working group on telecom sector 12 th five year plan july 18, 2011
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Working Group on Telecom Sector 12 th Five Year Plan July 18, 2011. Contents. Indian telecom scenario Growth potential Investment estimates. Indian Telecom Scenario. Fastest growing Sector with average monthly addition of 16-18 million subscribers - PowerPoint PPT PresentationTRANSCRIPT
Working Group on
Telecom Sector12th Five Year Plan
July 18, 2011
ContentsIndian telecom scenario
Growth potential
Investment estimates
2
Indian Telecom Scenario
• Fastest growing Sector with average monthly addition of 16-18 million subscribers
• Current subscriber base of over 875 million and active subscribers of about 588 million
• Second largest mobile network with over 840 million wireless subscribers
• Addition of over 225 million connections last year
• Roll out of services in more than 8000 towns and cities and over 500,000 villages
• 12-14 mobile operators in most of the circles
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Growth
Source: DoT, TRAI4
Wireless led GrowthMarch 2007
Total telephones 205.87 million
March 2011
Total telephones 846.32 million
Source: DoT, TRAI5
Teledensity Growth
6
Share of private network (%)
Source: DoT, TRAI 7
Broadband growth
Source: DoT, TRAI 8
Growth PotentialNetwork Expansion • 1.1 billion subscribers by 2015
Broadband • TRAI -National Broadband Plan 160 Million by 2014 – Investment of Rs. 60,000 crore
• 2,50,000 villages Panchayats within 3 years• Broadband coverage for all secondary and higher secondary
schools, Village Panchayats and all public health care centers.
• Leveraging USO funds for faster expansion of broadband• Universal Access through support for shared infrastructure
for rural cellular mobile• Optical fibre connectivity for broadband upto Village
Panchayats9
Investment estimates
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Investment in Telecom Sector11th Five Year Plan
Year Investment (Source:
TRAI)
11 Five Year Plan
(Planning Commission)
11 Plan Centre
11 PlanPrivate
2007-08 37900 31900 7894 24007
2008-09 59200 52295 11048 41248
2009-10 77700 64206 13186 51019
2010-11 103900* 84339 13988 70351
2011-12 120000* 103900 15387 97007
Total 398700 345134 61503 283631(Rs crore)
*Projected11
Areas of Investment in 12th Plan• Investment required in
– Network expansion- Triple Play• Especially in rural and remote areas
– Network upgrades• Rapid Advancements in Technology/ customer demand cycles• 3G expected to account for 20% of subscriber base by 2015• NGN & IPV6
– Broadband expansion (BWA)– National Optical Fibre Network (NOFN)– Convergence of Technology– Value Added Services– Manufacturing and R&D
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Investment AssumptionsExisting • Telephone subscribers more than 875 million• Active subscribers about 588 million• Broadband subscribers more than 12 millionExpected by March 2017 (end of 12th V Year Plan)• Telephone subscribers- 1200 million– 3G/4G subscribers about 25% i.e. 300 million• Broadband subscribers- 175 million• e-Governance initiative to boost demand
• Telecom tower, VAS• Low ARPU/Tariff
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Estimated Sectoral Investment in 12th FYP
• Core telecom equipment - Rs. 1,35,000 crore + 1,50,000 Crore– Investment in 2G network 2G -Capacity addition - 500 million 500 million @Rs. 2700/- per line (average) =Rs. 1,35,000 crore– Investment in 3G/4G, Wimax, LTE etc capacity- 500
million
500 million @Rs. 3000/- per line= Rs. 1,50,000 croreTotal Investment in Core telecom equipments = Rs. 2,85,000 crore
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Estimated Sectoral Investment in 12th FYP
• Transmission Network (SDH, Microwave Radio, Routers)
Rs. 40,000 crore (Approx. 14%)• Access Network (Investment in tower, battery, power plant,
Green Telecom) Rs. 1,00,000 crore
Total Investment in Access and Transmission Network = Rs. 1,40,000 crore
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Estimated Sectoral Investment in 12th FYP
• Broadband Roll-out- Rs. 75,000 crore• Customer premises equipment (USB Dongles,
modem etc) Rs 50,000 crore• Spectrum charges (on renewal/ through
auction) Rs 1,00,000 croreTotal Investment =2,25,000 crore
Total Investment in Telecom Infrastructure Rs. 2,85,000+1,40,000+2,25,000= Rs. 6,50,000
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