project on productivity

8/12/2019 Project on productivity

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PRODUCTIVITY IN THE INDIANTELECOM SECTOR


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Telecom in the real sense means transfer of informationbetween two distant points in space

Telecom is a huge and varied fastness of technologies,

companies, services and politicsthat is truly global in nature

Telecom stands as one of the most essential elements of the

business world in terms of Connecting the World

Introduction


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Overview o f Telecom Indust ies

1.Indian Telecom sector, like any other industrial sector in the

country, has gone through many phases of growth anddiversification.

2.Starting from telegraphic and telephonic systems in the 19thcentury, the field of telephonic communication has now

expanded to make use of advanced technologies like GSM,CDMA, and WLL to the great 3G Technology in mobile phones.

3.The Indian telecom sector can be broadly classified intoFixed Line Telephony and mobile telephony.

The major players like BSNL, MTNL, VSNL in the fixed line andAirtel, Hutch, Idea, Tata, Reliance in the mobile segment arecoming up with new tariffs and discount schemes to gain thecompetitive advantage.


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4. Day by day, both the Public Players and the PrivatePlayers are putting in their resources and efforts to

improve the telecommunication technology so as to givethe maximum to their customers.

The Public Players and the Private Players share thefixed line and the mobile segments. Currently the PublicPlayers have more than 70% of the market share.

5. The major players of the telecom sector areexperiencing a fierce competition in both the segments.


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Pub lic Players v /s Private Players

Fixed-line Telephony

Public Players Subcribers-82%

Private Players Subscribers-18%

Mobile Telephony

Public Players Subcribers-22%

Private Players Subscribers-78%
http://www.naukrihub.com/india/telecom/overview/fixed-line-telephony/http://www.naukrihub.com/india/telecom/overview/mobile/http://www.naukrihub.com/india/telecom/overview/mobile/http://www.naukrihub.com/india/telecom/overview/fixed-line-telephony/http://www.naukrihub.com/india/telecom/overview/fixed-line-telephony/http://www.naukrihub.com/india/telecom/overview/fixed-line-telephony/


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Scope o f Telecom Indus tr ies

Publ ic & pr ivate player

subscriber

airtel

reliance

bsnl

voafone

Idea

11%29%

20%

18% 21%


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PRESENT SCENARIO

Nearly 220 million telephone subscribers at the end of

May07,

40 million wirelines and 180 million wireless.

Adding more than 6 million subscribers per month

during last six months.

Fourth largest network after China, USA & Russia.

Mobile subscribers almost doubled in last one year.


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Contd.

With present growth rate, expected to cross 250

million by 2007 end and may become second

largest network of the world.

Overall tele-density of 19.26% at the end of May07

with rural tele-density of 6%.

Internet subscriber base of 8.5 million excludinginternet users on mobile.


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Contd.

2.46 million Broadband subscribers.

Optional fiber backbone of 7.7 lakhs route KM.

More than six cellular mobile service providers in

most of the circles.

FDI/Foreign Equity of US $ 3.89 billion (fromAugust 1991 to March 2007) in telecom Sector.

Significant infrastructure has been setup and isbeing further enhanced by private sector players.

Tariffs for long distance, cellular services and

broadband have come down significantly.


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1994: National Telecom Policy 1994announced.

1995: Kolkata became the first metroto have a cellular network inAugust 1995.

1997 : Telecom Regulatory Authority ofIndia was setup.

1999 : Tariff rebalancing exercises getsinitiated.

1999: National Telecom Policy 1999 announced in

March.

Grow th o f Telecom in Ind ia


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1999: License fee (revenue share) reducedfrom provisional 15% to 12%, 10% & 8%

on Circle wise basis (A type, B type & Ctype circles).

2000: TRAI Act amended & separate tribunal

proposed.

Jan 2001: TDSAT started functioning.

Jan 2001: Policy announced for additional

licenses in Basic and MobileServices.

Contd


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Teledensity-Rural & Urban

Teledensity

0.52 0.68 0.93 1.21 1.49 1.57 1.73 1.86

5.88 7.96.94 8.36

10.37 12.2

14.32

20.74

26.88

39.45

48.52

60.04

2.32 2.86 3.58 4.29 5.11

7.02 8.95

12.74

18.31

23.21

0

10

20

30

40

50

60

70

1999

2000

2001

2002

2003

2004

2005

2006

2007

2007(Nov)

Year

Rural Urban Total

Rural-7.9millions

Urban-60.04millions


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Mobile Services : Fuelling the growth

Dec-07

40.35

22%

143.11

78%

Fixed

L ine

Wireless

Dec-08

39.31

15%

225.46

85%

Fi xed

L i n e

Wireless

Total telephone connections as on:

December 2007: 183.46 million.

