Telecom Industry Connecting the World

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Telecom IndustryConnecting the World

• N Arjun

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Telecom in the real sense means transfer of
information between two distant points in space
Telecom is a huge and varied bastion of
technologies, companies, services andpolitics
that is truly global in nature
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Introduction

• Telecom stands as one of the most essential
  elements of the business world in terms of
  Connecting the World
• Volatile Sector
• Regulatory discord
• Cut-throat competition
• Emergence of Technologies
• Emergence of broadband wireless technologies
  pose threat to carriers relying on aging
  infrastructure
• To survive, telecom carriers need to consider
  various options
• Consolidation,
• Convergence,
• Costly Technological upgrades

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Global Growth Patterns

• Emerging Markets
• Driving Volume Growth
• Low Tariffs (ARPUs)
• Developed Markets
• Low Subscriber Base
• Technological Advancements
• Indian Telecom depends on the global telecom
  industry for technology platforms network
  management
• While
• Indian market size attracts telecom giants

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Indian Telecom - Scenario

• India Fastest growing market in World 190 mn
  subscribers
• 4th largest mobile market growing at 6 mn
  Sub/month
• 4th largest internet market, 3rd largest by 2007
• Voice Revenue dropping
• PCOs - 4.5 mn _at_ CQGR of 7.22
• Paying highest taxes and regulatory charges
  Variable License fee
• OPPORTUNITIES
• Data revenues 8.5 of service revenue against
  world avg of 16.5
• Content Services Music/Video etc
• Applications m Commerce/PVR Ticketing
• Tele-density From 2 in 2000 to 15.44 in 2006
• TEMA target of 100 bn for equipments in next 3
  yrs
• IT ITES Industry 35 bn with CAGR of 35

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Indian Telecom Global Reach
Source Voice Data
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Indian Telecom - Global Connectivity
Submarine Cable System Landing at Chennai,
Mumbai, Cochin Tuticorin
SMW 4
Mumbai
FLAG
SMW 3
i2i
Chennai
TIC
SMW 3
SMW 4
Cochin
SAFE
Tuticorin
Bharat Lanka
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International Bandwidth Growth - India
Source Telegeography
Conversion 1 Gbps 6.4 STM1
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International Bandwidth Usage
Gbps
Source Telegeography

• The above figure is for usage of bandwidth
• China has more than 10 times of higher
  bandwidth usage as comparison to India

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Global Trends Connecting WorldConvergence
Mobility

• Mobile Devices with
• voice, data video
• Mobile Wireless
• Broadband
• Fibre to Home

Public Safety

• Mobile Police
• Fire personnel
• devices
• Interoperable
• Communications

Communications
Computers IT
Consumer Electronics

• Laptops Handheld
• PCs
• Entertainment major
• PC driver
• IP to in the Home
• VoIP handsets

• Entertainment
• becomes Digital
• Mobile Personal
• Digital Devices
• prevail

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Connecting India to the World

• ENABLERS
• Unified Licensing
• Telecom Technologies - Internet/Wimax/VOIP
• Reduced License Fees in Long Distance Sector
• Outsourcing Network Management to Global
  Manufacturers
• India - Telecom Equipment Manufacturing Base
• Convergence - ICT
• FDI Relaxation in Telecom (26 to 74) - 2.67
  bn Aug,06
• Emergence of IT ITES Sector
• Consolidation Partnerships between Indian
  Foreign Players viz. BT, ATT , Aircel Maxis
• Telecom has attracted significant FDI and
  technology which has resulted in huge benefits to
  the Indian Telecom Growth

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Connecting India to the World

• CHALLENGES
• Regulatory Policies
• Lack of level playing field
• Penetration Level
• Across the world and within India
• Seamless Roaming
• Infrastructure Program
• Manufacture telecom equipment in India
• Passive Infrastructure Sharing
• VoIP
• Value Added Services
• Unutilized software capability
• Digital Divide
• Non Availability of technology, equipment,
  network access for millions of poor

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Indian Telecom Way Forward to being Global

• Transparent and truly technology-neutral
  Government policies
• Allow full range of private Public Sector
  telco's to compete fairly and fully
• Adequate spectrum in useable frequency bands
  advocated by the ITU to wireless service
  providers
• Low regulatory restrictions over new services
  such as Push-to-talk, IP-enabled services,
  particularly Voice-Over IP (VoIP)
• Ensure level playing field and No worse-off
  position for existing license holders
• Duties on imported telecommunications and related
  equipment must be reduced to zero
• To promote competition in IPLC
• Put in Right Policies for technology
  multinationals to build business in consumer end
  user device segments like mobile, handset, PCs
  and networking product manufacturing
• Acquisitions with Strategic intent

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• Thank You