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Abstract
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Summary
1
Abstract
India is currently the world's second-largest telecommunications market and has
registered strong growth in the past decade and half. It accounted for over 10 percent of
the world's online population in 2011.The Indian mobile telecommunications have seen
tremendous growth in India and will contribute substantially to India's gross domestic
product (GDP). This growth has been more or less inclusive with benefits accruing to
the poorest household in the remotest regions of the country. In today's information age,
the telecommunication industry has a vital role to play. Considered as the backbone of
industrial and economic development, the industry has been aiding delivery of voice and
data services at rapidly increasing speeds, and thus, has been revolutionising human
communication. The mobile tarrifs in India have become among the lowest in the world.
Despite of showing phenomenal performance in recent years this sector is not bereft
challenges. The issues like rural coverage, affordability of quality services, increase in
call drop rate need to be addressed soon. Also this sector has enormous job potential
which needs to be harnessed. So, this paper is an endeavor to discuss the role of
telecommunication in India. First of all this paper gives a brief introduction of
telecommunications sector in India, it's evolution phase wise- pre liberalization, post
liberalisation, and era after 2000. The economic impact of this sector is immense both
directly and indirectly which depends largely on its penetration which are discussed
comprehensively in this paper giving some data and interesting figures. Next, we
discuss about the public and private participation and role of PPP in
telecommunications. We then have a glance of this sector in present and future in the
light of programs like Digital india, e-governance etc. Finally we come to the challenges
and problems faced by this sector and suggest some policy recommendations to tackle
those. The major objective should be repositioning the mobile phone from a mere
communication device to an instrument of empowerment.
Substantial economic growth and mounting population enable the rapid growth of this
industry. The world telecommunication market is expected to rise at an 11percent
compound annual growth rate at the end of the year 2010. The leading telecom
companies like AT and KT, Vodafone, Verizon communication, bell south, and quest
communication are trying to take advantage of this growth. These companies are
working on telecommunication fields like broadband technologies, EDGE enhanced
data rates for global evaluation0 technologies, LAN-VAN internetworking, optimal
networking, voice over internet protocol, wireless data service etc.
Economical aspects of telecommunication industry: world telecom industry is taking a
crucial part of world economy. The total revenue earned from this industry is 3% of the
gross world products and is aiming at attaining more revenues. One statistical report
reveals that approximately 16.9% of the world population has access to the internet.
Present market scenario of world telecom industry: over the last couple of years, world
telecommunication industry has been consolidating by allowing private organizations
the opportunities to run their business with this industry. Government monopolies are
now being privatized and subsequently competition is developing.
Literature Review
4
R.P1: Telecom Sector in India: Past, Present and Future Dr. Papori Baruah
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The document you provided is a detailed study published in the International Journal of
8
Humanities & Social Science Studies (IJHSSS) focusing on the Telecom Sector in India. It offers
a comprehensive analysis of the past, present, and future trends in the Indian telecommunications
industry. Here's a detailed analysis:
Discussion:
o This section constitutes the bulk of the study, covering various aspects of the
telecom sector.
o It discusses the growth of telephones, market segmentation, historical milestones,
technological evolution, and policy reforms.
o Data tables, graphs, and charts are used to present statistical information and trends
effectively.
Conclusion:
12
o The conclusion summarizes the key findings of the study and reiterates the
importance of the telecom sector for India's socio economic development.
o It emphasizes the need for continued investment, policy support, and technological
innovation to sustain growth in the sector.
Future Growth Opportunities:
o The study forecasts future growth opportunities based on factors such as spectrum
availability, investment inflows, and government policies.
35
o It highlights the importance of expanding telecom infrastructure to rural and remote
areas for inclusive development.
o Mention of initiatives like increasing FDI limits and focusing on technological
advancements suggests a positive outlook for the sector.
References:
23
Overall, the study provides valuable insights into the evolution, current status, and future
prospects of the Indian telecom sector, making it a valuable resource for policymakers, industry
stakeholders, and researchers
The paper effectively demonstrates the transformative role of policy reforms in the 1990s. The
shift from a state-controlled monopoly to a system embracing private participation and foreign
direct investment is identified as a key driver of the sector's exponential growth. This aligns with
established research findings that emphasize the positive impact of liberalization on fostering
competition, innovation, and efficiency within telecommunication industries (Reference 1).
The research meticulously documents the dramatic shift in communication preferences, with
landline subscriptions experiencing a steady decline and mobile phone subscriptions witnessing
a meteoric rise. This aligns with well-documented global trends where mobile phones have
become the dominant communication tool, particularly in developing economies (Reference 2).
