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College of ineering,Sion Principal, PVPP College of Engineering,Sion Wireless Technology – India Dr. K. T. V. Reddy Principal PVPP.

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Presentation on theme: "College of ineering,Sion Principal, PVPP College of Engineering,Sion Wireless Technology – India Dr. K. T. V. Reddy Principal PVPP."— Presentation transcript:

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2 College of ineering,Sion Principal, PVPP College of Engineering,Sion Wireless Technology – India Dr. K. T. V. Reddy Principal PVPP college of Engineering, Sion Web:www.pvppcoe.ac.in Governing Council Member, IETE, India February 13, 2014SSS, ACT2012

3 College of ineering,Sion Principal, PVPP College of Engineering,Sion Presentation Plan 1 5 Telecom Industry Overview Emerging Trends in Telecom Market 3 Regulatory Framework and Its Impact 4 Telecom – Investment Attracting Sector2 Major Players in Telecom Sector 6 Growth Avenues February 13, 2014SSS, ACT2012

4 College of ineering,Sion Principal, PVPP College of Engineering,Sion Background Relationship between telephony and economic development is well recognized Teledensity has been a good indicator of economy Establishing quantitative relationship has not been easy From plain telephony to a converged technology Telephone, computer, broadband, multimedia All Packet communication Cable TV Digital, virtual and mobile February 13, 2014SSS, ACT2012

5 College of ineering,Sion Principal, PVPP College of Engineering,Sion Developing Countries Mixed picture Some highly motivated relatively smaller countries have performed better than much larger (richer?) countries Literacy, social and cultural factors Interest in ICT Dealing with diverse languages and scripts Poor basic infrastructure February 13, 2014SSS, ACT2012

6 College of ineering,Sion Principal, PVPP College of Engineering,Sion Technology Advances Exceptionally favorable situation Moving to All Packet Networks ( ~ 4G) Mobile and Wireless Techs Very large bandwidths Rapid fall in costs Technology as commodity February 13, 2014SSS, ACT2012

7 College of ineering,Sion Principal, PVPP College of Engineering,Sion Technology, some concerns Not quite user friendly yet Multiplicity of mutually incompatible standard and protocols High costs Handling local languages and scripts Reliability and ruggedness February 13, 2014SSS, ACT2012

8 College of ineering,Sion Principal, PVPP College of Engineering,Sion India Large Populations, vast area Over 60% still in rural areas, significant illiteracy More than 500,000 villages many still to be fully served Large internal digital divide, disparities in living standards, lifestyle, etc. ICT, a key for rapid development (self driven) February 13, 2014SSS, ACT2012

9 College of ineering,Sion Principal, PVPP College of Engineering,Sion India, Some Positive Factors Large, younger, tech savvy population, not burdened by history! Exceptional popularity of the cell phone Democracy,... may be chaotic! Extensive use of English Appearance of Roman script for Indian languages Satellite TV, Cable and Multimedia Mass market, needs new business model February 13, 2014SSS, ACT2012

10 College of ineering,Sion Principal, PVPP College of Engineering,Sion The Indian Scenario Very slow growth till the 80s Faster and faster growth from 90s Impact of Privatization, the Internet, the cellphone and affordability Cellphone as a multiservice device India has among the world's cheapest services 8+ million cellphones added every month! PCs and Broadband Internet February 13, 2014SSS, ACT2012

11 College of ineering,Sion Principal, PVPP College of Engineering,Sion Digital Technology Starts a Revolution in India in the 80s Digital (PCM) switching and transmission First digital switch in a village (Kittur) in 1986 IBM PC, CMOS Technology, HLL, etc. Demonopolization Privatization on a limited scale Nationwide network of payphones Low cost reliable international access from the remotest area Ancillary industry Enlightened leadership February 13, 2014SSS, ACT2012

12 College of ineering,Sion Principal, PVPP College of Engineering,Sion Present Situation Currently 500 Million lines, million lines in 2015 More than 80 million lines added every month Broadband DSL, slower growth still Widespread usage of Internet, large number of ISPs, etc. 3G yet to pickup Attention to rural areas February 13, 2014SSS, ACT2012

13 College of ineering,Sion Principal, PVPP College of Engineering,Sion The Impact in the80s The first digital rural exchange in The RAX Better facilities than most urban areas International dialing, etc. Economic impact study by National Institute of Bank Management Pune There was significant increase in bank deposits Helped farmer in his business Awareness of new technology February 13, 2014SSS, ACT2012

