0% found this document useful (0 votes)
640 views

Telecom Hitesh Mini Project

This document outlines a mini project report on emerging technologies in the telecom industry. It includes sections on the introduction of the industry, its evolution from state-owned to privatization, and emerging technologies like 5G. Key points are made about India being the second largest telecom market and the liberalization policies that have led to growth in telecom services and affordable access for consumers.

Uploaded by

asif ansari
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
640 views

Telecom Hitesh Mini Project

This document outlines a mini project report on emerging technologies in the telecom industry. It includes sections on the introduction of the industry, its evolution from state-owned to privatization, and emerging technologies like 5G. Key points are made about India being the second largest telecom market and the liberalization policies that have led to growth in telecom services and affordable access for consumers.

Uploaded by

asif ansari
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 40

MINI PROJECT REPORT

ON
“Emerging Technologies In Telecom Industry.”

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENTFOR THE

AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION


(Session: 2021-2023)

Submitted by: Submitted to:


HITESH KUMAR DR. RICHA MISHRA
MBA 1 YR SEM- II
2101810700033

1
DECLARATION

I Under signed, hereby declare that the project titled“Emerging


Technologies In Telecom Industry” submitted in partial fulfillment for
the award of Degree of Master of Business Administration of A P J
Abdul Kalam Technological University is a bonafide record of work
done by me under the guidance of DR RICHA MISHRA . This report
has not previously formed the basis for the award of any degree, diploma,
or similar title of any University.

2022 HITESH KUMAR

MASTER OF BUSINESS ADMINISTRATION

2
CERTIFICATE

This is to certify that the report titled “Emerging Technologies In Telecom

Industry” being submitted by HITESH KUMAR, Roll no.2101810700033, in


partial fulfilment of the Requirements for the award of the Degree of Master
of Business Administration, is a bonafide record of the project work done by
HITESH KUMAR of Master of Business Administration, STEP-HBTI.

DR RICHA MISHRA DR.CK TIWARI


PRICIPAL

3
ACKNOWLEDGEMENT

Through this acknowledgement I express my sincere


gratitude towards all those people who helped me in this
project, which has been a learning experience.

This space wouldn’t be enough to extend my warm


gratitude towards my project guide Dr.Richa mishra for
his efforts in coordinating with my work and guiding in
right direction.

I escalate a heartfelt regards to our Institution Principal


Dr C K Tiwari for giving me the essential hand in
concluding this work.

It would be injustice to proceed without acknowledging


those vital supports I received from my beloved
classmates and friends, without whom I would have been
half done.

I also use this space to offer my sincere love to my parents


and all others who had been there, helping me walk
through this work.

Name of Student
Hitesh kumar
S. NO. CONTENT PAGE
NO.

1. FRONT PAGE 01

2. DECLARATION 02

3. CERTIFICATE 03

4. ACKNOWLEDGEMENT 04

5. INTRODUCTION 06-07

6. EVOLUTION 08-10

7. SOURCE OF IDEA 11

8. BUSINESS RELEVANCE OF IDEA 12-15

9. EMERGING TECHNOLOGIES IN TELECOM INDUSTRY 16-23

10. EFFECTS OF TELECOM INDUSTRY AFTER ADAPTION 24-26

11. COMPANIES IN TELECOM INDUSTRY 27-29

12. GRAPHICAL REPRESENTATION OF TELECOM INDUSTRY 30-33

13. SWOT ANALYSIS 34-38

14. CONCLUSION 39

TABLE OF CONTENT
Introduction Of the Industry

About The Industry

India is the second largest telecom market in the world and is amongst the fastest growing

markets. The country offers robust growth fundamentals, increasing urbanization, rising

income levels and favorable demographics. The majority of new customers are likely to

come from the rural areas with inadequate basic infrastructure and limited or no

connectivity, demanding lower tariffs for voice calls and value-added services like

information about market and commodity prices, weather updates, health updates coupled

with vernacular support at the user interfaces. The urban consumer demands high speed

internet connectivity, audio video streaming, navigation and location maps, music

downloads, gaming, m-commerce, IPTV and mobile TV. Innovations like shared

infrastructure, new low-cost technology and energy saving devices and critical for roll-out

in rural areas.

