,000 Million. Within telecom, the cellular industry has attracted most of the foreign investment since 1993, accounting for almost 50% of the FDI inflow into telecom - representing amongst the biggest investments in any one sector in India.
Annual foreign investment in telecom increased steadily from an insignificant Rs. 20.6 Million in 1993 to Rs. 17,756.4 Million in 1998.
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However, the attractiveness of the Indian market did not last for very long, as by 1997-98, the private cellular operators were confronted with a series of problems that threatened their very viability and survival.
As a result of this, FDI inflow into telecom dropped sharply, declining by almost 90% to Rs. 2126.7 Million in 1999. This dropped further in Year 2000 - as until June 2000, only Rs. 918 Million had flown into the country.
One of the key factors responsible for the critical state of the telecom sector & consequently also the cellular industry was that liberalization / deregulation was undertaken in an inverted manner vis-à-vis international practices and generally accepted norms. Usually, deregulation is preceded by tariff rebalancing, institution of a strong and independent regulator and only then is private sector participation invited.
In India, private sector participation was invited in 1992, the Regulatory Authority was set up in 1997 and the tariff rebalancing exercise commenced in 1999 and is still far from complete. Further, even when the regulatory authority was set up, there was considerable ambiguity on its powers, which resulted in virtually each and every order of the Authority being challenged by the Licensor / incumbent. The ambiguities in the jurisdiction of TRAI resulted in a limbo in the industry.
Another important factor was the basic approach of the Government towards liberalization. Consumer benefit was given the go-by and the telecom sector was viewed as a revenue generator / cash cow for the Government exchequer.
NTP 94 was basically a good policy. It clearly identified that the primary objective of the policy was to make available affordable telecom services. However, in actual policy implementation, this key / fundamental objective was disregarded. Licenses were granted through an auction process and the enthusiastic private sector deluded by the seemingly huge potential of the Indian market were lured into bidding exorbitant sums of money for cellular licenses.
The huge license fees paid by the private operators resulted in a high cost structure leading to un-affordable tariffs and lower growth of the market. By end-1998, the cellular industry was on the verge of bankruptcy and at that time it appeared that the liberalization dream was over & the nightmare had begun.
It was under the above circumstances that the Government undertook a review of telecom policy & the role of the regulatory authority. The result was NTP 99, which was announced in March 1999 & the amendment of the TRAI Act in January 2000.
NTP 99 is an extremely forward-looking policy. It significantly changed the dynamics of the Indian telecom industry as it not only replaced the high cost fixed licensing regime with a lower cost licensing structure through revenue sharing, but also provides for greater degree of competition and more flexibility in choice of technologies.
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Chapter 5: Chronology of Indian Cellular Industry
Before 1992
Telecom in India was a monopoly with fixed line services being provided by the Government through the Department of Telecommunications and the public operator Mahanagar Telephone Limited, which operated in the metropolitan cities of Delhi and Mumbai. The Government recognized the importance of telecommunications in attracting FDI and stimulating domestic investment and gave high priority to the development of telecommunications in the country. However the rapid acceleration envisaged by the government required supplementary resources which were beyond the capacity of the Government. It was in this scenario that the private sector participation in telecom was invited to bridge the huge resource gap in the funds required by the government to achieve the revised telecom targets laid down by the Government.
1992
DOT invited technical bids for cellular mobile telephone service in Delhi, Mumbai, and Calcutta & Madras.
1994
13 May - National Telecom Policy (NTP 94) announced.
29 November - Eight operators issued licenses to operate cellular mobile services in the 4 metros. These were:
Delhi Bharti Cellular Limited & Sterling Cellular Limited. Mumbai BPL Mobile Communications Limited & Hutchison Max Telecom Limited. Calcutta Modi Telstra & Usha Martin Telekom. Chennai RPG Cellular & SkyCell Communications
1995
16 January - Tenders invited for cellular services in 20 Telecom circles. The circles were roughly analogous to the states of India and were divided into "A", "B" and "C" categories based on their perceived business potential. The Circles in the respective categories were:
Category A Maharashtra Gujarat Andhra Pradesh Karnataka Tamil Nadu
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Category B Kerala Punjab Haryana Uttar Pradesh (West) Uttar Pradesh (East) Rajasthan Madhya Pradesh West Bengal
Category C Himachal Pradesh Bihar Orissa Assam North East
July - Cellular Operators Association of India (COAI) was set up to promote and upgrade CMTS operations in India and to look after the collective interests of its members.
23 August - Modi Telstra launched the first cellular operation in the country in Calcutta under the brand name "Modi Telstra".
November - Government announced a cap of 3 circles per company in Category 'A' and 'B' Telecom Circles for grant of cellular licences.
12 December - DOT issues 33 licenses to 13 companies to operate cellular services in 18 telecom circles (except Jammu & Kashmir and Andaman & Nicobar).
1996
May - Draft Interconnect Agreement released by DOT and discussions commence with the cellular circle operators.
27 September - DOT abandons efforts to finalize Interconnect Agreement - issues an Administrative Order to all Chief General Managers of DOT in all Telecom Circles to provide interconnection to the cellular operators in their respective areas.
November - DOT allows assignability of cellular licenses. However a standard Tripartite Agreement, which will facilitate the assignability is still not in place.
23 December - The Telecom Commission approves the increase in frequency allocated in the 800/900 MHz frequency spectrums from 4.5 MHz to 6.2 MHz in the 4 metros to accommodate the rapid increase in cellular subscribers.
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1997
29 January - DOT raises the PSTN to Mobile tariff in Telecom circles from Rs. 1.40 to a maximum of Rs. 32.20 for a 3 minute call.
14 February - Wireless Planning Commission interprets GSM & Microwave royalty and license fee charges as charges to be paid by cellular networks on a city-wise basis.
25 March - Telecom Regulatory Authority of India (TRAI) is set up.
26 March - COAI approaches TRAI against the January 29, 1997 PSTN to Mobile Tariff Order of DOT.
25 April - TRAI quashes DOT's PSTN to Mobile Tariff Order and directs DOT to provide two-way connectivity to cellular operators. DOT agrees to provide multiple interconnect points between their networks and that of Circle Cellular operators. It also agreed to open up its TAX to cellular traffic and to scale down the minimum number of interconnect links from two to one.
27 August - Government announces waiver of an annual Royalty charge of Rs. 1200 per cellular subscriber with prospective effect. Order issued on November 4, 1997.
12 September - DOT gives clearance for national automatic roaming for cellular operators in Delhi, Bombay, Calcutta and Madras.
10 October - MTNL indicates intention to enter into cellular services in Delhi and Mumbai through its GDR Prospectus.
3 November - MTNL announces its plans to launch cellular mobile telephone services in Delhi and Bombay. COAI shoots off submission to TRAI seeking their intervention in the matter.
19 November - Cellular operators permitted to make their licenses assignable in favour of the lenders. Independent study by ICICI commissioned by the Government to examine operational performance of the cellular industry and give its assessment for specific relaxations in licence conditions.
1998
9 January - DOT commissions the Bureau of Industrial Costs & Prices (BICP) to undertake an independent assessment of the viability of the Indian Cellular Industry.
12 January - DOT gives clearance for national and international roaming. January - COAI moves TRAI to stay the entry of MTNL into cellular services contesting that the entry of MTNL without informing or consulting TRAI is undermining the authority of the Regulator.
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17 February - TRAI rules that the Government has to mandatorily seek a recommendation from TRAI before issuing a license to a new service provider, even though the recommendation would not be binding on the Government.
2 March - MTNL files petition in Delhi High Court challenging TRAI order restraining it from entering cellular services in Delhi and Bombay.
April - ICICI Report concludes that on a 10-year licence, cellular telecom projects are not attractive for either the lender or the promoter. Recommends extension of licence period to 15 years while maintaining the same NPV. The Government rejects the Report on the grounds that ICICI is an interested party.
16 July - Learned Single Judge of Delhi High Court, Usha Mehra holds that the powers of the Government to grant or amend a license is not subject to the recommendation of TRAI nor are these recommendations mandatory in nature.
15 August - DOT decides to treat the entire Short Distance Charging Area (SDCA) as one local area for the purpose of charging. However, for PSTN to Mobile calls, the DOT maintains that the call be treated as an STD call if the POI is not available in the adjacent SDCA.
August - Mrs. Sushma Swaraj is transferred as Chief Minister of Delhi and the Prime Minister; Shri Atal Behari Vajpayee keeps the portfolio of Communications.
8 October - DOT announces extension of license period from 10 to 15 years for eligible circle operators i.e. those operators who are not in default and who have not comitted any breach of the terms and conditions of the licence agreement. The matter regarding quantum and structure of licence fee payable for the extended period of 5 years to be referred to TRAI for their recommendations on the same.
20 October - The India Interest Group of the GSM MoU Association, which comprises the Department of Telecommunications and all the cellular operators in India, hosts the 40th GSM MoU Plenary from October 20-23, 1993 at New Delhi. Over 500 delegates from 79 countries participated in the Plenary. The major decisions taken at the Plenary were: To include the GSM manufacturers and suppliers in future plenary proceedings as Associate members. Endorsement of the Voluntary Certification Scheme (VCS), which envisages the voluntary assessment and testing of GSM mobile handsets for the creation of an independent global benchmark for handset quality control.
24 October - Prime Minister at the Annual General Meeting of the Federation of Indian Chambers of Commerce & Industry (FICCI) acknowledges the presence of a number of knotty problems in the telecommunications sector and announces that "a new Telecom Policy will be formulated within the next three months to provide a state-of-the-art nationwide telecommunication network, speed up rural telephone services and to meet the new challenges of the convergence of telecom, IT, media and consumer electronics." November - Report of the BICP on the viability of the Indian cellular industry is submitted to the Government. The Report is believed to have documented significant delays in
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granting of requisite clearances & permissions to the private operators by various Government agencies and have recommended a change in effective date of license fee payments to compensate for the same.
16 November - TRAI issues Consultative Paper on "Quality of Service" as a first step to fixing the parameters for standard of telecom services in the country.
20 November - Following the announcement of the Prime Minister at the FICCI AGM, a Group on Telecommunications (GOT) was set up by the Prime Minister under the chairmanship of Shri Jaswant Singh, Deputy Chairman, and Planning Commission. The mandate of the GOT was to make recommendations on: Proposed New Telecom Policy, Issues relating to existing licensees of basic and cellular services and suggest appropriate measures within the framework of the New Telecom Policy and Issues relating to TRAI.
26 November - In response to the initiative of the Government in setting up the GOT, the telecom industry constituted the Industry Group on Telecommunication (InGoT). InGoT was set up with the support of the apex industry associations as well as all the telecom industry associations with a view to projecting a united front to the Government /GOT on the resolution of all telecom issues.
16 December - GOT sets up a Spectrum sub-Group under the Chairmanship of Lt. General P Gokharn to give its recommendations on the efficient and cost-effective management of available spectrum.
7 December - Shri Jagmohan becomes Minister for Communications.
24 December - Report of the Spectrum Management Committee under the Chairmanship of Lt. Gen. P Gokharn.
1999
6 January - Expansion of GOT to include Finance Minister, Minister of Information & Broadcasting and the Minister of Communications.
23 January - Issue of the Draft Discussion Paper on New National Telecom Policy.
25 January - Ministry of Communications sends letters to all license fee defaulters asking them to pay up 20% of their license fee out standings and to securities the balance 80% dues by February 15, 1999 or face punitive action. This deadline was later extended to February 28, 1999.
9 March - Announcement of the TRAI Telecommunications Tariff Order. The Order increased the monthly rental for Cellular Mobile Telephone Services to Rs. 600 (from Rs. 156) and brought the peak ceiling tariff rate down to Rs. 6 (from Rs. 16.80) per minute. The Order also proposed the implementation of Calling Party Pays (CPP) system from August 1, 1999.
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19 March - In a DOT Order, WPC charges of Rs. 1200 per subscriber which were waived with prospective effect on August 27, 1997 were now waived with retrospective effect for the period July 20, 1995 to August 27, 1997.
26 March - New National Telecom Policy 1999 announced.
29 March - Further to the decision of the Union Cabinet, the issue of the legal tenability of existing operators in basic and cellular services to migrate to the new telecom regime was referred for an opinion to Attorney General, Shri Soli Sorabjee.
15 April - DOT serves show cause notice for termination of license for non-payment of dues on three cellular licensees - Koshika Telecom, JT Mobiles, Aircel Digilink and Hexacom.
1 May - TRAI Telecommunication Tariff Order (TTO) 1999 comes into effect.
22 May - DOT issues termination notices and disconnects the Interconnect facilities for Koshika Telecom and Aircel Digilink, who have not paid up their license fee outstandings.
May - DOT allows an 8-month change of effective date for Srinivas Cellcom for delays in SACFA clearances and FIPB approval for Tamil Nadu Telecom Circle.
28 May - TRAI releases the Telecommunication Interconnection (Charges and Revenue Sharing) Regulation 1999 (I of 1999). The Order is effective from May 1, 1999.
31 May - DOT amends earlier Order on SDCA and rules that PSTN to Mobile calls in the adjacent SDCA will be equivalent to local calls if the POI (Point of Interconnect) is available in the adjacent SDCA.
3 June - In a Gazette Notification, the Government of India entrusts to the TRAI the arbitration function for resolution of disputes between the Central Government (in its capacity as a licensor) and any licensee. However, as per the Notification, the right to refer the dispute to arbitration rests solely with the Government.