14 College of ineering,Sion Principal, PVPP College of Engineering,Sion Reasons for the success of RAX Very innovative approach Very inexpensive Rugged Low power, can handle irregular power supply Simple to use, maintain and manufacture Developed with village at the focus February 13, 2014SSS, ACT2012

15 College of ineering,Sion Principal, PVPP College of Engineering,Sion 90s and the rise of the Internet Mostly data networks Internet usage in academics and research Businesses, government, education... Narrow band Relatively expensive bandwidth February 13, 2014SSS, ACT2012

16 College of ineering,Sion Principal, PVPP College of Engineering,Sion The Convergence Cheaper bandwidths DSL based broadband to homes All services, voice, data, video on a common data pipe (IP) Cable TV for broadband delivery Digital Cinema Integration of all services Services with 100Mbps+ Wireless emerges as a key technology, WiFi, WiMax, etc. Cellphone as a very low cost transaction device February 13, 2014SSS, ACT2012

17 College of ineering,Sion Principal, PVPP College of Engineering,Sion Benefits Digital divide still wide open Benefits have not yet reached the village Technology not yet affordable and manageable in rural areas Expensive and not simple to use Lot remains to be done in application development February 13, 2014SSS, ACT2012

18 College of ineering,Sion Principal, PVPP College of Engineering,Sion The Very Positive Side! Key role in promoting India's IT industry Helped expansion of exports especially IT business Highly affordable broadband service Broadband IP (2Mbps) replacing the std telephone line Strong support for smaller businesses, SOHO, etc. Many new value added services New opportunities for innovation based on intelligent integration of diverse technologies Technology supporting individual freedom and democratic processes The chaotic, young India simply loves it! A self-driven process for development February 13, 2014SSS, ACT2012

19 College of ineering,Sion Principal, PVPP College of Engineering,Sion Taking ICT to the Village Several interesting initiatives coordinated by Swaminathan Foundation A knowledge centre in every village Many solutions driven by equipment suppliers, may not fully match the needs The problem is not commercially attractive yet! Good potential but no significant impact yet Some problems with technology and affordability The application and the technology yet to get together fully The user may not be very comfortable yet More field work, pilot trials and innovation required February 13, 2014SSS, ACT2012

20 College of ineering,Sion Principal, PVPP College of Engineering,Sion An Observation A couple of months back, the securities firm CLSA came out with detailed analysis of the Indian IT industry which revealed that: 20-25% of Indias GDP expansion over the next 3-4 years will come from IT; Indias IT exports will cross Indias oil imports from 2007/08 onwards assuming that oil prices are at around $65 a barrel; The IT industry –directly and indirectlywill pick up a third of the addition to the urban labour force over the next three-four years. Over the next three-four years, the IT industry will pick up around 80-85% of Indias employable engineers. One in seven income tax payers in the country will be a IT professional by 2010 up from the current one in ten. February 13, 2014SSS, ACT2012

21 College of ineering,Sion Principal, PVPP College of Engineering,Sion Indian Telecom Industry Framework Indian Government BodiesIndependent Bodies Wireless Planning and Coordination (WPC) Department of Telecommunications Telecom Commission Group on Telecom and IT (GoT-IT) Telecom Regulatory Authority of India (TRAI) Telecom Disputes Settlement and Appellate Tribunal (TDSAT) Handles spectrum allocation and management DoT – Licensee and frequency management for telecom Exclusive policy making body of DoT Handles ad hoc issues of the telecom industry Independent regulatory body Telecom disputes settlement body Regulatory Framework provides level playing field for all operators They formulate various policies and pass laws to regulate the telecom industry in India. They undertake various research activities and monitor the quality of service provided in the Indian telecom industry. They also provide various recommendations to improve the status of telecom operations in India. The Department of telecommunications (Government of India) is the main governing body for the industry. Telephone Regulatory Authority of India (TRAI) assists the Government of India (GoI) to take timely decisions and introduce new technologies in the country. February 13, 2014SSS, ACT2012