M-Commerce will emerge as the future growth engine as the industry shifts from voice to

data services. The convenience of the mobile phone as an instrument for conduct of

financial transactions and its potential in the process of financial inclusion and growth’s

been well recognized. There is a large untapped potential for these services in the Indian

market.
The telecommunications industry is made up of cable companies, internet service providers,

satellite companies, and telephone companies. Telecommunications is defined as communicating

over a distance. The industry’s origin can be traced to postal courier services.

Postal courier services were used primarily to communicate with the armed forces. Over time,

new communication methods, such as the telegraph and the telephone, came into being. Soon,

important operating companies such as Bell Telephone Company and American Telegraph and

Telephone Company (AT&T) were formed.

Currently, India is the world’s second largest telecommunications market with a subscriber base

of 1.16 billion and has registered strong growth in the last decade. The Indian mobile economy is

growing rapidly and will contribute substantially to India’s Gross Domestic Product (GDP)

according to a report prepared by GSM Association (GSMA) in collaboration with Boston

Consulting Group (BCG). In 2019, India surpassed the US to become the second largest market

in terms of number of app downloads.

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 to telecom services to consumer at affordable prices. The

deregulation of Foreign Direct Investment (FDI) norms have made the sector one of the fastest

growing and the top five employment opportunity generator in the country.
EVOLUTION
The Evolution of Telecom Industry in India can be categorized into 3 parts:

Stage1 –Till1990–State- owned Era

Stage2 –Till2000–Advent of Private Players

Stage3 –Phase1–From 2000 to 2010 – Golden Era

Phase 2 – From 2010 &Beyond – Re-definition Age

Stage 1 – Till 1990 – State-owned Era

In the first stage, the telecom sector was owned and run by the government. The telephone

services began in India with a manual telephone exchange in 1882 in Kolkata.

The telecom industry evolved only after the Department of Telecommunication (DoT) was

separated from the Indian post and telecommunication department in 1985. DoT was responsible

for telecom services of the entire country till 1986. Subsequently, MTNL and VSNL were carved

out of the Department of Telecommunication (DoT) for separation of its policy functions and

telecom operations in metro cities like Mumbai and Delhi and International long-distance

operations.

This gives rise to the 2nd part of the telecom industry in India in which the government allows

private players to enter the Telecom Industry.


Stage 2 – Till 2000 – Advent of Private Players

In 1994, the government introduced the National Telecom Policy (NTP) for private players. This

policy clearly laid down the role of private operators. Cellular services were first launched in

1995 in Kolkata.

Another milestone during this Era was the formation of TRAI in 1997. TRAI was formed to

regulate the fair environment between operators and subscribers.

In 2000, the third organization called TDSAT was formed to settle the disputes between

operators, between operators and government, and between operators and subscribers.

During this period telecom subscriptions were growing rapidly, Operators brought in new

innovations like prepaid, this reduces the mobile fees and allows cell phones affordable to

common men.

After march 2000, the government became more liberal and started issuing more licenses and

reduced license fees. This starts the 3rd stage of the telecom industry.

Stage 3 – Phase 1 – From 2000 to 2010 – Golden Era

The third stage of the telecom sector can be categorized into 2 parts. The first part from 2000 to

2010 telecommunication grew phenomenally is called the Golden Era. The second part from

2010 and beyond is called the Re-definition Age.


In the golden Era, in 2005, 2G gave rise to mobile users. The number of mobile connections

rapidly crosses the number of fixed-line connections.

Indian telecom market is one of the fastest growing and most competitive markets in the world.

In the same year, the government increased the foreign Direct Investment (FDI) limit in the

telecom sector from 49% to 74%.

Stage 3 – Phase 2 – From 2010 &Beyond – Re-definition Age

The most significant contributors of the Re-definition age are the introduction of 3G in 2008 and

4G in 2012. The introduction of 3G and 4G networks gives advent to the Smart Phones. This

brought in mobile advertising, mobile commerce, video calling, streaming, full movie download,

live TV, and multi-player gaming to everyone’s handset.