8 June - In a Cabinet reshuffle, Shri Jagmohan is transferred as the Prime Minister retains Minister for Urban Development and the portfolio of Communications.
17 June - The Attorney General, Shri Soli Sorabjee gives an in principle clearance for the migration of the existing licensees in basic & cellular to NTP 99, which proposes an entry fee plus annual revenue share regime for the payment of license fees.
6 July - Union Cabinet clears the migration of existing licensees to NTP 99.
15 July - TRAI releases Consultative Paper on "Introduction of Competition in Domestic Long Distance Communications"
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22 July - Formal offer of transition is made to individual cellular operators. The operators are given till July 29, 1999 to respond to the offer.
29 July - COAI and cellular operators formally accept DOT's migration package for transition to NTP 99 and agree to withdraw all litigation pending against the Dot / Government of India.
30 July - A Public Interest Litigation is filed by Delhi Science Forum (DSF) against the Union of India, the Cellular Operators Association of India and the Association of Basic Telecom Operators, challenging the validity of the migration package offered by the DOT to the private operators. The DSF Counsel argued that the migration offer was malafide because:
Migration from a fixed licence fee to revenue sharing represents a major policy initiative and the same had not been debated in Parliament.
Cellular operators were bound by their licence agreements to fulfil licence fee obligations.
Any change in the existing licence regime / payment schedule of operators would result in a substantive loss to the exchequer to the tune of Rs. 50,000 crores
10 Aug - After hearing, the Delhi High Court passed an interim order without going into the merits of the case and neither approving, disapproving nor vindicating the policy.
The Court ruled that the existing licensees be permitted to migrate to the new policy as per the package approved by DoT, subject to the same being approved by the Council of Ministers after the contitution of the 13th Lok Sabha and in the event that the Council of Ministers/ Lok Sabha disapproves the package / policy change, the licensees would not claim any rights or equities of whatsoever nature and the licensees would be relegated back to the existing position i.e. back to the present licenses where such licences have not been terminated.
Issue of TRAI Consultation Paper on Review of Cellular Tariffs and Introduction of Calling Party Pays Regime.
13 September - DoT announces that all new Cellular Mobile Service Providers will be technology wise neutral; however, the technology must be digital.
15 September - Notification by the Government giving MTNL a provisional amendment to its CMTS licence to bring it in line with the New Telecom Policy. The cellular mobile service to be offered under the licence to be technology neutral, however it must be digital.
17 September - TRAI issues Telecommunication Interconnection (Charges and revenue Sharing - First Amendment) Regulation 1999, and specifies ad interim tariffs and introduction of CPP for cellular services. The new tariffs entailed :
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Monthly Rental of Rs 475 / Rs. 500 for metros / circles respectively. Free Incoming Calls. - Outgoing calls to be charged at a maximum of Rs. 4 for the
first minute and Rs. 2 for ever 30 seconds thereafter. A Mobile Termination Charge of Rs. 1.60 for the first minute and Rs. 0.80 for every
60 seconds thereafter.
2000
17 January - Delhi High Court quashes Clause 8 of the Telecommunication Interconnection (Charges and Revenue Sharing) Regulation 1999 of May 28, 1999. Delhi High Court rules that TRAI is not empowered to change the terms of interconnection amongst service providers, as the same is part and parcel of the license agreement of cellular operators.
21 January - Cellular Operators reduce monthly rentals on standard package customers with retrospective effect from November 1, 1999 to:
Rs. 475 per month for metro subscribers Rs. 500 per month for circle subscribers
24 January - TRAI (Amendment) Ordinance 2000 promulgated.
1 February - Cellular Operators reduce airtime rates to:
Rs. 4.00 per minute for metro subscribers. Rs. 4.50 per minute for circle subscribers.
These charges would now be levied on a 30 second pulse instead of a 60 seconds pulse
18 March - Shri. M S Verma appointed as Chairman, TRAI. Prof. V S Raju and Mr. Rakesh Mohan appointed as members of TRAI. The reconstituted TRAI is in place with:
Shri MS Verma, Chairman Shri R R N Prasad, Member Shri Ravi Kant, Member Mr. Rakesh Mohan, Memebr Prof. V S Raju, Member
4 May - TRAI issues Consultation Paper on Accounting Separation.
15 May - TRAI makes revised recommendations on the opening up of National Long Distance to private competition. As opposed to earlier recommendation of free competition, suggests that the number of players be restricted to 4 in addition to the incumbent. Further, instead of a 5% revenue share percentage, recommends that the same be determined through a bidding process.
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Justice S C Sen is appointed as Chairman of the Telecom Dispute Settlement and Appellate Tribunal.
12 June - TRAI issues Consultation Paper on Issues Related to Fixed Service Providers.
23 June - TRAI submits its recommendations on Issues Related to Cellular Mobile Services. The Authority recommends a revenue share licence fee of 17% of Gross Adjusted Revenues for CMSPs to be apportioned as below:
2% - towards R&D, Regulation and Administration 5% - contribution to Universal Service Obligations Fund 10% - towards Spectrum and Rent
TRAI also recommends that the entry fee for new players be determined through a bidding process.
3 July - TRAI issues Consultation Paper on Issues relating to Universal Service Obligations
15 July - Prime Minister announces the opening up of National Long Distance Operations to unrestricted competition. Modalities to be worked out by August 15, 2000.
9 August - DOT permits CMSPs to share infrastructure with other service providers and allows direct interconnectivity between licensed CMSPs and any other telecom service provider (including another CMSP) in the same service area for terminating traffic only.
11 August - Sub-Group on Convergence set up under the convenor-ship of Shri Fali Nariman, submits final draft report on proposed Convergence Law.
13 August - Guidelines for opening up of NLDO announced.
31 August - TRAI recommendations on FSPs are released. Recommendations for licence fee revenue share for FSPs is as below:
12% p.a. for Circle A Service Areas 10% p.a. for Circle B Service Areas 8 % p.a. for Circle C Service Areas
7 September - DOT recommends a three-tier revenue share licence fee structure for CMSPs as below:
20% p.a. for Metros. 15% p.a. for Circle A & B Service Areas 10% p.a. for Circle Service Areas
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1 October - Corporatization of DOT - BSNL
20 October - TRAI recommends that mobile public telephone facility should not be restricted to situations of inherent mobility and that the cellular operators should be allowed to offer mobile community services to the public in their licensed area through mobile handsets.
3 November - TRAI issues Consultation Paper on Policy Issues relating to Limited Mobility by use of Wireless in Local Loop Techniques in the Access Network by Basic Service Providers
2001
5 January - 4th Cellular Operators Licence Guidelines announced by DOT.
8 January - TRAI recommends that FSPs be allowed to offer of "Limited Mobility" within the Short Distance Charging Area using WLL as part of their fixed licenses.
18 January - BSNL announces a concessional tariff for its subscribers for calls upto a distance of 200 kms. The lower tariffs are to be applicable only for intra-circle calls originated by the telephone subscribers of BSNL and terminating on the basic services network.
23 January - COAI approaches the Telecom Dispute Settlement & Appellate Tribunal (TDSAT) against the recommendations of TRAI.
25 January - DOT announces FSP Guidelines, which include the right to offer "Limited Mobility" services through WLL.
29 January - TDSAT passes an Interim Order that any FSP license granted will abide by the result of the petition and would contain a clause that the license would be revoked if the decision goes in favour of the petitioners.
22 February - TDSAT gives an interim stay to BSNL against the TRAI's directions to BSNL to pass on the concessional tariff to both private fixed and cellular operators.
24 February - COAI files a petition with the TDSAT on the issue of WPC (Spectrum charges)
8 March - Standing Committee on Information Technology submits its Report on Limited Mobility. Report questions how a mobile service can be offered without a mobile license. The committee also states that a more in-depth study should have been made.
9 March - COAI files an appeal with TDSAT challenging the TRAI determination of January 8, 2001 pertaining to the multiple points of interconnection to be provided to CMSPs.
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Notice inviting Tenders issued for grant of license for fourth cellular operator in various circles as well as for filling up certain vacant slots.
20 March - TRAI writes to DOT referring to the stipulation in the TRAI recommendations on WLL (M) that a Mobile Switching Centre (MSC) should not be used for WLL based mobility. TRAI suggests that DOT should "request the Telecom Engineering Centre (TEC) asking them to draw up system engineering specifications to ensure that WLL systems do not have a Mobile Switching Center and are also engineered to ensure that handover of subscribers does not take place from one SDCA to another. The system specifications should also specify numbering, routing and charging as applicable to WLL systems. Suitable clauses may be inserted in the license agreements of BSOs to provide for system testing to check its conformance to TEC specifications before permission to commence [WLL (M)] services is given by the Licensor."
23 March - DOT issues guidelines for allocation of spectrum of a first-come, first serve basis for FSP licensees.
27 March - Letters of Intent issued to three private fixed operators to offer fixed + mobile services in 40 networks at an entry fee of around Rs. 1100 crores.
4 April- TDSAT passes an Interim Order to maintain status quo in the matter of the Petition filed by COAI in the matter of incorrect levy spectrum dues by the Wireless Planning & Coordination Wing (WPC).
6 April- Government refers the issue of "Limited Mobility" to the Group on Telecom and IT Convergence (GOT-IT).
Terms of reference of GOT-IT are to recommend:1. Whether NTP 99 permits "Limited Mobility" to be offered by Fixed Service Providers? 2. If yes, how is the same to be introduced consistent with the principle of level playing field? 3. If no, how the Policy can be suitably amended to ensure faster achievement of tele density targets as well as rural & remote area telephony at cheaper and affordable rates?
25 April- Sterling Infotech offers to pay Government Rs. 2,500 crores for 5MHz spectrum in the 800/900 MHz band for all the circles in India.
27 April- Group of Ministers on Telecom & IT Convergence (GOT-IT) submit recommendations on WLL Limited Mobility to Prime Minister.
28 April- BPL Communications Limited offers to pay the Government not less than Rs. 1,000 crores for 5 MHz spectrum in the 800/900 MHz band for all the circles in India.
2 May- TRAI issues Telecommunication Tariff (Thirteenth Amendment), Order, 2001 (3 of 2001).
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TTO-13: - Directs cellular operators to offer a standard Rs. 300 prepaid card with a 30-day validity. - Prescribes carry-forward of the unused amount if the renewal is done within a 'reasonable, pre-specified time period'.
18 May- TRAI issues Telecommunication Tariff (Fourteenth Amendment) Order, 2001 (4 of 2001).
TTO-14 states:
- WLL (M) Operators can charge upto Rs. 10,000 as deposit for WLL (M) handset, which is refundable in full on cessation of service.- Monthly rental for WLL (M) services - between Rs. 450-550 per month.- In addition a maximum rental of Rs. 80 per month can be charged for the handset if the WLL (M) Operator provides the same.- Local call charges to be charged at Rs. 1.20 for a 3-minute call.- There would be no free calls.- No alternative tariff packages allowed under this service.
In the Explanatory Memorandum to the TTO, TRAI reiterates its earlier recommendation that the WLL system, which is part of a PSTN, should not include a MSC as otherwise there would be no difference between a Mobile and PSTN network. TRAI goes on to recommend the use of ITU specified interface V5.2 to maintain the PSTN architecture of the WLL (M) service.
23 May- TRAI releases Consultation Paper No. 2001/1 on Issues relating to the introduction of Calling Party Pays (CPP) for Cellular Mobile Services.
8 June- COAI submits its response to TRAI Consultation Paper No. 2001/1 on "Issues relating to the Introduction of CPP for Cellular Mobile Services".
11 June- TRAI directs all Cellular Operators to refund any excess charges levied by them on their subscribers for international calls made on Sundays and other national holidays. Operators to implement the directive by June 30, 2001.
29 June- Bidding begins for fourth cellular service license slot in 21 circles.
29 June- Birla AT&T, TATA (BATATA) and BPL Communications announce agreement to merge their Cellular operations. With the earlier takeover of RPG Cellcom, the merger will result in the company's presence in Madhya Pradesh, Chhattisgarh, Gujarat, Maharashtra, Mumbai, Goa, Andhra Pradesh, Tamil Nadu and Kerala.
3 July- TRAI issues Determination on application of BSNL tariffs for intra-circle STD calls covering distances from 50 to 200 kms.
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Pursuant to the decision of the TDSAT on April 24, 2002, TRAI after giving fresh hearings to all concerned parties, again directs that the BSNL concessional tariffs for intra-circle calls between 50 to 200 kms should also apply to inter-network calls.
13 July- BSNL files a petition in TDSAT against TRAI's Order on Concessional STD Tariffs and is granted a stay in the matter.
17 July- Bharti Enterprises acquires 100% stake in Spice Cell, Kolkata.
19 July- DOT challenges jurisdiction of TDSAT on matters relating to spectrum charges. DOT states that in view of the arbitration clause present in the license agreements of cellular operators, TDSAT does not have the jurisdiction to rule on the dispute on spectrum charges.
20 July- TRAI issues Telecommunication Tariff (Fifteenth Amendment) Order 2001 (5 of 2001)
In TTO-15 TRAI directs that:
For a long distance PSTN call carried on the network of two fixed service providers, or a call originating on a fixed network and terminating on a mobile network, the pulse rate applicable will be the same as the pulse rate corresponding to the lowest tariff applied by the service provider.