22 College of ineering,Sion Principal, PVPP College of Engineering,Sion Go-ahead to the CDMA technology INDIA Private players were allowed in Value Added Services National Telecom Policy (NTP) was formulated Independent regulator, TRAI, was established NTP-99 led to migration from high- cost fixed license fee to low-cost revenue sharing regime BSNL was established by DoT ILD services was opened to competition Internet telephony initiated Reduction of licence fees 2003 Calling Party Pays (CPP) was implemented Unified Access Licensing (UASL) regime was introduced Reference Interconnect order was issued 2004 Intra-circle merger guidelines were established Broadband policy 2004 was formulated targeting 20 million subscribers by FDI limit was increased from 49 to 74 percent Attempted to boost Rural telephony 2006 Number portability was proposed (pending) Decision on 3G services (awaited) 2007 Department of Telecommunication (DoT) is the main body formulating laws and various regulations for the Indian telecom industry. Various important regulations and laws have been passed in the Indian telecom industry post-liberalisation era ILD – International Long Distance February 13, 2014SSS, ACT2012

23 College of ineering,Sion Principal, PVPP College of Engineering,Sion NTP 99 Telecom Tariff Order WLL UASL, CPP Lowering of ADC Important regulations and their impact on the Indian telecom industry Access Deficit Charges (ADC) ADC makes it mandatory for a service provider at the callers end to share a percent of the revenue earned with the service provider at the receivers end in long-distance telephony. This subsidises the infrastructure costs of the service provider enabling access at receivers end, especially because rental for fixed-line services is low. Revision in the ADC regime is expected to be followed by further tariff reduction in telecom services. Unified Access Service License Regime (UASL) Unified licensing marked the end of the license regime in the Indian telecom industry. It helped in aligning convergent technologies and services. The establishment of the Unified Access Licensing Regime (2003) eliminated the need for different licenses for different services. Players are now allowed to offer both mobile and fixed-line services under a single license after paying an additional entry fee. This does not take into account national and international long-distance services and Internet access services. Universal Service Obligation (USO) The USO policy was laid along with NTP 99 to widen the reach of telephony services in rural India. All telecom operators are bound to contribute 5 percent of their revenues to this fund. This system was put in place to bridge the wide gap between urban and rural teledensity, bringing it down from the current 31 percent. Initially, only basic service providers were under the purview of USO. Later, its scope was expanded to include mobile services also. Although it increases the cost burden for the telecom companies, USO helps in building the telecommunication infrastructure in the rural areas. February 13, 2014SSS, ACT2012

24 College of ineering,Sion Principal, PVPP College of Engineering,Sion Vodafone purchased stake in Hutch from Hong Kong's Hutchison Telecom International for USD billion. Telekom Malaysia acquired a 49 percent stake in Spice Communications for USD 179 million. Maxis Communications acquired a 74 percent stake in Aircel for USD 1.08 billion. Ericsson to design, plan, deploy and manage Bharti Airtel network and facilitate their expansion in the rural areas, under a USD 2 billion contract. Recent Deals in Telecom Sector FDI in Telecom Sector The Indian telecom industry has always attracted foreign investors. In fact, the cumulative FDI inflow, during the August 1991 to March 2007 period, in the telecommunication sector amounted to USD 3,892 million. It is the third largest sector to attract FDI in India in the post- liberalisation era. FDI calculation takes into account radio paging, cellular mobile and basic telephone services in the telecommunication sector. FDI and other M&A activities increasing in number Reliance Communications Limited has sold a five percent equity share capital of its subsidiary Reliance Telecom Infrastructure Limited to international investors across the US, Europe and Asia. The deal was worth USD million. The Indian telecom industry has a 74 percent FDI limit in the telecom services segment. The GoI has permitted 100 percent FDI in manufacturing of telecom equipment in India. Major trends in the telecom sector is increasing M&A activity, de-regulation of telecom policies and growing interest of international investors. February 13, 2014SSS, ACT2012

25 College of ineering,Sion Principal, PVPP College of Engineering,Sion Basic Services Operators BSNL MTNL Major Players in different segments of Indian telecom industry Reliance TTSL GSM Services Operators Airtel Vodafone Idea Reliance TTSL BSNL CDMA Services Operators Reliance Internet Services Operators BSNL MTNL Reliance TTSL BSNL Airtel TTSL – Tata Teleservices Ltd. MOBILE SERVICES BSNL – Bharat Sanchar Nigam Ltd. MTNL – Mahanagar Telecom Nigam Ltd. February 13, 2014SSS, ACT2012