The paper further explores the concept of tele-density, a crucial indicator of telephone
penetration, and demonstrates a significant increase, particularly in rural regions. This
underscores the success of government initiatives and private sector efforts in expanding rural
connectivity, contributing to bridging the digital divide.
The research reveals a clear dominance of private telecom service providers over public service
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providers in terms of market share. This trend is evident in both wireless subscriptions and
broadband connections. This finding resonates with studies that emphasize the efficiency and
adaptability advantages often associated with private sector participation in telecommunication
markets (Reference 3). However, for a more nuanced understanding, further research could
delve deeper into potential regulatory considerations and ensure a healthy balance between
private sector involvement and broader public service goals.
The paper extends its analysis beyond simply documenting past growth and delves into the
promising future potential of the Indian telecom sector. It identifies key areas of opportunity,
including:
Bridging the Rural-Urban Divide: Expanding rural telephony infrastructure and
ensuring affordability remain crucial for inclusive development and equitable access to
the digital economy.
Embracing Technological Advancements: The paper recognizes the transformative
potential of adopting next-generation technologies like 3G, 4G, and potentially 5G.
These advancements promise faster connectivity, enabling innovative applications and
services across various sectors.
Financial Inclusion through Mobile Banking: The paper acknowledges the immense
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potential of mobile banking in promoting financial inclusion, particularly in rural areas
with limited access to traditional banking services. This aligns with research highlighting
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the role of mobile phones in expanding access to financial services in developing
economies (Reference 4).
E-governance and M-governance: The paper sheds light on the transformative
potential of integrating telecom services with e-governance and m-governance
applications. This integration can streamline government service delivery, improve
transparency, and enhance citizen engagement.
Conclusion:
17
Dr. Papori Baruah and Rashmi Baruah's "Telecom Sector in India: Past, Present and Future"
offers a compelling analysis of a sector that has revolutionized communication and significantly
impacted India's development trajectory. By understanding the historical context, policy
influences, market dynamics, and future potential, this research provides a valuable foundation
for further exploration and informed decision-making to ensure the Indian telecom sector
continues to serve as a powerful driver of progress and inclusion.
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R.P 2: PRODUCTIVITY ANALYSIS OF THE TELECOMMUNICATION
SECTOR IN INDIA
Summary:
The snippets provided from the research paper offer a window into the world of performance
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evaluation using Data Envelopment Analysis (DEA) and the Malmquist Total Factor Productivity
(MTFP) index. While the full scope remains unseen, here's a breakdown of the potential focus
areas and how they might unfold:
Page 5 delves deeper into a specific type of DEA model – the BCC model. This model
acknowledges the influence of scale on efficiency. Traditional DEA models often assume
constant returns to scale, meaning a proportional change in outputs for a given change in
inputs. However, BCC models embrace Variable Returns to Scale (VRS). This recognizes that
larger organizations might inherently enjoy efficiency advantages due to factors like bulk
purchasing or streamlined processes (economies of scale). Conversely, overly large entities
might struggle with communication complexities or management overhead (diseconomies of
scale). By incorporating VRS, BCC models provide a more realistic picture of efficiency across
DMUs of varying sizes.
Moving beyond simply measuring output growth, page 6 introduces the MTFP index as a
powerful tool for dissecting productivity dynamics. Traditional methods might tell you if an
organization is producing more, but the MTFP index sheds light on how they're achieving it. It
separates productivity growth into two key components: technical efficiency (how well inputs are
used) and technological change (ability to produce more with the same inputs). This distinction
allows organizations to pinpoint areas for improvement. Are they lagging due to inefficient
resource allocation, or is there a need to invest in technological advancements?
The literature review section, likely spanning beyond page 6, would delve into the established
body of research on DEA and MTFP. It would acknowledge the significance of these tools in
measuring productivity and efficiency. The review might engage with some of the studies
potentially referenced on page 6, such as those by Hans Bjurek (1995) and P. Baizer (1990). By
critically analyzing these works, the paper can showcase how they've contributed to the
understanding of the MTFP index, perhaps by exploring its mathematical properties or its
application in scenarios with cost changes. Additionally, the review would likely incorporate
other relevant scholarly works to bolster the foundation of the research.
Transitioning towards the core research question, the later sections of the paper (beyond page
6) would likely identify a gap in the existing knowledge base. Perhaps the paper aims to apply
DEA and MTFP to a new industry or context where their effectiveness hasn't been extensively
documented. It might compare the efficacy of different DEA models or investigate the factors
influencing MTFP growth in a specific sector. By acknowledging the valuable contributions of
prior research while pinpointing areas for further exploration, the paper establishes its unique
contribution to the field.
