Introduction:

India is the worlds fastest growing industry in the world in terms of number of wireless connections after China, with 811.59 million mobile phone subscribers.According to the world telecommunications industry, India will ha e 1.!"" billion mobile subscribers by !"1#.$urthermore, pro%ections by se eral leading global consultancies indicate that the total number of subscribers in India will e&ceed the total subscriber count in the China by !"1#.

Industry HISTORY:
'ell (ostal means of communication was the only mean communication until the year 185". In 185" e&perimental electric telegraph started for first time in India between Calcutta )*ol+ata, and -iamond .arbor )southern suburbs of *ol+ata, on the ban+s of the .ooghly /i er,. In 1851, it was opened for the use of the 0ritish 1ast India Company. 2ubse3uently construction of telegraph started through out India. A separate department was opened to the public in 1854. -r.'illiam 52haughnessy, who pioneered the telegraph and telephone in India, belonged to the (ublic 'or+s -epartment, and wor+ed towards the de elopment of telecom. Calcutta or the6then *ol+ata was chosen as it was the capital of 0ritish India. $rom the year 19"! India drastically changes from cable telegraph to wireless telegraph, radio telegraph, radio telephone, trun+ dialing. 7run+ dialing used in India for more than a decade, were system allowed subscribers to dial calls with operator assistance. 8ater mo ed to digital microwa e, optical fiber, satellite earth station. -uring 0ritish period all ma%or cities and towns in India were lin+ed with telephones.

Development of the Market Structure in Telecom Industry:

In the year 1995 -epartment of 7elecom )-o7, was responsible for telecom ser ices in entire country after separation from Indian (ost : 7elecommunication. -ecade later ;ahanagar 7elephone <igam 8imited );7<8, was chipped out of -o7 to run the telecom ser ices of -elhi and ;umbai. In 199"s the telecom sector was opened up by the =o ernment for pri ate in estment. In1995 7/AI )7elecom /egulatory Authority of India, was setup. 7his reduced the interference of

=o ernment in deciding tariffs and policy ma+ing. 7he =o ernment of India corporati>ed the operations wing of -o7 in !""" and renamed -epartment of 7elecom as 0harat 2anchar <igam 8imited )02<8,. In last 1" years many pri ate operators especially foreign in estors successfully entered the high potential Indian telecom mar+et. =lobally acclaimed operators li+e 7elenor, <77 -ocomo, ?odafone, 2istema, 2ing7el, ;a&is, 1tisalat in ested in India mobile operators. .Mobile ommunication $irst mobile telephone ser ice on non6commercial basis started in India on 48th Independence -ay at countrys capital -elhi. 7he first cellular call was made in India on @uly #1st, 1995 o er ;odi 7elstras ;obile<et =2; networ+ of *ol+ata. 8ater mobile telephone ser ices are di ided into multiple >ones +nown as circles. Competition has caused prices to drop and calls across India are one of the cheapest in the world. ;ost of operator follows =2; mobile system operate under 9"";.> bandwidth few recent players started operating under 18"";.> bandwidth. C-;A operators operate under 8"";h> band, they are first to introduce 1?-5 based high speed wireless data ser ices ia A20 dongle. In spite of this huge growth Indian telecom sector is hit by se ere spectrum crunch, corruption by India =o t. officials and financial troubles. In !""8, India entered the #= arena with the launch of #= enabled ;obile and -ata ser ices by =o ernment owned ;7<8 and 02<8. 8ater from <o ember !"1" pri ate operators started to launch their ser ices. !roadband communication After A2, @apan, India stands in third largest Internet users of which 4"B of Internet used ia mobile phones. India ran+s one of the lowest pro ider of broadband speed as compared countries such as @apan, India and <orway. ;inimum broadband speed of !5C+bitDs but speed abo e !;bits is still in a nascent stage. Eear !""9 had been declared as FEear of 0roadbandG in India. 7elcos based on A-28D?-28 in India generally ha e speeds up to !4;bit ma& while those based on newer 5ptical $iber technology offer up to 1"";bits in some plans $iber6optic communication

)$77&,. 0roadband growth has been plagued by many problems. Complicated tariff structure, metered billing, .igh charges for right of way, 8ac+ of domestic content, non implementation of 8ocal6loop unbundling ha e all resulted in hindrance to the growth of broadband. ;any e&perts thin+ future of broadband is on the hands of wireless factor. 0'A auction winners are e&pected to roll out 871 and 'i;AH in India in !"1!. Indian Satellites India has launched more than 5" satellites of arious types, since its first attempt in 1995. 7he organi>ation responsible for Indian satellites is the Indian 2pace /esearch 5rgani>ation )I2/5,. ;ost 2atellites ha e been launched from arious ehicles, including American, /ussian, 1uropean satellite6launch roc+ets, and the A.2. 2pace 2huttle. $irst Indian satellite Aryabhata on 19th April 1995, later 0has+ara, /ohini, I<2A7, 1dusat, I/2, =2A7, *alpana, Cartosat, I;2, Chandrayaan, /esource2at, /i2at, Anu2at, etc.

