1.

INTRODUCTION

India is currently the world’s second-largest telecommunications market with a subscriber base of
1.05 billion and has registered strong growth in the past decade and half. The Indian mobile
economy is growing rapidly and will contribute substantially to India’s Gross Domestic Product
(GDP), according to report prepared by GSM Association (GSMA) in collaboration with the
Boston Consulting Group (BCG). The country is the fourth largest app economy in the world.

The liberal and reformist policies of the Government of India have been instrumental along with
strong consumer demand in the rapid growth in the Indian telecom sector. The government has
enabled easy market access to telecom equipment and a fair and proactive regulatory framework
that has ensured availability of telecom services to consumer at affordable prices. The deregulation
of Foreign Direct Investment (FDI) norms has made the sector one of the fastest growing and a
top five employment opportunity generator in the country.

The Indian telecom sector is expected to generate four million direct and indirect jobs over the
next five years according to estimates by Randstad India. The employment opportunities are
expected to be created due to combination of government’s efforts to increase penetration in rural
areas and the rapid increase in smartphone sales and rising internet usage.

2. MARKET SIZE

The mobile industry is expected to create a total economic value of Rs 14 trillion (US$ 217.37
billion) by the year 2020. It would generate around 3 million direct job opportunities and 2 million
indirect jobs during this period@. India has become the second largest smartphone market in the
world as shipments increased 23 per cent year-on-year in Q3 2017, to reach more than 40 million
units.

Rise in mobile-phone penetration and decline in data costs will add 500 million new internet users
in India over the next five years creating opportunities for new businesses. The monthly data usage
per smartphone in India is expected to increase from 3.9 GB in 2017 to 18 GB by 2023.
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Data usage on Indian telecom operators' networks (excluding Reliance Jio), doubled in six months
to 359 petabytes or 3.7 million gigabytes per month as 4G data usage share increased to 34 per
cent by the end of June 2017$. According to a report by leading research firm Market Research
Store, the Indian telecommunication services market will likely grow by 10.3 per cent year-on-
year to reach US$ 103.9 billion by 2020.

3. INVESTMENT/MAJOR DEVELOPMENT

With daily increasing subscriber base, there have been a lot of investments and developments in
the sector. The industry has attracted FDI worth US$ 30.03 billion during the period April 2000 to
September 2017, according to the data released by Department of Industrial Policy and Promotion
(DIPP).

Some of the developments in the recent past are:

Finnish telecommunication company Nokia, is going to collaborate with Indian telecom

The Government of India is working to digitally connect the rural and remote regions in the country
and has decided a new affordable tariff structure with the principle of more you use, less you pay.
The changes will soon be reflected in tariff changes by service providers in the country.

India telecommunication companies will be investing US$ 20 billion over the next two years for
expansion of network and operations, stated Mr Akhil Gupta, Vice Chairman, Bharti Enterprise.

4. GOVERNMENT INITIATIVES

The government has fast-tracked reforms in the telecom sector and continues to be proactive in
providing room for growth for telecom companies. Some of the other major initiatives taken by
the government are as follows:

The Government of India is working to digitally connect the rural and remote regions in the country
and has decided a new affordable tariff structure with the principle of more you use, less you pay.
The changes will soon be reflected in tariff changes by service providers in the country.

2
The Government of Telangana is targeting to provide broadband connection to every household in
the state by 2018, which is expected to lead to revolutionary changes in the education and health
sectors.

Mr Manoj Sinha, Union Minister of Communications, Government of India, stated that the
government will provide the required support for achieving the dream of a fully connected and
truly empowered India soon, while inaugurating a national conference on 'BharatNet and its
utilisation with states'.

5. ROAD AHEAD

India will emerge as a leading player in the virtual world by having 700 million internet users of
the 4.7 billion global users by 2025, as per a Microsoft report. Internet economy expected to touch
Rs 10 trillion (US$ 155 billion) by 2018, contributing around 5 per cent to the country’s GDP.
With the government’s favourable regulation policies and 4G services hitting the market, the
Indian telecommunication sector is expected to witness fast growth in the next few years. The
Government of India also plans to auction the 5G spectrum in bands like 3,300 MHz and 3,400
MHz to promote initiatives like Internet of Things (IoT), machine-to-machine communications,
instant high definition video transfer as well as its Smart Cities initiative. The Indian mobile phone
industry expects that the Government of India's boost to production of battery chargers will result
in setting up of 365 factories, thereby generating 800,000 jobs by 2025.

