STRUCTURE & POLICIES OF

TELECOM INDUSTRY

STRUCTURE
DEFINITION

Responsibilities, authorities and relations organized in such a

way as to enable the organization to perform its functions.

Organizational structure is a formal system of job relationship

that coordinates employees to achieve a company's goals.

An organizational structure is a hierarchical concept

commonly visualized as an orderly system of objects and sub-
objects collectively working toward an ultimate goal. An
organizational structure varies in complexity and is limited only by
the individual's capacity to conceptualize the phenomena. For
example, a government is a "bureaucratic type" organizational
structure where decision making is implemented from the top down.
Tasks within bureaucratic organizations are usually routine, formal
and closely supervised.
 Different types of Organizational Structure:

Functional Organizational Structures

A functional organizational structure isolates specific tasks

and then further divides those tasks into highly simplified duties
best suited for particular talents. Activities within a functional
organizational structure are divided into "functional departments,"
for example: marketing, information technology, customer service,
accounting and research-and-development.

Virtual Organizational Structures

Virtual organizational structures are "borderless" by design

and usually maintain a small staff (skeleton crew) while outsourcing
the majority of tasks to independent specialists, volunteers or both.
Communication is usually informal and provided by information
technology services, for example: email, voice-over-Internet-
protocol, chatting and remote conferencing. The complexity of
virtual organizational structures can rival any traditional structure
in scope and effectiveness.

Matrix Organizational Structures

Matrix organizational structures are complex and incorporate

many aspects of organizational structures: virtual, functional and
product structures. For example, project managers assigned to a
particular task will report to a functional manager; this interaction
 between functional manager and product manager are indications
of a classical matrix organizational structure.

Post-bureaucratic Organizational Structures

Post-bureaucratic organizational structures are similar in

scope to bureaucratic structures, with both sharing hierarchical
divisions, and are usually hallmarks of longevity. However, a
classical disinction between the two is the "culture" within the two
organizations. For example, bureaucratic structures sometimes
experience rigid formalities, and an over-saturation of regulations
causes a sort of "innovation gridlock." In contrast, post-bureaucratic
organizational structures adopt decision-making policies involving
constructive-conflict strategies where innovations and the
encouraged expression of ideas trump rigid formalities that are
meant to empower, but don't.
 STRUCTURE OF TELECOM INDUSTRY:

Telecom:

Telecom in the real sense means transfer of information between

two distant points in space

• 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
Indian Telecom Industry:

Indian Telecom depends on the global telecom industry for

technology
Platforms & network management. While Indian market size attracts
telecom giants.
Indian Telecom - Scenario

 India – Fastest growing market in World – 190 mn subscribers

 4th largest mobile market growing at 6 mn Sub/month
 3rd largest internet market, 4th largest by 2012
 PCOs - 4.5 mn @ 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%

INDIAN TELECOM – GLOBAL REACH :

 MARKET STRUCTURE :

Divided into 22 circles

⇒ 4 metros

⇒ 19 circles

Further divided into A, B

and C category based on
economic parameters and
revenue potential

⇒ Each circle has a licenses

⇒ Four operators per circle are allowed

⇒ Licenses are saleable

 Business Model :

⇒ Entrepreneur-driven operator assisted telephone

booths (STD PCOs) introduced in India in 1987

- Today in urban areas

 950,000 such PCOs covering every street of smallest town
 generate 25 % of total telecom income
 300 million people use these PCOs

⇒ Lessons for Rural Connectivity

- To serve the telecom needs of rural people with incomes <$

1
per day, aggregate demand and allow an entrepreneur to
run
it.

⇒ Business Model

- Aggregate demand to a village internet centre to

provide voice/computer and internet services.
- Allow a local village entrepreneur to run it
- Create an organization to provide the connectivity
and content linkages

Global Trends – Connecting World

Convergence & Mobility

ORGANIZATIONAL STRUCTURE OF AIR TEL :

DEPARTMENTS :
LEVELS :

98% of organizational success depends upon

efficient employee selection.