After 2G, 3G and 4G, the 5G is now all set to launch in India.
SOURCE OF IDEA

The telecom sector barometer of the health of the global economic not with standing the
volatility and uncertainties of the post pandemic era the telecom industry continue to
leads the way in striving to create the future of our aspiration. Telecom technology
companies are working on changing several paradigms when it comes to connecting
and doing business. A few weeks away from 5g spectrum auction, we in India are
poised for a major socioeconomic transformation enable by 5G network technology.
Even as we leap frog into 5G, it is hard to ignore the fact that billions across the the
world are still unconnected and are thereby unable to influence policies and action that
impact there lives. The need for digital inclusion, affordable and sustainable connectivity
solution remains as high as ever, as per UN estimates, over 3 billion people are not
using internet at over their phones.
BUSINESS RELEVANCE OF IDEA

1. It Satisfies Our Basic Needs

Information technology and the ability to connect and communicate is a fundamental part of

how our society operates. In today’s digital ecosystem, telecommunication has become the

foundation for businesses, governments, communities, and families to seamlessly connect and

share information.

Thanks to telecom advancements, things like searching the internet, placing phone calls,

emailing, and text messaging has become integrated into our personal and professional lives on a

near-ubiquitous level. 

2. It’s Vital for Security

From a security perspective, telecommunication is one of the most crucial infrastructures for

protection. From natural disaster initiatives to military needs, there’s a wide spectrum of

institutions that depend on telecom to provide safety.  

3. It Empowers Participation

Communities in remote regions were once unable to access vital resources. Now, because of

telecommunications, these locations can procure goods and services via ships or aircraft and

systematize development initiatives. This type of accessibility allows for the growth and

development of our entire society.  


4. It’s an Economic Booster

According to Statista, the telecom sector is responsible for an estimated global spend of $520

billion annually. The frontrunner, unsurprisingly, is the U.S., boasting one of the largest telecom

markets in the world. 

Firstly, it encompasses the following subsectors:

 Cable distribution

 Telephony, including Voice over Internet Protocol (VoIP)

 Satellite telecommunications

 Wholesale Telecommunications resellers 

Each of these sectors employs over 727,000 people and provide average hourly earnings of

around $37, according to the Bureau of Labor Statistics.  

5. Encourages Education

Thanks to technological advances, people have access to learning opportunities outside of

traditional schooling. Today, you simply need a computer, Smartphone, and the internet to

conduct a search, read a tutorial, or watch a how-to video on virtually any subject matter. 

Some of the largest institutions are now leveraging telecommunications to deliver long-distance

or remote education. This is extremely cost-effective for students, allowing them to conserve

money that would otherwise be spent on housing and travel. 


6. Advanced Communication
Telecom services provide the platform necessary for data to be exchanged
electronically – whether that be through wireless or wired means. 

Documents, analytics, reports, emails, you name it, can be shared with your
colleagues in the cubicle next to you, to a client on the other side of the country, or
one of your offices abroad.  

Now with tablets and Smartphone’s, businesses can leverage mobile


communication to streamline workflow and productivity. Employees can use their
devices to access certain applications, respond to emails, work on presentations,
and participate in teleconference conversations. 

7. Improved Collaboration

In today’s business world, many organizations employ cross-functional teams to


tackle new products, corporate initiatives, marketing campaigns, etc. 

To ensure projects are progressing as forecasted, these teams likely connect


regularly to discuss the status of the deliverables, share ideas, and address any
unforeseen hurdles that may arise. 
With telecom services, these teams are equipped with the technology necessary to
collaborate from any location – allowing for optimal productivity, enhanced
connectivity, and increased teamwork.  

8. Enhanced Flexibility

The number of people who work from home has increased a whopping 115% since
2005 according to Global Workplace Analytics. With that in mind, if your B2B
business has remote employees or your staff tends to travel frequently for
meetings, telecom services are an effective means for staying connected and in-the-
know.  

9. Better Customer Service

Being able to access the internet at all hours of the day is a crucial facet of
delivering high-quality customer service. 

How your business communicates with customers (and potential customers) will
reinforce brand loyalty, help your team build better relationships with prospects
and clients, and increase retention. However, unless you have a dependable
connection, pulling this off just isn’t possible.  
EMERGING TECHNOLOGIES IN TELECOM INDUSTRY
Telecom Operators have faced their fair share of structural challenges, especially in view of the

past two years of global crisis. However, there has also been a remarkable growth in areas like

mobile connectivity, consumption of digital services, and digital transformation of businesses,

with this growth wave still nowhere near saturation point. 

In light of this, telecom CIO’s sector-wide are considering new ways to improve their digital

engagement and to keep their operations running smoothly. Therefore, the big question becomes:

What steps can telecom companies take to thrive in 2022?

The advancement of technology has been a double-edged sword for telecoms bringing forth its

own set of benefits and challenges for companies. While the new and innovative platforms have

afforded a much larger subscriber base or geographical reach to telecoms, the security risks,

heavy loads, and the need for 24/7 support availability has also been a cross to bear for them.  

