Final Telecom PDF 10

INDIAN TELECOM INDUSTRY
A Perceptual Study Of Telecom Industry &

Analysis of Key Telecom Service Providers in India
Submitted in partial fulfillment of requirement for the degree of Bachelor of
Commerce(Accounting & Finance)
by:
Name :Vikash Gupta

Roll No. : 188
Room No. : 11
Registration No. : A01-1112-1077-12
Session : 2012-2015
Under the supervision of :

Prof. Shouvik Sircar, Assistant Professor,
Accounting & Finance, St. Xaviers College
Kolkata
UNLOCKING THE TELECOM INDUSTRY
ABSTRACT
The telecom services have been recognized the world over as an important tool for the socioeconomic
development of a nation. Telecommunication is one of the prime support services needed for
rapid growth and modernization of various sectors of the economy. It has become especially
important in the recent years because of enormous growth of information technology and its
significant potential for the impact on the rest of the economy. Therefore, making the
development of an adequate telecommunication infrastructure has become one of the major goals of
policymakers. The adequate level of telecommunication infrastructure in a country is necessary
from both a policy and business point of view. The Government of India has already taken a number
of initiatives in this direction. As a result, telecommunication infrastructure has registered a
remarkable growth in India. This paper mainly aims at studying the present status of
telecommunication infrastructure in India and to study the growth over past five years in different
segments of the telecom industry. The paper also provides an overview of the uphill journey of Indian
Telecom sector. It gives us a detailed information regarding the emerging trends in the Indian
telecom industry and also the trends that may penetrate the industry in the near future.
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OBJECTIVE OF THE PROPOSED STUDY

In the recent past and also in the present we have been hearing a lot about the telecommunication
industry, its growth and diversification. With the proposed study I would like to highlight the
following areas in my study.
To get a brief history of telecom in India.
Analysis of the growth in telecommunication industry in India.
Liberalization and Privatization of the sector with the introduction of Private players.
To study the major upcoming trends in telecom industry.
Analysis of the financial performance of major telecom companies in India.
Economic implications of the telecom industry.
An effort has been made to look into the future and predict the growth, as well as the
challenges to be faced for the telecom industry in India.
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ACKNOWLEDGEMENT
Any accomplishment requires the effort of many people and this work is no exception.
At the outset, I wish to express my sincere thanks to almighty for showering his blessing on me
to develop this project.
To begin with, this project undertaken by me was an extremely rewarding experience for me in
terms of learning and exposure.I have tried to keep the project as simple as possible so as to impart a
better understanding of the content and to demonstrate exactly what I am trying to bring to the fore
through this project.
I would like to extend my deep gratitude towards the Department of Commerce,
St.XaviersCollege(Autonomous), under the University of Calcutta for designing a curriculum which
inculcates research and project work.
I would like to extend my deepest gratitude to my research guide, Prof. SouvikSircar,
Assistant Professor, Dept. of Commerce, who gave his valuable insights, time and guidance in every
step of m Apart from the above, I would like to thank all my peers and colleagues for their
contribution in this project of mine. Last but not the least I would like to thank my family who kept
motivating me and gave their priced suggestion.
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TABLE OF CONTENTS
CHAPTER 1
1.1
1.2
1.3
1.5
CHAPTER-2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
CHAPTER-3
3.1
3.2
3.3
3.3.1
3.3.2
CHAPTER-4
4.1
4.2
4.3
4.4
4.5
4.6
CHAPTER 5
5.1
5.2
5.3
5.4
CHAPTER 6
INTRODUCTION
Brief Idea
Research Problem
Literature Review
Methodology
6
9
9
10
HISTORY OF TELECOM INDUSTRY

BEGINNING OF TELECOMMUNICATION IN INDIA
Market Revenue
TELECOM SUBSCRIBER BASE IN INDIA
The Regulator TRAI
PRE LIBERALISATION PERIOD
POST LIBERALISATION PERIOD
SWOT Analysis
ECONOMIC SCENARIO AND GOVERNMENT
POLICIES
Economic Benefit
Market Growth Drivers
Government Policies
FDI in Telecom
12th Five Year Plan
CASE STUDIES OF COMPANIES
Analytical Framework
Current Market Scenario
Bharti Airtel
Vodafone
Idea Cellular
Reliance Communication
RECENT TRENDS
Mobile Number Portability
Digital India Programme
3G Service
Future prospects
Conclusion
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11
12
13
14
21
23
23
25
28
30
33
35
36
40
41
45
49
52
55
56
57
59
60
CHAPTER-1
INTRODUCTION
1.1 Brie
1.1
BRIEF IDEA
The Indian telecommunications industry is one of the fastest growing in the world. The industry has
witnessed consistent growth during the last year on the back of rollout of newer circles by operators,
successful auction of fourth-generation (4G) and third-generation (3G) and broadband wireless access
(BWA) spectrum, network rollout in semi-rural areas and increased focus on the value added services
(VAS) market.
Telecommunication, infrastructure and economic development are tightly linked. The adequate
level of telecommunication infrastructure in a country is necessary both from a policy and a business
point of view. Rapid expansion of Information Technology Enabled Services (ITES), especially ecommerce and e-governance, in the past few years has forced the government to provide adequate
telecommunication infrastructure. Therefore, making the development of an adequate
telecommunication infrastructure has become one of the major goals of policymakers.
Telecommunication infrastructure consists of many components. It is a combination of civil works,
towers, antennae and cables, coupled with hardware and software comprising access, switches and
transmission systems that constitutes the telecommunication infrastructure. Optical fiber cables,
terrestrial wireless, satellite systems and Internet are all key components of the modern infrastructure.
Rapid growth of the Internet has also created a huge demand for the broadband access.
The world is waiting at our doorsteps, waiting for us to open the gates to an economy bubbling with
opportunities. The India growth story has already got the world to sit up and take a note of the
changing economic scenario. Factors, like the liberalization in the government stance and the daring
entrepreneurs of the Indian soils, have helped the sectors achieve the highs like never before.
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According to Telecom Regulatory Authority of India (TRAI), the number of telephone subscriber
base in the country reached 970 million as on 31st December,2014, an increase of 3.96 percent from
933 million in March, 2014.
As a result of the measures takenby the Government over the years, the Indian Telecom Sector has
grownexponentially and has become the second largest network in the world, nextonly to China.
Growth in Teledensity
90
80
70
60
50
40
30
20
10
0
1998
2000
2002
2004
2006
Rural
2008
2010
Overall
Source: www. newtelegraphonline.com
Teledensity: Number of Telecom Subscribers per 100 Persons
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2012
2013
2014
The research involves study of the history of the telecommunication industry and various players of
the industry. The industry is full of small and big players. To carry out my research I have chosen few
big players like MTNL, BSNL, BhartiAirtel, Reliance and also some small players like Aircel,
TATA, unitech etc. The service providers are selected on the basis of their popularity and growth in
the industry and amongst the subscribers.
At present, the Broadband Connectivity in India is very low. Creation of Broadband Highways is the
backbone for realizing the vision of Digital India so that,India can be a competitive nation in digital
space The number of Broadband subscribers in India grew to 79.2 million in October,2014 from 55.2
million in December,2013. A sharp increase of 43.48 % which indicates a bright future of this
industry. It is expected that at current pace this would increase to 172 million in 2017.Below is an
exhibit that outlines the current Indian broadband scenario from Oct,2013 to Dec,2014 :
The number of Broadband Subscribers in India (in million)
Broadband Indian Scenario
Oct,2014
May,2014
Dec,2013
No. of Broadband Subscribers
10
20
30
40
50
Source: www.trai.gov.in//Press%20Release%20on%20'Telecom%20Subscriptio
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60
70
80
1.2 RESEARCH PROBLEMS

Indian Telecom Industry is one of the fastest growing telecom markets in the world with the telecom
subscriber base standing at ~ 742.12 million as of October, 2010. This also has a huge impact in the
Indian Economy specially the service sector. Thus with the growth of the telecommunication industry
the service sector has also grown in India. Thus it would be interesting to study the different stages of
evolution and growth in the telecommunication industry. The industry has gone through many stages,
form wireline to wireless service, then including the internet service in the industry. The different
segments of the industry is discussed along with the share of different service providers in each
segment. The recent 4G connection development has shown a great impact in the telecommunication
industry along with the mobile number portability (MNP). The government has also realized the
importance of the industry and thus had made plans for the development which is discussed towards
the end of the project.
1.3 LITERATURE REVIEW

The telecommunication industry having a high and attractive growth rate has attracted many people
to study, research and analyze this industry. While going through my research I came across the some
of them which are stated as below:
Ernst & Young in consultation with India Brand Equity Foundation (IBEF): They have
in their research discussed about the different market segment along with the investment
potential in the market.
S.P.Jain Institute of management & research Post Graduate Program in management
Information management: In their research they have basically discussed the history and the
upcoming reforms in the telecommunicationindustry. They have also discussed about VAS
and why VAS.
Other relevant research done on this topic was by the Cellular Operator Association of India
(COAI), IBEF and ITU, World Telecommunication Development Report.
The Cellular Operator Association of India Report was more on the lines of infrastructure
and technological advancement. It does not have any analysis on the financial aspect, and
very limited research on the economic aspect.
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The International Telecommunication Union (ITU), the World Telecommunication