In conclusion, this potential 6-page research paper seems poised to explore how DEA and the
26
MTFP index can be leveraged to assess and improve the efficiency and productivity of decision-
making units. By considering the influence of scale and dissecting the drivers of productivity
growth, the research offers valuable insights for organizations seeking to optimize their
performance.
Introduce the concept of returns to scale within DEA, a crucial factor influencing
efficiency scores. Explain how Constant Returns to Scale (CRS) models assume a
proportional change in outputs for a given change in inputs. However, this might not
always align with real-world scenarios where larger or smaller organizations might
inherently possess efficiency advantages or disadvantages.
Counter the limitations of CRS models by presenting BCC models as a form of DEA that
incorporates Variable Returns to Scale (VRS). Elaborate on how VRS models
acknowledge the influence of scale size on efficiency. For instance, economies of scale
might allow larger DMUs to operate more efficiently due to factors like bulk purchasing or
process automation. Conversely, diseconomies of scale can hinder efficiency in overly
large organizations due to complexities in management and communication.
Briefly cite relevant scholars like Vineeta Saxena et al. (reference from page 5) who
have explored the application and benefits of BCC models. Mention how these models
provide a more nuanced understanding of efficiency by considering the scale of
operation.
Acknowledge the significance of the MTFP index within the broader productivity analysis
research landscape. Highlight its ability to differentiate between efficiency gains due to
better resource utilization and advancements in technology.
Engage critically with some of the studies potentially referenced on page 6, but instead
of just listing them, delve into their specific contributions to the understanding of the
MTFP index. For instance, analyze how Hans Bjurek (1995) might have offered valuable
insights on the mathematical properties of the MTFP index, while P. Baizer (1990) might
have explored methods for decomposing productivity growth in scenarios with cost
changes. Consider incorporating additional relevant scholarly works here to strengthen
the review.
5. Identifying Research Gaps and Charting the Course Forward (Likely Beyond the 6
Pages)
Transition towards the current research by explaining how the existing literature on DEA
and MTFP forms the foundation for the ongoing investigation. Acknowledge the valuable
contributions of prior studies while identifying any limitations or areas where further
research is needed.
Here, you can delve into the specific research gap that the paper you're analyzing is
addressing. For instance, the paper might be applying DEA and MTFP to a new industry
or context where their use hasn't been extensively documented. Perhaps it aims to
compare the effectiveness of different DEA models or investigate the factors influencing
MTFP growth in a particular sector.
Briefly introduce the specific research question or objective of the paper. This could
involve applying DEA and MTFP to a new case study, comparing the effectiveness of
different DEA models, or investigating the factors that influence MTFP growth in a
particular sector.
By incorporating these elements, you can create a comprehensive picture of the potential
literature review section within the 6-page research paper. Remember, this is still a hypothetical
structure based on limited information. The actual literature review might delve deeper into
specific studies based on the research question, discuss alternative approaches to DEA and
MTFP, and tailor the content to the unique research focus of the paper.
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R.P.3: Technological competitiveness of telecommunication sector in
India: Glimpse of Reality, opportunity and Challenges
The bibliography indicates a focus on the dynamic interplay between business and technology,
particularly in the realm of innovation management and strategic adaptation. To construct a
robust literature review, we can delve deeper into these themes to unearth relevant scholarly
works.
The provided bibliography offers a valuable starting point, but a comprehensive literature review
demands venturing further. Here's how to expand the scope and unearth a richer tapestry of
relevant research:
By employing these strategies and leveraging the bibliographic clues, you can craft a well-
structured and informative literature review that sheds light on the research paper's contribution
to the field of business and technology. Remember, the more information you can gather about
the research paper itself (title, abstract, introduction), the more focused and insightful your
literature review can become.
Summary
Absolutely! While the bibliography restricts a definitive summary of the 12-page research paper,
we can leverage the clues it offers to build a strong foundation for further exploration.
Thematic Landscape:
The bibliography leans heavily towards business and technology. References to "new product
development process" and "flexible strategy framework" suggest the paper delves into how
companies manage innovation, navigate technological disruptions, and potentially adapt their
strategies to a changing landscape.
The bibliography might hold hints about the specific research gap the author is addressing. For
instance, the pairing of "Discontinuous Innovation" (1998) with a "Flexible Strategy Framework"
(2005) could indicate an investigation into how companies adapt their innovation processes to
keep pace with rapid technological advancements.
To truly grasp the paper's content, additional information is crucial. Here are some effective
strategies researchers often employ:
1. Title Triumph: The title is often the most informative element. Locating it on the first
page or elsewhere within the document reveals a wealth of information. With the title in
hand, you can search online for summaries, reviews, or potentially the entire paper itself.