Ref: [{ i. Report of Manisha Maheshwari (roll no 26, A1) on India Telecom

Industry ii. Report of Shipra Kansal,on Indian Telecom Industry} ]
Telecom Industry Association: (TIA)

The Telecommunications Industry Association (TIA) is the

leading trade association representing the global information and
communications technology (ICT) industries through standards
development, government affairs, business opportunities, market
intelligence, certification and world-wide environmental regulatory
compliance. With support from its 600 members, TIA enhances the
business environment for companies involved in
telecommunications, broadband, mobile wireless, information
technology, networks, cable, satellite, unified communications,
emergency communications and the greening of technology.

History:

In 1924, a small group of suppliers to the independent

telephone industry organized to plan an industry trade show. Later,
that group became a committee of the United States Independent
Telephone Association. In 1979, the group split off as a separate
affiliated association, the United States Telecommunications
Suppliers Association, and became one of the world's premier
organizers of telecom exhibitions and seminars. TIA was formed in
April 1988 after a merger of USTSA and the Information and
Telecommunications Technologies Group of EIA. EIA began as the
Radio Manufacturers Association in 1924.

Since 1988, TIA has advocated numerous policy issues for the
benefit of its members, has sponsored engineering committees that
set standards determining the pace of development in the industry,
has provided a marketplace for members and their customers, and
has served as a forum for the examination of industry issues and
industry information. In the fall of 2000, the Multi Media
Telecommunications Association (MMTA) was integrated into TIA.

Organizational Structure :

TIA is a member-driven organization. Board members1 are selected from member

companies and formulate policies to be carried out by our government affairs staff in
Washington, D.C. TIA staff also carry out activities through TIA's other departments
– Standards and Technology, Market Inteligence, Environment, Marketing and
Membership.

TIA's product-oriented divisions – User Premises Equipment, Wireless

Communications, Fiber Optics, Network, and Satellite Communications – address the
legislative and regulatory concerns of product manufacturers. TIA-sponsored
committees of experts prepare standards dealing with performance testing and
compatibility. In addition to TIA's product-oriented divisions, the asociation also has
a Communications Research Division (CRD). The role of the CRD is to ensure the
U.S. communications sector continues to be a world leader in advanced research. The
division provides expert advice to the government and to TIA on the status and impact
of research and technology to the communications industry and educates the public on
the importance of communications research as a foundation for the communications
products and services on which they depend.
1
Board of Directors
Officers

Shawn Osborne* (Chairman)

Ulticom
President & CEO

Dan Pigott* (Vice Chairman)

Henkels & McCoy
VP, Corporate Engineering
VP, Project Management Office

Charlie Fox* (Treasurer)

Tyco Electronics
Global Director Business Development

Rob Pullen* (Chairman Emeritus)

Tellabs
President & CEO

Grant E. Seiffert* (President)

TIA

Ref: [{http://www.tiaonline.org}Official Website]

 PAKISTAN TELECOM INDUSTRY
( P.T.A. )

INTRODUCTION

The Pakistan Telecommunication Ordinance 1994, established the primary

regulatory framework for the telecommunication industry including the establishment
of an authority. Thereafter, Telecommunication (Re-Organization) Act no XVII was
promulgated in 1996 that aimed to reorganize the telecom sector of Pakistan. Under
Telecom Reorganization Act 1996, Pakistan Telecommunication Authority (PTA)
was established to regulate the establishment, operation and maintenance of
telecommunication systems, and the provision of telecom services.

PTA has its headquarters at Islamabad and zonal offices located at Karachi,
Lahore, Peshawar, Quetta, Rawalpindi and Muzaffarabad.