Development Report mainly focused on the global scenario, but failed to identify
opportunities or problem areas in any particular economy.
As a student of finance, my project takes into account the economic and financial performance of
the industry, which has not been taken in the above mentioned reports and also to study the major
trends in this sector.
1.4 METHODOLOGY
For the purpose of my study and analysis I have collected data for five year period F.Y. 09-10 10-11
11-12 12-13 13-14 as it would reflect a true and fair picture as at today and it would show a true and
fare picture of the growth of the industry while comparing with the past data. The data basically
consists foursubscribers i.e. the Airtel, Vodafone, idea and reliance as they are the leading market
players of the telecom industry, under different segments of the industry such as wire line, wireless,
internet etc. The data is collected via secondary source i.e. by articles published over the internet,
magazine etc. The industry is selected on random sampling basis which constitute the major share of
the market and thus showing the true and fair picture of the industry as a whole. Thus my study is
based on the selected service providers. The further analysis is done by representing the same in a
tabular format and then via different forms of charts on a comparison basis.
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CHAPTER-2
AN OVERVIEW OF INDIAN TELECOM INDUSTRY
2.1 History of Telecom in India

History of Indian Telecommunications started in 1851 when the first operational land lines were laid
by the government near Calcutta (seat of British power). In 1883 telephone services were merged
with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923. After
independence in 1947, all the foreign telecommunication companies were nationalized to form the
Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of
Communications.
The initial phase of telecom reforms started in 1984 when the C-Dot (Centre for Development and
Telematics) was set up for developing indigenous technologies. In 1991, the new Economic Policy of
India was announced which aimed to make India globally competitive through increased exports,
spontaneous domestic investments and foreign direct investments. For the implementation of the
Policy, world class telecommunication services were needed and in order to prioritize the sector, the
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Government formulated the National Telecom Policy 1994. The Policy defined important
objectives and specific targets to be achieved.
In 1997 TRAI (Telecom Regulatory Authority of India) was set up to nurture the growth of
telecommunication in the country. The main objective of TRAI was to enable fair and transparent
policy environment and withstanding fair competition so that India could play a leading role in the
emerging global information society. In the year 2000, the Government of India corporatized the
operations wing of the Department of Telecom (DoT) and renamed it as Bharat Sanchar Nigam
Limited (BSNL). Since then many private operators including foreign investors have successfully
entered the highly prospective Indian telecom market. Globally applauded operators like Telenor,
NTT, Docomo, Vodafone, Sistema, SingTel, Maxis, Etisalat invested in the Indian mobile market.
2.2 Beginning of Telecommunications in India
1851 First operational landline were laid by the government near Kolkata.
1881 Telephone service introduced in India.
1883 Merger with the postal system.
1923 Formation of India Radio Telegraph Company.
1932 Merger of ETC and IRT into the Indian Radio and Cable Communication Company (IRCC).
1947 Nationalization of all foreign telecommunication companies to form the Posts, Telephone
andTelegraph (PTT), a monopoly run by the governments Ministry of Communications.
1985 Department of Telecommunications (DOT) established, an exclusive provider of domestic
and long-distance service that would be its own regulator (separate from the postal system).
1986 Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar
Nigam Limited (VSNL) Forinternational Telecommunications and MahanagarTelephonNigam
Limited (MTNL) for service in metropolitan areas.
1997 Telecom Regulatory Authority of India was formed.
1999 Cellular Services are launched in India. New National Telecom Policy is adopted.
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2000 Dot becomes a corporation, BSNL.

2001 Private participation in NLD and ILD services.
2004 Universal service telecom license.
2006 FDI limit rose from 49% to 75%.
2007 Merger of worlds leading Mobile Communication company Vodafone with Indias fourth
largest telecom CompanyHutch or Hutchison Essar.
2010 Launch Of 3G Technology in India.
2011 Mobile Number Portability (MNP).
2013--Government allows 100% FDI in telecom. Unified licencing policy adopted in case of
telecomSpectrum de-linked fromlicencing. Rates across 2G, 3G reduced drastically,more convenient
Options across services.
2014Launch of 4G LTE service by Reliance Jio-Infocomm. Data consumption also increased.
Nation-wide Mobile Number Portability (MNP).
2.3 MARKET REVENUE

The telecom industry is an important infrastructure industry. The industry is highly capital intensive
and the payback period for investments can often be very long. An efficient telecom network is vital
for the economic development of a nation. The telecom services available in India include basic fixed
line services, mobile services (based on both GSM and CDMA technology), national long distance
services, international long distance services, internet services and pager services.
The exhibit below shows how the telecom sector revenue jumped in the year 2014. The chart shows
that the telecom services revenue grew from 212,234 crores to 233,793 crores, indicating an increase
of more than 10 %. Also the tele equipment/devices revenues grew from 174,955 crores to 195,294
crores, indicating an increase of more than 11 %. Thus the overall telecom revenue grew from
387,298 crores to 429,087 crores, indicating an increase of 10.79 %. Thus this sector of the economy
is very much crucial for the development of any country.
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[SOURCE: TELECOM REGULATORY AUTHORITY OF INDIA (TRAI)]
2.4 TOTAL SUSSCRIBER BASE AND TELE-DENSITY

The number of telephone subscribers in India increased from 970.97 million at the end of Dec-14 to
979.21 million at the end of Jan-15, thereby showing a monthly growth rate of 0.85%. The urban
subscription increased from 572.29 million at the end of Dec-14 to 575.05 million at the end of Jan15 and the rural subscription increased from 398.68 million to 404.16 million during the same period.
The monthly growth rates of urban and rural subscription were 0.48% and 1.38% respectively.
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Total telephone
subscribers (in
million)
Overall Tele Density

148.54
148.06
979.21
970.97
78.16
77.58
575.05
572.29
DEC/14
Total Subscribers
JAN/15
Urban
46.69
46.09
404.16
398.68
DEC/14
Rural
Overall
JAN/15
Urban
Rural
[source : Telecom Regulatory Authority of India (TRAI)]
The overall Tele-density in India increased from 77.58 at the end of Dec-14 to 78.16 at the end of
Jan-15. The Urban Tele-density increased from 148.06 to 148.54 and Rural Tele-density increased
from 46.09 to 46.69 in the month of Jan-15. The shares of urban subscribers and rural subscribers at
the end of Jan-15 were 58.73% and 41.27% respectively.
Overall Tele-density (Circle/State Wise) As on 31st January, 2015
Points to be noted in this case include :
1. Population data/projections are available state wise only.
2. Tele-density figures are derived from the telephone subscriber data provided by the access service
providers and the projections of population published by the Office of the Registrar General &
Census Commissioner, India.
3. Telephone subscriber data for Delhi, includes, apart from the data for the State of Delhi, wireless
subscriber data for the areas served by the local exchanges of Ghaziabad & Noida (in Uttar
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Pradesh) and Gurgaon & Faridabad (in Haryana). West Bengal includes Kolkata, Maharashtra
includes Mumbai and Tamil Nadu includes Chennai.
Overall Tele Density State-Wise

DELHI
TAMIL NADU
HIMACHAL PRADESH
PUNJAB
KARNATAKA
KERALA
GUJARAT
MAHARASTRA
AP
HARYANA
NORTHEAST
RAJASTHAN
J&K
W.B.
ODISHA
MP
UP
ASSAM
BIHAR
TOTAL INDIA
236.35
117.14
112.65
104.01
96.75
95.35
93.76
92.14
83.45
81.32
76.94
76.21
74.35
74.16
65.82
59.31
59.29
52.21
49.35
78.16
0
50
100
150
200
250
Overall Tele Density
[source : Telecom Regulatory Authority of India (TRAI)]
WIRELESS SUBSCRIBERS IN INDIA

Total wireless subscriber base increased from 943.97 million at the end of Dec-14 to 952.34 million
at the end of Jan-15, thereby registering a monthly growth rate of 0.89%. The Wireless subscription
in urban areas increased from 550.64 million at the end of Dec-14 to 553.45 million at the end of JanST. XAVIERS COLLEGE
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15 and wireless subscription in rural areas increased from 393.34 million to 398.89 million during the
same period. The monthly growth rates of urban and rural wireless subscription were 0.51% and
1.41% respectively.
Wireless Tele Density