6. INTERNET USER

The number of internet users in India will reach 500 million by June 2018, a report by IAMAI and
Kantar IMRB says. At the end of December 2017, India had 481 million users, growing 11.34%
from 2016.

According to the findings of the report, urban India witnessed growth of 9.66% from December
2016 and is estimated to have around 295 million internet users as on December 2017.

On the other hand, rural India witnessed growth of 14.11% from December 2016 and is estimated
to have around 186 million internet users as on December 2017.

Even though the growth rate of rural India may seem higher, it is mainly due to the low base
effect; given overall internet users in rural India are still critically low, the report said. Internet

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penetration in urban India was 64.84% in December 2017 as compared to 60.6% last December.
In comparison, rural internet penetration has grown from 18% last December to 20.26% in
December 2017. In terms of numbers, urban India with an estimated population of 455 million
already has 295 million using the internet. Rural India, with an estimated population of 918 million
as per 2011 census, has only 186 million internet users. Thus, there are potential 732 million users
still in rural India, the report said. There are over 182.9 urban users who are accessing the internet
on the daily basis while 98 million users in rural areas are daily users. Internet user market is still
a male preserve in India. There are estimated 143 million female internet users overall, which is
approximately 30% of total internet users.

7. MAJOR TELESERVICE PROVIDERS IN IN INDIA.

7.1.Bharti Airtel Ltd

Headquartered in New Delhi, India, Bharti Airtel Ltd is a leading global telecommunications
company with operations in 20 countries across Asia and Africa. The company ranks amongst the
top four mobile service providers, globally, in terms of number of subscribers. In India, the
company's product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed
line services, high speed DSL broadband, IPTV, DTH, enterprise services including national and
international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G
wireless services and mobile commerce.

Bharti Airtel is the fourth largest mobile operator in the world

Bharti Airtel is India’s largest mobile operator

Presence in all of India’s 22 circles

324 million consolidated subscribers across various businesses.

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 7.2.Vodafone

Vodafone India Ltd, headquartered in Mumbai, is the second largest mobile network operator
serving over 150 million customers in India with a presence in all telecom circles. The company
is a member of the Vodafone Group and commenced operations in 1994 when its predecessor
Hutchison Telecom acquired the cellular license for Mumbai. Vodafone India has firmly
established a strong position within the Vodafone Group too, making it the largest subscriber base
globally.

Vodafone Business Solutions serves the requirements of an enterprise. It is a total communications

In line with the government’s objective to improve rural penetration of telephony services, the
company has also worked continuously in the last few years to establish a strong rural presence.
Vodafone has marked a growth of over 21 per cent in its rural subscriber base in FY 2011–12 to
become the second largest rural wireless operator in the country.

India’s leading telecom service provider

Total revenues of Rs 356.10 billion (US$ 5.92 billion) during FY 13

Total subscriber base of about 153 million (as of March 2013)

37.3 million data users (as of March 2013)

Equity interests in over 30 countries

7.3.Idea Cellular

Idea Cellular, an Aditya Birla Group company, is a pan-India integrated GSM operator offering
2G and 3G services, has its own National Long Distance (NLD) and International Long Distance
(ILD) operations, and Internet Service Provider (ISP) license. With revenue in excess of US$ 5
billion, market share of nearly 18.2 per cent, and subscriber base of over 165 million. Idea is India’s
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third largest mobile operator. Idea is the sixth largest mobile operator in the world, based on
number of subscribers in single country operations (as per GSMA Intelligence). Idea carries traffic
of over 2 billion minutes a day.