December 2008: 264.77 million.


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Grow th o f Ind ian telecom sector


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.Mobile has become integral part of everyone life.

Mobile also facilitating business productivity and

e-initiatives.


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PRODUCTIVITY IN RURAL AREAS.

Improved rural connectivity is highest priority item

for both the Government and the industry.

Government initiated a unique project in 2006to provide subsidy support from the USO Fund

for setting up shared wireless infrastructure inrural areas.

USO tenders announced in yearly 2007 &operators have actively participated in thebidding process

Other steps by Service Providers:

Special tariff packages for rural areas

Micro pre-paid cards

Local language content


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MOBILE TARIFFS

0 . 2 3 0 . 2 2

0 . 1 9

0 . 1 7 0.16

0 .1 1 0 .1 1 0 .1 1

0 . 0 9

0 .0 5 0 .0 5 0 . 0 4

0.030 . 0 2

0

0.05

0. 1

0.15

0. 2

0.25

Belg

ium

Italy

UK

France

B

razil

Philippines

Taiwan

Argen

tina

Malay

asia

HongK

ong

Thai

land

Pakistan

C

hina

India

USD

Mobile Tariffs is lowest in India and it ishighest in Belgium.


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IMPROVEMENT IN PRODUCTIVITY OFINDIAN TELECOM SECTOR

Fixed line Wireless


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STEPS

increase in effectiveness.

increase in efficiency.

reduction in wastivity.

Use of computers.

Use of customer database and relationshipmanagement techniques (CRM).


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Contd.

Sharing of telecommunicationinfrastructure by companies.

Upgrading existing equipment .

well trained telecom professionals.

use of outsourcing in telecom sector.


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PRODUCTION CAPACITY.

India has come a long way in Services and Manufacturing.

India produced nearly 31 million mobile phones in 2006 worthabout RS. 250crores.

In 2009, handset production will increase by 68% inProduction & 65% in value terms.

Production volumes to reach nearly 95 million units at a CAGRof 25 percent between 2006 and 2011.


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Contd

Low mobile penetration and favourable

government policies driving mobile phone

equipment manufacturers to set up manufacturingfacilities in India .

Nokia started its unit in Chennai in January 2006and produced a record 25 million handsets in the

first year of operation .


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GROWTH POTENTIAL OF THE

Ind ian Telecom SECTOR


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POPULATION Vs TELEDENSITY

India ranked high in terms of population and low interms of tele-density.

There exists immense potential for expansion of service.


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Contd

However, 40% of the population and 60% of geographical

still left to be explored.

Thus, huge network expansion is essential.


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POTENTIAL FOR MOBILE INTERNET

There is a Tremendous potential for mobile Networkin India.

Number of Indians accessing internet through mobile

is now over 3 TIMES those using the PC to connect toweb.

India has 9.27 million internet subscribers as

against 31.3 million users accessing internetthrough mobiles.

One out of every five mobile users in the countryconnects to the internet through the handset.


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Booming

Knowledge

Sector

Burgeoning

Middle Class

Rising Income

Levels

Growing

Urbanization

Younger

Population

High GDP

Growth

GROWTH

FUTURE GROWTH DRIVERS


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FUTURE INVESTMENTSCompany Name 2010 (In m il l ion s) 2009(In m il l ions )

Bhart i 2,312 2,191

Reliance Commun icatio ns 2,300 2,311

BSNL 1,179 1,064

Hutchis son Essar 1,800 1,886

Tata Teleservc ies 1,038 928

Idea Cellu lar 1,154 1,317

MTNL 920 920

A ircel 49 43

Spice Commun icat ions 321 321

Total 11,073 10,981


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Opportuni t ies & Chal lenges in2009-10 and years to come


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Opportunities

Rural tele-density is less than 10%.

Overall tele-density is only 24%.

Broadband penetration is just 0.25%, hence vast scope.

BPO business is growing fast: Telecom can ride on it.

Value added services like M-Commerce, M-Marketing,Special Information, Ring tones, etc. offer venues ofadditional revenue.

As globalization is increasing, more percentage of globalbusiness for Indian telecom.

Technologies like NGN, 3G, WiMAX, will open up newfrontier of business.

Ch ll


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Challenges No. of operators are increasing per circle: hence more

competition.

ARPUs are going down.

Cost/ Customer is very high in rural areas.

Spectrum a scare commodity.