142.96
142.46
76.02
75.43
46.08
45.47
DEC/14
Overall
(Figure 1)
JAN/15
Urban
Rural
(Figure 2)
[Source : Telecom Regulatory Authrity of India (TRAI)]
The figure 2 above shows that the Wireless Tele-density in India increased from 75.43 at the end of
Dec-14 to 76.02 at the end of Jan-15. The Urban Wireless Tele- density increased from 142.46 to
142.96 and Rural Wireless Tele- density increased from 45.47 to 46.08 in the month of Jan-15. The
shares of urban and rural wireless subscribers were 58.11% and 41.89% respectively at the end of
Jan-15.
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GROWTH OF WIRELESS SUBSCRIBERS
Source: www.trai.gov.in//Press%20Release%20on%20'Telecom%20Subscriptio
Internet Subscriber
by growth in Internet usage through mobile phones, total net subscriber base in India increased by
20.38% to reach 198.39 million during the April-June Quarter. Total number of Internet subscribers
including Internet access by mobile device subscribers increased from 164.81 million at the end of
March 13 to 198.39 million at the end of June 14, registering a quarterly growth of 20.37%.
Telecom major BhartiAirtel Ltd led Internet access through mobile phones with 26.16% market
share, followed by Vodafone with 23.34%. Idea Cellular Ltds share was 18.94% and Reliance
Communications Ltd had 16.25% market share during the reported quarter.With more and more
people accessing the web through mobile phones, the Internet user base in the country is projected to
touch 243 million by June 2015, a year-on-year growth of 28 per cent.
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As per the reports received from the service providers, the number ofbroadband subscribers increased
from 85.74 Million at the end of Dec-14to 94.49 million at the end of Jan-15 with monthly growth
rate of10.21%. Segment-wise broadband subscribers and their monthly growthrates are as below:
Source: www.trai.gov.in//Press%20Release%20on%20'Telecom%20
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The graphical representation of the service provider-wise market share of broadband services is
given:
[Source : Telecom Regulatory Authrity of India (TRAI)]
As on 31st January, 2015, the top five Wired Broadband Service providers were BSNL (9.98
million), BhartiAirtel (1.42 million), MTNL (1.14 million), Atria Convergence Technologies
(0.63 million) and YOU Broadband (0.43 million).
As on 31st January, 2015, the top five Wireless Broadband Service providers were
BhartiAirtel( 18.87 million), Vodafone (17.86 million), Idea Cellular (14.12 million), BSNL (9.09
million) and Reliance Communications Group (7.36 million).
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2.5 THE REGULATORS - DoT, TRAI

The telecommunication sector started to open up to privatization in the early 1990s. Prior to that, the
Department of Telecom acted as a service provider, regulator, policy maker and also the arbitrator in
case of disputes. The Telecom Regulatory Authority of India came into being in March 1997, with a
view to providing an effective regulatory framework and adequate safeguards to ensure fair
competition in the provision of telecom services and protection of consumer interests. TRAI was
vested with powers to issue directions to service providers, make regulations, notify tariffs by giving
orders and adjudicate in cases of disputes. In 1999, the government created the Department of
Telecom Services from DoT, the idea being to separate the roles of the DoT as service provider and
policy formulator. In October 2000, the DTS was corporatized as BSNL. In January 2000, the TRAI
Act-1997 was amended by an ordinance. The amendment separated the adjudicatory function of
TRAI and assigned it to a new entity called the Telecom Dispute Settlement and Appellate Tribunal.
Appeals against TDSAT judgments can only be filed only in the Supreme Court.
The 1990s also saw two telecom policies being announced, the National Telecom Policy, 1994 and
the National Telecom Policy, 1999. The NTP, 1999 changed the fixed license fee system, envisaged
in NTP, 1994, to a revenue sharing regime. This change took place after it was felt that the amounts
paid during the first round of bidding for basic and cellular services licenses in 1994 were too high
and if the system was not changed, it may lead to large scale bankruptcy in the sector. The migration
to the revenue sharing regime and the onset of cutthroat competition has led to telecom tariffs
crashing over the last few years, beginning 2000.
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Functions of TRAI
Analysis of chart:
The above chart gives an idea about the primary functions of the TRAI. The actions and policies
adopted by TRAI are based on the principles of consumer protection, to ensure Quality Service,
Affordabletariff for the common people, to regulate interconnection, and other regulations, directions,
orders. It also provides recommendation to the different service providers. Thus the TRAI can also be
called as a watchdog of activities of the telecom industry.
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2.6 Telecom Sector in the Pre-liberalisation Era (19801990):

Before liberalisation, the public sector held a monopoly in provision of telecom services. The entire
telecom services operation in the country was carried out by the Department of Telecommunication
(DoT), a public sector entity established in 1985. It managed the planning, engineering, installation,
maintenance, management, and operations of telecom services for the whole of India. In order to ease
out its operations, two new public sector corporations viz. MTNL and VSNL were set up under the
DoT in 1986.
Thus, before the entry of the private players, the telecom services were provided by three public
entities viz. DoT, MTNL and VSNL. While MTNL primarily looked after the operation of basic
telephony services in Delhi and Mumbai, VSNL provided international telecom services in India.
DoT looked after basic telephony operations in regions other than Delhi and Mumbai. Prior to
liberalisation the telecom services were broadly classified as domestic basic (which included basic
telephony, telex and fax), domestic value-added services (VAS) which covered all other services
such as paging, cellular, data services, VSAT and international basic and VAS.
2.7 Telecom Sector in the Post -liberalisationEra (1991

onwards):
Liberalisation process in the telecom services market began in 1992, with the unbundling of the
domestic basic services and the domestic VAS and entry of private players for providing the VAS
such as cellular and paging services. During this period, the government provided licenses to
private players according to the services that were to be provided in the specified areas of service
provision. The country was divided into circles (or categories) on the basis of economic potential.
Thus, primarily these divisions were mostly adjoining the states of India. Such demarcations were
primarily responsible for existence of various regional players in provision of telecom services.
After the domestic VAS, the basic services were opened up to private players. The National Telecom
Policy (NTP) 1994, which endeavoured to build world-class telephone services in India and aimed at
providing telephones on demand, enabled the entry of private players in the provision of basic
services. Given the need for resources in addition to government sources for achieving the targets of
NTP-94, private investments and involvement of the private sector was considered inevitable to
bridge the resource gap. Thus, the private operators were allowed to render basic services in the local
loop.
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Although the private players had been allowed to participate in many telecom services segments, the
results of privatisation had not been satisfactory entirely. Thus, a New Telecom Policy (NTP-99) was
announced on March 26, 1999, which came into effect from April 1, 1999. The NTP 1999 not only
provided a major fillip to private sector participation in this industry but also laid down the path for
significant development of the Indian telecom industry. The NTP 1999 allowed private operators
providing cellular and basic service to migrate from a fixed licence fee regime to a revenue sharing
regime to make the operations of the private players financially viable. This policy change provided
the much needed relief to private players who were earlier burdened with huge debts that they had to
service owing to their licence fee commitments.
Another notable provision of the Act had been the entry of multiple private sector operators in the
sector in contrast to the policy of duopoly practiced earlier. This not only increased competition in
the industry but also assisted the private players to attract new investment and augment their
subscriber base. The entry of private operators in the cellular sector helped to reduce the operational
cost of the industry. It also reduced the mobile tariffs and provided a much needed boost to the
industry.
The Act also made the following provisions: it permitted interconnectivity and sharing of
infrastructure among various service providers within same areas of operations; it allowed both voice
and data traffic by service providers; it opened up national long distance (NLD) and international
long distance (ILD) services to competition et al. Thus, the NTP 1999 can be viewed as the genesis
of the cellular revolution being witnessed in India.
The NTP 99 had also enunciated to separate the policy and licensing functions of the DoT from the
service providing functions to ensure a level-playing-field among private operators and incumbents.
Accordingly, as a predecessor to corporatisation, two new departments viz. Department of Telecom
Services (DTS) and the Department of Telecom Operations, were carved out of DoT, to separate the
service provision and operational functions of DoT. Later in 2000, DTS was corporatised and
renamed as Bharat Sanchar Nigam Ltd (BSNL), and thus the functions of the incumbent service
provider were separated from that of the policy maker. DoT is now responsible for policy-making,
licensing and promoting private investments in both telecom equipment manufacturing and in
telecom services. Subsequently in 2002, even VSNL was privatised and its monopoly in ILD services
was terminated (from March 31, 2002).:
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2.8 SWOT ANALYSIS
STRENGTHS:
Huge Customer potential

Teledensity still being 48% and rural tele-density 21%.
The broadband subscribers grew from 0.18 million in 2005 to6.2 million as on 30 April
2012 and about 7.98 million, at the end of the December 2012.
High Growth Rate
Wireless subscribers growing at a CAGR of 60 per cent per annum since 2004.
Allowed FDI limit ranging from 74% to 100%
The total FDI equity inflows in telecom sector have been US$ 2223 million during AprilNovember 2009-2010
High return on Investment
Easier to create economies of scale thereby increasing return on investment
Liberalization efforts by Govt.
The share of private sector in total telephone connections is now 82.33% as per the latest
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statistics available for December 2009 as against a meager 5% in 1999.