Idea is planning to launch 4G services in early 2016. The company has a well established network
across the length and breadth of the country comprising of over 1,49,196 cell sites covering 7,513
towns and 3,63,580 villages as on the first quarter of FY 16. Using the latest in technology, Idea
provides world-class service delivery through the most extensive network of customer touch
points, comprising of nearly 6,752 exclusive Idea touch points,. Idea’s customer service delivery
platform is ISO 9001:2008 certified.

India’s 3rd largest mobile operator

Subscriber base of over 165 million Revenue in excess of US$ 5 billion

7.4.Aircel

Aircel is one of India's fastest growing GSM mobile service providers with a subscriber base of
65.1 million. It started off as a regional company in Chennai in 1999. In 2006, Aircel was acquired
by Malaysia's biggest integrated communications service provider Maxis (Maxis Communication
Berhard) and is a joint venture (JV) with Sindya Securities and Investments Pvt Ltd. Maxis holds
74 per cent equity in the company.

Presently, it is a pan-India operator with a presence across 23 circles. The company offers voice
and data services ranging from postpaid and prepaid plans, 2G and 3G services, Broadband
Wireless Access (BWA), and Long Term Evolution (LTE) to Value-Added-Services (VAS). In
addition to providing premium internet access solutions to facilitate data intensive live streaming
applications, the company has also paved the way to be among the first to offer 3G and 4G LTE
services to customers.

6
Aircel has positioned itself as a data led telecom player with a focus on young Indians and has
addressed the multi-functionality of a mobile phone in many innovative ways which are industry
firsts.

Fifth largest mobile service provider in India

Among the first to offer 3G and 4G LTE services to customers

Strong foothold in about 10 telecom circles in India.

7.5.Reliance Jio Infocomm

Reliance Jio Infocomm Ltd (RJIL) is a part of the well-known Reliance Group and is a wholly
owned subsidiary of Reliance Industries Ltd (RIL). It was previously known as Infotel Broadband
and is a broadband service provider. The company has recently gained fourth generation (4G)
licences for operating across India. It is the first telecom operator to hold pan-India unified license.
This license authorises RJIL to provide all telecommunication services except global mobile
personal communication by satellite service. RJIL holds spectrum in 1800 MHz (across 14 circles)
and 2300 MHz (across 22 circles) capable of offering 4G wireless services.

Subsidiary of Reliance Industries Ltd

First telecom operator to hold pan-India unified license

Holds 1800 MHz spectrum in 14 circles

Holds 2300 MHz spectrum in 22 circles

8. TELECOM SUBSCRIBERS IN INDIA

As per the release of Trai

 Telecom subscriber base in India reached 1.19 billion at the end of December 2017 with
Reliance Jio adding over 8 million new customers alone during the month, according to
data published by telecom regulator Trai.

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 "The number of telephone subscribers in India increased from 1,185.88 million at the end
of November 2017 to 1,190.67 million at the end of December 2017, thereby showing a
monthly growth rate of 0.4 per cent," Trai said in a monthly subscribers' report.
 The growth was led by mobile telephony segment with net additions of 4.97 million
customers by five telecom operators Reliance Jio, Idea Cellular, Vodafone, Bharti Airtel
and BSNL during the month.
 Reliance Jio led the growth in mobile segment by adding over 8 million new customers--
three fold more than it closest competitor Idea which added 2.43 million subscribers in the
reported month.
 Idea was followed by Vodafone which added 1.5 million new mobile subscribers, Airtel
576,575 and BSNL added 421,836 subscribers.
 Telecom operator Aircel lost over 2.65 million customers, Reliance Communications
(RCom) 2.3 million, Telenor 1.71 million, Tata Teleservices 1.3 million and MTNL lost
6,561 mobile customers.
 Despite closure of mobile services, RCom was left with over 33.16 million customers. Trai
has asked RCom to refund unspent money of customers who have not been able to port
their number of exhaust their balance.
 The subscriber base in wireline segment declined to 23.23 million at the end of December
from 23.41 million at the end of November 2017.
 BSNL which dominates the market with 53.5 per cent market share lost 127,842 fixed line
customers while private operators Tata Teleservices added 8,294 new connections,
Vodafone added 7,625 and Bharti Airtel added 5,995 new fixed line customers in
December.
 The number of broadband subscribers increased to 362.87 million at the end of December
from 350.7 million in November.
 "Top five service providers constituted 93.8 per cent market share of the total broadband
subscribers at the end of Dec-17. These service providers were Reliance Jio Infocom Ltd
(160.09 million), Bharti Airtel (71.09 million), Vodafone (52.44 million), Idea Cellular
(34.81 million) and BSNL (21.95 million)," the report said.
 Mobile devices accounted for 344.57 subscribers in December.

