TELECOM INDUSTRY

IN

INDIA
ISBM Kolkata
 Pre liberalization
Historically telecom network in
India was owned and managed by
Government as it is considered as
a strategic service. At that time
the Telecom industry was
monopoly in nature.
Current Scenario in Telecom
Industry
 India is 4th largest market in Asia after
China, Japan and South Korea.
 India is the 5th largest in the world and
2nd largest among emerging economies
of Asia.
 Contribution of telecom sector in
terms of revenue is 2.1 % of GDP as
compared to 2.8% in developed
economies.
REFORMS IN TELECOM
SECTOR
 Reforms in telecom sector began in 1980 with
telecom manufacturing being opened for
private sector followed by national telecom
policy(NTP) in 1994 and 1999.

 In 1990 telecom revolution in many countries

which resulted in better quality of service with
lower tariff rates force Indian policy makers to
open up telecom sector for private players.
POLICY REFORM
 Phase-1
The decade of 1980's saw private sector being
allowed in telecommunications equipment
manufacturing.

 Mahanagar Telephone Nigam Limited (MTNL)

and Videsh Sanchar Nigam Limited (VSNL)
were formed.

 A telecom commission was set up to give

focus to telecommunications policy formation
 Phase-2
 In 1990s, telecommunications sector also benefited
from the general opening up of the economy.

 NTP 1994 was the first attempt to give a comprehensive

roadmap for the Indian telecommunications sector.

 Availability of telephones on demand (targeted by 1997)

 Universal service covering all villages and one pco per

500 persons in urban areas at the earliest (targeted to
be achieved by 1997)

 Telecom services at affordable and reasonable prices

 Phase- 3
NTP 1999 brought in the third generations of reforms in the
Indian Telecommunications sector.

FDI increase from 49% to 74%.

Internet telephony in 2002.

Launch of cdma technology.

3-6 operator in each circle.

Intra circle merger guidelines.

Broadband policy 2004.

CLASSIFICATION OF TELECOM
SECTOR

Fixed line Mobile Internet Telecom

telephony Telephony equipments
BSNL and MTNL 25 private companies There is no restriction Growth in the telecom
account for 90% providing cellular on the number of equipment market
revenue for basic services in 19 telecom internet companies resulted in increasing
services. circles and 4 metro and more than 185 demand for telecom
cities, covering 1500 companies are services.
towns across the operational.
country.

Private sector Presently, there are Growing demand of Key players like
available in 18 circles five private service corporate for BSNL, BHARTI,
and collectively operators in each applications such as RELIENCE, TATA,
account for 10% of area, and an state electronic commerce, BPL and
revenue. operator Internet leased lines, HUTCHISON will
ISDN, VPN etc is drive equipment
driving the growth of market growth.
the internet services
market.
KEY INDIAN COMPANIES
KEY INDIAN COMPANIES contd..
TELECOM SERVICE PROVIDERS AND
EQUIPMENT MAJORS
• Largest pure-play GSM service provider in India
• Has over 15 million subscribers

• Has a 10% stake in Bharti telecom, an integrated service

provider
• Represents the largest foreign investment in the telecom
services sector in India
• Promotes and supports a range of telecommunications
products and services in India in association with licensed
operators.
• Has invested in Bharti Airtel and also Network i2i is a 50:50
Joint Venture between Bharti and SingTel, connecting Chennai
to Singapore

• Nortel offers a suite of products and solutions across two broad

categories Carrier Networks (incorporating Wireless Networks,
Wire line Networks and Optical Networks) and Enterprise
Networks.
• In India since 1991. Has an R&D centre in Bangalore
 Airtel was Established in 1985, Bharti (Airtel) has
been a pioneering force in the Telecom Sector.
 Bharti Airtel is one of India's leading private
sector providers of telecommunications services
 An aggregate of 30,267,763 customers in that
28,611,732 GSM (Global System for
 MobileCommunications) mobile and 1,656,031
broadband & telephone Customers.
 Bharti airtel is planning to invest about $8 billion
by the year 2010.
 The businesses at Bharti Airtel have been
structured into three individual strategic
business units (SBU’s)
1) Mobile services
2) Broadband &
3)Telephone services(B&T) & enterprise
services.
 The mobile service group provides GSM
mobile services across India in 23 telecom
circles
MAJOR PLAYERS IN TELECOM SECTOR
Service Provider No. of CDMA No. of GSM
Subscriber Subscriber
RELIANCE 2.7CR
TATA 1.07CR
AIRTEL 3.37 CR
MTNL 24.98 LAKH
BSNL 2.44 CR
VODAFONE 2.44 CR
IDEA 1.3 CR
SPICE 25.56 LAKH
BPL 10.62 LAKH
AIRCEL 48 LAKH
MARKET SHARE MAJOR PLAYERS IN
TELECOM SECTOR
Business Division
• Mobile-
• Prepaid : Enter the world of limitless possibilities with Airtel Prepaid.
• Postpaid : Life becomes much simpler with your Airtel Postpaid. It gives
you theunlimited freedom to reach out to people in your special way.
• Black berry : the world’s most powerful instant e-mail mobile