In TTO-15, TRAI has upheld its determination in TTO-11, which directed BSNL to apply the same charging regime of Concessional STD tariffs to private operators and in turn to their subscribers.
23 July- WPC advises BSNL / MTNL to incorporate suitable filters in their CDMA transmitters within 30 days to avoid harmful interference in GSM cellular networks.
31 July- The winners for the 4th cellular license are announced.
Barakhamba Sales- Andhra Pradesh, Karnataka, Chennai (Metro) Bharti - Tamil Nadu, Kerala, Madhya Pradesh, Haryana, Uttar Pradesh (West), Maharashtra, Gujarat, Mumbai (Metro) BATATA - Delhi (Metro) Escotel Mobile Communications - Rajasthan, Punjab, Himachal Pradesh, Uttar Pradesh (East) Reliance- Kolkata (Metro)
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The five companies will be paying a combined entry fee of Rs. 1,634 crores for the right to offer cellular mobile services in 17 circles.
13 August- COAI withdraws its Petition before TDSAT on TRAI determination of January 8, 2001 on Interconnection between CMSPs and BSNL - in order to make another attempt to resolve the matter bilaterally.
20 August- COAI makes detailed submission to TRAI on the issue on WLL (M) services. COAI points out blatant violations by some private FSPs of the parameters / conditions upon which WLL (M) was introduced. COAI submits that while the issue of WLL (M) is pending before the TDSAT, in the interim the TRAI must ensure the full compliance of fixed operators to all the terms and conditions upon which this service was permitted.
27 August- Communications Convergence Bill 2001 approved by Cabinet. Cabinet also approves repeal of The Indian Telegraph Act 1885, The Indian Wireless Telegraphy Act 1933, Telegraph Wire Unlawful Possession Act 1950, The Cable Television Networks (Regulation) Act 1995 and the Telecom Regulatory Authority of India Act 1997.
28 August- TRAI commences Open House Discussions on Issues relating to the introduction of Calling Party Pays (CPP) for cellular mobile services.
30 August- As no bids were received in the 4th CMSP round for Andaman & Nicobar, Bihar, Orissa & West Bengal, DOT seeks TRAI views / recommendations to make these circles more attractive.
DOT proposes: - Combination of Andaman & Nicobar with West Bengal- Appointment of franchisees- Lowering of Entry Fees
2 September- Mr. Pramod Mahajan takes additional charge of Ministry of Communications. He is now Minister for Parliamentary Affairs, IT & Communications.
3 September- TRAI issues Consultation Paper No. 2001/2 on International Long Distance Services.
22 September- Government issues notification on spectrum usage charges.
As per the notification, spectrum charges payable by CMSPs would be payable on a revenue share basis with effect from August 1, 1999
The CMSPs shall pay - For 2 X 4.4 MHz - 2% of Adjusted Gross Revenues (AGR) - For 2 X 6.2 MHz - 3% of AGR September 25- DoT issues amended license agreements for existing cellular operators to reflect their migration to NTP 99.
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The amendments however seek to incorporate extraneous clauses not related to migration and have no place in the license agreement.
28 September- COAI submits response to TRAI Consultation Paper No. 2001/2 on Opening up of International Long Distance Services.
COAI points out that until TRAI completes detailed cost analysis for fixing originating and terminating access charges & there is complete clarity in this matter, private long distance operators would be unable to finalize their business plans & therefore be reluctant to commence offering long distance services.
3 October- TRAI submits recommendations on Universal Service Obligations to Government.
Key recommendations of TRAI are: - There should be two streams of universal services - one that ensures shared access to telecom for all and two, which provides for increased rural tele density.- USO scheme to be implemented from April 1, 2002.- No compensation for capex incurred prior to April 1, 2002. - PTICs to be installed in all Blocks by 2005.- All VPTs to have STD facilities within next three years.- Most VPTs to be upgraded to PTICs by 2010.- Support from USO Fund to install DELs in rural / remote areas.- USO levy to be 5% of Adjusted Gross Revenues for first 5 years of program.- USO levy to be collected from all telecom operators but not from pure value added service providers such as ISPs, e-mail or voice service providers.- A USF Administrator to be appointed & Board set up as independent Unit by January 1, 2002 to implement USO Policy.
22 October-TRAI submits recommendation on filling up of vacant slots of cellular mobile telephone service license for Andaman Nicobar, Bihar, Orissa & West Bengal.
TRAI Suggests that: - Andaman & Nicobar Circle may be clubbed with Tamil Nadu Circle- Roll-out obligations be relaxed - 25% DHQ coverage in 3 years instead of 50% as applicable to other service areas.- Cellular plans of BSNL may be made known to the bidders
TRAI opines that DOT proposal to appoint franchisees or relax entry fee will not enhance attractiveness of these service areas.
2 November- BSNL issues circular citing Delhi High Court judgment of January 17, 2000 & advises all its field units to revert to levying port charges as applicable prior to May 1, 1999 and to take necessary steps to recover sums payable by private operators as per the pre May 1, 1999 rates.
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(The January 17, 2000 judgment of Delhi High Court had quashed Clause 8 of the TRAI Telecommunication Interconnection (Charges and Revenue Sharing) Regulation dated May 28, 1999. Delhi High Court rules that TRAI is not empowered to change the terms and conditions of license of service providers.
12 November- TRAI submits recommendations on opening up of International Long Distance to private participation.
Key TRAI recommendations are: - There should be two types of ILD service, one for toll quality service and the other for less than toll quality service. Latter to be provided at lower tariffs & on a different dialing code. - TRAI while adopting a technology neutral approach recommends that ILD operators be permitted to deploy VOIP and other data communication protocols to engineer their network.
23 November- TRAI Issues Consultation Paper No. 2001/4 on Introduction of Internet Telephony.
23 November- COAI writes to TRAI and to BSNL on the unilateral hike in port charges by BSNL on November 2, 2001 submitting that it was extremely unfair & unjustified for BSNL to revise the port charges with retrospective effect.
COAI submitted:- The TRAI Act was amended on January 24 2000 expressly empowering the Regulator to fix the terms of Interconnectivity between service providers - therefore the approval of TRAI was now necessary for effecting any change in the port charges. - Notwithstanding the order of Delhi High Court, for two and a half years, BSNL had continued to levy port charges as per the rates stipulated in the TRAI Regulation of May 28, 1999 raising the legitimate expectation that they would continue to levy port charges as per the TRAI Regulation and - These charges cannot be revised unilaterally since they are a matter of mutual agreement between both parties.
26 November- COAI submits its Budget Proposals for 2002-03 to Ministry of Finance.
Key submissions are: - Abolish Countervailing Duty (CVD) of 16% - There is no rationale for levying this in the absence of any domestic manufacture of cellular handset. This step will bring down the costs of mobile handsets and help check the thriving gray market.- Treat telecom software at par with IT software and be eligible for nil duty - this would be in line with the recommendations of the National Task Force for IT & SW.- Import of Microwave Transmission equipment should attract the same customs duty as applicable for MSC, BSC and BTS - as the former is an integral part of the cellular mobile system and is used primarily to provide cellular services in semi-urban and rural areas.
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27 November- COAI writes to BSNL on the matter of 4th cellular licensees being denied interconnect resources by BSNL until they sign an Interconnection Agreement.
COAI points out that: - Existing cellular operators have been operating for over six years without an Interconnection agreement. - Interconnection Agreement is still under finalization and once completed would be equally applicable to both existing as well as new cellular licensees.
In the meantime, COAI urged BSNL to ensure expeditious provision of necessary interconnect resources to new operators as denial of the same would adversely impact network rollout plans and ability to comply with license conditions related to roll-outs.
14 December- TRAI issues "Telecommunication Interconnection (Charges And Revenue Sharing) Regulation, 2001 (5 of 2001) to cover arrangements among service providers for interconnection charges and revenue sharing, for Telecommunication Services, including wireless in local loop with limited mobility [WLL (M].
Regulation provides:- Access charge of Rs. 1.14 per 3-minute local call to be paid by CMSPs to use fixed operator's network- Regulation to be effective from January 31, 2002
14 December- TRAI Issues Consultation Paper No. 2001/5 on Issues Relating to Interconnection between Access Providers and National Long-Distance Operators.
15 December- COAI submits its response to TRAI Consultation Paper No. 2001/4 on Introduction of Internet Telephony.
Key COAI submissions are:- Introduction of Internet telephony will completely revolutionize long distance market, as it will make available long distance calls at near local call charges. - In the light of above, present policy of continuing to deny direct inter-circle connectivity to FSPs & CMSPs as clearly provided in NTP 99, is illogical, anomalous and untenable. - Seamless interconnections between service providers across service areas should precede introduction of Internet telephony.
15 December- COAI writes to TRAI on The Telecommunication Interconnection (Charges & Revenue Sharing) Regulation 2001 (5 of 2001) issued by TRAI on December 14, 2001.
COAI submits that: - Regulation must be applicable with retrospective effect - from January 8, 2001.- Anomaly in local call access charges between WLL (M) & cellular mobile service must be addressed to ensure level playing field.
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21 December- Bharti Telesonic India's first private National long Distance Operator ties up with all the cellular operators and announces a steep decline in mobile-to-mobile long distance calls effective January 26, 2002.
22 December- Government announces the merger of Ministry of Information Technology and Ministry of Communications. The new entity to be called Ministry of Communications and IT.
28 December- TRAI issues "Telecommunication Interconnection (Port Charges) Regulation 2001 (6 Of 2001).
Key highlights of the Regulation are: - TRAI specifies five slabs for upto 256 PCMs. - Fixes port charges from Rs. 55,000 - Rs. 14,000 per port - to be levied on an incremental basis as per the slab in which they fall. - New Charges to be applicable from December 28, 2001.
28 December- BSNL responds to the STD tariff cut announced by India One (Bharti Telesonic) & announces an even sharper cut of upto 62.5% in STD tariffs.
BSNL's new rates to be effective from January 14, 2002.
Peak tariffs for a one-minute call will be: - Rs. 2.40 - for calls between 50-200 kms, - Rs. 4.80 - for calls between 200-500 kms & - Rs. 9.00 - for calls over Rs. 500 kms.
For off peak hours (8:00 PM - 9:00 AM) these rates will be halved.
2002
5 January- Minister of Communications approves National Frequency Allocation Plan (NFAP) for optimal utilization of frequency spectrum.
14 January- COAI submits response to TRAI Consultation Paper No. 2001/5 on Interconnection Between Access Providers and NLDOs.
22 January- TRAI issues "Telecommunication Tariff (Seventeenth Amendment) Order, 2002 (1 of 2002).
- Order mandatorily increases waiting period for announcing any new tariffs from the existing 5 days to 10 days.
30 January- TRAI issues Telecommunication Tariff (Eighteenth Amendment) Order, 2002 (2 of 2002).
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- Order fixes ceiling airtime tariffs for roaming at Rs. 3 per minute. - Specifies ceiling of Rs. 100 for monthly access charge for Regional and/or National Roaming. - Allows CMSPs to levy maximum 15% surcharge on airtime component only. - New Tariffs to be effective from March 1, 2002.
1 February- WPC issues Order to allocate additional spectrum to CMSPsOrder provides for:
Additional allocation of Spectrum: - Allocation of additional spectrum of 1.8 MHz per operator in 1800 MHz band, taking total allocated spectrum up to 2X8 MHz per operator.- CMSP may apply for additional spectrum on reaching subscriber base of 4 lakhs in service area, but frequency will be allocated after subscriber base has crossed 5 lakhs.- Further additions to spectrum possible upto 2X10 MHz per operator after reaching such subscriber base as may be prescribedSpectrum Usage Charges - Upto 2X4.4 MHz - 2% of Adjusted Gross Revenues (AGR) - Upto 2X6.2 MHz - 3% of AGR - Upto 2X10 Mhz - 4% of AGR.
20 February-TRAI submits recommendations on Introduction of Internet Telephony (IT).
28 February- TRAI notifies the Telecommunication Tariff (Nineteenth Amendment) Order, 2002 (3 of 2002).
Under this Order: - Monthly Rental for Regional / National Roaming - Rs.100 as ceiling - Airtime Charge - Rs. 3 per minute as ceiling- PSTN Charge as applicable from time to time on fixed network- Surcharge - Till 31-12-20028% on both airtime & PSTN charges as ceiling. From 01-01-200315% as ceiling on airtime component only.
5 March- COAI files a Petition (No. 5 of 2002) before TDSAT to seeking to ensure adherence of FSPs to the terms and conditions on which they have been allowed to offer WLL (M) services. This includes:
- Absence of Mobile Switching Centers (MSCs) in WLL systems.- Use of V5.2 interface to connect the BSC of the Wireless Access System to the Local Telephone Exchange.- Any approved improved versions of V5.2 interface must belong to the same family of V5 interfaces to ensure that the PSTN architecture of the service is not tampered with.
14 March- TRAI notifies Telecommunication Tariff (Twentieth Amendment) Order, 2002 (4 of 2002).
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Under TTO-20, TRAI: - Increases monthly rental for fixed line commercial subscriber category by Rs 40-60 depending on size of exchange. - Reduces free calls per month for fixed line usersFrom 60 to 30 for urban subscriber category From 75 to 45 for the rural subscriber category.