On top of this, the telecom sector is evolving at such a rapid pace that it is crucial for companies

to catch the wave of opportunity, or else risk being swept by it. From the dramatic shift to cloud

platforms and micro services architecture to the adoption of 5G technologies, CIOs are making

heavy investments in automation and digitization of business processes. 

This makes it pivotal for OPCC’s to find the right technologies that fits their needs, and not only

enables them to take advantage of the tech wave but also do it cost-efficiently.

So without further ado, the five most predominant market trends and emerging technologies that

have taken the telecom industry by storm include:


1. 5G Technology 

Wireless connectivity, which is a key catalyst for growth, is enabled by the deployment of 5G

technology which is an essential building block for the interaction and connection of billions of

devices of almost any kind. Therefore, despite the continuous growth and dominance of 4G in

the markets, many have taken a leap and upgraded to 5G, which is now rapidly gaining pace. The

motivation for the investment of resources in 5G is driven by the desire to be the industry leader

and to be ahead of the curve.


In the post 5G era, where digital giants are spending tens of billions of dollars on content

creation, many telecoms are not equipped with the right technology platforms to deal with this

major digital shift. This makes it critical for them to double down on what they know best;

renewing focus on better infrastructure by harnessing the power of 5G for the use of digital

solutions and platforms. 

In a nutshell, 5G technology will also change the role of telecom operators from technology

distributors to service providers.

5G is expected to have a strong presence in the European, Asian, and North American markets.

To support this generational shift and further drive consumer engagement, operators are expected

to invest around $1.1 trillion worldwide between 2020 and 2025 in mobile CAPEX, roughly 80%

of which will be in 5G networks. By 2025, 5G will account for 20% of global connections, with

take-up particularly strong across developed Asia, North America, and Europe. (GSMA, 2020)
2. Internet of Things (IoT)

IoT growth is a major long-term opportunity for telecom operators. Through this, you have the

scope to leverage current experience and knowledge about customer engagement to improve

retention rates.

The usage and value of IoT for telecom operators is more than just providing better connectivity

to consumers. Instead of focusing solely on expanding network connectivity, telecoms can also

reposition themselves as IoT access providers. They can further equip their supply chain partners

with the right tools and knowledge to promote this technology. 


It also presents an opportunity for telecoms to not only turn unstructured data into actionable

insights but also offer a range of diversified products and services which extend beyond their

existing offerings. From location information to data usage patterns, telecoms can extract

valuable information from the data running through their system with IoT technology. 

The growth for telecom operators will come from a combination of the consumer and enterprise

market, where the major contributor will be the enterprise. Connectivity is one part of the

revenue opportunity but it also opens up opportunities for completely new service offerings.

In stagnant telecom industries where products and services are primarily commoditized, IoT

solutions enable telecom operators to expand their horizons with new and innovative offerings.

They provide greater connectivity within the distribution chain which leads to greater cohesion

and synergy between platform players like service providers and resellers. 

With the help of IoT technology, telecom operators will also be able to monitor and control their

data centres and base stations remotely. This not only enables them to build trust with the other

network players but is also highly relevant in the time of unprecedented corona virus pandemic.
Through this, companies can also improve their customer experience by minimizing their

downtime.

3. Cloud platforms 

According to a 2020 Annual Industry survey by Telecoms.com Intelligence state, 42% of the

companies have made cloud a priority as a critical investment area. 

Cloud based platforms and cloud clouding acts as an enabler for technological transformation for

telecom operators. 

We can safely say that cloud computing has catalysed change and driven innovation in the

telecom industry. By providing new platforms for creating and delivering business values, cloud

allows companies to explore unique revenue growth opportunities. This has shifted the

competitive landscape for telecoms, making it pivotal for them to follow suit. 

Keeping in mind the global pandemic that has taken the telecom industry by storm these past two

years, cloud computing is one of the few technologies that can not only facilitate companies to

recover from the crisis but help them thrive in spite of it. 

It establishes high and flexible scalability for telecoms by giving them the ability to scale up

when the demand is at an all-time high and allow them to scale back down when the chart falls to

optimize costs. Since automation and adaptability are the building blocks for cloud and it is

based on a well-architecture approach, it also allows for the timely self-healing of a system. 