26 College of ineering,Sion Principal, PVPP College of Engineering,Sion Emerging technologies – 3G and WiMax to assist in penetration of telecom services in India WiMAX has been one of the most significant developments in wireless communication in the recent past. Since this mode of communication provides network access in inaccessible locations at a speed of more than 4 Mbps, it is expected to be a major factor in driving telecom services in India, especially wireless services. Thus, it will lead to the increased use of telecom services, Internet, value-added services and enterprise services. WiMAX is expected to accelerate economic growth and assist in providing better education, healthcare and entertainment services. It is estimated that India will have 13 million WiMAX subscribers by Aircel is the pioneer in WiMAX technology in India. The state-owned player, BSNL, aims to connect 74,000 villages through WiMAX. Bharti, Reliance and VSNL have acquired licenses in the 3.3GHz range to utilise the opportunities offered by this domain. The Indian government plans to auction the spectrum for 3G services by inviting bids from domestic as well as foreign players, and creating a competitive environment that offers better services to consumers. Therefore, the 3G spectrum is among the major investment opportunities and growth drivers of the telecom industry. The immense potential for 3G is reflected by the 30–40 percent annual growth in Value-Added Services. Cell phone manufacturers are striving to develop USD 100 priced 3G handsets for the Indian market. India expects to replicate its 2G growth in 3G services. February 13, 2014SSS, ACT2012

27 College of ineering,Sion Principal, PVPP College of Engineering,Sion Huge Potential of Indian Broadband Markets S-Curve in Addressable MarketIndian Broadband Subs Penetration S-Curve in Addressable Market: affordable population excluded population under poverty line and below 15 years old India 30% 10 Start-up Period Fastest growth period Saturation Period Key Point India 0.45 Broadband markets is still in its infancy stage with low penetration rate. Broadband markets is still in its infancy stage with low penetration rate. A big gap with other developing/developed countries anticipates a huge potential. A big gap with other developing/developed countries anticipates a huge potential. Source: TRAI February 13, 2014SSS, ACT2012

28 College of ineering,Sion Principal, PVPP College of Engineering,Sion Hype Cycle for Wireless networking Infrastructure Source Gartner For a new technology, people are usually keen on the advantages. Their overenthusiasm generates the peak of inflated expectations. When the new technology is put into commercial use, people find that there is a variety of limits. Thus the trough of disillusionment occurs. The new technology enters the stage of practical application and enjoys stable development in line with the commercial law. WiMAX 16e is entering the stage of practical application. In the following years, WiMAX 16e will see broad application throughout the world. 16e+ is available at the end of 2010, WiMAX is about 3 years ahead of LTE in the Product chain. EV-DO Rev. B Innovation Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity Time Expectations Years to Mainstream Adoption: less than 2 years 2 to 5 years 5 to 10 times more than 10 years obsolete before plateau WiMAX 16e HSPA TD-SCDMA WiFi LTE Cloud Computing M2M HSPA + WCDMA WiMAX is entering the stage of practical application WiMAX 16m LTE-Advance WiMAX 16e+ February 13, 2014SSS, ACT2012

29 College of ineering,Sion Principal, PVPP College of Engineering,Sion SSS, ACT2012 Indian Telecom Statistics February 13, 2014

30 College of ineering,Sion Principal, PVPP College of Engineering,Sion SSS, ACT2012 Existing Operators Service ProvidersTechnology Bharat Sanchar Nigam Limited (BSNL)GSM, CDMA & Fixed Line Bharti Airtel Limited (Airtel)GSM & Fixed Line Reliance Communications Limited (RCOM)GSM, CDMA & Fixed Line Vodafone Essar Limited (Vodafone-Essar)GSM Idea Cellular Limited (Idea)GSM Tata Teleservices Limited (TTSL)GSM, CDMA & Fixed Line Tata Teleservices Maharashtra Limited (TTML)CDMA & Fixed Line Mahanagar Telephone Nigam Limited (MTNL)GSM, CDMA & Fixed Line Aircel Cellular Limited (Aircel)GSM Reliance TelecomGSM Loop Mobile Limited (Loop mobile)GSM HFCL Infotel Limited (HFCL)CDMA & Fixed Line February 13, 2014

31 College of ineering,Sion Principal, PVPP College of Engineering,Sion SSS, ACT2012 Thanks! Sources DOT TRAI COAI & AUSPI Ernest & Young IMRB BDA Telecom India Daily (internal research) ……..open internet February 13, 2014

32 College of ineering,Sion Principal, PVPP College of Engineering,Sion Conclusion India has benefited immensely from ICT It has given an opportunity of rapid economic and social development February 13, 2014SSS, ACT2012

33 College of ineering,Sion Principal, PVPP College of Engineering,Sion Thank You ! February 13, 2014SSS, ACT2012


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