Lower capital expenditure
The Indian telecom market is a high density area, which means more population per
tower. This means lower capital expenditure cost.
WEAKNESS:
Poor Telecommunication Infrastructure as a Result: Large number of call drops.
Late adopters of New Technology
As a result India will be among the last countries in the world to get access to 3G technology.
Some estimates suggest that nearly 132 countries across the world already have
3G technology and mobile services in one form or the other.
Most competitive market
10 to 12 companies offer mobile services in most parts of India, globally, the
average is 4.
A market strongly regulated by Government.
Difficult to enter because of requirement of huge financial resources.
Eg: Auction of 3G license has reachedRs 15814.15 crores.
OPPURTUNITIES:
3G Telecom services and 4G services
More Quality Service
Mobile Number Portability will force the Service provider to improve their quality to
avoid losing subscribers
Value added Services (VAS)
The mobile value added services include, text or SMS, menu based services,
downloading of music or ringtones, mobile TV, videos, streaming, sophisticated mcommerce
applications etc.
Mobile banking, Mobile Ticketing etc
Boost to Telecom Manufacturing Companies
Production of telecom equipments in value terms has increased from Rs. 412700 million
(2007-08) to Rs.488000 million during 2008-09 and expected to increase to Rs. 575840
million during 2009-10.
Telecom Equipment Exports
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The Indian telecom industry is expected to reach a size of Rs 344,921 crore by 2012 at a
growth rate of over 26 per cent, and generate employment opportunities for about 10
million people during the same period. The sector would create direct employment for
2.8 million people and for 7 million indirectly, according to a Frost and Sullivan report.
Horizontal Integration
Entry Into other consumer segments leveraging the present channels
E.g. DTH service like Reliance BIG TV, Tata SKYandAirtel digital TV by
telecom majors like Reliance, Tata and Airtel Respectively.
Other examples : Airtel website builder
Providing fibre Connectivity to 2,50,000 village panchayat by 2012.
More scope in content related services, since; the consumer is influenced by local culture.
Local festivals like Baisakhi, Chhath Puja, religious festivals like Diwali,
Christmas etc., National festivals like Independence Day etc.
THREATS:
Telecommunication Policies
e.g. Trai's 2G direction affecting new players most notably Tata Teleservices,
Norways Telenor and Essar-owned Loop Telecom
Renewal of 2G license on the basis of market rates of 3G auctions
TRAI intentions of rolling out 4G or the fourth-generation technology, known as
the ultra-broadband in 2-3 years raising fears rendering 3G services somewhatobsolete.
Declining ARPU (average Revenue per user)
E.g. price wars like per-second billing which is deflating revenues and makingsure the
survival of the fittest
Partiality on the part of the Govt.
E.g. Allowing 3G service in a PSU (MTNL,BSNL) before auctioning to PrivateSector .
Content Piracy
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CHAPTER-3
ECONOMIC SCENARIO AND OVERNMENT
POLICIES
3.1 ECONOMICBENEFIT
Telecommunication has very significant role to play in development of various sectors of the
economy. In the 21st century, telecommunication sector has become pivotal to a countrys socioeconomic development. It is one of the prime support services needed to promote growth and
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modernization of various sectors of an economy. Enormous growth of information and

communication technology and its role in development of various sectors including services like
finance, insurance, trade, hotel and business services as well as industry, agriculture and governance
is commendable. Telecommunication infrastructure is somewhat different from other forms of
infrastructure because of existence of network externalities, a phenomenon that increases the value of
services with the increasing number of users. Thus the impact of telecommunication infrastructure on
economic development is more pronounced as compared to other traditional infrastructure (Jha and
kaleja; 2008). Telecommunications help in dissemination of information to all the sectors and
sections of the society, thereby helping in better performance of all the sectors including industry,
agriculture, services, governance and social sector. Role of telecommunications in economic
development has been acknowledged worldwide. According to a study by World Bank a 10 percent
increase in teledensity will boost GDP by 6 percent point. Similarly, in India states with higher
teledensity have experienced faster growth. (Earnest & Young and FICCI: 2011) Apart from that
there is a significant relationship between industry and telecom sector in the era of market oriented
strategies. Telecommunication affects 32 KawaljeetKaur&NeenaMalhotra Index Copernicus Value:
3.0 - Articles can be sent to editor@impactjournals.us productivity by lowering the costs of collecting
information and thereby cost of doing business. There is scope for network externalities because with
more users, the derived value of those users increases.(Isaksson:2010). Further, another aspect of
Indias recent telecom growth has been the dynamism of the service sector, particularly information
technology (IT) and IT enabled services (ITES). Connectivity also fosters social development,
including improved education, health and increased citizen participation in civil society.
Telecommunication helps in providing access to health care and allied services. (Earnest &Young
and FICCI: 2011) Another beneficiary of the telecom revolution is the financial services industry,
which has been on a growth trajectory. This is the next revolution that is expected to emerge through
the use of mobile phones. Mobile phones provide consumers an opportunity to transact anytime and
anywhere. M-commerce finds its applications across various end markets such as banking and
financial institutions, paying bills for utilities such as power and gas, booking tickets for
transportation services such as trains and taxis and online shopping. Mobile banking enables
customers of banks and other financial institutions to access their account information, transfer funds,
trade stocks and purchase financial products such as insurance. Financial inclusion is central to the
overall task of inclusive growth. (TRAI)
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Source-www.impactjournals.us/download.php?...Telecommunications%20and%...
3.2 MAJOR GROWTH DRIVERS

INDIAS COMPETITIVE ADVANTAGE
An analysis of the Indian telecom industry under the Porters Diamond Model reveals that India
offers a competitive advantage for firms operating in the country.
India is the fastest growing free market democracy in the world. It has a mature and dynamicprivate
sector, which accounts for 75 per cent of Indias GDP, and a market with enormouspotential due to
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its large size anddiversity. It is also expected toachieve the highest growth rateamong the BRIC
countries (Brazil,Russia, India and China). Indiaoffers significant businessopportunities to the
services, aswell as the manufacturing sectors. This is because India offers benefitssuch as cost
advantage in productdevelopment and back-officeprocessing and the large-scaleavailability of
skilled English-speaking professionals. The middleclass population is also a significantmarket for
any business entity. ATKearney ranked India as thesecond-most attractive democracyin its FDI
confidence index. Thesuccess of MNCs is a proof that India is an attractive investment destination.
Indias hugedomestic market and buoyant economic growth have always attracted foreign investors.
India has more affordable labour than China, where the pay is more than double of what is being
offered locally, a Towers Watson report says. According to the global professional services
company, the sharp fall in the value of the rupee against the US dollar in 2013 contributed to
reducing labour costs in India. It contrasts with China where the renminbi appreciated against the
dollar.
STABLE ECONOMIC OUTLOOK

A decade of reforms has opened the country to greater competition and spurred industries to
become more efficient. India is currently the fourth-largest economy on PPP basis and is wellpositioned on a continuously increasing growth curve. Indias emergence as a leading destination
for foreign investment is a result of positive indicators such as a stable 6 per cent annual growth,
rising foreign exchange reserves of over US$ 266.18 billion(July 24th 2009) and Foreign Direct
Investment (FDI) of US$ 15 billion. Goldman Sachs had earlier predicted that India will become
the third-largest economy in the world. However, it has now revised its previous estimates and
claims that by 2050, India will even surpass the US and become the second-largest economy after
China. The countrys economic growth has become more attractive due to the rising share of the
services sector in the GDP.
LARGE MARKET POTENTIAL
Around 30-40 million people in India join the middle class every year. The countrys upper
middle class spends 6 percent of its earnings on telecom services. India is one of the largest
consumer markets in the world. Due to rapid economic growth and rise in disposable income, the
spending power of consumers is increasing rapidly. It has been forecasted that 15 years down the
line, Indians will be approximately four times richer than they are today. As per this forecast,
Indians will purchase five times more cars and consume three times more crude oil than they do
today.
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OTHER GROWTH DRIVERS
Reduction of Capital and Operating Expenditure
Telecom infrastructure development is imperative for growth of wireless telecom sector. A major
chunk of the rollout cost of the wireless network cost is constituted by passive infrastructure. Thus,
passive infrastructure sharing would provide much desired relief for the wireless service providers in
the sense that it would bring down their capex substantially by spreading capital expenditure over an
extended period of time in the form of rental payments. This would save the service providers with
significant cash reserves, which could be put to use in core areas of operation. Similarly, sharing
infrastructure will also lead to maintenance expenditure being distributed over two/three occupants,
reducing overall operating costs.
Wireless growth and increase in number of operators

The high level of growth in the Indian wireless telecommunications market will continue to drive
huge investment in infrastructure as well as a speedy rollout of networks into new areas. In addition
to the rollouts by existing wireless service providers, many new players are evaluating the Indian
wireless market and DoT encourages multiple wireless service providers to operate in the market to
enhance competition and benefit consumers. As a result of this expanding market, significant
investments in infrastructure as well as a speedy rollout of networks into new areas will be required.
An inexpensive and speedy growth of infrastructure will be crucial to sustaining the growth of the
telecommunication industry.
Emerging communication technologies such as WiMAX, 3G, Mobile TV and

Radio Trucking could generate additional demand for cell sites and towers.
India has one of the highest MoU globally with USA having 838 minutes per
month, India
At 461 minutes per month, China at 303 minutes per month, Russia at 88 minutes per month. As the
penetration in the rural areas increase, the MOUs are expected to increase, which justifies need for
adequate infrastructure. As per a study conducted by TRAI, usages of cell services are much higher
in India compared with China and minutes of usage of GSM and CDM based cell services in India
are 32.0% and 70.0% respectively higher when compared with Chinese services. Decreasing tariffs.
The steadily declining ARPUs impact profitability and enhance the need of sharing of infrastructure.
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Consequently, mobile operators need to reduce the overall cost to maintain profitability and compete
with other service providers.
3.3 Government Policy