By leveraging cloud computing, telecom operators can achieve faster time to market and

minimize costs as they only pay for the services that they actually use. Aside from the

automation of processes and operations, cloud computing serves as the foundation for generating

new revenue streams and market growth opportunities through tech solutions like data analytics

and 5G. 
4. Artificial Intelligence

In the era of advanced digitization and fast technological development, the use of Artificial

Intelligence and Big Data is becoming increasingly popular in the telecom industry. From

developing automatic, self-optimizing networks to predicting anomalies and proactively fixing

problems before they snowball into bigger issues, Artificial Intelligence solutions are the

gateway for achieving strategic growth objectives for telecoms.

A competent analytics platform can facilitate telecom companies in deriving value from

sophisticated algorithms and machine learning by predicting the future from historical data. 

Companies can get to the root causes of their problems and not only fix prevailing issues but also

take preventive measures to avoid future roadblocks. In the long term, it can allow telecoms to
deal effectively with their emerging and unique business needs, successfully create new

customer experiences, and also underpin their major strategic goals. 

5. Smart Capex

Network investment decisions are among the most difficult for operators to address. According

to GSMA, network operators are expected to spend 1.1 trillion dollars in Capex infrastructure

between 2020 and 2025, making Capex optimization at the top of the agenda for telecom

executives. 

By using a high-calibre solution that eases this decision-making. Telecom operators can select

their optimal network investment candidates that maximise the impact of the entire plan while

matching the operator’s commercial, financial and technical constraints. What’s even better is

that the Capex efficiency gained can then be translated into overall budget savings or reallocated

to other projects. 

Telecoms can further use the insights offered by the solution to make informed, timely, and data-

driven granular investment decisions to achieve higher ROI. 


EFFECTS OF TELECOM INDUSTRY AFTER ADAPTION

1. Advanced Communication

Telecom services provide the platform necessary for data to be exchanged electronically –

whether that be through wireless or wired means. 

Documents, analytics, reports, emails, you name it, can be shared with your colleagues in the

cubicle next to you, to a client on the other side of the country, or one of your offices abroad.  

Now with tablets and Smartphone’s, businesses can leverage mobile communication to

streamline workflow and productivity. Employees can use their devices to access certain

applications, respond to emails, work on presentations, and participate in teleconference

conversations. 

2. Improved Collaboration

In today’s business world, many organizations employ cross-functional teams to tackle new

products, corporate initiatives, marketing campaigns, etc. 

To ensure projects are progressing as forecasted, these teams likely connect regularly to discuss

the status of the deliverables, share ideas, and address any unforeseen hurdles that may arise. 

With telecom services, these teams are equipped with the technology necessary to collaborate

from any location – allowing for optimal productivity, enhanced connectivity, and increased

teamwork.  
3. Enhanced Flexibility

The number of people who work from home has increased a whopping 115% since 2005

according to Global Workplace Analytics. With that in mind, if your B2B business has remote

employees or your staff tends to travel frequently for meetings, telecom services are an effective

means for staying connected and in-the-know.  

4. Better Customer Service

Being able to access the internet at all hours of the day is a crucial facet of delivering high-

quality customer service. 

How your business communicates with customers (and potential customers) will reinforce brand

loyalty, help your team build better relationships with prospects and clients, and increase

retention. However, unless you have a dependable connection, pulling this off just isn’t

possible.  

Telecommunication has completely transformed how people communicate and navigate their

personal and professional lives. With an ever-present need for humans to connect and

communicate, this industry is slated to continue its upward growth. 

5. New ways to connect with clients or customers

Telecommunication systems open up a new world of communications with clients or customers.

For example, companies may consider investing in phones for sales representatives or support

personnel to encourage direct contact with clients. This helps create relationships which foster

long-term prosperity for both parties.


6. Greater flexibility in the workplace

Making communication easier all around induces flexibility by giving employees more options

regarding how, where, and when they work. Planning becomes easier because it’s now possible

to keep everyone on the same page via direct communication rather than trying to catch people at

the opportune moment.

7. Reduce misunderstandings and inefficiencies

There’s a lot happening in the dynamic environment which represents most modern offices.

More than one project will exist, and it can be difficult to keep track of everything that’s

occurring. Likewise, communication forms such as email have the potential to be misunderstood,

causing projects to derail. In contrast, a solid telecommunications infrastructure gives employees

what they need to directly acquire clarification or information needed to proceed.