15 March- TDSAT dismisses COAI Petition (No. 1 of 2001) on WLL (M) seeking to prohibit Fixed Service Providers from offering any type of Mobile Services, including WLL Mobile, without a Mobile License.
Essentially the Tribunal holds that the decision to allow WLL (M) is a policy decision of the Government and therefore is not subject to review by the Tribunal.
18 March- TDSAT issues an Order of Status Quo on the Petition (No. 5 of 2002) on use of V5.2 interface in WLL (M) filed by COAI seeking adherence of fixed operators to the prescribed and conditions for WLL (M) services.
21 March- Government issues final guidelines for Internet Telephony (IT) services.
27 March-DOT issues guidelines on USO. Announces the creation of Universal Service Fund (USF) starting April 1, 2002 to extend support to the basic and cellular service providers for meeting their universal service obligations.
5 April- TRAI Issues Consultation Paper on Reference Interconnect Offer (RIO).
Key highlights of draft RIO are:- Mandatory for Dominant operators (with more than 30% market share) to publish RIO.- Non Dominant Operators may also publish RIO, but not mandatory.- RIO of Dominant Operator may have its own specific clauses, but should be reasonable and approved by TRAI.- RIO is like a Card Price, which is applicable for each & every Interconnection Seeker. - Yet, RIO does not prohibit Service Providers from further negotiations / reductions over and above RIO published terms & conditions.- RIO cannot negate existing Interconnect Agreements, but gives ample scope for parties to re-negotiate and come as close to the terms & conditions of the RIO.
18 April- DOT issues notification for Spectrum Usage Charges for Microwave Access and Backbone.
11 April- COAI files Appeal in Supreme Court against TDSAT Judgment on WLL (M).
19 April- COAI submits response to TRAI Reference Interconnect Offer.
4 June- TRAI Issues revised Reference Interconnect Offer, after holding Open House Discussions with various stakeholders and receiving responses on RIO released earlier.
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13 June- TRAI issues Telecommunication Tariff (Twenty-First Amendment) Order, 2002 (5 of 2002). Under TTO-21:
This was also called the TRAI (Levy of fees and other charges for tariff Plans) Regulation 2002.- TRAI would levy fees & other charges for approval of tariff plans filed by operators.- Fees would be charged for each plan filed with TRAI for approval & also for any change /modification to be made in the tariff, which has been already submitted for approval. - Regulation to come into force from next month.
14 June- COAI submits response to Revised Reference Interconnect Offer.
Key highlights are: - As per para -2c of the NLD license the inter circle traffic from / to cellular networks shall be handed-over / taken -over at Point of Presence (PoP) situated in LDCA at location of originating / terminating Gateway Mobile Switching Centre (GMSC) or Mobile Switching Centre (MSC) in a Circle. This is in line with carriage of PSTN traffic from originating SDCC / LDCC to the terminating SDCC/ LDCC.
- Billing should be on call-by-call basis with CDRs generated by transit exchanges or on bulk billing basis if CDR based billing system is not available.
- TRAI should impose "drop-dead" date by which Incumbent operator must be capable of generating CDRs.
- Important that principle of least-cost routing is adopted for all inter-network calls so that consumer is ultimately benefited.
4 July- TRAI issues Telecommunication Tariff (Twenty-Second Amendment) Order, 2002 (6 of 2002). Under TTO-22:
- Security Deposit for WLL (M) Handset - Rs. 6000 as ceiling; to be refundable in full on cessation of service.- Monthly rental for WLL (M) - Rs. 200 for both rural and urban subscribers.- Additional Monthly rental in case mobile handset is provided by the Service Provider without a security deposit - Rs. 50 as ceiling.- Alternate Tariff Packages permissible under WLL (M).
8 July- TRAI Issues Consultation Paper on Cellular Tariffs.
- Records that prevalent cellular mobile tariffs are prevailing at an average monthly rental of Rs. 202 and average airtime rate of Rs. 1.89 per minute.
- Proposes a standard tariff package of Rs. 200 monthly rental & Rs. 2 per minute airtime charge.
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11 July- TRAI Issues Directive on Standard conditions for Pre-paid subscribers. The following terms and conditions must form a part of all Tariff Plans offered by Cellular Mobile Service providers:
- Denominations and Validity- Replacement of SIM- Carryover of Balance and grace period- Facility to know rupee Balance- Cost of the card / Recharge Coupon- Airtime / Call Charges- Procedure to connect- Procedure for accessing customer care center- Availability of Toll free -numbers- Supplement / Value Added Services
12 July- TRAI Issues the Telecommunication Interconnection (Reference Interconnect Offer) Regulation, 2002 (2 of 2002).
July 24- TRAI issues directive for the implementation of Carrier Selection on - lays down the following schedule for access providers to implement Carrier Pre-Selection CMSPs - 6 months for NLD & ILDFSPs - 9 months for NLD & 18 Months for ILD
31 July- COAI's submits response to TRAI Consultation Paper No. 2002/2 on Tariffs for Cellular Mobile Telephone Services.
5 August- COAI writes to MoC seeking exemption of cellular mobile subscribers from Income Tax 1/6 criteria. COAI submits:
- Cellular mobile services are now highly affordable & being increasingly used by the common man.- They are an important contributor to national tele density.- There must be level playing field between WLL (M) and cellular mobile subscribers - the former are exempted from the IT 1/6 criteria.
20 August- Sterling Cellular is renamed as Hutchison Essar Telecom Limited
21 August- TRAI release results of its survey to assess Quality of Service by Fixed and Cellular Mobile Service Providers.
3 September- DOT issues notification on Allocation of MSC Codes. As per the notification:
- Upto 5 MSC Codes will be allocated at initial stage itself, if requested by licensee.- Additional Codes to be allotted once licensee has reached at least 60% utilization of active registered subscribers for each MSC Code. - Additional Codes will be allocated in lots of 5 codes at a time, if requested by Licensee.
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4 September- COAI accepts the DoT Notification of April 18, 2002 on spectrum usage charges for Microwave Access and Backbone.
Applies to TDSAT for withdrawal of proceedings before the Tribunal in this matter.
6 September- TRAI issues Telecommunication Tariff (Twenty-Third Amendment) Order, 2002 (7 of 2002).
Under TTO-23:- TRAI decides to forbear from prescribing cellular tariffs.- Only integrated operators required to seek TRAI approval for their tariffs.- Requires every service provider to file a reference package with TRAI
19 September- TDSAT permits withdrawal of COAI's petition on WPC Charges.
23 September- TRAI issues TRAI Consultation Paper No. 2002/3 on Tariff for Basic Services
7 October - BSNL appeals in TDSAT against Clause 2.2 of the TRAI Tariff Order (23rd amendment) the said clause while prescribing forbearance on cellular tariffs, requires that:
"…. A cellular mobile service provider who provides any other facility based service such as Basic service, National Long Distance service or International Long Distance service in the same service area in which it is providing cellular mobile services, shall report to the Authority for its approval in respect of any new tariff and/or any changes therein at least 5 working days before its implementation. Unless the Authority intervenes within the mandatory notice period of five working days, the service provider may implement the proposed tariff."
10 October- COAI submits Reference Interconnect Offer (RIO) on behalf of Cellular Industry. TRAI approves the same. According to the Offer, the cost of terminating a call on a cellular network is Rs. 2.72 per minute while the cost of origination on a cellular network is Rs. 3.06 per minute.
19 October - BSNL launches country wide cellular mobile services and announces tariffs for the same.
22 October - TRAI issues Press Release clarifying its position on BSNL tariffs for cellular mobile services. TRAI clarifies that the pre-paid tariffs and post-paid "Plan-325" of BSNL had been approved by the Authority as an "Introductory" offer, and that these would not be available for more than 90 days, and that before the end of this period, regular and duly approved tariffs for the relevant services area would be introduced by BSNL
1 November - COAI makes submission to TRAI stating that the tariffs of BSNL's prepaid cellular services as also the tariffs in "Plan 325" are predatory, involves bundling of
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services and are discriminatory.COAI requests TRAI to intervene and take suitable remedial measures in this matter.
1 November - COAI submits response to TRAI Consultation Paper No. 2002/3 on Tariff for Basic Services. The highlights of COAI response include:
- No service should depend on subsidies from any other service. Access Deficit Charge (ADC), should be recovered from same service segment by charging differential tariffs for different types of customers.
- Concept of asymmetric regulation be introduced and enforced.
- TRAI may prescribe specific tariff package for low-end users. For the rest, only a ceiling and floor tariffs should be laid down.
- TRAI should fix originating & terminating access charge on a per minute basis for different categories of access providers. Originating access charge be prescribed at a higher level than terminating access charge since originating access provider incurs additional costs towards cost of unsuccessful calls, billing, collection and bad debts.
- As NLD and ILD are now separately licensed stand alone services, NLD/ ILD calls charges should be de-linked from the local call charges and should be prescribed on a per-minute basis so as to be in line with the basis for levying originating / terminating access charges.
- WLL (M) tariffs principles must be strictly adhered to as they were the fundamental basis on which the service was introduced
- this includes local call at the highest tariff applicable to fixed line services, cost based rental, etc.
7 November - Idea Cellular launches cellular mobile service in Delhi.
21 November - COAI files Application in TDSAT for directions to FSPs to stop violations of the TDSAT status quo order dated 18.03.2002 in respect of the COAI Petition with regard to absence of MSCs and the use of specified PSTN interface V5.2 in the provision of WLL (M) services. The Application specifically impleads Tata Teleservices Limited and Reliance Infocomm, two of the country's largest private FSPs, as media reports indicated that these two companies were ordering, commissioning and installing MSCs to offer their WLL(M) services
20 December- TDSAT clarifies the status quo order issued by it on March 18, 2002 in respect of the Petition No. 5 of 2002 filed by COAI seeking to ensure the absence of MSCs and use of only a PSTN interface such as V5.2 in WLL (M) services.
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The Tribunal directed DoT and TRAI to strictly enforce the decision of the Government dated January 25, 2001. The said decision states that
- "Basic Service Operator may provide handheld telephone sets to its subscribers with Wireless Access Systems limited within the local area i.e. Short Distance Charging Area (SDCA) in which the subscriber is registered. While deploying such systems, the operator has to follow numbering plan of that Short Distance Charging Area (SDCA) and it should not be possible to authenticate and work with the subscriber terminal equipment in SDCAs other than in which it is registered. The system shall also be engineered so as to ensure that hand over of subscriber does not take place from one SDCA to another SDCA while communicating."
27 December - TRAI finalizes System on Accounting Separation (SAS), providing a detailed accounting and financial system to be maintained by telecom service providers and forwards the same to DOT for notification under section 35(2)(d) of the TRAI Act.. The requirement of maintaining separated accounts is applicable to all licensed telecom service providers. The system proposes separation along the following lines:
§ License/Service-wise Separation
§ Geographical Separation
§ Product/network service-wise Separation
§ Separation of Network Costs
The system is to be implemented from April 1, 2003. Accounting Separation based on Current Cost Accounting is scheduled for implementation two years thereafter, i.e. from April 1, 2005. Service Providers would also be required to submit reports based on Current Cost Accounting every second year in addition to annual accounts based on Historical Cost
28 December- Reliance lnfocom launches WLL (M) services
2003
2 January - Cellular industry slashes STD rates by 67% on Mobile-to-Mobile (M2M) calls beyond 200 kms. Cellular consumers to pay airtime + a flat STD charge of Rs. 2.99 per minute for calls for M2M calls anywhere to anywhere in India.
7 January- BSNL slashes STD rates for over 500 kms to Rs. 4.8 (including airtime) per min for from its cellular network CellOne to any other cellular phone or a fixed line in the country. MTNL's STD rates for M2M calls for all distances above 50 kms is Rs.2.9+ airtime per minute. Roaming charges waived off for cellular subscribers between the two telcos.
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9 January - TRAI issues Directive under Section 13 of TRAI Amendment Act on blocking of Transit Calls by CMSPs.
15 January - TRAI issues Directive under Section 13 of TRAI Amendment Act on blocking of Transit Calls by CMSPs.
22 January - Cellular industry announces Mobile-to-Mobile (M2M) incoming free on GSM cellular phones all over the country.
24 January - TRAI's issues "Telecommunication Tariff (Twenty Fourth Amendment) Order, 2003 (1 of 2003) the highlights of the Order are: -
- Local call tariffs to be charged at Rs. 1.20 for 2-min call instead of Rs. 1.20 for 3 min call.- Calls from fixed to cellular to be charged at Rs. 1.20 for 90-seconds in Metros and Rs. 1.20 per minute in Circles.- Calls from fixed to WLL (M) phones to be charged at Rs. 1.20 for 2-minute call similar to fixed calls.- There is to forbearance on WLL (M) tariffs.- The definition of rural & urban subscribers is changed to align it with the operational criterion of for USO programme and the license terms. Thus rural subscribers are subscribers residing in rural SDCAs while urban subscribers are subscribers residing in semi-urban & urban SDCAs as defined in the new FSP Licenses.
10 February - COAI files an application in TDSAT objecting to the provision of WLL (M) services outside the SDCA by Tata Teleservices and the advertisement of roaming facilities by Reliance Infocomm, both of which services are prohibited under WLL (M).
14 February - Cellular operators & Fixed Service operators meet Minister of Communications to discuss subsisting issues confronting the industry. The issue of WLL (M) dominates the discussions. A joint industry Committee is set up comprising of representatives from the fixed & cellular sector, chaired by Secretary DoT, to try & resolve the issue.