3.3.1 FDI in Telecom sector
With the liberalization of the Indian economy, the telecom sector has become very attractive for
mergers and acquisitions. M&A in India is subject to various laws the principle of them being The
Companies Act 1956, Income Tax Act 1961 and the Takeover Code (for public listed companies).
Regulatory considerations are also equally important to take note of in telecom sector.
The Indian Telecom industry contributes 3 % in the GDP (2010). Foreign direct investment
has been one of the major contributors in the growth of the Indian economy, and therefore, the need
for higher FDI is felt across sectors in the Indian economy. The telecom sector has played a crucial
role in attracting FDI in India. India's telecom sector received US$ 1093 million in foreign direct
investment (FDI) during the first quarter (April-November) of financial year 2010-2011. Today,
telecom is the third major sector attracting FDI inflows after services and computer software sector.
In the telecom sector, FDI up to 49% is allowed under automatic route and beyond that up to 74% is
permitted through the Foreign Investment Promotion Board (FIPB), a government body. As per the
current telecom services policy, the sector has 74% of equity on basic cellular, unified access services
and other value-added services.
After registering a huge decline in the recent past, foreign direct investment in the telecom
sector grew manifold to $2.33 billion in the first four months of 2014-15.
During the entire 2013-14 fiscal, the sector had received a total FDI of $1.3 billion.
FDI in the telecom sector, which includes radio paging, cellular mobile, basic telephone services,
attracted only $12 million during April-July period of the last fiscal, as per the department of
industrial policy and promotion.
According to an industry expert, payment of spectrum auction and investments in network rollout are
some of the factors that have helped attract more FDI in the sector.
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In 2011-12, 2010-11 and 2009-10, the sector attracted FDI worth $1.99 billion, $1.66 billion and
$2.55 billion respectively.
Increase in the foreign investment inflows in the sector helped the overall FDI, which increased by 52
per cent to $10.73 billion during April-July this fiscal.
During the period, India received maximum FDI from Mauritius ($3.38 billion), Singapore ($1.66
billion), the UK ($824 million) and Japan ($834 million).
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3.3.2 12th Five Year Plan on Telecommunication
Twelfth Plan Targets for the Telecommunication Sector

1. Provision of 1200 million connections by 2017.
2. Mobile access to all villages and increase rural tele-density to 70 per cent by 2017.
3. Broadband connection of 175 million by 2017.
4. Commissioning of National Optical Fibre Network (NOFN)
5. Make available additional 300 MHz of spectrum for IMT services
6. Making India a hub for telecom equipment manufacturing by incentivising domestic
manufacturers with thrust on IPR, product development and commercialisation.
7. Provide preferential market access for indigenously manufactured products.
8. To increase domestic manufactured products in telecom network to the extent of 60 per cent
with value addition of 45 per cent by 2017.
9. Adoption of green policy in Telecom and incentivise use of renewable energy source
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CHAPTER-4
CASE STUDY OF COMPANIES
Quick Ratio/ Acid Test Ratio-
4.1 ANALYTICAL FRAMEWORK
CASE STUDY OF COMPANIES
Ratio Analysis is an approach in understanding the strength and weakness of a business. Ratio
analysis is a very powerful analytical tool useful for measuring performance of an organization.
It is also a yardstick to set goals for improvement. Ratio analysis allows various interested
parties to make evaluation of certain aspects of the firms performance.
LIQUIDITY RATIOS:
A class of financial metrics that is used to determine a companys ability to pay off its short term
debts obligations.Generally, the higher the value of the ratio, the larger the margin of safety that the
company possesses to cover short-term debts.
Current RatioCurrent Ratio is a liquidity ratio that measures company's ability to pay its debt over the next
12 months or its business cycle.The higher the current ratio is, the more capable the
company is to pay its obligations.Current ratio gives an idea of company's operating
efficiency. Current Ratio formula is:

CURRENT RATIO=
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Quick ratio measures the liquidity of a business by matching its cash and near cash current
assets with its total liabilities. It helps us to determine whether a business would be able to pay
off all its debts by using its most liquid assets (i.e. cash, marketable securities and accounts
receivable). Quick Ratio Formula is:
Cash + Marketable Securities + Receivables

Current Liabilities
SOLVENCY RATIOS:
Debt-to-Equity RatioA measure of a company's financial leverage calculated by dividing its total liabilities by
stockholders' equity. It indicates what proportion of equity and debt the company is using to
finance its assets.
A high debt/equity ratio

been aggressive in
can result in volatile
interest expense.
generally means that a company has

financing its growth with debt. This
earnings as a result of the additional
TURNOVER RATIOS:
These ratios measure how effectively the firm utilizes its resources. These ratios are also called
Activity Ratio, it involves comparison between the level of sales and investment in various
accounts inventories, debtors, fixed assets etc.
Fixed Assets Turnover RatioFixed Assets Turnover Ratios is net sales divided by net fixed assets. So fixed assets turnover
ratios show how efficiently the assets of the firm are utilized. Therefore, the higher the ratio,
the more efficient the company is with its assets.
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Inventory Turnover RatioInventory turnover ratio is cost of goods sold divided by average stock. So inventory turnover
ratio leads to stock velocity, which is an indication of the rotation of the current stock. So less
rotation time is good for the company.
Debtor Turnover RatioIt is credit sales divided by average accounts receivables (Debtor + Bills receivables). So debtor
turnover ratio leads to debtor velocity which is an indication that how much time an
organization takes to collect its receivables. Hence, lower the debtor velocity, the good for the
organization.
Interest Coverage RatioInterest Coverage Ratio is profit before interest and tax divided by interest on long term debt. So the
high ratio indicates the low proportion of the debt in the sector and the industry is using a very
conservative policy of using the debt component in the capital structure. It suggests that a company is
too safe and is neglecting opportunities to magnify earnings through leverage. An Interest
coverage ratio below 1.0 indicates that a company is not able to meet its interest obligations.
The interest coverage ratio formula is:
Interest Coverage = (Earnings Before Interest and Taxes) / (Interest Expense)
PROFITABILITY RATIOS:
The purpose of study and analysis of profitability ratios are to help assessing the adequacy of
profits earned by the company and also to discover whether the profitability is increasing or
decreasing.
Gross Profit Margin RatioGross profit ratio (GP ratio) is a profitability ratio that shows the relationship between gross profit
and total net sales revenue. It is a popular tool to evaluate the operational performance of the
business. This assists in helping us understand the financial health of the company in terms of
knowing whether or not the companys profit is enough to pay off its other expenses.
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Net Profit RatioThis ratio is calculated by diving net profit after tax with net sales (or total income) and
multiplying with 100. This ratio reflects net profit margin on the total sales after deducting all
expenses. The comparison of this ratio, with that of the previous year, will give a correct trend
of the performance of the sector.A low profit margin indicates a low margin of safety: higher
risk that a decline in sales will erase profits and result in a net loss.Net profit margin is an
indicator of how efficient a company is and how well it controls its costs. The higher the
margin is, the more effective the company is in converting revenue into actual profit.
Return on Capital Employed RatioThe return on capital employed (ROCE) ratio, expressed as a percentage, complements the return on
equity (ROE) ratio by adding a company's debt liabilities, or funded debt, to equity to reflect a
company's total "capital employed". ROCE is especially useful when comparing the performance of
companies in capital-intensive sectors such as utilities and telecoms. This is because unlike return on
equity (ROE), which only analyzes profitability related to a companys common equity, ROCE
considers debt and other liabilities as well. This provides a better indication of financial performance
for companies with significant debt. The ROCE should always be higher than the rate at which
company borrows money.
Return on Net WorthReturn on Net Worth is profit after tax divided by net worth which consists of equity share
capital and reserve and surplus and multiplying with 100. This ratio is an important yardstick of
performance for equity share holder since it indicates the returns on the funds employed by
them.
RONW=
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4.2 CURRENT MARKET SCENARIOCurrently, both public sector players as well as the private sector players are actively catering
to the rapidly growing telecommunication needs in India. Private participation is permitted in all
segments of the telecom industry, including ILD, DLD, basic cellular, internet, radio paging, etc.
Public Sector:
After the privatisation of VSNL in 2002, only two premier PSUs, MTNL and BSNL operate in India
and provide various telecom services. As noted earlier, MTNL operates in Delhi and Mumbai and
BSNL provides services to the remaining country. In the post-liberalisation era, these PSUs not only
have made significant progress but also have provided stiff competition to their private counterparts.
Private Sector:
Private operators have played a very crucial role in the growth of the telecommunication industry,
primarily in the mobile services. With the liberalisation of the telecom industry, the private sector
has been increasing its foothold in the telecom services space. After the introduction of NTP-99,
the contribution of private players towards telecom services has witnessed rapid strides. While the
private sector is instrumental in providing both fixed line as well as wireless services, it is mainly
active in the wireless segment. The fixed lines account for only about 2% of private sector's total
subscriber base. While some private players have a pan-India presence, there are many regional
players that cater to only certain service areas.
As on 31st January, 2015, the private access service providers held 91.22% market share of the
wireless subscribers whereas BSNL and MTNL, the two PSUs access service providers, held only
8.78% market share. The graphical representations of access service provider-wise market shares and
net additions in wireless subscriber bases are given below:
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Source: TRAI {Telecom Regulatory Authority of India}
4.3 BHARTI AIRTEL