8
  The top-five wired broadband service providers in December were BSNL (9.38 million),
Bharti Airtel (2.15 million), Atria Convergence Technologies (1.28 million), MTNL (0.91
million) and Hathway Cable & Datacom (0.73 million).

9. INTRODUCTION TO TABLEAU

Data Visualization is an art of presenting the data in a manner that even a non-analyst can
understand it. A perfect blend of aesthetic elements like colors, dimensions, labels can create visual
masterpieces, hence revealing surprising business insights which in turn helps businesses to make
informed decisions.

Data Visualization is an inevitable aspect of business analytics. As more and more sources of data
are getting discovered, business managers at all levels embrace data visualization software’s that
allow them to analyze trends visually and take quick decisions. Currently, the most popular tools
for visualizations / data discovery are Qlikview and Tableau. We have already published a step by
step learning path for Qlikview.

Tableau is one of the fastest evolving Business Intelligence (BI) and data visualization tool. It is
very fast to deploy, easy to learn and very intuitive to use for a customer. Here is a learning path
to all those people who are new to Tableau. This path will help you to learn Tableau in a structured
approach. Beginners are recommended to follow this path religiously. If you already have some
background, or don’t need all the components, feel free to follow your own paths and let us know
how did it turn out to be.

Many of you frequenting the scientifically enhanced circles must have been subjected to hearing
this term called ‘Tableau’. According to the Fortune magazine, “Tableau as a concept of visual
analytics has been pioneered by a Seattle based software firm.” This concept saw its beginning in
the initial stages at the Stanford University in the year 2003 and later on its development resulted
from the launching of a public sector offering a decade later in the year 2013.

Tableau The basic function and mission of Tableau are to be the creator of various spreadsheet
databases and various other information sources which will prove to be simpler for the use for an
average person and their usages. The co-founders of this technological advancement are Christian
Chabot, Pat Hanrahan, Chris Stolte all of whom worked as a trifecta force and began their journey

9
by bringing together and devising a structured query language for all of those databases which
require a descriptive language for the purpose of rendering graphics.

The result of all of those well-timed, meticulous efforts was a database visualization language
which is called as Visual Query Language or as it is popularly known by its acronym VizQL. This
language essentially underlines the Tableau’s software application which basically then goes on
to set up queries in the relational databases, cubes, cloud databases and spreadsheets and then goes
on to generate a variety of graphs and different types of representations. These graphs can either
be combined into dashboards or also shared over a computer network and even over the internet.

Today this software application actually boasts close to 30,000 client accounts. These client
accounts are not just any, but actually include high profile accounts of the World Bank, Coca-Cola,
Exxon Mobil, Homeland Security, Pfizer, Fannie Mae, and Gallup, Nike and Adobe and so many
more big names. There are many other customers of Tableau where the executives are working in
order to develop a 360 degree perspective for their consumer base. Even at the Cornell University
there happen to be 600 employees who perform various kinds of analysis by using Tableau.

Those who work under this environment usually perform various functions like contributor
relations, in order to visualize faculty salary statistics as well as track all the information about the
students and their respective classes that they hope to attend. The Gartner Annual Report that was
released in the year 2015, which essentially happens to be a report on the business intelligence and
analytical concepts around the globe on an annual basis has proclaimed that Tableau is a ‘leader’
in the business analytics space and if future predictions are to be believed that it is most definitely
here to stay.

The various products that this software offers include Tableau Desktop, which helps everyone
attain fast analytics, Tableau Server which functions are the collaboration for any organization,
Tableau Online which functions as a business intelligence in the cloud and Tableau Public which
is generally for public data.

