INDIA TELECOM INDUSTRY
Telecom Industry in India
The telecom industry is one of the fastest growing industries in India. 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.
- Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by
the growth in demand in countries like India and China.
- India‘s mobile phone subscriber base is growing at a rate of 82.2%.
- China is the biggest market in Asia Pacific with a subscriber base of 48% of the total
Subscribers in Asia Pacific. Compared to that India’s share in Asia Pacific Mobile
Phone market is 6.4%. Considering the fact that India and China have almost
comparable populations, India’s low mobile penetration offers huge scope for growth.
History of Indian Telecommunications
Started in 1851 when the first operational land lines were laid by the government near
Calcutta (seat of British power). Telephone services were introduced in India in 1881. In
1883 telephone services were merged with the postal system. Indian Radio Telegraph
Company (IRT) was formed in 1923. After independence in 1947, all the foreign
telecommunication companies were nationalized to form the Posts, Telephone and
Telegraph (PTT), a monopoly run by the government's Ministry of Communications.
Telecom sector was considered as a strategic service and the government considered it
best to bring under state's control.
The first wind of reforms in telecommunications sector began to flow in 1980s when the
private sector was allowed in telecommunications equipment manufacturing. In 1985,
Department of Telecommunications (DOT) was established. It was an exclusive
provider of domestic and long-distance service that would be its own regulator (separate
from the postal system). In 1986, two wholly government-owned companies were
created: the Videsh Sanchar Nigam Limited (VSNL) for international
telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in
metropolitan areas.
In 1990s, telecommunications sector benefited from the general opening up of the
economy. Also, examples of telecom revolution in many other countries, which resulted
in better quality of service and lower tariffs, led Indian policy makers to initiate a change
process finally resulting in opening up of telecom services sector for the private sector.
National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive
roadmap for the Indian telecommunications sector. In 1997, Telecom Regulatory
Authority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate
the growth of the telecom sector. New National Telecom Policy was adopted in 1999
and cellular services were also launched in the same year.
Telecommunication sector in India can be divided into two segments: Fixed Service
Provider (FSPs), and Cellular Services. Fixed line services consist of basic services,
national or domestic long distance and international long distance services. The state
operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic
services. Private sector services are presently available in selective urban areas, and
collectively account for less than 5 per cent of subscriptions. However, private services
focus on the business/corporate sector, and offer reliable, high- end services, such as
leased lines, ISDN, closed user group and videoconferencing.
Cellular services can be further divided into two categories: Global System for Mobile
Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector
is dominated by Airtel, Vodafone-Hutch, and Idea Cellular, while the CDMA sector is
dominated by Reliance and Tata Indicom. Opening up of international and domestic
long distance telephony services are the major growth drivers for cellular industry.
Cellular operators get substantial revenue from these services, and compensate them
for reduction in tariffs on airtime, which along with rental was the main source of
revenue. The reduction in tariffs for airtime, national long distance, international long
distance, and handset prices has driven demand.
Classification of Telecommunication services
1. Basic services
2. Cellular services
3. Internet Service Provider (ISP)
ABOUT BSNL
A BRIEF INTRODUCTION
On October 1, 2000 the Department of Telecom Operations, Government of India became a
corporation and was named as the “Bharat Sanchar Nigam Limited” (BSNL). Today, BSNL is the
No. 1 Telecommunications Company and the largest Public Sector Undertaking of India with
authorized share capital of US $ 3977 million and net worth of US $ 14.32 billion. It has a
network of over 45 million lines covering 5000 towns with over 35 million telephone
connections.
With latest digital switching technology like OCB,EWSD,AXE-10,FETEX,NEC etc. and widespread
transmission network including SDH system up to 2.5 gbps, DWDM system up to 80 gbps,Web
telephony,DIAS,VPN, Broadband and more than 400,000 data customers , BSNL continues to
serve this great nation .
Its responsibilities include improvement of the already impeccable quality of telecom services,
expansion of telecom network, introduction of new telecom services in all villages and instilling
confidence among its customers.
BSNL has managed to shoulder these responsibilities remarkably and deftly. Today with over 45
million line capacity, 99.9% of its exchanges digital, nationwide Network management &
surveillance system (NMSS) to control telecom traffic and over 4,00,000 route km’s of OFC
network, Bharat Sanchar Nigam Ltd is a name to reckon within the world of connectivity. Along
with its vast customer base, BSNL's financial and asset bases too are vast and strong. Consider
the figures, as they speak volumes on BSNL's standing:
The telephone infrastructure alone is worth about Rs. 1,00,000 crore (US $ 22.74 billion)
Turnover of Rs. 31,400 crore ( US $ 7.14 billion)
Add to which, BSNL's nationwide coverage and reach, comprehensive range of telecom services
and a penchant for excellence; and you have the ingredients for restructuring India for a bright
future. Today, BSNL is most trusted Telecom Brand of India.
Growth Plan
BSNL's future plan include a fast expansion programme of increasing the present 34 million
lines to twice that number by 2005 and some 120 million lines by 2010.
The shift in demand from voice to data domination, and from wire line to wireless, has
revolutionized the very nature of the network. BSNL has already set in place several measures
that should enable it to evolve into a fully integrated multi-operator by 2005 and its incumbent
status, size, infrastructure and human resource should certainly, give it a distinct advantage.