• Home Phone-
• Fixed Line:- Airtel welcomes you to its world of telephony services,
which offers you world class
• services with its cutting edge technology.
• Wireless-Avail of the convenience of a mobile phone on a fixed line,
without any cables disturbing
• the ambience of your living room!
Broadband & Services
Entertainment
Calling Cards
 Wireless Internet
• Data Card

• USB Modem
FINANCIAL ANALYSIS OF
BHARTI AIRTEL LIMITED

Statement showing Financial Pattern of

Shareholders
As on 31st December’08
 Category of Number of Number of shares held
Total number of shares % of shares (A+B)
shareholder shareholders in de materialized form

A) Shareholding of Promoter and

     
Promoter Group

1) Indian        

Bodies Corporate 1 859986028 859986028 45.3

2) Foreign        

Bodies Corporate 3 414744373 119084723 21.85

B)Public
shareholding
       

1) Institutions        

Mutual Funds/ UTI 277 56288764 56288764 2.97

Financial Institutions/
37 1346888 1346888 0.07
Banks

Insurance Companies 13 65100704 65100704 3.43

Foreign Institutional
951 417407488 417407488 21.99
Investors
Contd.. Category of Number of Number of shares held
Total number of shares % of shares (A+B)
shareholder shareholders in de materialized form

2) Non-institutions        

Bodies Corporate 2145 49888166 47166031 2.63

Individuals        

Individual
shareholders holding
171215 13639169 13633219 0.72
nominal share capital
up to Rs. 1 lakh

Individual
shareholders holding
164 6116485 6116485 0.32
nominal share capital
in excess of Rs. 1 lakh

Foreign National 2 140 140 0

Foreign Companies 2 4459591 4459591 0.23

Non-resident Indians 3135 1093146 1093146 0.06

Foeign Banks 3 1582 1582 0

Trusts 17 2112473 2112473 0.11

Clearing Members 382 852697 852697 0.04

Overseas Corporate
1 5178500 5178500 0.27
Bodies

GRAND TOTAL 178348 1898216194 1599828459 100

Industry Analysis
Market Price of the Equity
 Profit Analysis
Quarter Ended
Particulars
 
31-Dec-08 30-Sep-08 30-Jun-08 31-Mar-08 31-Dec-07

Profit(+)/Loss(-)
from Ordinary
215797 131060 237052 182482 144838
Activities before
tax

Net
Profit(+)/Loss(-)
201729 160478 204679 179230 141984
from Ordinary
Activities after tax

Increase/Decrease
25.71 -21.60 14.20 26.23
Profit(%)
Reserves
excluding
2408609 2203130 2040038 1834023 -
Revaluation
Reserves
Basic EPS before
Extraordinary 10.63 8.45 10.78 9.44 7.48
items (in Rs.)

Diluted EPS before

Extraordinary 10.63 8.45 10.77 9.44 7.47
items (in Rs.)
Net Sales Year End 2008
Company Net Sales
Last Price Change % Change
Name (Rs. cr)
Bharti Airtel 722.30 -20.00 -2.69 25,761.11
Reliance
249.20 10.00 4.18 14,792.05
Comm
Idea Cellular 53.50 0.05 0.09 6,719.99
MTNL 74.85 -1.95 -2.54 4,722.52
Tata Comm 495.15 2.60 0.53 3,283.30
TataTeleservi
20.15 0.40 2.03 1,707.19
ce
Tulip
501.20 67.85 15.66 1,216.44
Telecom
Spice Comm 36.00 3.40 10.43 957.85
HFCL Infotel 7.45 0.44 6.28 248.88
Net Sales(Rs. Cr)
Advertisement & sales promotion
Contd..
 OUTCOME OF THE CAMPAIGN

Group Company wise % market share -

Oct’2008
Sep'2008
Sl. Name of Total Sub % Market Total Sub % Market
No. Company Figures Share Figures Share
Addition of 1 Bharti Airtel 77479215 33.16% 80199747 33.18%
2.7 Million 2
Vodafone
Essar 54624809 23.38% 56703506 23.46%
customers 16.76% 39811109 16.47%
3 BSNL 39166943
in a month 13.00% 31582937 13.07%
4 IDEA 30380163

5 Aircel 13878243 5.94% 14659298 6.06%

Reliance
6 Telecom 9206127 3.94% 9582695 3.96%

7 Spice 3599744 1.54% 3637129 1.50%

8 MTNL 3677782 1.57% 3743879 1.55%

9 BPL 1663904 0.71% 1807902 0.75%

  All India 233676930 100.00% 241728202 100.00%

 Challenges
• India centric – Major revenues from India
• Falling ARPU
• Intense Competition & Shortage of
Bandwidth
• New Players coming in India
• Uncertain Economic conditions
• Mobile Number Portability - upcoming
Challenge.
FUTURE PROSPECT OF TELECOM
SECTOR
Telecom sector targets announced by
Government of India
 500 million subscribers by 2010
 20 million broadband subscribers by 2010
 India poised to be a USD 40 bn - 45 bn telecom
market by FY 2010
Thank You