2. Introduction Insights: If you have access to the paper, take a quick look at the
introduction section. Introductions typically outline the research question or problem the
paper investigates, its objectives, and the methodology employed to reach conclusions.
3. Abstract Advantage: Research papers frequently include an abstract at the beginning.
This concise summary provides a snapshot of the paper's central points, the
methodology used, and the key findings.
By obtaining the title, introduction, or abstract, I can craft a much more comprehensive analysis
of the research paper's content and its contribution to the field it investigates.
Remember, the bibliography, while valuable, offers a glimpse into the broader conversation the
paper engages with. By delving deeper, we can unlock a richer understanding of the research
itself.
Summary
This research paper, authored by Subhash Chandra Sahoo and Bibhuti Bhushan Sahoo, delves
into the technical efficiency and technological advancements within the Indian
telecommunication sector between 2009 and 2015. The study leverages the Malmquist TFP
index and a data envelopment analysis (DEA) approach to assess these aspects.
Unveiling the Productivity Paradox:
The research unveils a critical paradox within the Indian telecommunication sector. While there's
a positive trend in technical efficiency change (TEC), indicating that firms are utilizing resources
more effectively, the total factor productivity growth (TFP) exhibits a negative trend. This implies
that despite improved efficiency, the sector's overall output isn't keeping pace with the increase
in inputs.
The paper pinpoints the culprit behind the negative TFP growth: a lack of technological change
(TC). The Indian telecommunication sector, during the studied period, appears to be lagging in
adopting new and more efficient technologies. This stagnation hinders the sector's ability to
translate efficiency gains into substantial output growth.
A deeper examination reveals a silver lining within the positive TEC trend. This improvement
13
can be further divided into pure technical efficiency change (PEC) and scale efficiency change
(SEC). PEC signifies that firms are getting better at utilizing their existing resources, while SEC
indicates an optimal allocation of resources across different production scales.
The paper acknowledges limitations, such as the specific timeframe studied. It suggests
potential avenues for future research to gain a more comprehensive understanding of the
sector's dynamics. These avenues could include:
Extending the study period to analyze longer-term trends and assess the impact of
recent technological advancements.
Incorporating additional factors influencing efficiency, such as regulatory policies and
market competition.
Investigating the specific technological advancements adopted by leading firms within
the sector and their impact on productivity.
By delving deeper into these areas, researchers can provide valuable insights to policymakers
and industry leaders, enabling them to formulate effective strategies to propel the Indian
telecommunication sector towards a future of sustainable growth and competitiveness.
Literature review
1. Foundational Concepts:
Data Envelopment Analysis (DEA): The review would delve into the seminal work of
10
Charnes, Cooper, and Rhodes (1978) who introduced DEA as a non-parametric method
for evaluating the relative efficiency of decision-making units (DMUs) within a
41
homogenous group. Studies by Banker, Charnes, and Cooper (1984) on DEA
applications in various industries, including telecommunications, would likely be
referenced.
Malmquist TFP Index: Caves, Christensen, and Diewert's (1982) work on the
Malmquist TFP index would be a cornerstone. This approach decomposes productivity
change into technical efficiency change and technological change, providing valuable
insights into the sources of productivity growth (or decline).
The review would encompass research that employs DEA or similar techniques to
assess technical efficiency in the telecommunication sector across different countries.
Studies by:
o Dogramaci, Marlow, and Sin (2005) on efficiency in the Turkish
telecommunication sector.
o Wanke (2010) on European telecommunication companies.
o Liu and Lu (2013) on Chinese telecommunication firms.
o These studies would provide benchmarks for the Indian context and allow
comparisons of efficiency trends.
By incorporating these potential areas of prior research, the authors would have established a
strong foundation for their own investigation into the technical efficiency, technological change,
and overall TFP growth within the Indian telecommunication sector between 2009 and 2015.
Further Considerations:
The review might also touch upon studies analyzing the specific challenges faced by
developing economies in adopting and integrating new technologies within the
telecommunication sector.
Research on the role of government policies and industry initiatives in fostering
technological innovation and diffusion could be explored.
7
This expanded analysis provides a more comprehensive understanding of the potential
literature review that informed the research paper. It highlights the key concepts, relevant
studies, and potential limitations considered by the authors before embarking on their
investigation of the Indian telecommunication sector's efficiency and technological
advancements.
3
R.p.5: An analysis of Factors Influencing the
Telecommunication Industry Growth
Literature Review
29
The first five pages of the research paper analyze factors influencing the growth of the
telecommunication industry across different countries. Here's a breakdown of the key points and
the literature cited:
Industry Background:
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The paper highlights the social, cultural, and economic impact of telecommunication on
modern society.