BhartiAirtelfounded in 1985, is one of Asias leading providers of telecommunication services with
presence in all the 22 licensed jurisdictions (also known as Telecom Circles) in India, and in Sri
Lanka. They served an aggregate of 105,195,762 customers as of June 30, 2012; of whom
102,367,881 subscribe to their GSM services and 2,827,881 use Telemedia Services either for voice
and/or broadband access delivered through DSL.
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They also offer an integrated suite of telecom solutions to their enterprise customers, in addition to
providing long distance connectivity both nationally and internationally. They have launched DTH
and IPTV Services also. All these services are rendered under a unified brand "Airtel".
The company also deploys, owns and manages passive infrastructure pertaining to telecom
oerations under its subsidiary BhartiInfratel Limited. BhartiInfratel owns 42% of Indus
Towers Limited.
BhartiInfratel and Indus Towers are the two top providers of passive infrastructure services in
India.
Airtel comes to you from BhartiAirtel Limited, Indias largest integrated and the first private
telecom services provider with a footprint in all the 23 telecom circles.
BhartiAirtel is structured into three strategic business units - Mobile services,
TelemediaServices and Enterprise services.
The mobile business provides mobile & fixed wireless services using GSM technology.
Airtel was voted as the Best Cellular Service in the country for four consecutive years.
Key RatiosYEAR
Mar-14
Mar-13
49,918.50 45,350.90
Net sales(crores)
Ratio DebtEquity
Owners Fund
Current Ratio
Quick ratio
Turnover ratios
Fixed Assets
inventory
Debtors
Interest
Coverage Ratio
Gross Profit
Margin(%)
Net Profit
Margin (%)
Mar-12
41,603.80
Mar-11
38,015.80
Mar-10
35,609.54
0.23
88.67
0.98
0.98
0.28
80.66
0.74
0.74
0.23
77.76
1.38
1.37
0.13
81.17
0.73
0.727
0.14
87.88
0.73
0.6
0.7
45,380.45
22.63
7.42
0.69
21,595.67
20.7
4.91
0.7
1,296.07
23.14
5.98
0.79
1,105.17
21.32
27.92
0.87
1,307.05
15.3
85.82
18.16
14.65
18.57
22.95
28.15
12.99
10.88
13.56
20.12
26.36
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TREND OF FEW DINANCIAL RATIOS OF BHARTI AIRTEL OVER THE PAST 5 YEARS:
CURRENT RATIO
DEBT EQUITY RATIO
1.02
0.29
0.93
0.24
0.23
0.7
0.65
0.63
0.14
MAR'10
MAR'11
MAR'12
MAR'13
MAR'10
MAR'14
0.13
MAR'11
EPS
24.82
20.32
15.09
MAR'10
MAR'11
MAR'12
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16.51
13.42
MAR'13
MAR'14
MAR'12
MAR'13
MAR'14
INTERPRETATION:
The above three ratio shows the liquidity, solvency and earning per share of the company. The
current ratio shows a mixed trend but the ratio has increased from 2013 to 2014 from 0.65 to 0.93.
Thus indicating that the solvency position or the cash paying capacity of the company has increased.
The debt to equity ratio of the company has fallen to 0.13 thus indicating that the company is relying
more on equity financing rather than debt financing. This also indicates that that the assets are
acquired from shareholdercapital. But the company should use the cheapest source of financing that
is, debt financing.
Earnings per share of the company has increased from 13.42 to 16.51. This is the case when the debt
equity ratio has declined. Had there been the same debt equity ratio the company would have
generated more earnings per share. The company is more able to satisfy shareholder obligation.
NET SALES
Net Sales
60,000.00
40,000.00
20,000.00
0.00
2010
2011
2012
2013
2014
The sales of the company has an increasing trend, thus indicating a continuous strong position in the
market.
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4.4 VODAFONE
The name Vodafone comes from voice data fone, chosen by the company to "reflect the provision of
voice and data services over mobile phones".Vodafone India is a member of the Vodafone Group and
commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license
for Mumbai. The company has operations across the country serving over 153 million customers.
Vodafone India has firmly established a strong position within the Vodafone Group too, making it the
largest subscriber base globally. This journey is a strong testimony of Vodafones success in a highly
competitive and price sensitive market. Vodafone is the worlds leading international mobile
communications company.
Vodafone India in its long-term commitment to India has been providing innovative, customer
friendly and reliable products and services by continuously differentiating itself with a strong brand,
best quality network, unique distribution and great customer service.
At the India Retail Forum 2012, the company received the Best Modern Retailer award in the
mobile and telecom category. The company has been recognized as one of the Best Employer of
Choice in telecom sector by Great Places to Work and in another survey conducted by Nielsen;
Vodafone India was the only telecom player in the Top 10 Most Exciting Youth Brands in India.
The company has also received the award for the Value services -Rural Innovation category for its
Low Balance Services at the Telecom Awards by a leading business daily. Vodafone Business
Services received the Best Enterprise Service Provider at the Frost & Sullivan Awards 2012. On
the technology front, the company has also won the ICMG Enterprise & IT Infrastructure Global
Excellence Award for its Business Intelligence (BI) transformation project.
At Vodafone, sustainability is an integral part of the companys mission and strategy, shaping the
conduct of business every day. In 2011, in line with its Group philosophy, Vodafone India became
the first telecom operator in India to release a Corporate Sustainability Report for India Footprints.
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Vodafone India has also been awarded the prestigious Golden Peacock Award for corporate social
responsibility for 2012.
Key Ratios-
YEAR
Net
sales(crores)
DebtEquity
Ratio
Current
Ratio
Turnover
ratios
Fixed
Assets
inventory
Debtors
Interest
Coverage
Ratio
Gross
Profit
Margin(%)
Net Profit
Margin (%)
Mar-14
Mar-13
Mar-12
Mar-11
Mar-10
46,918.50
42,350.50 40,003.80 38,015.80 36702.90
1.59
1.41
0.84
0.48
0.41
0.50
0.91
1.27
1.28
1.28
0.52
0.53
0.75
1.44
1.58
45,380.45
17.00
0.73
21,595.67
16.87
0.61
1,296.07
12.83
1.22
1,105.17
9.12
1.87
1,307.05
9.24
1.33
44.78
38.47
34.43
44.54
29.96
-10.64
-14.87
1.18
10.06
5.76
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Debtor Turnover Ratio of Vodafone India is 17 for the year 2013-14. So the debtor velocity
is 365/17 which comes out as 21.47 days i.e. Vodafone takes on an average 22 days to collect
Debt-Equity Ratio
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
Current Ratio
1.4
1.2
1
0.8
Debt-Equity
Ratio
Current
Ratio
0.6
0.4
0.2
0
2010 2011 2012 2013 2014
Current Ratio of Vodafone India is 0.50 for the year 2013-14. It has declined substantially over the
past 5 years, showing weak liquidity position.
Debt-to-Equity Ratio of Vodafone India is 1.59 for the year 2013-14. Besides the companys trends
reveals increasing debt-equity ratio which indicates that the company is taking advantage of the
financial leverage but at the same time, the company may not be able to generate enough cash to
satisfy its debt obligations.
Fixed Assets Turnover Ratio of Vodafone India is 0.52 for the year 2013-14. The ratio has been fairly
constant during the last 2 years, but the company could make a more efficient use of its assets in
generating sales
Interest Cover Ratio of Vodafone India is 0.73 for the year 2013-14, which means that Vodafone has
0.73 times more income to pay interest on their debts. It indicates that the company has crippling debt
obligations as it uses its entire earnings to pay interest, leaving no income for the common
shareholders or to repay back the debt in some cases
Gross Profit Margin Ratio of Vodafone India is 44.78% for the year 2013-14, means that Vodafone is
making a profit before interest, depreciation and tax of 44.78%. So, the company is in a good position
Net Profit Ratio of Vodafone India is -10.64% for the year 2012-2013, which signals danger for the
Return on Capital Employed Ratio of Vodafone India is NIL for the year 2012-2013, which indicate
Net Profit Ratio of Vodafone India is -10.64% for the year 2013-14, which signals danger for the
company.
that the company is not earning profit on the total capital employed. This is yet another trend that
reveals inefficiency of the company and needs to be checked.
Return on Net Worth of Vodafone India is NIL for the year 2012-2013, which means that the
company is not earning anything on the own investment made by them..
Return on Capital Employed Ratio of Vodafone India is NIL for the year 2013-14, which
indicate that the company is not earning profit on the total capital employed. This is yet another trend
that reveals inefficiency of the company and needs to be checked
Return on Net Worth of Vodafone India is NIL for the year 2013-14, which means that the company
is not earning anything on the own investment made by them.
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4.5 IDEA Cellular