Infrastructure readiness in rural.

PC prices are very high.

Availability of Contents in local language for Rural Population

International Bandwidth is costly.

Telecom Manufacturing in India.


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Urban connectivity

250 million by 2007 - Already achieved

600 million by 2012

Rural connectivity

50 million by 2007 - Already achieved

100 million by 2010

200 million by 2012

Broadband

20 million broadband connections is achieved

40 million internet connections to provide by2010

Broadband connections to provide on demandacross the country by 2012

Future Growth or Expansion

MARKET SHARE MAJOR PLAYERS IN


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MARKET SHARE MAJOR PLAYERS IN

TELECOM SECTOR

Airtel-31%.

Idea-12%.

Vodafone(

Hutch)-22%.

Bsnl-22%.

Spice-13%


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Bharat Sanchar Nigam L im ited(BSNL)


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BSNL (Bharat Sanchar Nigam Ltd.)

Founded in 2000, Bharat Sanchar Nigam Ltd. In 2005-06, the BSNL

earned revenues of Rs. 40,177 crore, & In 2007-08, the BSNL

earned revenues of Rs.38,053 crores.

India's largest public sector Telecommunications Company

providing a wide variety of telecom services.

Its service range covers Wireline, CDMA mobile, GSM Mobile,Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP

services, etc.


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Services Offered

BSNL is an Integrated telecom service providerwhich provides all types of telecom services.

Wire Line ServicesCDMA WLL Limited Mobility Services

National Long Distance Services

International Long Distance Services

Broadband & Internet Services IN Services viz. Prepaid calling card etc.


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Telephone connection provided by BSNL

Year Fixed Mobile Total

31.03.2001 28.11 0 28.11

31.03.2002 33.4 0.02 33.42

31.03.2003 35.93 2.26 38.19

31.03.2004 36.11 5.54 41.65

31.03.2005 37.04 9.9 46.93

31.03.2006 37.51 17.65 55.16

31.03.2007 36.92 27.8 64.72

31.12.2007 35.6 33 68.6

(in Mil l ion )


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Present Status (as on 31.12.2007)

Customer Base

Telephone customers: In million

Wireline Customers : 31.72

WLL Customers : 4.09

GSM Customers : 32.71

Total Customers : 68.51

Internet customers

Broadband customers : 1.45

Internet Customers : 3.35


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Developmental Plans (2008-09)

Expansion of 13.5 m GSM lines.

Expansion of 3m Broadband.

Expansion of 2 m WLL (CDMA) lines

Introduction of 200K IP Transit Switch.

Addition of 1206 K TDM TAX

Addition of 200 IDRs Satellite System forInaccessible Stations.

Object ives


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Object ives.

To be a lead telecom service provider.

Build customer confidence throughquality and reliable service.

Provide band width on demand.

To meet all emerging communicationneeds of individual and small enterpriseand corporate houses.


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Recommedation

To make good the losses, An interim relief of 30% ofbasic pay may be recommended with effect from 1stJan 2007.

The present maximum limit of Rs. 3.5 Lakhs forpayment of gratuity should be removed and in future

there should not be any ceiling on gratuity payment. They recommend for extending pensionary benefits

to the executives recruited by BSNL.

a reasonable percentage of distributable profits as

performance related payments for executives & non-executives


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AIRTEL

Established in 1995 by Sunil Mittal as a PublicLimited Company, Airtel is the largest telecomservice provider in Indian telecom sector.

With market capitalization of over Rs. 1,360 billion,

Airtel has 31% of total market share of GSM serviceproviders.

Providing GSM services in all the 23 circles, Airtelwas the first private player in telecom sector to

connect all states of India. Also, Airtel is the first mobile service provider to

introduce the lifetime prepaid services andelectronic recharge systems.


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Mobile-

Prepaid : Enter the world of limitless possibilities with Airtel Prepaid.

Postpaid : Life becomes much simpler with your Airtel Postpaid. It gives you

theunlimited freedom to reach out to people in your special way.

Black berry : the worlds most powerful instant e-mail mobile

Home Phone-

Fixed Line:- Airtel welcomes you to its world of telephony services, which

offers you world class

services with its cutting edge technology.

Wireless-Avail of the convenience of a mobile phone on a fixed line, without

any cables disturbing

the ambience of your living room!


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Broadband & Services


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Net Sales(Rs. Cr)

25,761.11

14,792.05

6,719.99

4,722.52

3,283.30

1,707.19957.85

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

Bharti Airtel Reliance Comm Idea Cellular MTNL Tata Comm TataTeleservice Spice Comm


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