Ma"or #layers and Market Shares:

Recent events that impact the Telecom Industry Economic risis and its $ffect on the Telecom Industry
7he worldwide economic crisis that began with the A.2. financial meltdown in !""8 had greatly affected other global mar+ets. It continues to bring a stagnant mo ement in the economic stability of most industriali>ed countries. .owe er, the effect of the global recession on the telecom industry is not as damaging compared to other industries because telecommunications has the potential to flourish in spite of the economic turmoil that we are in now because as technological ad ancements ta+e place among leading nations the demand for telecom products and ser ice increases. The financial crisis has an impact in the telecom industry as there %ill be less available credit from investors to fund infrastructures that provide research and technolo&ical advancements in telecommunication products and services' (ar&e hi&h risk proposals that need bi& investments and costly start ups are likely to be declined financin& %hich can hinder the potential &ro%th of a telecommunication venture' This provides &ood opportunity for innovatin& products and services that are %idely used in the market %ith less capital e)penditure'

Innovations to%ards the future of Telecom Industry

;obile communication is rapidly becoming a necessity for e ery indi idual who constantly needs to be connected where er he or she may be. )C5;;5-IIA7I5<, 0usinesses that operate in different locations around the world can also ta+e ad antage of telecom ser ices such as ?5I(, 'i$i, 'ima& to further cut costs on international calls in line with their business transactions. Another inno ation in the telecom industry is the technology of smartphones. A smartphone is e3uipped with functions similar to a laptop aside from its usual capability to ma+e phone calls.

The fra&mentation of content and service distribution

It is one of the +ey growth strategies the industry is e&ploring at the moment. According to telecom reports, this could be a dramatic turnaround strategy. 7he intense competition and falling prices in maturing mar+ets coupled with the challenges presented by changing usage patterns and the adaptation of new technologies are all starting to threaten the iability of the current broadband business model by bringing more problems li+e how the fragmentation could affect the wor+ing en ironment, the ser ice 3uality, and other factors.

ancellation of *++ licenses , +- Spectrum auction

7he li+ely presence of aggressi e bidders )li+e /eliance Industries6owned Infotel, is set to push up the price of != spectrum during the bidding. /s 14,""" crore is the base price and final spectrum price can be significantly higher than the base price depending on the response. It %ill force the telecom companies to increase tariffs and substantially increase entrance barriers for ne% entrants thus adversely impactin& competition'

International events that could affect the Telecomm industry

.orld .ars: 7he onset of 'orld 'ar II brought on the first e&plosion of international broadcasting propaganda, and in the future also there are all chances of a world war triggering such a situation. Rise in -lobal Terrorism: Countries, their go ernments, insurgents, terrorists, and militiamen ha e all used telecommunication and broadcasting techni3ues to promote propaganda, and a rise in such acti ities will create more demand for multimedia based telecommunications.

onclusion:

7he telecommunications industry has been through some mayor de elopments in its lifetime. It started out with a mi&ture of pri ately owned and state6owned companies throughout the world. In the first half of the !"th century, the telecommunications industry turned into a relati e stable industry, which was completely go ernment6owned. -uring the last decades, due to the liberali>ation and the pri ati>ation wa e in the world, the telecommunications industry has rapidly changed. In the 199"s, the <ew 1conomy emerged and created new mar+et opportunities for telecommunications firms. 7his study showed that many countries e&perienced a gradual process of liberali>ation with the goal of full liberali>ation. 'hen competition was allowed in the industry, the trend was to first allow one ertically6integrated competitor into the mar+et to create a player of similar strength with comparable resources as the pre ious monopolist had. 7he succeeding phase was one of more open competition. .owe er, liberali>ation and pri ati>ation not only turned around the outloo+ of the telecommunications mar+et but also the speed and e&tent of technological de elopments. -ue to inno ations, the telecommunications industry, together with other industries, is rapidlytransforming into a new industry, the so6called multimedia6information industry.