TELECOM SERVICES

In rural India . .

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TELECOM IN INDIA

Telephone services began in 1882 with 50 line manual exchanges in kolkata.

 India has the third largest (based on the total number of fixed/mobile subscriber lines).

Second largest mobile network with the total number of 875 m at the end of April 2011.

 India's telecom market is now the largest in the world based on the number of new monthly subscribers added.

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MOBILE NETWORK STATISTICSINDIA'S LARGEST TELECOM OPERATORS AS ON DEC 31, 2010 (SOME FIGURES FROM JUN 30 '11)

Operator Subscriber base (millions)

Bharti Airtel 169

Reliance Communications 126

Vodafone Essar 142

Bharat Sanchar Nigam Ltd. 87

Idea Cellular Ltd. 95

Tata Teleservices Ltd. 84

Aircel / Dishnet 50

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MARKET SHARE

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TELECOM IN RURAL

In next 5-10 years approximately 100 million new users will be from rural areas – FICCI.

India is aiming rural tele-density from the current 35 per cent to 60 per cent by 2017 and completely covering rural areas by 2020.

By 2017, Indian Govt., wants to connect 175 million broadband users by 2017, and increasing this to 600 million by 2020.

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TELE DENSITY (RURAL VS URBAN)Teledensity

0.52 0.68 0.93 1.21 1.49 1.57 1.73 1.865.88 7.96.94 8.36 10.37 12.2 14.32

20.74

26.88

39.45

48.52

60.04

2.32 2.86 3.58 4.29 5.11 7.02 8.9512.74

18.3123.21

0

10

20

30

40

50

60

70

1999

2000

2001

2002

2003

2004

2005

2006

2007

2007(Nov)

Year

Rural Urban Total

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RURAL VS URBAN

 The Urban Teledensity currently stands at 150%, rural teledensity is close to 33%.

 In cities, for every 2 individuals there are 3 mobile numbers – And in rural areas, there is 1 mobile number for every 3 individuals!

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OUTLINE OF THE ROLE OF PRIVATE SECTOR IN RURAL TELECOMMUNICATION DEVELOPMENT Products to be developed which are

technologically compatible.

Urban and Rural Areas should both be given equal opportunities.

Follow a strategy in association with the Government for the Rural Sector Telecommunication Development.

Working towards the fulfillment of objectives set by the Government for the Rural Sector.

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BROADBAND REQUIREMENTS – GOVT., & CORPORATES

•ITC E-choupal to connect 10 Million farmers in 100,000 villages

•HUL Project i-Shakti (7,500 villages)

•Project Saksham :Microsoft India project to set-up kiosks in around 200,000 villages

•Around 200 e-government projects in various states

•VICTERS (Virtual classroom on EDUSAT for rural schools)

•Kisan Soochna Kendras: Jai Kisan (an NGO set up to introduce rural IT technology in Uttaranchal) to put up over 3,000 kiosks

•State Bank of India planning to set up 5,000 to 6,000 kiosks; has started a new rural initiative to encourage banking habits among the rural masses

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MAIN REASONS FOR NON USAGE OF INTERNET

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CORPORATE INITIATIVES..

BSNL : Low tariff plans for Rural customers. Special offers for farmers.Airtel : The company is keen to make Airtel the most

admired rural brand.Reliance : Reliance Bharat Net Plan Reliance Grameen VAS (value added

services) Machine to Machine Applications (M2M)Vodafone : Allure Rural customers with its Rs.700 mobile

phone.

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RECENT AFFAIRS

The distinction between local and STD calls would vanish, as the policy aims at a 'one-nation-one-licence' regime.

As the market is crowded with too many players, the government would also bring an exit policy.

 Roaming charges will be done away with and users will be allowed to port their mobile numbers, keeping the same number, even while switching service areas.

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CHALLENGES The cost of PCs and language of operating

system play a major role in spread of the Internet to rural areas.

 Most of Fiber-optic infrastructure hardly exists in rural area.

One of the world’s most competitive markets, with 12 operators across 23 wireless ‘circles’ and 6 to 8 competing operators in each circle.

Price war, Spectrum Allocation, Regulatory Charges,

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FUTURE EXPECTATIONS One way to increase the penetration rate is to lay

emphasis on infrastructure sharing between provider.

WiMax is being promoted by the Government for affordable rural broadband connectivity.

Akash talet PC is mainly targeted to Rural masses with the help of Government subsidies.

 Specific Applications, cheaper access devices and improved speed are the need of the hour to make broadband a huge success and to ensure that India at par with other advanced nations.

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REFERENCES http://knowindia.net/telecom.html

http://www.mgovworld.org/News/rural-india-will-account-for-40-of-telecom-sector-share-in-emerging-markets

http://www.pr-inside.com/rural-india-offers-telecom-growth-opportunities-r811546.htm

http://www.corecentre.co.in/Database/Docs/DocFiles/studypaper16dec08.pdf

http://www.bbc.co.uk/news/business-13414762

http://www.frost.com/prod/servlet/market-insight-top.pag?docid=102369021

http://www.dnb.co.in/IndianTelecomIndustry/issues.asp

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..Thank you..

byJohn Amalan .SArun Selvan .S