COMPANIES IN TELECOM INDUSTRIES

 In 1975, the Department of Telecom (DoT) was given separate authority for running the

telephone services in the country.

 The Mahanagar Telephone Nigam Limited (MTNL)initiated its services in the year 1985

for carrying out the telephone operations in the metros of India, viz. Delhi and Mumbai.

 In October 2000, the Bharat Sanchar Nigam Limited (BSNL) was set up by the

Department of Telecom.

 Thereafter several private companies as Reliance Communications, Tata Indicom, Airtel

etc. in the sector came up.

Telecom Sector Policies

 A Communication Convergence Bill was introduced in the Parliament in 2001.

 Unrestricted entry is allowed in National Long Distance Service (NLD)

 Cellular operators have the permission of providing all types of service, as voice and non

voice messages, data services etc.

 The New Telecom Policy revised in 1999 encourages participation of private companies

in services as Global Mobile Personal Communication by Satellite (GMPCS) Service,

digital Public Mobile Trunked Service (PMRTS) and Voice Mail/ Audiotex/ Unified

Messaging Services.

 To fulfill Universal Service Obligation (USO) funding and administration, several

measures are being taken.

 To initiate Community Phone Service, an announcement has been made.

 Guidelines regarding the Multiple Fixed Service Providers (FSPs) have been announced.
BSNL

The Bharat Sanchar Nigam Limited, country’s largest cellular service operator was set up in the

year 2000. It is a state owned telecom company with its headquarters located in New Delhi.

BSNL is also the largest land line telephone establishment in India. As of April, 2011 87.1

million users have been reported to be BSNL users.

MTNL

Mahanagar Telephone Nigam Limited (MTNL) was set up in the year 1985, to run telecom

operations in the major metro cities of India, Mumbai and Delhi. Its headquarters are based in

Mumbai. MTNL was the first company in India to initiate 3G services in India, having the brand

name of “MTNL 3G Jadoo Services” which provided options as Video call, Mobile TV, Mobile

Broadband etc to the customers.

Airtel

Also known as Bharti Airtel Limited was started in July 1995, with its head office based in New

Delhi. Airtel runs its operations in as many as 19 countries across the world and is also ranked

fifth as telecom service provider globally. As of April 2011, figures show that Airtel has over

164.61 million users which make it the biggest mobile service operator in India. Its service

includes both 2G and 3G facilities.


Reliance jio

Jio has successfully performed trials of Connected Robotics over its indigenously


developed 5G RAN and 5G SA core network.  This underlines the true potential of
5G Standalone networks in realizing real-life industrial use cases.

Jio 5G Robotics have implemented a wide canvas of services – from heavy lifting and
logistics at manufacturing warehouses, to healthcare robots assisting medical staff –
from remote ultrasound enablement to industrial automation robots.

This development opens up exciting possibilities for value creation in Industry 4.0,
with direct relevance to businesses and the economy.

Aircel

Aircel was founded in 1999, with its head office in New Delhi. It is a joint enterprise between

Maxis Communications and the Apollo Hospitals.

Vodafone /idea

Vodafone/idea was founded in 1994 with its head office at Mumbai. Vodafone provides services

to 23 telecom circles across India.

Idea Cellular was started in 1995, with its head office in Mumbai. It also provides 3G services to

its subscribers.

Tata Indicom

The Tata Teleservices was founded in 1996, with its headquarters in Navi Mumbai.


GRAPHICAL REPRESENTATION OF TELECOM INDUSTRY

India is the world’s second-largest telecommunications market. The total subscriber base,

wireless subscriptions as well as wired broadband subscriptions have grown consistently. Tele-

density stood at 85.91%, as of December 2021, total broadband subscriptions grew to 792.1

million until December 2021 and total subscriber base stood at 1.18 billion in December 2021.

Gross revenue of the telecom sector stood at Rs. 64,801 crore (US$ 8.74 billion) in the first

quarter of FY22.

The total wireless data usage in India grew 16.54% quarterly to reach 32,397 PB in the first

quarter of FY22. The contribution of 3G and 4G data usage to the total volume of wireless data

usage was 1.78% and 97.74%, respectively, in the third quarter of FY21. Share of 2G data usage

stood at 0.48% in the same quarter.

Over the next five years, rise in mobile-phone penetration and decline in data costs will add 500

million new internet users in India, creating opportunities for new businesses.