20 February - TRAI forwards its recommendations to DoT on the Issue of Fresh Licenses to Cellular Mobile Service Providers (CMSPs).
In its letter TRAI opines that the twin objectives of increasing competition and improving the quality, coverage and price-efficiency of the service will have to be achieved so that the larger objective of providing quality services at affordable prices is not jeopardized.
TRAI also reiterated its earlier recommendation that additional spectrum, if available, should be given to the existing operators to enable them to provide service in a more cost effective manner.
TRAI concluded by stating that in respect of the cellular mobile services there has to be a clear view on the quantum of additional spectrum which could be allocated to GSM
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Cellular services and that the induction of additional mobile service providers in various service areas can be considered if there is adequate availability of spectrum for the existing service providers as well as for the new players, if permitted.
24 February - COAI appeals to TDSAT against TRAI's Tariff Order (24th Amendment) and the TRAI Interconnection Usage Charges (IUC) Regulations issued on January 24, 2003.The scope of appeal is limited to:
TTO - prescription of Forbearance on WLL (M) tariffs
Prescription of a higher tariff for fixed to cellular calls vis-à-vis fixed to WLL (M) calls.
IUC - prescription of unrealistically low termination charges for calls terminating on cellular networks at a fraction of the cost determined by the Authority itself six months previously and the cost details submitted by the operators.
Anomalies in different termination charges prescribed by TRAI Grievances regarding methodology, calculations, assumptions Etc.
4 March - Supreme Court dismisses the Government appeal against the TDSAT judgment in the matter of refund of interest on license fee dues. The migration package offered to existing licensees to transit to NTP-99 also allowed for a notional extension of effective date of license by six months. The dispute in this matter related to the payment of interest. It was the stand of the cellular operators that when the effective date of license has been extended by six months, the interest will have to be calculated from the extended date and not the original date as unless the license fee becomes due, the issue of interest would not arise. The Government on the other hand was of the view that the notional extension of effective date was only for the purpose of the payment of principal license fee & not the interest accrued thereupon. The Supreme Court judgment states, "this [Government] argument baffles all logic. The license fee becomes due and payable from the effective date. When the effective date stood postponed by a period of six months then that is the date from which the license fee will have to be reckoned and appropriate calculations made both for the purpose of license fee and interest. Unless the license fee becomes due the question of payment of interest will not arise.” The Judgment amends the TDSAT Order to the extent that the excess amounts that have to be refunded to the cellular operators would be adjusted against outstanding or future dues and the balance if any, would be refunded at the relevant bank rates
March 10- In the matter of WLL (M) being reviewed by TDSAT, COAI requests Government to disclose several material documents which are reflected in the proceedings filed but which have not been produced on record. These include:
i). The third reference made by DOT to TRAI in March 2000.ii). The clarification of the Central Government denying permission to FSPs to use handheld terminals as well as the application for such permission.iii). The proposals of ABTO, CII and ASSOCHAM asking for full mobility for FSPs.iv). The recommendations of the Telecom commission regarding use of handheld terminals
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in local area / SDCA.v). The decision of the Central Government to permit use of handheld terminals with full mobility.vi). Government decision of January 24, 2001to allow WLL(M) to FSPs.
12 March - TRAI's issues "Telecommunication Tariff (Twenty Fifth Amendment) Order, 2003 (2 of 2003). The Order: - Reverted back to the definition of rural and urban subscribers existing prior to the 24th Amendment to the TTO, which was consistent with definition used in conducting the Census of India. This was done because the new definition in the 24th Amendment rural subscribers residing in SDCAs not specified as rural by the FSP license would get excluded from the low rentals/call charges which would be available to them in terms of the earlier definition.- Specified Peak and off-peak hours from 8pm to 8am for service providers to offer concessional rates for Dial up Access to the Internet.
27 March - TRAI's issues "Telecommunication Tariff (Twenty Sixth Amendment) Order, 2003 (2 of 2003). The amendment defers the introduction of the new tariffs as per the Telecommunication Tariff (24th Amendment) Order, 2003 from April 1, 2003 to May 1, 2003.The Amendment requires all service providers to provide their tariff plans to the Authority in conformity with the 24Th Amendment to TTO & IUC regulation by April 3, 2003 for implementation on May 1, 2003.Simultaneously, TRAI issues the Telecommunication Interconnection Usage Charges (IUC) (First Amendment)) Regulation, 2003 (2 of 2003). In the amendment, the date of effect of actual implementation of IUC is postponed to May 1, 2003.The Amendment requires that all revenue sharing agreements, which are in line with the IUC Regulation, will now need to be filed with the Authority by May 16, 2003.The Amendment also states that the Twenty Sixth Tariff Order and the IUC Regulation should be implemented together.
7 April - Government files affidavit in TDSAT claiming privilege of select documents of which disclosure had been sought by COAI to facilitate the proper adjudication of the WLL (M) dispute. These documents are: · The recommendations of the Telecom Commission regarding use of handheld terminals in local area / SDCA· The decision of the Central Government to permit use of handheld terminals with full mobility· Government decision of January 24, 2001to allow WLL (M) to FSPs. Government claimed that the contents of these documents were already substantially in the public domain. The Government further claimed that these documents belonged to a class of unpublished documents relating to affairs of the state, including minutes of discussion of heads of departments, and government policy matters and that these should not be disclosed · To secure proper functioning of public service &. · As public interest would be injured by their disclosure. However, the Government agreed to furnish the said documents for the perusal of the TDSAT.
8 April - TDSAT issues Order rejecting the Government's claim on privilege on disclosing select documents with regard to WLL (M) to cellular industry. The TDSAT Order notes that in a dispute between a Licensor and Licensee where allegations of extraneous considerations had been made with reference to the facts on record, it was appropriate for the Government to rebut those allegations after producing the record and not to rely on the
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doctrine of privilege. The Order also opined that it was not clear how public interest was likely to suffer or get injured by disclosure of the documents. The Order states, "the dispute here is between the licensee… and the Government as a Licensor withholding documents which may also injure the interest of the petitioner. In these days when private operations have come into the field and there is a conflict between the two different types of operators Government has to keep a neutral stand and when there is a challenge that Government has violated the code neutrality it is appropriate that the documents are brought on record to justify the action of the Government."
11 April - BSNL announces new tariffs for its fixed services in the light of TRAI's Telecom Tariff Order (24th Amendment) with seven alternate tariff packages. In all the alternate plans, BSNL retains an 180 second pulse for fixed to fixed calls (as against 120 second pulse prescribed by TRAI) and uniformly reduces the pulse to 90 seconds for all fixed to WLL (M) calls and to 60 and 30 seconds for all fixed to cellular calls in Metros & Circles respectively. This means that a 3-minute local call will cost · Rs. 1.20 for fixed to fixed calls· Rs. 2.40 for fixed to WLL (M) calls· Rs. 3.60 for fixed to cellular in Metros · Rs. 7.20 for fixed to cellular in Circles The new tariffs are to come to effect from May 1, 2003 and all existing customers will be automatically migrated to the Alternate Plan Tariff (and not the standard prescribed by TRAI)
17 April - Government appeals in Supreme Court against TDSAT Order of April 8, 2003, which rejected the privilege plea of the Government relating to select documents to be disclosed by the Government for the proper adjudication of the dispute on WLL (M).
23 April - In the matter of BSNL's Appeal against Clause 2.2 of the TRAI Tariff Order (23rd Amendment), council of BSNL make commitment in TDSAT that the company will not indulge in cross subsidy.
25 April - Supreme Court admits the Appeal of the Government against the TDSAT Order rejecting Government's claim for privilege in the matter of certain documents related to WLL (M). The Appeal is admitted without prejudice to the right of the Respondents (cellular operators) to make all factual and legal submissions including their objection regarding the maintainability of the Appeal. Supreme Court provides that the Tribunal may proceed with the hearings in the matter and may also ask the Government to file the record on which privilege is being claimed. However the Respondents would not ask for inspection of the files till the Supreme Court decides the matter of privilege. Supreme Court also grants the Respondents the liberty of raising the matter before the Hon'ble Chief Justice to expedite the hearing of the Appeal.
25 April - TRAI notifies 27th Amendment to the Telecommunication Tariff Order (TTO) specifying uniform applicability of the provisions of the reporting requirement of the tariff plans with the Authority for approval by all telecom service providers. The Amendment deletes the contentious Clause 2.2 introduced in the 23rd Amendment which, while prescribing forbearance for cellular mobile tariffs required multi-service operators in the same service area to file their tariffs for approval with TRAI 5 days before introducing the tariffs into the market. TRAI has now made it mandatory for all cellular operators to file their tariffs for the approval of TRAI at least 5 days before the introduction of these tariffs.
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Chapter 6 : Contribution of The Cellular Industry to The Indian Economy
1. World Class Infrastructure
The Indian cellular industry has been instrumental in bringing to the Indian consumer, a world-class telecom infrastructure.
The Indian Cellular Industry is:-The flag-bearer of the Indian liberalization process.-The largest recipient of Foreign Direct Investment (around Rs. 2200 Crores)-A responsible performing sector that has met all its obligations to the GOI.
The Industry would have invested over Rs. 25,000 crores to:-Set up 69 Networks-Serve over one crore subscribers as of December 2002-Offer Services in over 1575 cities & towns and-Cover over 14,000 villages
2. Reputed Indian Business Houses & International Telecom Majors
The privatization of Indian cellular brought into the arena some of the most reputed business houses of the country as also biggest names in the international telecommunications industry. These included:
Reputed Indian Business Houses - Birla, BPL, Escorts, Essar, Reliance, RPG, Tata, and Thapar.
International Telecom Majors - SingTel, Asia Tech, AT&T, Bell South, Nynex, Millicom, First Pacific, Hutchison Whampoa, Telecom Italia, New York Life, Telecom Investments, Telesystems International Wireless, CellaNet and others.
Institutional Investors - AIG, Commonwealth Development Corporation (CDC), EMP, Asian Infrastructure Fund and others.
3. Increased Connectivity
There are presently 42 networks operating in the country covering over 1350 cities and towns and directly servicing over 6.7 million subscribers’ nation-wide. Importantly, the connectivity benefits also extend to over 33.5 Mn PSTN subscribers of BSNL & MTNL who can now reach the cellular subscribers " anytime and anywhere".
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In addition the cellular radio waves cover over 28,000 villages, where connectivity can be provided at a very short notice at a nominal incremental cost.
4. Employment Generation
As the 3rd and 4th Cellular Licensees would start their operations and with 77 networks (42 presently and 35 new networks) on air, the employment generated by the industry would be promising. In addition to the direct employment generated by these networks, there is also the multiplier effect of indirect employment generated down the supply chain comprising vendors, infrastructure suppliers, contractors, dealers, etc. It is estimated that the total employment generated by the cellular industry would be in the tune of a few lakhs once the new networks are rolled in.
5. Increased FDI Flows
The Telecom sector is the largest attractor of Foreign Direct Investment in the country, accounting for almost a fifth of FDI approvals since 1991.
6. Heavy investment in Infrastructure
The cellular industry is responsible for the single largest chunk of investment by any individual industry. The industry has already invested over Rs. 20,000 crores and is expected to invest even more in the years to come.
7. Revenue Generation for the Government of India
The cumulative revenues that have flowed to the Government are already about Rs. 10,000 crores from license fee and service-tax alone.
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PART-II
“TECHNOLOGICAL OVERVIEW OF CELLULAR INDUSTRY”
Chapters:
1. Introduction to Cellular Technology
2. GSM Technology
3. WAP Technology
4. Roming
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Chapter 1: Introduction to Cellular Technology
In a cellular system, the geographical area is divided into adjacent, non-overlapping, hexagonal shaped cells. Each cell has its own transmitter and receiver (called base stations) to communicate with the Mobile units in that cell; a mobile switching station coordinates the handoff of mobile units crossing cell boundaries. Cellular systems are based on the concept of frequency reuse : the same frequency is used by several sites which are far enough from one another, resulting in a tremendous gain in system capacity. The counterpart is the increased complexity, both for the network and the mobile statio0ns, which must be able to select a station among several possibilities, and the infrastructure cost because of the number of different sites. The system hands over calls from transmitter to transmitter as customers move around in their vehicles. This new technique would allow more customers access to the system simultaneously, and when more capacity was needed, the area served by each transmitter could be divided again which is popularly known as CELL SPLITTING. One of the most important concepts for any cellular telephone system is that of multiple access meaning that multiple, simultaneous users can be supported through frequency reuse. In other words, a large number of users share a common pool of radio channels and any user can gain access to any channel (each user is not always assigned to the same channel). A channel can be thought as merely a portion of the limited radio spectrum, which is temporarily allocated for a specific purpose, such as someone's phone call.
Cellular Architecture:
GSM System Components
A schematic overview of the GSM system is shown in the figure given below. The system is composed of three main elements; the switching subsystem, the base station subsystem, and the mobile. The switching part makes the connection between the two users; the base station part controls the communication across the radio interface, and the mobile acts as the transmitter receiver for the user.
PSTN
A schematic overview of the GSM system is shown in the figure given below. The system is composed of three main elements; the switching subsystem, the base station subsystem, and the mobile. The switching part makes the connection between the two users; the base station part controls the communication across the radio interface, and the mobile acts as the transmitter receiver for the user.