⇒ Functions

PTA's functions include:

• To regulate the establishment, operation and

maintenance of telecommunication systems and
provision of telecommunication services in Pakistan.
• To receive and expeditiously dispose of
applications for the use of radio-frequency spectrum.
• To promote and protect the interests of users of
telecommunication services in Pakistan.
• To promote the availability of a wide range of high
quality, efficient, cost effective and competitive
telecommunication services throughout Pakistan.
• To promote rapid modernization of
telecommunication systems and telecommunication
services.
• To investigate and adjudicate on complaints and
other claims made against licensees arising out of
alleged contraventions of the provisions of this Act, the
rules made and licenses issued there under and take
action accordingly.
• To make recommendations to the Federal
Government on policies with respect to international
telecommunications, provision of support for
participation in international meetings and agreements
to be executed in relation to the routing of international
traffic and accounting settlements.
• To perform such other functions as the Federal
Government may assign from time to time.
⇒ Responsibilities

In exercising its functions and powers under the Act, the

authority shall ensure that?

• Rights of licensees are duly protected;

• All of its decisions and determinations are made
promptly, in an open equitable, non discriminatory,
consistent and transparent manner;
• All applications made to it are disposed of
expeditiously;
• The persons affected by its decisions or
determination are given a due notice thereof and
provided with an opportunity of being heard;
• It encourages, except subject to the exclusive
right of the company in basic telephone service, fair
competition in the telecommunication sector.
• The interest of users of telecommunication
services are duly safeguarded and protected.

⇒ Vision

⇒ Chairmen Message

In the era of globalization and information society, the crucial

role of telecommunication technologies cannot be
underestimated. Infact the whole edifice of economic growth
both at the macro and the societal level heavily depends on the
peoples access to information, resources and modern
technological advancements so that no one misses out on the
opportunities that are offered by ever expanding deregulated
market scenarios.
 Since its inception in 1996, Pakistan Telecommunication
Authority has envisioned to bring out the best that the potential
of this sector offers. From provision of investor friendly
environment to all stakeholders against a backdrop of a level
playing and fair regulatory regime to maintaining healthy
competition in the sector thereby encouraging growth and
safeguarding the consumer interests, PTA has always played the
role of a responsible, fair and forward looking Regulator. The
landscape of todays telecom sector bears a testimony to our
hard work. With the implementation of the Deregulation policies
of the Government of Pakistan that have now extended up to the
Azad Jammu and Kashmir & Northern Area regions, Pakistans
telecom sector has witnessed unprecedented strides during the
past years. No doubt we are ahead of our regional partners in
terms of overall teledensity and mobile growth. The worlds most
prestigious telecom players are offering their high quality, cutting
edge services to the countrys consumers at competitive rates.
Telecom sector is a major contributor in the countrys inflow of
FDI, revenue collection, infrastructure development, advertising
businesses and job opportunities thus generating very healthy
economic activities.

The growth and development of Information and

Communication Technologies (ICTs) today has led to their wide
diffusion and application, thus escalating their economic and
social impact in any country. Realizing the importance of
upcoming convergence era where both information and
communication technologies would be offered through a same
platform, Pakistan Telecommunication Authority (PTA) is also
fostering its efforts to promote the ICT sector by its proactive
initiatives. PTA sticks to its mission of envisaging new and
emerging technologies and their implications in a comprehensive
regulatory framework to continue provide fair and competitive
market for the stakeholders, as well as ensure high Quality ICT
services.

International telecom bodies including the ITU, GSMA and

LirneAsia has acknowledged our efforts towards the improvement
of Telecom facilities in our parts of the world and today PTA is
exchanging its expertise and sharing its success story with the
rest of the member countries. We still have a long way to go as
we look forward to introducing 3G technology in the country
besides accelerating proliferation of Broadband to the far flung
areas so that the fruits of telecom revolution in Pakistan may
trickle down to the last corners of our country.

I assure all the stakeholders, investors and people of Pakistan

that PTA will continue with its commitment and dedication
towards safeguarding the interests of all in order to maintain
progressive telecommunications in Pakistan
ORGANIZATIONAL STRUCTURE OF PTA :

PTA divide all groups into different category.

⇒ Law & Regulations

⇒ Licensing
⇒ Enforcement
⇒ Finance
⇒ Commercial Affairs
⇒ Technical Services
⇒ Strategy & Development
⇒ Frequency Allocation Board