A report on Telecom Sector
4. Players of telecom sector
5. Revenue and growth
6. SWOT analysis
7. Future prospects
India’s telecom sector has been doing exceptionally well in past decade. Its
structural and institutional reforms have provided tremendous growth
opportunity to this sector. India has nearly 200 million telephone lines
making it the third largest network in the world after China and USA. With a
growth rate of 45%, Indian telecom industry has the highest growth rate in the
Indian Telecom sector, like any other industrial sector in the country, has gone
through many phases of growth and diversification. Starting from telegraphic
and telephonic systems in the 19th century, 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. Day by
day, both the Public Players and the Private Players are putting in their
resources and efforts to improve the telecommunication technology so as to
give the maximum to their customers.
History of telecom sector
1851 First operational landlines were laid by the government near
1881 Telephone service introduced in india
1883 Merger with the postal system
1923 Formation of Indian radio telegraph company(IRT)
1932 Merger of ETC and IRT into the Indian radio and cable
communication company (IRCC)
1947 Nationalization of all foreign telecommunication companies
to form the post, telephone and telegraph(PTT), a monopoly
run by the government’s ministry of communication
1985 Department of telecommunication(DOT) established , an
exclusive provider of domestic and long distance service that
would be its own regulator(separate from the postal system)
1986 Conversion of DOT into 2 wholly govt owned companies: The
Videsh Sanchar Nigam ltd(VSNL) for international
telecommunications and Mahanagar Telephone Nigam
1987 Telecom regulatory authority of India created
1999 Cellular services are launched in India
2000 DOT becomes a corporation, BSNL
Mobile personal communication systems use microwave frequencies above
800 MHz for transmission and reception. All service providers operate in some
pre allocated frequency bands according to international standards. For
operating in these microwave frequencies there are following access methods:
FDMA (Frequency Division Multiple Access) - FDMA puts each call on a
TDMA (Time Division Multiple Access) - TDMA assigns each call a certain
portion of time on a designated frequency.
CDMA ( Code Division Multiple Access) - CDMA gives a unique code to
each call and spears it over available frequencies.
GSM is a global standard based on TDMA. It is very popular in entire
Europe, Middle East and Asia while CDMA is the dominant technology in
United States and some parts of Asia.
Scope of telecom industry
Cellular Service Providers
As on Apr 2007 India has 167 million mobile phone subscribers. Out of this 125 million are
GSM users and 41 million CDMA users.
BSNL, Bharti Airtel, Hutch, Idea, Aircel, Spice and MTL are the main GSM providers in
India. Reliance Communications and Tata Indicom are the main CDMA providers in India.
Airtel is providing cellular services in Delhi, Mumbai, Kolkata, Chennai, Andhra Pradesh,
Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Karnataka, Kerala, Madhya
Pradesh, Maharashtra, Goa, Orissa, Punjab, Rajasthan, Tamil Nadu, UP and West Bengal.
Airtel is the No.1 cellular service provider in India using GSM technology. Airtel has 23%
market share in India with a total subscriber base of 38 million.
Reliance has both CDMA and GSM networks and total subscriber base of 29 million or 17%
market share. It has GSM network in Assam, Bihar, Himachal Pradesh, Kolkata, North East,
Madhya Pradesh, Orissa and West Bengal. Reliance has CDMA networks in other states and
Bharat Sanchar Nigam Limited (BSNL)
BSNL is a state owned telecom company which has GSM presence in almost every cities and
towns. BSNL has 27 million subscribers with a market share of 16%.
Hutch is another emerging GSM provider in India with coverage in Kerala, Mumbai, Delhi,
Kolkata, Chennai, Gujarat, Andhra Pradesh, Karnataka and Punjab with a total subscriber
base of 27 million.
Tata Indicom is a main CDMA provider in India with 16 million subscribers all over India.
Tata Indicom has presence in almost every states and cities in India.
Revenue and growth
The total revenue in the telecom service sector was Rs. 86,720 crore in 2005-
06 as against Rs. 71, 674 crore in 2004-2005, registering a growth of 21%. The
total investment in the telecom services sector reached Rs. 200,660 crore in
2005-06, up from Rs. 178,831 crore in the previous fiscal.
Telecommunication is the lifeline of the rapidly growing Information
Technology industry. Internet subscriber base has risen to 6.94 million in 2005-
2006. Out of this 1.35 million were broadband connections. More than a billion
people use the internet globally.
The value added services (VAS) market within the mobile industry in India has
the potential to grow from $500 million in 2006 to a whopping $10 billion by
2009 (Music, games to drive mobile VAS growth).
Career prospects in Telecom sector
With the coming of more and more projects such as setting up of new service bases,
expansion of coverage areas, network installations, maintenance, etc , the telecom industry
is going for high scale recruitments. There is a huge demand for software engineers, mobile
analysts, and hardware engineers for mobile handsets. There are ample opportunities for
marketing people whose services are required to capture more and more customer base.
The emergence of advance technologies and the high growth rate of the industry hold a lot
of promise to the jobseekers.
Future prospects of telecom sector
Telecom sector targets announced by government of India-:
500 million subscribers by 2010
20 million broadband subscribers by 2010
India poised to be a USD 40 billion- 45billion telecom market by FY 2010
India is huge market and none of service providers can dare to ignore its
potential. That’s why Indian mobile service provider industry is growing leap
and bounce for the last decade. This journery of 1 million to 50 million will
keep it pace until each citizen in india will have his own mobile. Industry has
many phases in its growth. Now mobile doesn’t mean a only a medium of
communication. Services providers are now willing to provide varies facilities
like entertailment (music, video etc.) and even banking also. We can say that
business is transforming in e-commerce to m-commerce (mobile-commerce).
In short we can say drastic change has came in the industry along with
expanding its base in subscribers, they are keeping eye not only to offer new
facilities but also to be the first to provide it.