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Mobile Station
The best-known part of the cellular network is certainly the mobile stations. Different types of mobile stations are distinguished by power and application. The mobile station (MS) types include not only vehicle mounted portable equipment but also handheld stations popularly known as mobile handsets. A significant architectural aspect of the MS relates to the concept of Subscriber Identity Module (SIM). The SIM card contains a unique International Mobile Subscriber Identity (IMSI) used to identify the subscriber to the system. The SIM is basically a smart card, containing all the subscriber -related information stored on the users side of the radio interface.
A potential user may off course buy mobile equipment, but he may also lease or borrow the equipment or purchase it through other channels. Fixed Mobile Stations are permanently installed in a car and may have a maximum allowed RF output of up to 20W. Portable (bag phones) can emit up to8 W and handheld portable units up to 2 W. With Second Generation mobiles ( on the market since 1993), the GSM system is becoming more and more attractive. Hand-portable units are becoming much smaller and are coming with numerous features on it. This is giving the system boost popularity, especially in those markets with a particular demand for small mobiles such as in Asian and Pacific areas.
Base Station Subsystem
Base Station Subsystem groups the infrastructure machines, which are specific to the radio cellular aspect of GSM. The BSS is in direct contact with the mobile station through the radio interface. As such, it includes the machines in charge of transmission and reception on the radio path, and the management thereof. On the other side, the BSS is in contact with the switches of Network Subsystem (NSS). The BSS includes two types of machines:
Base Station or Base Transceiver Station
The counterpart to a mobile station within a cellular network is the base transceiver station (BTS), which is the mobile's interface to the network. Each cell site is equipped with a BTS. A BTS is usually located in the center of a cell. A cell site is used to refer to the physical location of radio equipment that provides coverage within a cell. The transmitting power of the BTS determines the absolute cell size. The BTS houses the radio transceivers that define a cell and handles the radio-link protocols with the Mobile station. BTSs are placed in the field to transfer a call to a customer's handsets, and there are between one and sixteen transceiver, each of which represents a separate RF channel. A BTS may cover an area of 30 - 40 sq kms. However, in a congested, urban location, the BTS coverage area is much smaller. BTS can be considered as complex radio modems and have little other function. A list of hardware located at a cell site includes power sources, interface equipment, radio frequency transmitters and receivers, and antenna systems.
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Base Station Controller (BSC)
Base station controller is in contact with the switches of NSS. It monitors and controls several base stations, the number of which depends on the manufacturer and can be between several tens and several hundred of stations. A typical BSC can manage from one BTS to the entire BTS in service area, depending on their traffic capacity. The chief tasks of the BSC are frequency administration, the control of a BTS, and exchange functions; it handles radio - channels setup, frequency hopping, and handovers. The BSC is the connection between the mobile station and the Mobile Service Switching Center and is in charge of all radio interface management through the remote command of the BTS and the mobile station, mainly the allocation and release of radio channels and the handover management. The BSC is connected, on one side, to several BTSs and on the other side, to the Network and Switching Sub System (more appropriately to a Mobile Switching Center). A BSC is in fact a small switch with substantial computational capability. The hardware of the BSC may be located at the same site as the BTS, at its own standalone site, or at the site of the Mobile Switching Center (MSC). BSC and BTS together form a functional entity some times referred to as the Base Station Subsystem.
Network and Switching Subsystem / Switching subsystem
The NSS includes the main switching functions, as well as the data basis needed for subscriber data and mobility management. The main role of NSS is to manage the communications between the GSM users and the other telecommunications network users. The NSS is responsible for performing call processing and subscriber-related functions.
Mobile Services Switching Center
The MSC is the interface of the cellular network to the PSTN. MSC performs the telephony switching functions of the system, it acts like a normal switching node of the PSTN, and additionally provides all the functionality needed to handle a mobile subscriber, such as registration, authentication, location updating, handovers, and call routing to a roaming subscriber. MSC is the primary switching interface between the mobile telephone systems, and the PSTN. It is capable of routing calls from the fixed network - via the BSC and the BTS- to an individual mobile station. The MSC also provides the network with specific data about individual mobile stations. The MSC interfaces with BSS on one other side (through which it is in contact with GSM users) and with the external networks on the other. The NSSs also need to interface with the external networks to make use of their capability to transport user data or signaling between GSM entities. In particular, the NSS make use of a signaling support network, at least partly external to GSM, usually referred to as the SS7 network.
Home Location Register (HLR)
The HLR is a database about subscribers; it stores the identity and user data of all the subscribers belonging to the area of related MSC. These are permanent data, such as the
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International Mobile Subscriber Number (IMSI) of an individual user, authentication key, including a subscriber's service profile, location information, activity status and some temporary data. Temporary data on the SIM include such entries as (1) the address of the current visitor location register (VLR), which currently administers the mobile stations (2) the number to which the calls must be forwarded (if the subscriber select call forwarding), and (3) some transient parameters for authentication and ciphering.
The IMSI is permanently stored on the SIM card. The IMSI is one of the pieces of important information used to identify a subscriber within GSM system. The first three digits of the IMSI identify the Mobile Country Code (MCC) and the next two digits are the mobile network code (MNC). Up to ten additional digits of the mobile subscriber identification number (MSIC) complete the IMSI.
Visitor Location Register
The VLR contains the relevant data of all mobiles currently located in a serving (G) MSC. It is the database that contains temporary storing subscription data for those subscribers currently situated in the service area of the corresponding MSC as well as holding data on their location at a more precise level than the HLR. The VLR is always integrated with MSC. The permanent data are the same as data found in the HLR; the temporary data differ slightly. For example, the VLR contains the temporary mobile subscriber identity (TMSI), which is used for limited periods of time to prevent the transmission of the IMSI via the air - interface. The substitution of the TMSI for the IMSI serves to protect the subscriber from high-technology intruders and helps point to the location of the mobile station through the cell identity.
The VLR has to support the (G) MSC during a call establishment and an authentication procedure as it furnishes data specific to the subscriber. Locating subscriber data in the VLR, as well as in the HLR, reduces the data traffic to the HLR, because it is not necessary to ask for these data every time they are needed. Another reason for storing the identical data at two different locations ( in the HLR & VLR) is that each serves a different purpose. The HLR has to provide the GMSC with the necessary subscriber data when a call is coming from the public network. The VLR, on the other hand serves the opposite function, providing the host (G) MSC with the necessary subscriber data when a call is coming from mobile station.
Authentication Center
The Authentication center (AC) is related to the HLR. It provides the HLR with different set of parameters to complete the authentication of a mobile station. The AC knows exactly which algorithms it has to use for a specific subscriber in order to calculate input values and issue the required results. Since all the algorithms for the authentication procedures are stored within AC, they are protected against abuse. The SIM card issued in area assigned to AC contains the same algorithms for authentication as the AC does. If the AC provides input and output parameters for these algorithms to either the HLR or the VLR, either location register can verify (authenticate) the mobile station.
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Equipment Identity Register
The equipment identity register (EIR) is a database that contains a list of all valid mobile equipment on the network, where its International Mobile Equipment Identity (IMEI) identifies each mobile station. An IMEI is marked as invalid if it has been reported stolen or is not type approved. Within the EIR we find all the serial numbers of the mobile equipment that is either stolen or, due to some defect in their hardware, may not be used in a network. The idea is to check the identity at each registration or call setup of any mobile station, and then depending on its IMEI, admit or bar access of the mobile station to the system. The implementation of EIR is relatively a new security feature of the GSM system.
Operation & Maintenance Center
The Operation & Maintenance Center (OMC) has access to both the (G) MSC and the BSC, handles error messages coming from the network, and controls the traffic load of the BSC and the BTS. The OMC configures the BTS via the BSC and allows the operator to check the attached components of the system. As the cells become smaller and the number of base stations increases, it will not be possible in the future.
***source:www.coai.com
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Chapter 2: Introduction to GSM Technology
GSM stands for Global System for Mobile Communications. GSM is an open, non-proprietary system that is constantly evolving. One of its great strengths is the international roaming capacity. This gives consumers seamless and same standardized same number contact ability in more than 159 countries. GSM satellite roaming has extended services access to areas where terrestrial coverage is not available.
Today GSM accounts for more than 70% of the World’s Digital Market, and is the leading Wireless Digital technology.
In a span of 15 years, the GSM Association represents the interests of over 550 GSM, Satellite and 3rd Generation networks operators, regulator and administrative bodies and key manufacturers / suppliers to the GSM industry.
GSM technology spans Western, Eastern and Central Europe, India and the Asia-Pacific regions, the Middle East, and Africa, North and South America. The spirit of international co-operation that has created GSM is an inherent part of membership of the GSM Association.
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Chapter 3: Introduction to WAP Technology
The development of WAP is being driven by the WAP Forum, initially founded by Motorola, Nokia, Ericsson and phone.com (previously Unwired Planet). Since its inception the WAP Forum has grown dramatically and now comprises over 130 members drawn from the world’s leading telecommunications and software companies.
WAP is a technology designed to provide users of mobile terminals with rapid and efficient access to the Internet. WAP is a protocol optimized, not only for use on the narrow band radio channels used by second generation digital wireless system but also for the limited display capabilities and functionality of the display systems used by today’s mobile terminals. WAP integrates telephony services with micro browsing and enables easy-to-use interactive Internet access from the mobile handset.
Typical WAP applications include over the-air e-commerce transactions, online banking, information provisioning and massaging. WAP will enable operators to develop innovative services to provide differentiation in competitive market environments.
In India cellular operators have started offering WAP services to its subscribers.The current WAP services providers are:
Sr Number Network Operator Service Area1. Essar Cellphone Delhi2. BPL Mobile Mumbai3. BPL Cellular Ltd. Maharastra, Kerala, TamilNadu4. Spice Cell Ltd. Calcutta5. Tata Cellular Ltd. Andhra Pradesh6. Command Cell Calcutta7. Hutchison Max Mumbai8. BhartiCellulae Delhi
To access the WAP facility, the customers should have WAP enabled handsets and SIM cards activated with data facility. Most of the Cellular handsets, which are developed and manufactured in the future, will be WAP enabled. Also the WML sites are growing at a rapid pace and it is estimated that all popular sites on the Internet will be WML compatible shortly. The WAP enabled handsets available in India at present are:
Nokia 7110 Nokia 6210
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Siemens C351 Siemens S351
Chapter 4: Roaming
Roaming is the facility through witch subscriber can connect to another subscriber, which is not same circle, may be in different region or country.
Superb voice quality and data transmission are important features of the GSM technology – but pointless if the mobile phone stops working as soon as it leaves the home country.
GSM has created a truly global communication network by established roaming agreements all around the world. For customers, roaming is the ability to use their phones wherever they travel. With GSM – when you have one phone, one number, you’re connected to the whole world.
You can roam to another region or country and use the service of any network operator in that has a roaming agreement with your GSM network operator.
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PART-III
“CELLULAR INDUSTRY FROM MARKETING PERSPECTIVE”
Chapters:
1. The mobile customer
2. Performance of Cellular Industry in 2003
3. Preview of Major Players in the Market
4. Porter’s Five Force Model
5. SWOT Analysis
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Chapter 1: The Mobile Customer
The row between cellular and WLL operators over mobility turf notwithstanding, the telecom sector added 1.69 million mobile phone subscribers during October. The subscriber base for wireless services continued to maintain its growth pattern during October 2003 also. During the month about 1.05 million cellular and 0.64 million WLL subscribers were added, making it a total of 1.69 million.
According to TRAI India's mobile telephones would exceed the fixed line connections sometime early in the next fiscal.
The mobile additions are higher in October this year compared to 0.53 million notched in the same period previous year, and 1.66 million additions in September 2003.
The total number of additions clocked in the first seven months of the current fiscal (April-October) stood at 11.75 million against a mere 2.67 million in the corresponding period previous year.
The happy Indian mobile user…
With the large number of global and national telecom giants vying for a larger share of the exploding cellular market, Indian mobile users have never had it so good. Today the Indian mobile user is a very happy (possibly pampered) subscriber, enjoying the benefits of world-class mobile technology, paying one of the lowest rates anywhere in the world.
While it will be obviously more difficult to be able to build and retain customer loyalty in this scenario, it becomes all the more important. At this growth stage of the Indian mobile industry, the challenge for the service providers has been to maintain a pulse on the changing expectations of the evolving Indian cellular user and continuously meeting these expectations.
In order to gain insights into the mind of the 'maturing' Indian cellular user and to study the manner and extent to which Indian cell phone companies have managed to meet customer expectations.
Intensity of subscriber retention….
we have used the TRIM Stakeholder Satisfaction and Retention model. Using TRI*M we have been measuring and quantifying, the state of the 'subscriber- service provider'
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relationship, while continuously monitoring the changing expectations of the Indian mobile user over the past 3 years.
The TRIM Index, is a measure of the 'intensity of retention', and takes into consideration both the subscribers' level of satisfaction with the service provider as well has his level of retention and loyalty towards the service provider.
The continuously increasing TRIM Index, for the Indian cellular subscribers indicate that the efforts of the service providers in terms of the large investments being made in improving infrastructure and their marketing and communication initiatives, seems to have paid off. The overall subscriber retention score as measured by the TRI*M Index, has continuously increased from 55 in to more than 71/72 for Post and Pre paid subscribers respectively The loyalty levels, have been improving year on year and today, with a 70+ index, the Indian subscribers are in the 'retained' category.