10. IMPORTANCE OF DATA VISUALIZATION:

Big data is a broad term for data sets so large or complex that traditional data processing
applications are inadequate. Challenges include analysis, capture, curation, search, sharing,

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storage, transfer, visualization, and information privacy. Big data is distinct from the internet,
although the web makes it much easier to collect and share data

One of the most important benefits of visualization is that it allows us visual access to huge
amounts of data in easily digestible visuals. Well designed data graphics are usually the simplest
and at the same time, the most powerful.

Possible Process Research, design, & development teams come in here, processing information
and building a user friendly tool. This is the visualization phase. Data mining, understanding a
potential strategy and story. This is the discovery phase. A web experience is created giving the
user a data-driven experience. This is the experience phase.

Everything depends on the concept of layering, establishing hierarchies and making them clear.
Challenging the viewer to think about the substance rather than about the methodology, graphic
design, or the technology used to make the visualization. Encourage the eye to compare, reveal the
data at several levels of detail, from a broad overview to minute statistics. RESOURCE The Visual
Display of Quantitative Information - Edward R. Tufte

Data analysis are the stories we desire to tell. Visual composition is the main architecture and the
aesthetic value we desire to present. Storytelling with data visualization creates an impactful
response from the user with numbers to back it up. Data visualization plays a critical role in modern
analytics.

Data visualization (data graphics) help you understand trends, patterns, and to make correlations.
They’re typically instruments for reasoning about quantitative information. Information graphics
(info graphics) are typically a representation of not only specific data points but information as
well. They’re usually instruments for reasoning about qualitative information.

Information graphics are visual representations of information, data or knowledge often used to
support information and strengthen it. Data visualizations are visual displays of measured
quantities by means of the combined use of a coordination system, points, lines, shapes, digits,
letters quantified by visual attributes. Both can be static, animated or interactive.

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 11. OBJECTIVE ‘S

11.1 CUSTOMER RETENTION ANALYSIS

To analyze the number of customers, three states including Andhra Pradesh, Tamilnadu and Kerala
are considered. The top mobile service providers Airtel, Idea, Vodafone, BSNL and RJio are taken.
Month of November ’17 and December’17 data are used to make a comparative analysis. The
number of customers enrolled and exit are compared between this operators using Tableau.

FIGURE 11.1 CUSTOMER RETENTION ANALYSIS

On an average in the circle of Tamilnadu, Kerala and Andhra Pradesh Airtel has gained customers
followed by idea and Vodafone, while Jio has managed to maintain the existing customers.

12
11.2. CONNECTIVITY

Connectivity is a measure of quality of service. Here in order to make an analysis the top mobile
service providers Airtel, Idea, Vodafone, BSNL and RJio are taken. Three states Andhra Pradesh,
Tamilnadu and Kerala are considered. Comparitive study is done , in terms of outdoor indoor and
travelling connectivity.

FIGURE 11.2 OUTDOOR ,INDOOR AND TRAVELLING

INFERENCE:

By conducting the study it is concluded that in the state of Kerala and Andhra Pradesh on an
average Rjio is offering better connectivity compared to other mobile service providers. In
Tamilnadu Idea is doing good.

13
11.3 OUTDOOR CONNECTIVITY COMPARISION USING DOUNUT CHART.

In order to have a better understanding dounut chart is used to make a OUTDOOR comparative
analysis. Three states Andharapradesh, Kerala and Tamilnadu are considered. Top mobile service
providers Airtel, Idea, Vodafone, BSNL and RJio are taken. And analyzed.

FIGURE 11.3.OUTDOOR DETAILS

INFERENCE:

After making a comparative study on an average Tamilnadu maintain 4 points out of five
comparatively to other states. It can be concluded that Tamilnadu state has a better outdoor
connectivity.
14
11.4. INDOOR CONNECTIVITY COMPARISION USING DOUNUT CHART.

In order to have a better understanding dounut chart is used to make a indoor comparative analysis.
Three states Andharapradesh, Kerala and Tamilnadu are considered. Top mobile service providers
Airtel, Idea, Vodafone, BSNL and RJio are taken. And analyzed.