Idea Cellular is an Aditya Birla Group Company, India's first truly multinational corporation. Idea is
a pan-India integrated GSM operator offering 2G and 3G services, and has its own NLD and ILD
operations, and ISP license. With revenue in excess of $4 billion; revenue market share of nearly
15%; and subscriber base of over 121 million in FY 2013, Idea is Indias 3rd largest mobile operator.
Idea ranks among the Top 10 country operators in the world with a traffic of over 1.5 billion minutes
a day. Ideas robust pan-India coverage is built on a network of over 100,000 2G and 3G cell sites,
spread across over 55,000 towns in India.
Using the latest in technology, Idea provides world-class service delivery through the most extensive
network of customer touch points, comprising of nearly 4,500 exclusive Idea outlets, and over 7,000
call centre seats. Ideas customer service delivery platform is ISO 9001:2008 certified, making it the
only operator in the country to have this standard certification for all 22 service areas and the
corporate office.
Idea has consistently stayed ahead of the industry in VLR reporting. Ideas thought leadership on
Mobile Number Portability (MNP) has enabled it to stay as the top gainer with highest net gain.
Every 4th mobile user who exercises choice through MNP, prefers Idea.
Idea offers a range of high-speed mobile broadband devices including Android based 3G
smartphones, dongles etc. Ideas wide portfolio of 3G smartphones offer the latest in 3G applications
and high-end data services such as Idea TV, games, social networking etc. at most affordable prices.
Idea has been a pioneer in introducing customized product offerings for segmented customers. It is
the first mobile operator to introduce innovative value added services in the Indian telephony market,
and has remained ahead of the industry in data product offerings.
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YEAR
Net Sales(crores)
Ratio Debt- Equity
ROCE
RONW
Current Ratio
Quick ratio
Mar-14
26,110
Mar-13
22,043
1.14
10.8
11.9
0.43
0.47
0.67
386.95
30.02
Mar-12
Mar-11
Mar-10
19,275.32
15,332.80
11,850.24
0.86
9.51
7.06
0.52
0.53
0..86
8.68
5.54
0.5
0.51
0.88
6.03
7.3
0.45
0.46
0.69
8.99
8.42
0.87
0.76
0.64
308.46
25.14
2.66
0.62
210.54
28.28
2
0.58
234.21
30.23
3.51
0.53
231.15
29.97
2.58
Turnover ratios
Fixed Assets
inventory
Debtors
Interest Coverage
Ratio
4.95
Gross Profit
Margin(%)
14.1
11.05
10.56
8.6
12.57
Net Profit Margin (%)
7.42
4.5
3.7
5.79
7.59
DEBT EQUITY RATIO
CURRENT RATIO
1.14
0.87
0.5
0.45
mar'10
mar'11
0.88
0.86
0.86
mar'11
mar'12
mar'13
0.69
0.52
0.43
mar'12
mar'13
mar'10
mar'14
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50
mar'14
From the graph it can be seen that the current ratio of the company has a declining trend means that
the company is unable to generate excess current asset over current liabilities. This means that the
company is facing a working capital problem.
This working capital problem is financed by a high debt compared to equity of the company unlike
its peer companies. Thus due to this the company has a increasing trend of debt equity ratio. The
company must try to keep a check on the working capital of the company which is affecting the debt
equity position of the company.
The EPS of the company had a declining trend due to working capital mis-management. This was not
apparent in the last year because of the high sales generated due to increased market share and thus
the company has a strong market position in the market.
NET SALES
NET SALES
30,000.00
25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
0.00
2010
2011
2012
2013
2014
The net sales of the company has an increasing trend. Thus indicating an increased market share in
the market and trust of the consumers
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4.6 RELIANCE COMMUNICATIONS

LTD.
Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of
companies. Listed on the National Stock Exchange and the Bombay Stock Exchange, it is Indias
leading integrated telecommunication company with over 85 million customers.
The Late Dhirubhai Ambani dreamt of a digital India - an India where the common man would have
access to affordable means of information and communication. Dhirubhai, who single-handedly
built Indias largest private sector company virtually from scratch, had stated as early as 1999:Make
the tools of information and communication available to people at an affordable cost. They will
overcome the handicaps of illiteracy and lack of mobility.
It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started
laying 60,000 route kilometres of a pan-India fibre optic backbone. This backbone was
commissioned on 28 December 2002, the auspicious occasion of Dhirubhais 70th birthday, though
sadly after his unexpected demise on 6 July 2002.
Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) and
convergent (voice, data and video) digital network. It is capable of delivering a range of services
spanning the entire infocomm (information and communication) value chain, including infrastructure
and services for enterprises as well as individuals, applications, and consulting. .Today, Reliance
Communications is revolutionising the way India communicates and networks, truly bringing about a
new way of life.
RComs business encompasses a complete range of telecom services covering mobile and fixed
line telephony. It includes broadband, national and international long distance services and data
services along with an exhaustive range of value-added services and applications. The
company's constant endeavour is to achieve customer delight by enhancing the productivity of the
enterprises and individuals it serve. They endeavour to further extend their efforts beyond the
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traditional value chain by developingand deploying complete telecom solutions for the entire
spectrum of society.
Dhirubhai Ambani would always say that if a telephone call could be made cheaper than a
postcard, it would transform every home, empower every Indian, remove every obstacle to
opportunity and growth, and tear apart every barrier that divides Indian society. He was convinced
that infocom could energise enterprises, drive governance, and render learning an interesting
experience, apart from making life exciting. Keeping his conviction as our credo, Reliance
Communications is committed to transform Dhirubhais dream into a reality.
YEAR
Mar-14
Mar-13
Mar-12
Mar-11
Mar-10
Net
Sales(crores) 11,176.00 11,267.00 11,110.00 13,308.71
13,554.60
Ratio Debt1.14
1.11
0.97
0.96
0.69
Equity
Current
0.5
0.42
0.53
0.67
0.47
Ratio
Quick ratio
0.78
0.81
0.73
1.06
0.59
Turnover
ratios
Fixed Assets
0.27
0.28
0.29
0.27
0.41
inventory
51.18
41.37
34.77
43.37
172.16
5.49
5.2
6
6.57
Debtors
5.42
1.33
1.54
0.53
4.23
Interest
Coverage
1.06
Ratio
Gross Profit
9.92
10.19
9.18
-0.47
25.29
Margin(%)
Net Profit
Margin (%)
4.69
3.08
4.55
5.32
19.06
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CURRENT RATIO
0.67
0.53
0.47
mar'10
0.5
0.42
mar'11
mar'12
mar'13
mar'14
The current ratio of this company do not have a particular trend. But the last years ratio indicate a
stable liquidity position of the company. Thus the working capital is at par.
The other exhibit indicates the solvency position of the company. The debt-equity ratio of the
company indicates an increasing trend. The company is relying more on its debt than its equity which
indicates that the company is relying on cheaper source of generating capital than the owners fund.
NET SALES
net sales
15,000.00
10,000.00
5,000.00
0.00
2010
2011
2012
2013
2014
The net sales of the company of the company declined in the last two years due to reduced market
share due to strengthening of the peers position in the market and the introduction of the mobile
number portability which enables the users to connect to other networks of their choice.
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CHAPTER-5
RECENT TRENDS
5.1 Mobile Number Portability
In the month of Jan-15, a total of 3.56 million subscribers submitted their requests for MNP. With
this, the cumulative MNP requests increased from 142.98 million at the end of Dec-14 to 146.54
million at
the end of Jan-15.
In MNP Zone-I (Northern and Western India), the highest number of requests till date have been
received in Rajasthan (about 14.15 million) followed by Gujarat (about 12.00 million). In MNP ZoneII (Southern and Eastern India), the highest number of requests till date have been received in
Karnataka (about 16.80 million) followed by Andhra Pradesh (about 13.90 million)
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5.2 DIGITAL INDIA PROGRAMME

Government is looking for a speedy rollout of Wi-Fi services at select public places in top 25 cities
with population of over 10 lakh by June 2015.
"Government has plans to empanel three to four Wi-Fi service provider for speedy roll out of Wi-Fi
hotspots across top 25 cities in the country by June 2015. The services will be available at select public
places within these cities," according to an official source.
The project is part of Digital India programme under which the government aims to cover cities with
population of over 1 million and tourist destinations with Wi-Fi services by December 2015.
Telecom firms may get three months time to complete rollout from the date they accept purchase
order. The project is jointly being worked by the Department of Telecom and Ministry of Urban
Development.
The government will facilitate permissions required from local authorities for network roll out.
The government has also separately identified 25 archaeological monuments to provide free Wi-Fi
access, the source said.
These monuments include Humayun's Tomb, Red Fort, Qutub Complex in Delhi, TajMahal,
FatehpurSikriSravasti and Sarnath in Uttar Pradesh, Shore Temple in Mahabalipuram, Vaishali-Kohua
in Bihar, Martand Temple and Leh Palace in J&K, Konark Temple in Odisha, Rani-kiVav Gujarat,
Khajuraho and Mandu in Madhya Pradesh and Rang Ghar in Assam.
"The idea is that people even foreign tourists should stay connected. Besides, Wi-Fi spots will also
lower traffic burden on telecom networks," the source said.
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According to census 2011, the top 25 cities to have population more than 10 lakh are- Mumbai, Delhi,
Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Jaipur, Kanpur, Lucknow,
Nagpur, Ghaziabad, Indore, Coimbatore, Kochi, Patna, Kozhikode, Bhopal, Thrissur, Vadodara, Agra,
Vishakhapatnam, and Malappuram. Out of these 25 cities Delhi, Ahmedabad, Bangalore, and Patna
already have public wi-fi spots. However, It is not confirmed yet whether all these cities will be
included in the list.
5.3 3G SERVICES
INTRODUCTION
1
International Mobile Telecommunications2000 (IMT-2000), better known as 3G or 3rd