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Understanding subscriber typology…
When trying to unravel the niceties of the 'subscriber-service provider' relationship even further, we looked at the level of satisfaction as well as level of retention, independently, and then grouped the subscribers into four categories based on their level of satisfaction and retention. Thus, based on satisfaction and loyalty, we classified the subscribers as 'Apostles', who are satisfied and loyal, 'Mercenaries' are satisfied but those who have not found any compelling reason to remain loyal, 'Hostages', loyal (not necessarily out of choice) but dissatisfied, and 'Terrorists' are dissatisfied and disloyal.
We can also see how the strength and the quality of the 'subscriber-service provider' relationship, has been improving over the years.
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The proportion of 'Apostles' which was only around a third (33 per cent) has been steadily increasing and today almost every second (47 per cent among post paid and 49 per cent among pre-paid) cellular user is an 'Apostle' of his cell phone company. This would indicate that the service providers did manage to get some things right, and to some extent were able to understand the needs of the market and have been able to improve their delivery on those aspects that matters to their subscribers. The continuous efforts by the service providers have had a positive impact on the 'subscriber-service provider' relationship. This has led to an increase in the level of satisfaction as well as retention and loyalty levels among their subscribers.
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The increase in loyalty and retention levels is further established by the steady decrease in the proportion of 'Mercenaries', from the 25 per cent levels, to 15 per cent and below. (13 per cent among Post-Paid and 15 per cent among Pre-Paid subscribers)
The service providers have been successful in strengthening the 'subscriber-service provider' bonds, by anticipating and meeting customer expectations. Surprisingly though, the loyalty levels are similar among both the Pre-Paid and Post-Paid subscribers today.
In November 2000, when the total subscriber base in the country was less than three million and there were only two service providers to choose from in most circle, a third (31 per cent) of the subscribers were the very disgruntled, and disloyal 'terrorists'- just waiting to switch. Although this proportion of 'terrorists' have dropped since then to a little over a fifth (21 per cent) in June 2002, this is still a sizeable proportion of subscribers with a high propensity to churn.
Looking at the TRIM Index scores and the changing customer typology, what is becoming clear, is that, by and large, Indian service providers seem to have successfully kept their finger on the pulse of the market. Further more this has been done in the context of an increasingly competitive market scenario.
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What is driving customer loyalty…
Besides measuring the 'intensity' of the 'subscriber- service provider' relationship, we have also been tracking what is driving this relationship. In order to understand what factors are most important in the mind of the cellular subscriber, we need to go beyond what the subscriber states as being important, in order to differentiate the obvious hygiene factors from those that are truly driving the relationship. The TRI*M grid classifies the elements based on the subscribers stated importance, as well as the impact of the performance of the element on subscriber retention. Thus all the product and service elements are grouped as 'Motivators', 'Hygienics', 'Hidden Opportunities' and 'Potential Savers' as described in the figure.
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In spite of the drastic fall in the service charges, the customers are still seeking further discounts and cuts in service charges.
The service provider's ability to deliver accurate, easy to understand bills on time, are things taken for granted by subscribers.
When tracking the changing expectations with the help of the TRIM grid, it was seen that, although 'quality of network' (depth of coverage) has always been and continues to be a 'Motivator' the extent of coverage (the foot print) has now become a 'Hygienics' in most circles. Today, coverage within the city and within the circle, are factors that subscribers have come to take for granted. Improvements in the delivery on various aspects of the 'Network and Coverage' by the service providers is probably the single most important contributor to improving subscriber loyalty over time. More particularly, it was improvements in coverage, both within cities and within the circle as well as on highways that was most evident to the subscribers.
With all the big 'brands' in the cellular business, company image was, and continues to be a strong 'Motivator' with most service providers having been successful in building a very positive and favourable corporate image among the subscribers.
However the most interesting change was noticed in the attitude of the subscribers to many of the 'value added services' (VAS) and 'Short Messaging Service'. The subscribers were indifferent 'VAS' and 'SMS' to start with these elements in the 'Potential Savers' quadrant. These elements were identified as 'Hidden Opportunities' and are today 'Motivators' in the more mature cellular circles.
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Tariffs and pricing, although stated as being extremely important by subscribers, has always been and continues to be a 'Hygienic' and does not really help to differentiate service providers in the minds of the subscribers. In spite of the drastic fall in the service charges, the customers are still seeking further discounts and cuts in service charges.
Similarly, aspects related to billings are things that the customers have always stated as extremely important. However the service provider's ability to deliver accurate, easy to understand bills on time, are things taken for granted by subscribers.
Softer aspects related to the Customer Care interactions are 'Motivators' and becoming increasingly important to subscribers. Customer Care along with the quality of VAS and SMS services offered could possibly determine brand choice in the future.
*** cellular subscribers of India (magazine)
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Chapter 2: Performance of Cellular Industry Year 2003
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Following are the quarterly performance of the cellular industry in India with bifurcation metros.
Table 3.2.1 Quarterly Performance of the Industry for the Year 2003
1 ST Quarter Performance:
City /Circle Operators Jan'2003 Feb'2003 Mar'2003 Metros Delhi Bharti Cellular 850944 863470 902357
Hutchison Essar 584339 594610 605485
MTNL 129143 131258 132417 Idea Cellular 142242 158175 165900
1706668 1747513 1806159 Mumbai BPL Mobile 593973 613210 621172
Hutchison Max 635158 650236 665086 MTNL 111841 133543 159500 Bharti Cellular 220385 228867 243278 1561347 1625856 1689036 Chennai RPG Cellular 171194 175389 179284
Bharti Mobinet 206348 207433 215109 Hutchison Essar 52036 53749 55760 429578 436571 450153 Kolkata Bharti Mobitel 199001 204213 200736
Hutchison Telecom 254830 263068 274281 BSNL 15543 17277 19159 469374 484558 494176
All Metros 4166967 4294498 4439524
A' Circle Maharashtra BPL Cellular 198137 200536 200606 Idea Cellular 396620 401799 400992 Bharti Cellular 114337 119430 122815 BSNL 160073 192783 275533
869167 914548 999946 Gujarat Fascel 427256 443206 457196
Idea Cellular 241000 240842 240029 Bharti Cellular 68761 69900 72310 BSNL 152658 189154 275691 889675 943102 1045226
A.P. Idea Cellular 308030 310310 313390 Bharti Mobile 307014 308495 310465 Hutchison Essar 47009 43782 42364 BSNL 115470 150933 217106 777523 813520 883325
Karnataka Bharti Mobile 337706 350466 364464 Spice Comm 195571 191658 193020
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Hutchison Essar 57452 60306 63724 BSNL 105921 118172 200205 696650 720602 821413
T.N. BPL Cellular 159471 160214 161305 Aircel Limited 229392 229569 229779 BSNL 74011 102997 160089 Bharti Cellular 76173 77192 63860 539047 569972 615033
A' Circle 3772062 3961744 4364943 B' Circle Kerala Escotel Mobile 246824 248313 250632
BPL Cellular 148068 148147 148206 Bharti Cellular 69010 69482 57625 BSNL 111512 131310 203931 575414 597252 660394
Punjab Spice Comm. 435759 437047 447100 Bharti Mobile 245405 302560 309016 BSNL 101179 129821 161706 782343 869428 917822
Haryana Escotel Mobile 92361 91629 91157 Aircel Digilink 16019 16978 17813 Bharti Cellular 48631 52816 58249 BSNL 51115 57501 77347 208126 218924 244566
U.P.(W) Escotel Mobile 231241 237908 244929 Koshika NA NA NA Bharti Cellular 76497 76940 81342 BSNL 76778 104061 128553 384516 418909 454824
U.P.(E) Aircel Digilink 113240 120584 135978 Koshika NA NA NA BSNL 92985 109986 127905 206225 230570 263883
Rajasthan Aircel Digilink 30154 29358 29066 Hexacom 120353 125988 132179 BSNL 56992 61311 85117 207499 216657 246362
M.P. Idea Cellular 132138 143616 160130 Reliance Telecom 151020 153749 158307 Bharti Cellular 29309 32527 41297 BSNL 35923 39323 80035 348390 369215 439769
W.B. Reliance Telecom 72541 74021 71938 BSNL 36772 55057 74980 109043 127689 146918
B' Circle 2821556 3048644 3374538 C' Circle H.P. Bharti Telenet 26236 27520 28540
Reliance Telecom 8240 9074 9876 BSNL 15806 17375 22274 50282 53969 60690
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Bihar Koshika NA NA NA Reliance Telecom 172367 182818 184212 BSNL 37412 51666 76325 209779 234484 260537
Orissa Koshika Telecom NA NA NA Reliance Telecom 64113 64096 61050 BSNL 27385 43168 70332 91498 107264 131382
Assam Reliance Telecom 42982 45792 47331
42982 45792 47331 N.E. Reliance Telecom 7745 8263 8692
Hexacom Nil Nil Nil
C' Circle 402556 451161 508632 Jan'2003 Feb'2003 Mar'2003
All India 11163141 11756047 12687637
2 ND Quarter Performance:
City / Circle Operators Apr'2003 May'2003 Jun'2003
Metros Delhi Bharti Cellular 938443 1006829 1068447
Hutchison Essar 619985 659085 721396 MTNL 136408 131174 125390 Idea Cellular 163286 169537 192909 Mumbai BPL Mobile 631216 639620 648043
Hutchison Max 686645 728878 769835 MTNL 164019 165867 165451 Bharti Cellular 248929 271953 302703 Chennai RPG Cellular 178443 178995 179639
Bharti Mobinet 215332 216253 218165 Hutchison Essar 58028 51718 55772 BSNL 32499 56557 75512 Kolkata Bharti Mobitel 204663 215853 231263
Hutchison Telecom 286519 302642 332938 BSNL 20232 22472 24584
All Metros Total 4584647 4817433 5112047
A' Circle Maharashtra BPL Cellular 200678 202228 206836 Idea Cellular 410941 440761 509932 Bharti Cellular 123374 133375 159251 BSNL 309290 333600 346842
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Gujarat Fascel 485620 540021 602104
Idea Cellular 227996 235445 266222 Bharti Cellular 73750 70202 74975 BSNL 285766 298133 307230
A.P. Idea Cellular 303005 300622 304295 Bharti Mobile 321207 337721 362027 Hutchison Essar 44440 45699 54169 BSNL 267983 297660 323211
Karnataka Bharti Mobile 384607 421597 452174 Spice Comm 189384 190275 195293 Hutchison Essar 68745 73653 82813 BSNL 246463 252047 263588
T.N. BPL Cellular 161647 161794 162794 Aircel Limited 230563 242055 250847 BSNL 202263 250144 300048 Bharti Cellular 66053 68278 70373
A' Circle Total 4603775 4895310 5295024 B' Circle Kerala Escotel Mobile 238249 240245 248392
BPL Cellular 148826 149069 149769 Bharti Cellular 58751 62042 64950 BSNL 230513 254570 264945
Punjab Spice Comm. 456113 492902 514659 Bharti Mobile 355404 405173 444828 BSNL 188045 195592 202400
Haryana Escotel Mobile 90469 93383 93740 Aircel Digilink 17795 16718 15559 Bharti Cellular 65338 75365 84341 BSNL 85158 90633 101178
U.P.(W) Escotel Mobile 246567 247548 257610 Koshika N/A N/A N/A Bharti Cellular 92614 107930 128018 BSNL 143587 162094 190002
U.P.(E) Aircel Digilink 143229 149815 152096 Koshika N/A N/A N/A BSNL 159899 181351 194394
Rajasthan Aircel Digilink 28489 27305 26361 Hexacom 134868 144052 154649 BSNL 106731 120337 130199
M.P. Idea Cellular 163374 166718 189901
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Reliance Telecom 158996 161306 162698 Bharti Cellular 43026 46561 48971 BSNL 84132 100488 108445
W.B. & A&N Reliance Telecom 73352 73455 72880
BSNL 86475 98654 106912
B' Circle Total 3600000 3863306 4107897 C' Circle H.P. Bharti Telenet 30362 35374 40503
Reliance Telecom 10096 10885 11841 BSNL 27113 28462 32095
Bihar Koshika N/A N/A N/A Reliance Telecom 192354 203121 204696 BSNL 93535 109189 123080
Orissa Koshika Telecom N/A N/A N/A Reliance Telecom 65295 68935 70270 BSNL 72858 89953 98137
Assam Reliance Telecom 46008 44682 43894
N.E. Reliance Telecom 9110 9260 9312
Hexacom Nil Nil Nil
C' Circle 546731 599861 633828 Apr'2003 May'2003 Jun'2003
All India 13335153 14175910 15148796
Following data shows the month wise two quarterly information about number of cellular subscribers in India in Year 2003.
Table 3.2.2 Month wise subscribers information
Quarterly Months No. of Subscribers1st January 11163141
February 11756047
March 12687637
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2nd April 13335153
May 14175910
Jun 15148796
***source:www.coai.com
Chapter 3: Porter’s Five Force Model
The model of pure competition implies that risk-adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure.