By 2025, India will need ~22 million skilled workers in 5G-centric technologies such as Internet

of Things (IoT), Artificial Intelligence (AI), robotics and cloud computing.


 In January 2022, Google made a US$ 1 billion investment in Airtel through the India

Digitization Fund.

 In October 2021, Vodafone Idea stated that it is in advanced talks to sell a minority stake

to global private equity investors including Apollo Global Management and Carlyle to

raise up to Rs. 7,540 crore (US$ 1 billion) over the next 2-3 months.

 In October 2021, British satellite operator Inmarsat Holdings Ltd. announced that it is the

first foreign operator to get India’s approval to sell high-speed broadband to planes and

shipping vessels. Inmarsat will access the market via Bharat Sanchar Nigam Ltd. (BSNL)

after BSNL received a license from the Department of Telecommunications.


 In October 2021, Dixon Technologies announced plans to invest Rs. 200 crore (US$

26.69 million) under the telecom PLI scheme; this investment will include the acquisition

cost of Bharti Group’s manufacturing unit.

 In September 2021, Bharti Airtel announced an investment of Rs. 50 billion (US$ 673

million) in expanding its data centre business to meet the customer demand in and around

India.

 In August 2021, Tata Group company Nelco announced that the company is in talks with

Canadian firm Tele sat to sign a commercial pact for launching fast satellite broadband

services in India under the latter’s Lightspeed brand, a move which will pit the combined

entity against Bharti Enterprises-backed One Web, Elon Musk’s SpaceX and Amazon.

 In March 2021, Vodafone Idea Ltd. (VIL) announced that the acquired spectrum in five

circles would help improve 4G coverage and bandwidth, allowing it to offer ‘superior

digital experience’ to customers.

 In March 2021, Advanced Television Systems Committee (ATSC) and

Telecommunications Standards Development Society, India (TSDSI) signed a deal to

boost adoption of ATSC standards in India in order to make broadcast services available

on mobile devices. This allows the TSDSI to follow ATSC standards, fostering global

digital broadcasting standard harmonisation.

 In the first quarter of FY21, customer spending on telecom services increased 16.6% y-o-

y, with over three-fourths spent on data services. This spike in consumer spending came

despite of the COVID-19 disruption and lack of access of offline recharges for a few

weeks

 India had over 500 million active internet users (accessed Internet in the last one month)

as of May 2020.
 Department of Telecommunication launched ‘Tarang Sanchar’ - a web portal sharing

information on mobile towers and EMF Emission Compliances.

 Payments on unified payments interface (UPI) hit an all-time high of 3.65 billion (by

volume), with transactions worth ~Rs. 6.54 trillion (US$ 87.11 billion) in September

2021.

 Over 75% increase in internet coverage from 251 million users to 446 million.

SWOT Analysis
STRENGTH

 Huge customer potential

The Indian telecommunication industry is the second-largest market and the

second highest country in terms of internet subscribers in the world. Mobile

subscribers reached 1,183.51 million in FY19—internet users in India,

representing 12 percent of global users.

 High growth rate

In FY20 (till September 2019), gross revenue of the telecom sector In India stood

at Rs 121,527 crore (US$ 17.39 billion. India is currently the second-largest

telecom market in the world and has registered strong growth in the past decade

and a half. India has also recorded a 165 percent growth in app downloads in the

past two years. In the first three months of 2019, Indian telecom registered 4.8

billion downloads of mobile applications.

 Foreign direct investment (FDI)


Indian telecom sector witnessed a relaxation in foreign direct investment (FDI).

From 74 percent, FDI in the telecom sector has been increased to 100 percent.

Dark fiber, electronic mail, and voice mail infrastructure providers were

permitted up to 100 percent of FDI.

 Advanced technology

Indian telecom is already using 4G technology, which is advanced. And it is

expected to advance to the 5G technology in the coming few years. Affordability

and lower rates As per a report by Ericsson (2019), India monthly uses an average

of 9.8 GB data per Smartphone, representing the highest data usage per

Smartphone in the world. The Indian telecom sector is expected to be driven by

the availability of affordable Smartphone’s and data with lower data.

WEAKNESS:

 Low customer retention power

Customers of the telecom companies have a lower level of loyalty, and they

frequently move from one company to another. That's is considered as weaknesses for the

telecom companies.

 The high cost of infrastructure

The infrastructure of the telecom industry is costly in general, and moving from

one generation to another requires a high budget.