FIGURE 11.4 INDOOR DETAILS

INFERENCE:

After making a comparative study on an average Tamilnadu maintain 3.92 points out of five
comparatively to other states. It can be concluded that Tamilnadu state has a better indoor
connectivity.

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11.5. 4G SPEED COMPARISION

Another measure of QOS is data speed that service operators are offering to the customers. To
understand average speed among top five service providers are taken and averaged in order to
find the state that offers a high speed data connectivity.

FIGURE 11.5 4G SPEED CONNECTIVITY

INFERENCE:

After making a comparative study on an average Kerala maintain average speed of 23.60 Mbps is
offered when compared with other states. It can be concluded that Kerala state has a better 4G data
connectivity.

16
11.6. OUTDOOR, INDOOR AND 4G SPEED COMPARISION

In this case of analysis outdoor , indoor and 4G speed is compared for every state that helps one
to pick out the serive provider based on the service they offer.

FIGURE 11.6 INDOOR, OUTDOOR AND 4G CCONNECTIVITY

INFERENCE

Here an interactive dashboard is used to understand the various states mobile service providers
outdoor , indoor and 4G connectivity. In case of Tamilnadu its quite good in connectivity on an
average.

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11.7. TOP 10 STATES THAT HAS RJIO CUSTOMERS.

In order to find the number of customers for RJio using tableau filter option is used. By using by
field option top 10 states are selected and plotted.

FIGURE 11.7 TOP 10 STATES FOR RJIO CUSTOMERS

INFERENCE

Top ten states are selected and plotted using the data of December 2017 and it is observed that
Andhra Pradesh , Maharashtra, UP East occupied the first three positions.

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11.8. CUSTOMER RETENTION ANALYSIS FOR AIRTEL

In order to perform customer retention analysis Airtel mobile service provider is choosen. Using
filtering operation in tableau and calculation field the difference between the customers for the
month of November and December 2017 is calculated.

FIGURE 11.8. LOSS OF CUSTOMERS

INFERENCE

From the analysis it is inferred that Bihar and Maharashtra has gained some customers while
Kerala, Orissa, Uttar Pradesh has lost its customers.

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11.9. ARPU ANALYSIS FOR THE SATE OF TAMILNADU AND KERALA

Here Tamilnadu and kerala are taken for analyzing ARPU (Average Revenue per User). The data
is loaded in to the tableau to perform dynamic analysis.

Name of the Service Avg. ARPU (Rs) Apr- ARPU (Rs) Apr-
Company Area Jun'2017 Jun'2017 1

Tamil
Vodafone Nadu 145.0606991 145.0606991

Tamil
IDEA Cellular Nadu 66.44499394 66.44499394

Tamil
Bharti Airtel Ltd Nadu 155.7162379 155.7162379

Tamil
Aircel Limited Nadu 83.00521012 83.00521012

Vodafone Kerala 151.6476292 151.6476292

IDEA Cellular Kerala 193.5794359 193.5794359

Bharti Airtel Ltd Kerala 121.0361923 121.0361923

Aircel Limited Kerala 35.72542606 35.72542606

TABLE 11.9 ARPU ANALYSIS

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 FIGURE 11.9 ARPU ANALYSIS FOR KERALA AND TAMILNADU

INFERENCE

In Tamilnadu Airtel has a better ARPU when compared to other operators. In Kerala Idea cellular
holds a better ARPU.

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11.10. ARVERAGE TOTAL REVENUE FOR THE QUARTER OF JUN’2017

In this case to find the average total revenue for the states of Tamilnadu, Kerala and Andhra
Pradesh are taken in terms of crores in tableau.