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Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates.`
Diagram of Porter's 5 Forces
SUPPLIER POWER Supplier concentration
Importance of volume to supplier Differentiation of inputs
Impact of inputs on cost or differentiation Switching costs of firms in the industry
Presence of substitute inputs Threat of forward integration
Cost relative to total purchases in industry
BARRIERSTO ENTRY
Absolute cost advantages Proprietary learning curve
Access to inputs Government policy Economies of scale
Capital requirements Brand identity
Switching costs Access to distribution
Expected retaliation Proprietary products
RIVALRY
THREAT OFSUBSTITUTES -Switching costs -Buyer inclination to substitute -Price-performance trade-off of substitutes
BUYER POWER Bargaining leverage
Buyer volume Buyer information
Brand identity Price sensitivity
Threat of backward integration Product differentiation
Buyer concentration vs. industry Substitutes available
Buyers' incentives
DEGREE OF RIVALRY -Exit barriers -Industry concentration -Fixed costs/Value added -Industry growth -Intermittent overcapacity -Product differences -Switching costs -Brand identity -Diversity of rivals -Corporate stakes
New Ntrant:
The newly entered RELIANCE TELECOMM has created waves in the cellular industry. Although it is difficult to make an entry in this sector, because of huge investment and also the customer base which is required to support the investment, but reliance has proved this wrong but entering with a growing and satisfied customer base. Thus pressure from this force can be seen relatively less as only well equipped, techno savvy and cash rich cos can make a mark in this industry.
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Competition in the industry itself:
The competitive picture in India cellular industry is now clear. Bharti bagged three more licenses taking its tally to eight at the end of the third and final round of bidding for the fourth cellular operators birth.
Today hutch is operating in various parts of country and also the joint venture of hutch with various operators such as escotel in dehradun, oasis in Rajasthan, rpg cellular in south helps it to promote the widest network and roaming facility that other operators are still struggling for.
Reliance has set its own towers all around the major parts of the India which includes Gujarat, Delhi, rajasthan, himachal, bihar, orisa and kolkatta.This has saved its customers to pay the roaming charge when ever they have to travel outside their territory.
As according to the directions issued by TRAI cellular operators have to bid for the circles and this itself builds competition within the industry. Today, various large as well as small players are ruling the roost which is going to increase in the near future only.
The subscriber base for wireless services continued to maintain its growth pattern during October 2003 also. During the month about 1.05 million cellular and 0.64 million WLL subscribers were added. It can emerge as a strong substitute in the coming years as it reduces the cost by about 90%.
Bargaining power of suppliers:
In this case the customers are having an upper hand as suppliers rely heavily on the customer retention and acceptance. It consists of giant players with huge investments in the form of infrastructure and networking.deep pockets are a necessity to make entry in to this sector.
Prominent players are BHARTI, HUTCH, IDEA, RELIANCE ,BSNLTATA TELESERVICES, VSNL, MTNL.
This industry seems to be very lucrative because of high profits, but the amount of investments to be done is tremendous.
Stiff competition rules this sector and it is difficult to make profits from the very first day.
The bargaining power of suppliers is dependent on the service provided by them, the coverage area and the roaming facility that can be two ways or one way. This in turn depends on the type of infrastructure, the amount of techno savvy the individual player is in the market.
They bend towards customer as they are having the less bargaining power as compared to the customer because they want to ripe the profits as soon as possible to start recovering their investments.
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Bargaining power of buyers:
Cellular industry is a slave in the hands of customers-this sentence stands true in the case of cellular industry.according to the latest reports by TRAI Indian mobile customers are at present at 1.6 mn which are growing at the rate of 20%. The subscriber base for wireless services continued to maintain its growth pattern during October 2003 alsoNow when the industry operates in such a huge base to operate which in turn is the key to their long-term profits naturally the buyers are having large bargaining powers in their hands.
Each operater is luring customers with various schemes that create alternatives in the buyer’s pocket.this is the main reason behind the tremendous bargaining power that the buyers are exercicing on the cellular operators.
Chapter 4: SWOT Analysis
A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan:
SWOT Analysis Framework:
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Environmental Scan
Internal Analysis External Analysis
Opportunities ThreatsStrengths Weaknesses
|SWOT Matrix
Strength: -
Industry’s labor costs are lower than many other technologically advanced countries. This leads India to the technological leader in the world.
Indian telecom industry is highly related with the advanced countries like Japan , America, Korea. So that industry lets always update itself with the latest developments very quickly.
Telecom industry has good resources as far as Human resources are concerned. India has good engineers and technologist so that any import of resources is not required.
Industry currently is in growing stage and has shown a good amount of spread and depth by reaching a large crowd of nation.
Weaknesses: -
Due to govt. control and licensing in this sector unnecessarily increase the cost of production of this industry and so that industry is unable to reach at it’s bottom lowest cost to spread it’s advantages to the poor and rural Indian population.
Heavy investment is required to enter in to this sector and that most of the Indian companies cannot afford to do and than opportunities goes in the hand of the few players that may instigate monopoly type of situation.
This sector is technology sensitive any technological change may change the whole scenario of the cellular and the Govt. has made lots of investment, and huge employment is made in this sector, which may become a resistance to the change to the advance technology.
Opportunities: -
Good literacy rate in the urban areas give the grate opportunities to this industry for the expansion and development.
Government is fully devoted to the development of the infrastructure that include the cellular industry, so no political obstacle come in the way of development of the industry.
India has huge population and that too with increasing literacy rate and under developed cellular market provides grate potential for development.
Good saving habits of Indian people provides opportunity to develop the industry if customers are made ready to divert their saving in consumption of cellular services.
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Indian urban population is ready to accept new technologies and are also now getting more and more aware about new technologies, that gives a good scope for new technological services to enter in to Indian market.
Indian industrial and services sectors are increasing their share in GDP and telecommunication is the supporting basic services, so with the development of those sectors cellular industry also gets room for development.
India is already recognized as IT and Software center, sot that with that technological transfer and development cellular industry also develops.
Threats: -
Telecommunication industry is currently state regulated so with the change in the political party in the government there are chance of change in the force or direction of development of Telecommunication industry .
Due to high investment requirements there are chances of government monopoly over the period of time.
Underdeveloped infrastructure of the India will not allow Telecommunication to have boomed development.
With increase in the practice of meditation and telepathy the requirement of telecommunication may decrease in the later future.
Technological experts are more tends to move to the advanced countries for higher wages, it put back India in longer run.
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PART-IV
“CELLULAR INDUSTRY FROM FINANCIAL PERSPECTIVE”
Chapters:
1. Investment Pattern and FDI inflow
2. Impact of Budget on Cellular Sector
3. Performance Analysis of Bharti
4. Performance Analysis of BSNL
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Chapter 1: Investment Pattern and FDI inflow
Investments
India has the third largest telecommunications network among the emerging economies, and it is among the top ten networks of the world. Telephone penetration, however, in both basic and cellular services is low in India. Although basic services and international long distance in India are still dominated by state owned enterprises, cellular services are full of flourishing private sector companies. Since this sector is growing at a rapid pace , foreign direct investment is also in tandem with the growth.
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The leading telecom cos are expected to spend rs960 bn over the next 5 years. About 73% of the investment is likely to be in the development of the urban network while the remaining 27% will be invested on rural network. The highest fdi inflow is attracted by the cellular sector that is seen highest in December in 2002.
Sector wise contribution
2002-03 2003-04(in crores)
public sector 20,700 21,735private sector 4,655 3,816rural areas 8,430 6,990total investment 25,255 25,551
This data shows the investment requirement by the players to stay in the market
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Chapter 2: Impact of Budget on Cellular Sector
Excise Duty
No change
Customs Duty
Cellular phones and pagers have been exempted from countervailing duty of 16%. However basic customs duty on these products has been increased from 5% to 10%.
Other Changes
With a view to encourage rapid consolidation and growth in the telecom sector, the benefit under Section 72A of the Income Tax Act, to carry forward losses and unabsorbed depreciation in case of amalgamation of companies in specified sectors, has been extended to companies providing telecom services related to infrastructure.
Duty Structure
Product Excise Customs (Basic)
2001-02 2002-032001-02
2002-03
Transmission Apparatus 16% 16% 15%
15% Transmission Apparatus incorporating Reception Apparatus
16% 16% 15% 15%
Cellular phones 16% 16% 5% 10% Battery Packs for Cellular Phones
16% 16% 15% 15%
Optical Fibre Cable 16% 16% 25% 25% Optical Fibre Cable- For mfr. of telecom grade Optical fibre cables
16% 16% 15% 15%
Telephone Sets, Cordless Phones, Videophones, Fax machines, Teleprinters, Telephonic or Telegraphic switching apparatus
16% 16% 15% 15%
Telephone Answering Machines
16% 16% 15% 15%
Electric Conductors Used 16% 16% 15% 15%
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for TelecomCellular providers & handset manufacturers are inter dependent on each other their respective survival.
As explained above since increase & decrease in duties balance out each other over all impact on cellular phones is positive.
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Chapter 3: Performance Analysis of Bharti
Balance Sheet:
0303-(12) 0203-(12) 0103-(12) 9903-(12)
SOURCES OF FUNDS
Owner's Fund
Equity Share Capital 198.85 198.85 169.00 169.00
Share Application Money 0.00 0.00 7,243.03 0.00
Preference Share Capital 0.00 0.00 0.00 0.00
Reserves & Surplus 7,199.56 7,199.95 391.14 970.85
Loan Funds
Secured Loans 0.00 0.00 0.00 83.15
Unsecured Loans 3,535.73 3,535.73 75.00 68.35
Total 10,934.14 10,934.53 7,878.17 1,291.35
USES OF FUNDS
Fixed Assets
Gross Block 6.67 6.67 0.45 402.09
Less : Revaluation Reserve 0.00 0.00 0.00 0.00
Less : Accumulated Dep. 1.06 0.43 0.12 87.44
Net Block 5.61 6.23 0.34 314.65
Capital Work-in-progress 0.00 0.00 0.00 0.83
Investments 10,924.84 10,914.14 7,496.59 658.44
Net Current Assets
Current Assets, L & A 6.32 17.17 498.43 508.07
Less : Cur.Liab. & Provi. 2.63 3.02 117.17 190.64
Total Net Current Assets 3.69 14.15 381.25 317.44
Misc expenses not written 0.00 0.00 0.00 0.00
Total 10,934.14 10,934.52 7,878.18 1,291.36
Note :
83
Book Value Unquoted Invt. 0.00 0.00 7,496.59 658.44
Mkt. Value of Quoted Invt. 24,349.15 33,152.46 0.00 0.00
Contingent liabilities 401.17 423.39 850.86 1,261.24
No. of Equity shares O/S 19,885,140.00 19,885,140.00 16,900,000.00 16,900,000.00
Ratio Analysis:
Net operating income per share (Rs.)
yearNet operating income per share
(Rs.)2003 02002 0.052001 2.831999 24.57
Total Debt/Equity
84
year Total Debt/Equity 2003 0.472002 0.472001 0.131999 0.13
85
Fixed Assets Turnover Ratio
year Fixed Assets Turnover Ratio
2003 0
2002 0.16
2001 1.5
1999 1.03
Current Ratio
86
year Current Ratio2003 2.42002 5.682001 4.241999 2.67
Chapter 4: Performance Analysis of BSNL
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Balance Sheet:
0203-(12) 0103-(12)
SOURCES OF FUNDS
Owner's Fund
Equity Share Capital 50,000.00 50,000.00
Share Application Money 0.00 0.00
Preference Share Capital 75,000.00 75,000.00
Reserves & Surplus 437,428.00 339,079.52
Loan Funds
Secured Loans 5,100.00 5,100.00
Unsecured Loans 104,286.45 107,983.26
Total 671,814.45 577,162.78
USES OF FUNDS
Fixed Assets
Gross Block 717,100.70 563,930.59
Less : Revaluation Reserve 0.00 0.00
Less : Accumulated Depr. 127,878.58 38,580.68
Net Block 589,222.11 525,349.91
Capital Work-in-progress 108,262.42 91,369.36
Investments 0.00 0.00
Net Current Assets
Current Assets, Loans & A 178,025.44 150,382.58
Less : Curr. Liabili. & Provi. 203,695.52 189,939.07
Total Net Current Assets -25,670.08 -39,556.49
Misc expenses not written 0.00 0.00
Total 671,814.45 577,162.78
Note :
Book Value of Unquoted Invet. 0.00 0.00
Market Value of Quoted Invet. 0.00 0.00
Contingent liabilities 0.00 0.00
Number of Equity shares O/S 5,000,000,000.00 5,000,000,000.00
88
Ratio Analysis:
Net Operating Income Per Share (Rs.)
yearNet Operating Income Per Share
(Rs.)2002 53.262001 23.222000 33.25
Total Debt/Equity
89
year Total Debt/Equity 2002 0.372001 0.482000 0.52
Current Ratio
90
year Current Ratio2002 0.872001 0.792000 0.65
91
Fixed Assets Turnover Ratio
year Fixed Assets Turnover Ratio2002 0.372001 0.22000 0.18
92
Bibliography
1. www.coai.com
2. www.india-cellular.com
3. www.indiainfraline.com
4. www.trai.com
5. www.airtelmagic.com
6. www.hutch.co.in
7. www.bsnl.com
8. www.tatamcgrawhill.com
9. “The Growing Cellular Market”, Business India (November, 2002)
10. “Cellular Technology”, Technocrats (April, 2002)
11. Thompson and stickland, Strategic Management, (Delhi, Tata Mc-Graw Hill publication, 2003) p.79
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