Consolidation of the network and maintaining high quality of service comparable to
International standards is the key aim of the Growth Plan.
OBJECTIVE OF THE PLAN ARE AS FOLLOWS-
The telephone connection shall be provided on demand and it shall be
sustained. , The Network shall be made fully digital. All the technologically obsolete analogue
exchanges will be replaced with digital exchanges. To provide digital transmission links up to all
SDCAs. Digital connectivity shall be made available to all the exchanges by 2007.
Extensive use of Optical fiber System in the local. Junction and long distance network so as to
make available sufficient bandwidth for the spread of Internet and Information technology. ,
ISDN services shall be extended to all the district headquarters, subject to demand. „ To provide
Intelligent Network Services, progressively all over the country (major cities have already been
covered).
To set up Internet Nodes progressively up to District headquarters level. Upgrading existing
STD/ISD PCOs to full fledged Public Tele-Info Centers (PTIC) for supporting Multi media
capability and Internet Access. Replacement of life expired, analogue coaxial and radio systems.
Introduction of Wireless technology (Supporting Internet Access) and optical fiber technology in
subscriber loop.Introduction of latest telecom services like National directory enquiry,
computerization etc. Cellular Mobile Service 'Cell One1 of BSNL was launched on 19th October
2002 . The scheme will cover 4 million customers in two phases. Phase-I will cover about 1.5
million customers covering about 1000 cities during 2002-03, which will be expanded to 4
million in phase-II.
Mission & Vision
VISION
To become the largest telecom Service Provider in South east Asia.
MISSION
i. To provide world class State-of-art technology telecom services on demand at affordable
price.
ii. To Provide world class telecom infrastructure to develop country's economy.
BSNL SERVICES
Here is an overview of the World Class services offered by the BSNL: The Plain old, Countrywide
telephone Service through 36,000 electronic exchanges. Digitalized Public Switched Telephone
Network (PSTN) with a host of Phone Plus value additions.
Data/-'
BSNL launched DataOne broadband service in January 2005 which shall be extended to 198
cities very shortly. The service is being provided on existing copper
infrastructure on ADSL2 technology. The minimum speed offered to
the customer is 256 Kbps at Rs. 250/- per month only. Subsequently, other services such as
VPN, Multicasting, Video Conferencing, Video-on-Demand, Broadcast application etc will be
added.
"Internet
Keeping the global network of Networks networked, the countrywide Internet Services of BSNL
under the brand name Internet dial up/ Leased line access, CLI based access (no account is
required) and DIAS service, for web browsing and E-mail applications. You can use your dialup
sancharnet account from any place in India using the same access no '172233' , the facility
which no other ISP has. BSNL has customer base of more than 1.7 million for sancharnet
service.
BSNL also offers Web hosting and co-location services at very cheap rates. ISDN
ISDN
Integrated Service Digital Network Service of BSNL utilizes a unique digital network providing
high speed and high quality voice, data and image transfer over the same line. It can also
facilitate both desktop video and high quality video conferencing.
Intelligent Network
Intelligent Network Service (In Service) offers value-added services, such as:
* Free Phone Service (FPH)
* India Telephone Card (Prepaid card)
* Account Card Calling (ACC)
* Virtual Private Network (VPN)
* Tele-voting
* Premium Rae Service (PRM)
* Universal Access Number (UAN) and more
I-Net
India s x.25 based packet Switched Public Data Network is operational in 104 cities of the
country. It offers x.25 x.28 leased, x.28 Dial up (PSTN) Connection) and frame relay services.
Leased Lines & Datacom
BSNL provides leased lines for voice and data communication for various application on point to
point basis. It offers a choice of high, medium and low speed leased data circuits as well as dial-
up lines. Bandwidth is available on demand in most cities. Managed Leased Line Network
(MLLN) offers flexibility of providing circuits with speeds of nx64 kbps upto 2mbps, useful for
Internet leased lines and International Principle Leased Circuits (IPLCs).
Cellular Mobile Service
BSNL’s GSM cellular mobile service Cellone has a customer base of over 5.2 million. Cellone
provides all the services like MMS, GPRS, Voice Mail, E-mail, Short
Message Service (SMS) both national and international, unified
messaging service (send and receive e-mails) etc. You can use
CellOne in over 160 countries worldwide and in 270 cellular
networks and over 1000 cities/towns across India. It has got
coverage in all National and State Highways and train routes.
CellOne offers all India Roaming facility to both pre-paid and post-
paid customers (including Mumbai & Delhi).
Wireless in Local Loop
This is a communication system that connects customers to the Public Switched Telephone
Network (PSTN) using radio frequency signals as a substitute for conventional wires for all or
part of the connection between the subscribers and the telephone exchange.
Countrywide WLL is being offered in areas that are non-feasible for the normal network.
Helping relieve congestion of connections in the normal cable/wire based network in urban
areas. Connecting the remote and scattered rural areas. Limited mobility without any air-time
charge
ABOUT AIRTEL
Vision of airtel
(1)To be the most admired brand in india
(2) Loved by more customers
(3) Targeted by top talent
(4)Benchemarked by more businesses.