Name of the Company Service Area Avg. Total Revenue for the
Quarter (B) (Rs crores) Apr-
Jun'2017
Vodafone Tamil Nadu 709.8907528
Vodafone Kerala 349.6715829
Vodafone Andhra Pradesh 195.3145761
Telenor (India) Andhra Pradesh 61.88
Communications Private
Limited
IDEA Cellular Tamil Nadu 121.8850789
IDEA Cellular Kerala 642.0187722
IDEA Cellular Andhra Pradesh 655.1925038
Bharti Airtel Ltd Tamil Nadu 865.1403112

TABLE 11.10 AVERAGE REVENUE FOR JUN’2017 IN TERMS OF CRORES

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FIGURE 11.10 AVERAGE OF TOTAL REVENUE FOR JUN 2017

23
 FIGURE 11.11 FINANCIAL STATUS ANALYSIS
INFERENCE

The business for telecom carriers depends on two main factors. One is the number of subscribers.
The more they are able to add, the higher is the expected revenue. In India, 14.63 million
subscribers were added in the September 2016 quarter, show Telecom Regulatory Authority of
India (TRAI) data.

Two, revenue also depends on the income that the operator is able to generate by offering different
services. ARPU or average revenue per user, is the average billing per customer earned by the
telecom company every month.

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The telecom business is capital-guzzling. So, carriers who invest a lot in building their
infrastructure need healthy utilisation on their networks to report a profit. So they try to woo more
subscribers even if it means lower tariffs.

When mobile penetration in India was low, there was heady growth in ARPU numbers. That’s not
the case anymore — there are already 105 crore subscribers and wireless tele-density is already
above 87 per cent. Carriers are vying for limited number of new users, triggering price wars.

To add to the woes, ARPUs of Indian players have always been anaemic by global standards. The
industry ARPU was ₹131 per month in September 2016, as per the latest data from TRAI. The
number has barely crept up from ₹125 levels a year ago.

India has one of the lowest data tariffs in the world; $3.5 per 1 GB of data, compared with $15 in
China and $10 in the US. Voice revenues accounted for two-third of total revenue for carriers in
2015-16. But with increasing smartphone penetration and data consumption, data — which is
cannibalizing on profitable voice calls. The new player — Reliance Jio — has shaken up the
market with its free voice call offer, leading to the worry if this source of high APRU will soon
disappear!

The Government has been demanding a bigger pound of flesh for allotting spectrum — the raw
material that all telecom need. As a result, telecom operators are reeling under high debt, over ₹4.7
lakh crore of it, shows an estimate.

A falling APRU certainly rings in good times for you, as you can get to enjoy voice and data at
cheaper rates. But the problem is that too precipitous a fall in ARPUs can trigger a situation where
players merge with each other to create new telco giants. If that happens, competition will wane
and the newly created Goliaths may go back to raising their tariffs.

High debt and falling ARPUs can also ring warning bells for the banks that have lent to them. If
you are an equity investor in the Indian telecom sector, ARPU numbers are essential to track now.

ARPUs can carry quite a high correlation to telecom companies’ profitability. Take the case of
Idea, which saw its ARPU plunge from ₹181 in June 2016 to to ₹157 in December. The company
reported its first ever loss since it was listed in 2007. Even market leaders felt the pain. Bharti
Airtel’s data ARPU fell 13 per cent sequentially in the December quarter to ₹175; net profit fell

25
55 per cent year-on-year. A blood bath in APRUs will also mean headaches for the Government,
which is looking to rake in big revenues from spectrum auctions.

12. CONCLUSION
 BSNL which dominates the market with 53.5 per cent market share lost 127,842 fixed line
customers while private operators Tata Teleservices added 8,294 new connections,
Vodafone added 7,625 and Bharti Airtel added 5,995 new fixed line customers in
December.
 The number of broadband subscribers increased to 362.87 million at the end of December
from 350.7 million in November.
 "Top five service providers constituted 93.8 per cent market share of the total broadband
subscribers at the end of Dec-17. These service providers were Reliance Jio Infocom Ltd
(160.09 million), Bharti Airtel (71.09 million), Vodafone (52.44 million), Idea Cellular
(34.81 million) and BSNL (21.95 million)," from the analysis.
 Mobile devices accounted for 344.57 subscribers in December.

REFERENCES:

https://www.thehindubusinessline.com/

http://www.trai.gov.in

https://coai.com

https://www.tableau.com/learn/training

https://www.tutorialspoint.com/tableau/index.htm

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