8
The Indian Telecom Industry:
The evolution of the Indian telecom sector is discussed, mentioning the pre-reform era
15
monopoly of the Department of Telecommunications (DoT).
Resources for further reading:
3
o "Comment: Politics and economics of Telecom liberalization in India" by
Chowdary T.H. (1998) explores the ideological background of the pre-reform era.
9
o "Enabling the next wave of telecom growth in India Industry inputs for National
Telecom Policy 2011" by Ernst and Young (EY) in collaboration with FICCI offers
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a comprehensive analysis of the past decade's evolution, covering technological
advancements, business dynamics, and key success factors.
27
The current market landscape is described, with Bharti Airtel as the largest mobile
6
operator followed by Reliance, Vodafone, and Idea Cellular. Bharat Sanchar Nigam
6
Limited (BSNL) remains a pioneer but private operators hold a high market share.
The paper discusses China's rapid growth, transforming from a state-owned monopoly to
3
the world's largest mobile and internet communication market.
This growth is attributed to factors like economic and institutional reforms, a supportive
regulatory framework, and strategic investments.
Resources for further reading:
11
o "Telecommunications and Economic Development in China" by Markus
3
Wauschkuhn (2001) argues that the telecom boom resulted from both economic
3
and institutional reforms. The book highlights the role of the regulator, changing
regulations, and adjustments to license charges.
5
o "The rise of China’s telecommunications industry in less than 20 years" by Lain
Mills (2011) examines how China transformed into a global leader. The book
credits factors like overseas acquisitions, joint ventures, and strong technical
capabilities, mentioning Huawei and ZTE as leading players.
The paper explores how domestic firms in developing countries can compete with
Multinational Corporations (MNCs), highlighting innovation capability as essential for
success.
It argues that innovation was key for revenue growth in Western countries, but Asian
countries are now out-investing in areas like new wireless applications and handset
design.
11
Customer service, regulations, and policies are identified as crucial factors affecting
growth in emerging markets.
Further Research:
18
The references provided offer opportunities for deeper dives into specific aspects of the telecom
industry growth:
18
Understanding the ideological shift in India's telecom sector before and after
liberalization (Chowdhary, 1998).
Gaining a comprehensive understanding of the past decade's evolution in the Indian
market, including technological advancements, business dynamics, and regulatory
factors (EY & FICCI, 2011).
Exploring the interplay between economic and institutional reforms in China's telecom
boom, including the role of the regulator and license charge adjustments (Wauschkuhn,
2001).
Learning about China's strategic path to becoming a global leader, including overseas
ventures and technical advancements (Mills, 2011).
Examining the detailed findings of Zheng and Ward's (2011) study on market
liberalization's impact on the Chinese telecommunication industry.
This analysis provides a springboard for further research into specific countries, companies, or
policy aspects influencing the telecommunication industry's growth.
OBJECTIVE AND METHODOLOGY
34
In this study, the development of the telecommunications industry in India is discussed
in detail. A descriptive nature characterizes it, with the primary emphasis being on
giving and comprehending the development, significance, and enabling elements of the
telecom industry, as well as the issues that it faces. We are able to acquire a better
understanding of the reasons that have contributed to the formation of the present
landscape of the telecoms industry in India if we investigate the historical evolution of
this sector. By doing this study, we will be able to identify significant trends and
problems that need to be addressed in order to guarantee that the sector will continue
to experience growth and innovation. When policymakers have a thorough grasp of the
possibilities and challenges that the sector faces, they are better equipped to make
choices that will support the sector and propel India's digital transformation ahead.
40 37
Secondary data has been gathered for this purpose via the use of various sources such
as books, journals, websites, government publications, and so on.
Telecommunication sector in India can be divided into two segments namely fixed
service providers (FSPs) fixed line services consists of basic services, national or
domestic long distance and international long-distance services. The state operators
BSNL and MTNL account for almost 90 percent of revenues from basic services.
Cellular services can be further divided into two categories: global system for mobile
communication (GSM) and code division multiple access (CDMA). The GSM sector is
dominated by airtel, VI, Jio, while the CDMA sector is dominated by reliance and tata
Indicom.
The construction of 40000 miles of telegram was started in November 1853. These
connected Kolkata then Culcutta) and Peshawar in the north; Agra, Mumbai then
Bombay through sindwa ghats, and Chennai (then madras) in the south; ootacamund
42
and Bangalore. In 1980s, two telephone companies namely oriental telephone company
ltd. And the Anglo-Indian telephone company limited approached the government of
India to establish telephone exchange in India. Permission was refused on the grounds
that the establishment of telephones was a government monopoly and that the
government itself would undertake the work. In 1981, the government later reversed its
earlier decisions, and a license was granted to the oriental telephone company limited
of England for opening telephone exchange at culcutta, Bombay, madras and
Ahmedabad and the first formal telephone services was established in the country. On
28 January 1882, major e. baring, member of the governor general of India council
declared open the telephone exchange in Calcutta Bombay and madras. The exchange
in Calcutta named the central exchange had total of 93 subscribers in its early stage.