 Late adoption of 4G and advanced wireless technologies


4G technologies were first deployed in Stockholm, Sweden, an Oslo, Norway in

2009, India was late to adopt 4G technology in which it was adopted three years later in

2012 by Airtel.

 Low broadband penetration

Taking internet connectivity to homes or businesses using an optical fiber or fixed-line is

known as fixed broadband. Broadband penetration is still at a lower level compared to China and

other European countries. While Indian broadband penetration is around 47%, Chinese is at 95%,

and other European nations at about 95-115% (Nokia MBiT 2020)

Opportunities

 Mobile penetration

In 2015, 18.55 percent of the total population of India accessed the internet from

their mobile phones. It increased to 32 percent in 2020, and there is an expectation that it

will grow to 35 percent in 2023. And that indicates a marginal rise in the country's mobile

internet user base (Statista 2020).

 Changing population psychograph

Previously telecom service was thought of as an emergency service; recently,

telecom service has become an essential part of life in the country, while it was

previously thought of as emergency service.

 Increase in Internet users

According to TRAI (2019), the total number of Internet subscribers is 687.62

million. And the internet subscribers are expected to reach 829 million by 2021.
 Untapped rural market

Rural teledensity increased from 43.05 percent as of March 2016 to 58.03 percent

by January 2020. Hence over 62,443 villages in India are still uncovered, and those

villages will be provided with a telephone facility with subsidy support from the

government's Universal Service Obligation Fund. Therefore, increasing the rural

teledensity and fuelling growth across the country.

 5G introduction

According to Patrik Cerwall (2018), the Indian government is stating that 5G

technology will be introduced in 2020, but a significant uptakes expected to take place in

2022 with a projection of 38 million subscriptions of 5G technology in 2024. And that

represents 2.7 percent of all mobile subscriptions at the time.

THREATS

Intense competition:

The Indian telecom industry is characterized as a competitive market where new

companies enter the market and others exit. The disruptive entry of Reliance Jio over

three years ago forced other companies to decrease the price of their services in order to

retain their customers. Companies faced a challenge encountering Reliance Jio, and the

telecom industry was weighed down by nearly Rs 8 lack crore of debt.


 Government policies:

The government policies, licenses, tariffs, sharable revenues, etc. are such threats maybe

imposed by the government. Also, giving licenses for foreign companies to enter the market is

considered a threat to the existing companies in the industry.

 Spectrum auction:

India has less than 40% of the available spectrum as compared to European

nations and 50% as compared to China. Also, the government auction spectrum at a high

cost.

 Lack of fixed-line penetration:

Compared to most of the developed countries having a very high penetration of

fixed lines, India has very little penetration of fixed-line in its network,whereas.India has

only around 25% of Towers that are connected with fiber networks, whilean excess of

70% is there in developed nations. Towers are required for the 5Gnetwork to be

connected with very high-speed systems. And that's a challenge for the telecom industry

in India.

 New Technology can change the market dynamics:

The potentiality of replacing the entire industry dynamics and the threat of

creating a substitute for the telecom services exist due to the potential new

technology.Technology keeps evolving and changing, so companies need to adapt and

upgrade with new technologies.


CONCLUSION

Indian telecom industry underwent a high pace of market liberalisation and growth since the

1990s and now has become the world's most competitive and one of the fastest growing telecom

markets. The industry has grown over twenty times in just ten years, from under 37 million

subscribers in the year 2001 to over 846 million subscribers in the year 2011. India has the

world's second-largest mobile phone user base with over 1157.04 million users as of July 2018.

Telecommunication has supported the socioeconomic development of India and has played a

significant role to narrow down the rural-urban digital divide to some extent. It also has helped to

increase the transparency of governance with the introduction of e-governance in India. The

government has pragmatically used modern telecommunication facilities to deliver mass

education programmes for the rural folk of India.

The progress of telecommunication:

The main divisions of the Indian telecommunications industry are the telephone, internet, and

television broadcasting industry in the country, which is in the process of transforming into the

next-generation network.

Mobile switching centres, media gateways and core signaling gateways, unified by a wide

range of microwave or fiber optics radio relay networks. The connection network linking the

user to the heart is highly diverse with different copper-pair, optic-fiber, and

wireless technologies.

DTH, a relatively advanced broadcasting technology in television segment, has gained

significant popularity. Private FM's introduction has given India's radio broadcast a fillip.

You might also like