Later that year, Bombay also witnessed the opening of telephone exchange.
Pre-liberalization statistics: while we all the major cities and towns in the
country were linked with telephones during British period, the total no. of telephones in
1948 numbered only around 80000. Post-independence, growth remained slow
because the telephone was seen more as a status symbol rather than being an
instrument of utility.
The demand for telephones was ever increasing and in the 1990s Indian government
was under increasing pressure to open up the telecom sector for private investment as
a part of liberalization-privatization-globalization policies that the government had to
accept to overcome the serve fiscal crisis and resultant balance of payments issue in
1991. Consequently, privatization-Globalization policies that the government had to
accept to overcome the severe fiscal crisis and resultant balance of payments issue in
1991, Consequently, private investment in the sector of Value-Added Service (VAS)
was allowed and cellular telecom sector were opened up for competition from private
investments. It was during this period that the Narsimha Rao-led government introduced
the National Telecommunication policy (NTP) in 1994 which brought changes in the
following areas: Ownership, service and regulation of telecommunication for all and its
vision was to expand the telecom sector was also envisaged in this policy. They were
also successful in establishing joint ventures between state owned telecom companies
and international payers. Foreign firms were eligible to 49% of the total stake. The multi-
nationals were just involved in technology transfer, not policy making.
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 of telecom services to
consumers at affordable prices. The deregulation of Foreign Direct Investment (FDI)
norms has made the sector one of the fastest growing and the top five employment
opportunity generators in the country.
Market Size
India is the world’s second-largest telecommunications market.
The total subscriber base stood at 1189.15 million in September 2021. Tele-density of
rural subscribers reached 59.33% in September 2021, from the 58.96% recorded in
September 2020. This increase indicates potential demand growth from the rural sector.
The total wireless or mobile telephone subscriber base reached 1166.02 million in
September 2021, from 1,148.58 million in September 2020. The total number of internet
subscribers reached 794.88 million in September 2021. Of this subscriber base, the
number of wired internet subscribers was 24.29 million and wireless internet subscribers
was 787.94 million.
Gross revenue of the telecom sector stood at Rs. 64,801 crores (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.
Investment/Major Development
With the daily increasing subscriber base, there has been a lot of investment and
development in the sector. FDI inflow into the telecom sector during April 2000 – March
2021 totaled US$ 37.97 billion according to the data released by Department for
Promotion of Industry and Internal Trade (DPIIT).
In October 2021, Dixon Technologies announced plans to invest Rs. 200 crores
(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 center 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 Telesat 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 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.
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 key
initiatives taken by the Government are as follows:
To drive the development of 6G technology, the Department of Telecommunications
(DoT) has developed a sixth generation (6G) innovation group.
In April 2021, the government pointed out that firms such as Ericsson and Nokia are
now eager to expand their operations in India, and global companies like Samsung,
Cisco, Ciena and Foxconn have expressed interest to set up their manufacturing base
in the country for telecom and networking products.
In March 2021, TEPC (Telecom Equipment Export Promotion Council) organized India
Telecom 2021—a platform for convergence of technologies and business exchange.
The Union Cabinet approved Rs. 12,195 crore (US$ 1.65 billion) production-linked
incentive (PLI) scheme for telecom & networking products under the Department of
Telecom.
On January 15, 2021, India and Japan signed an MoU to enhance cooperation in the
field of Information and Communications Technologies. The MoU was signed between
the Union Minister for Communications, Electronics and IT, Ravi Shankar Prasad, and
the Japanese Minister for Internal Affairs and Communications, Takeda Ryota.
In December 2020, the Union Cabinet, chaired by the Prime Minister, Mr. Narendra
Modi, approved a proposal by Department of Telecommunications for setting up of
Public Wi-Fi Networks by Public Data Office Aggregators (PDOAs) to provide public Wi-
Fi services through Public Data Offices (PDOs).
In December 2020, the Union Cabinet, chaired by the Prime Minister, Mr. Narendra
Modi, approved the provision of submarine optical fiber cable connectivity between
Mainland (Kochi) and Lakshadweep Islands (KLI Project).
On November 4, 2020, The Union Cabinet, chaired by the Prime Minister, Mr. Narendra
Modi, approved to sign a Memorandum of Understanding (MoU) between the Ministry of
Communication and Information Technology and the Department of Digital, Culture,
Media and Sports (DCMS) of United Kingdom Government on cooperation in the field of
telecommunications/information and communication technologies (ICTs).
On September 21, 2020, Prime Minister, Mr. Narendra Modi launched a project to
connect all 45,945 villages in Bihar with optical fiber internet service. This project will be
completed by March 31, 2021, at a cost of Rs. ~1,000 crore (US$ 135.97 million); Rs.
640 crores (US$ 87.01 million) of capital expenditure will be funded by the Department
of Telecommunications.
In March 2020, the government approved the Production Incentive Scheme (PLI) for
Large- scale Electronics Manufacturing. The scheme proposes production-linked
incentive to boost domestic manufacturing and attract large investments in mobile
phone manufacturing and specified electronic components including Assembly, Testing,
Marking and Packaging (ATMP) units.
FDI cap in the telecom sector has been increased to 100% from 74%; out of 100%. In
October 2021, the government notified 100% foreign direct investment (FDI) via the
automatic route from previous 49% in the telecommunications sector. FDI of up to 100%
is permitted for infrastructure providers offering dark fiber, electronic mail and voice
mail.
Achievements
Following are the achievements of the Government in the past four years:
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% increased internet coverage from 251 million users to 446 million.
Road Ahead
Revenue from the telecom equipment sector is expected to grow to US$ 26.38 billion.
The number of internet subscribers in the country is expected to double by 2025 to 900
million and overall IP traffic is expected to grow four-fold at a CAGR of 30% by 2026.
The Indian Government is planning to develop 100 smart city projects, and IoT will play
a vital role in developing these cities. The National Digital Communications Policy 2018
envisaged attracting investment worth US$ 100 billion in the telecommunications sector
by 2022. App downloads in India is expected to increase to 18.11 billion in 2018F and
37.21 billion in 2022F.
India The telecoms industry is regulated by the following central legislations: the
Indian Telegraph Act, 1885 (Telegraph Act); the Wireless Telegraphy Act, 1933
(WT Act); the Telecom Regulatory Authority of India Act, 1997 (TRAI Act); and the
Information Technology Act, 2000 (IT Act). and government acts for regulation of
telecom industry.
COMPETITIVE SCENARIO
Market Structure and Price-based Competition 8. India’s telecom sector is not only one of
the largest but also among the fastest growing networks in the world. The increase in
subscriptions has been nothing short of dramatic, on occasions touching 20 million in a
month. In the first decade of the 21st century, subscribers grew at 33 per cent annually.
Technological progress and an enabling policy regime combined to transform the market,
expand the network and produce a staggering growth. In 1999, when the New Telecom
Policy was announced, there were thirteen 2G technology-based private mobile service
providers. By 2019, exits and consolidation had reduced the number of operators to eight.
Today, telecom networks are the backbone of India’s digital economy with 4G technology
firmly in situ in all private networks. The country-wide lockdown due to COVID-19
unambiguously established the centrality of communications in maintaining economic
activity and elevated its growth impacts. The sector’s contribution to India’s GDP is
estimated to have increased by 5 to 6 times2 during this time.
Bharti Airtel added 2.74 lakh mobile subscribers in September even as larger rival Reliance
Jio lost 1.9 crore users and Vodafone Idea lost 10.77 lakh subscribers during the month,
according to data released by telecom regulator TRAI on Monday.
The subscriber base of Airtel stood at 35.44 crore in September as against 35.41 crore users
in August. The net additions for the telco came in at 2.74 lakh users, the monthly subscriber
data compiled by the Telecom Regulatory Authority of India (TRAI) showed.
India's largest telecom operator Reliance Jio had 42.48 crore mobile subscribers as on
September as it lost net 1.90 crore users.
Troubled Vodafone Idea lost 10.77 lakh subscribers during the month under review and its
subscriber base shrank to 26.99 crore as on September 2021.
It may be recalled that Reliance Jio had disclosed and talked at length about the loss of
subscribers while announcing its September quarter results.
During Q2 FY22, Reliance Jio Infocomm President Kiran Thomas said COVID has been
quite tough on a lot of people in India, especially at the bottom of the pyramid.
"During the peak of the second wave, we had done a lot of initiatives... giving free voice
minutes to keep them on our network... to keep lifeline alive. But, two quarters later, we find
that a large number of people at the bottom of the pyramid have not been able to stay up-to-
date with recharges," Thomas had said.
According to the policy, the company kept them in the database for about 90 days.
"So, effectively, the effect of these people stopping recharging two quarters before is now
getting reflected in our subscriber count, and because of that, you see a net reduction of
about 11 million in this quarter," Thomas had said.
The muted numbers for the two private telcos also echoed on the overall headline wireless
tally reported by TRAI for September.
"The total wireless subscribers decreased from 1,186.72 million at the end of August-21 to
1,166.02 million at the end of September-21, thereby registering a monthly decline rate of
1.74 per cent," it noted.
As on September 30, 2021, the private access service providers held 89.99 per cent market
share of the wireless subscribers whereas BSNL and MTNL, the two PSU access service
providers, had a market share of only 10.01 per cent.
The wireless tele-density in India decreased from 86.78 per cent at the end of August 2021 to
85.20 per cent at the end of September 2021.
Wireless subscription in urban areas decreased to 637.89 million (or 63.78 crore) at the end
of September 2021 and that in rural areas fell to 528.13 million (52.81 crore) during the
same period.
"As on 30 September, 2021, the top five Wireless Broadband Service providers were
Reliance Jio Infocomm Ltd (424.84 million), Bharti airtel (203.45 million), Vodafone Idea
(122.36 million), BSNL (19.10 million) and Tikona Infinet Ltd. (0.30 million)," TRAI said.
In the month of November, 2021, 7.33 million subscribers submitted their requests for
Mobile Number Portability (MNP). With this, the cumulative MNP requests increased from
645.54 million at the end of October-21 to 652.88 million at the end of November-21, since
implementation of MNP.
Number of active wireless subscribers (on the date of peak VLR#) in November, 2021 was
996.38 million.
In 2009, Bharti negotiated for its strategic partner Alcatel-Lucent to manage the network
infrastructure for the fixed line business. Later, Bharti Airtel awarded the three-year contract
to Alcatel-Lucent for setting up an Internet Protocol access network across the country. This
would help consumers access internet at faster speed and high-quality internet browsing on
mobile handsets.
In 2009, Airtel launched its first international mobile network in Sri Lanka. In June 2010,
Bharti acquired the African business of Zain Telecom for $10.7 billion making it the largest
ever acquisition by an Indian telecom firm. In 2012, Bharti tied up with Wal-Mart, the US
retail giant, to start a number of retail stores across India. In 2014, Bharti planned to acquire
Loop Mobile for ₹7 billion (US$93 million), but the deal was called off later.
On 18 November 2010, Airtel rebranded itself in India in the first phase of a global
rebranding strategy. The company unveiled a new logo with 'airtel' written in lower case.
Designed by London-based brand agency, The Brand Union, the new logo is the letter 'a' in
lowercase, with 'airtel' written in lowercase under the logo. On 23 November 2010, Airtel's
Africa operations were rebranded to 'airtel'. Sri Lanka followed on 28 November 2010 and
on 20 December 2010, Warid Telecom rebranded to 'airtel' in Bangladesh.
9% Overall Similarity
Top sources found in the following databases:
7% Internet database 3% Publications database
Crossref database Crossref Posted Content database
6% Submitted Works database
TOP SOURCES
The sources with the highest number of matches within the submission. Overlapping sources will not be
displayed.
jec.davjournals.in
1 3%
Internet
gscen.shikshamandal.org
2 <1%
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diva-portal.org
3 <1%
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oaji.net
4 <1%
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docshare.tips
8 <1%
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econstor.eu
10 <1%
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mdpi.com
13 <1%
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dartconsulting.co.in
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archivo.alde.es
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iors.ir
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ijhsss.com
21 <1%
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irgu.unigoa.ac.in
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isidore.science
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vdocuments.pub
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researchgate.net
33 <1%
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44 <1%
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EXCLUDED SOURCES
slideshare.net
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en.wikipedia.org
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pdfcoffee.com
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coursehero.com
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ibef.org
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Airtel is credited with pioneering the business strategy of outsourcing all of its bus...
wikimili.com
In October 2021, Vodafone Idea stated that it is in advanced talks to sell a minority...
www.bseindia.com
The Rs. 12,195 crore (US$ 1.65 billion) production-linked incentive (PLI) scheme or
www.electronicbharat.com
Bharti Airtel added 2.74 lakh mobile subscribers in September even as larger rival ...
www.business-standard.com
word telecommunication was adopted from the French word telecommunication. I...
gscen.shikshamandal.org
INDIAN TELECOM INDUSTRYIndian telecom industry is one of the fastest growing ...
gscen.shikshamandal.org
in the Indian telecom sector.The Government has enabled easy market access to t...
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crores
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fiber
gscen.shikshamandal.org
In
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gscen.shikshamandal.org
In June 2015, Jio announced that it would start its operations throughout the coun...
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