Generation, is a generation of standards for mobile phones and mobile telecommunications services
fulfilling specifications by the International Telecommunication Union. Application services include
wide-area wireless voice telephone, mobile Internet access, video calls and mobile TV, all in a mobile
environment. Compared to the older 2G and 2.5G standards, a 3G system must provide peak data rates
of at least 200 Kbit/s according to the IMT-2000 specification. Recent 3G releases often denoted 3.5G
and 3.75G also provide mobile broadband access of several Mbit/s to laptop computers and
smartphones.
HISTORY
The first pre-commercial 3G network was best launched by NTT
DoCoMo in Japan branded FOMA, in May 2001 on a pre-release
of W-CDMA technology. The first commercial launch of 3G was
also by NTT DoCoMo in Japan on 1 October 2001, although it
was initially somewhat limited in scope; broader availability was
delayed by apparent concerns over reliability. The second
network to go commercially live was by SK Telecom in South
Korea on the 1xEV-DO technology in January 2002. By May
2002 the second South Korean 3G network was by KT on EV-DO and thus the Koreans were the first
to see competition among 3G operators.
ADOPTION
Source: www.economictimes.indiatimes.com
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In December 2007, 190 3G networks were operating in 40 countries and 154 HSDPA networks were
operating in 71 countries, according to the Global Mobile Suppliers Association (GSA). In Asia,
Europe, Canada and the USA, telecommunication companies use W-CDMA technology with the
support of around 100 terminal designs to operate 3G mobile networks.
Roll-out of 3G networks was delayed in some countries by the enormous costs of additional spectrum
licensing fees. In many countries, 3G networks do not use the same radio frequencies as 2G, so mobile
operators must build entirely new networks and license entirely new frequencies; an exception is the
United States where carriers operate 3G service in the same frequencies as other services. The license
fees in some European countries were particularly high, bolstered by government auctions of a limited
number of licenses and sealed bid auctions, and initial excitement over 3G's potential. Other delays
were due to the expenses of upgrading equipment for the new systems.
INDIA
In 2008, India entered the 3G arena with the launch of 3G enabled Mobile and Data services by
Government owned Bharat Sanchar Nigam Ltd. (BSNL). Later, MTNL launched 3G in Delhi and
Mumbai. Nationwide auction of 3G wireless spectrum was announced in April 2010.
The first Private-sector service provider that launched 3G services is Tata DoCoMo, on November 5,
2010. And the second is by Reliance Communications, December 13, 2010. Bharti Airtel launched
their 3G services on 24 January, 2011 in Bangalore and also launched in Delhi & Jaipur on March 4,
2011. Aircel also launched 3G in Kolkata in the month of February and Vodafone in the month of
March.
MOBILE VIRTUAL NETWORK OPERATOR (MVNO)

2Mobile
Virtual Network Operator (MVNO) is a GSM phenomenon where an operator or company

which does not own a licensed spectrum and generally without own networking infrastructure. Instead
MVNOs resell wireless services under their brand name, using regular telecom operator's network with
which they have a business arrangements. Usually they buy minutes of use from the licensed telecom
operator and then resell minutes of usage to their customers of MVNO. Currently MVNOs are
emerging in fast pace in European markets and beginning in USA also. Slowly MVNO phenomenon
catching up in Asia and other parts of the world also.
http://en.wikipedia.org/telecomindustry/mobile-virtual-network-operator
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An example for MVNO is Virgin Mobile. Virgin Mobile plc. is a mobile phone service provider
operating in the UK, Australia and Canada, and the US. The company was the world's first Mobile
Virtual Network Operator, launched in the UK in 1999. It does not maintain its own
Network, and instead has contracts to use the existing network(s) of other providers. In the UK, Virgin
Mobile uses the T-Mobile network. In the US, the
Sprint network is the carrier. In Australia, Virgin
Mobile operates on the Optus network. In Canada, it
uses the Bell Mobility network. These networks use
different technology (GSM in the UK and Australia
and CDMA in the US and Canada). Usually MVNO's
do not have their own infrastructure, some providers
are actually deploying their own Mobile Switching
Centers (MSC) and even Service Control Points (SCP)
in some cases. Some MVNO's deploy their own mobile
Intelligent Network (IN) infrastructure in order to facilitate the means to offer value-added services. In
this way, MNVO's can treat incumbent infrastructure such as radio equipment as a commodity, while
the MVNO offers its own advanced and differentiated services based on exploitation of their own IN
infrastructure. The goal of offering value-added services is to differentiate versus the incumbent
mobile operator, allowing for customer acquisition and preventing the MVNO from needing to
compete on the basis of price alone. MVNO's have full control over the SIM card, branding,
marketing, billing, and customer care operations. While sometimes offering operational support
systems (OSS) and business support systems (BSS) to support the MVNO, the incumbent mobile
operators most keep their own OSS/BSS processes and procedures separate and distinct from those of
the MVNO. In the future a cell phone user may be able to subscribe to a network operator plus
multiple MVNOs for specific data services over the same phone. One MVNO could provide sports
news, another weather and traffic and still another could provide instant messaging capabilities. In this
way, each MVNO and the network operator could focus on their own niche markets and form
customized detailed services that would expand their customer reach and brand.
5.4 UPCOMING TRENDSSince there are so many factors and opportunities driving the growth which tends to future technology
trends in the telecom Industry. In this section we have listed down the future technologies which are in
roadmap and are speculated to make an impact on current business model of telecom industry.
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4 G OR FOURTH GENERATION NETWORKS AND SERVICES

4G or Fourth Generation is future technology for
mobile and wireless communications. It will be the
successor for the 3Rd Generation (3G) network
technology. Currently 3G networks are under
deployment. Approximately 4G deployments are
expected to be seen around 2015. The basic voice
was the driver for second-generation mobile and
has been a considerable success. Currently, video
and TV services are driving forward third
generation (3G) deployment. And in the future,
low cost, high speed data will drive forward the
fourth
generation
(4G)
as
short-range
communication emerges. Service and application
ubiquity, with a high degree of personalization and
synchronization between various user appliances,
will be another driver. At the same time, it is probable that the radio access network will evolve from a
centralized architecture to a distributed one. The evolution from 3G to 4G will be driven by services
that offer better quality (e.g. multimedia, video and sound) thanks to greater bandwidth, more
sophistication in the association of a large quantity of information, and improved personalization.
Convergence with other network (enterprise, fixed) services will come about through the high session
data rate. It will require an always-on connection and a revenue model based on a fixed monthly fee.
The impact on network capacity is expected to be significant. Machine-to-machine transmission will
involve two basic equipment types: sensors (which measure parameters) and tags (which are generally
read/write equipment). It is expected that users will require high data rates, similar to those on fixed
networks, for data and streaming applications. Mobile terminal usage (laptops, Personal digital
assistants, and handhelds) is expected to grow rapidly as they become more user friendly. Fluid high
quality video and network reactivity are important user requirements. Key infrastructure design
requirements include: fast response, high session rate, high capacity, low user charges, rapid return on
investment for operators, investment that is in line with the growth in demand, and simple autonomous
terminals.
IP MULTIMEDIA SUBSYSTEM (IMS)

IP Multimedia Subsystem (IMS) is a generic architecture for offering multimedia and voice over IP
services, defined by 3rd Generation Partnership Project (3GPP). IMS is access independent as it
supports multiple access types including GSM, WCDMA, CDMA2000, WLAN, Wireline broadband
ST. XAVIERS COLLEGE
6
and other packet data applications. IMS will make Internet technologies, such as web browsing, email, instant messaging and video conferencing available to everyone from any location. It is also
intended to allow operators to introduce new services, such as web browsing, WAP and MMS, at the
top level of their packet-switched networks. IP Multimedia Subsystem is standardized reference
architecture. IMS consists of session control, connection control and an applications services
framework along with subscriber and services data. It enables new converged voice and data services,
while allowing for the interoperability of these converged services between internet and cellular
subscribers. IMS uses open standard IP protocols, defined by the IETF. So users will be able to
execute all their services when roaming as well as from their home networks. So, a multimedia session
between two IMS users, between an IMS user and a user on the Internet, and between two users on the
Internet is established using exactly the same protocol. Moreover, the interfaces for service developers
are also based on IP protocols.
Some of the possible applications where IMS can be used are:
Presence services
Full Duplex Video Telephony
Instant messaging
Multiparty gaming
Video streaming
Web/Audio/Video Conferencing
Push-to services, such as push-to-talk, pushto-view, push-to-video
Effectively, IMS provides a unified architecture that supports a wide range of IP-based services over
both packet- and circuit-switched networks, employing a range of different wireless and fixed access
technologies. A single IMS presence-and-availability engine could track a user's presence and
availability across mobile, fixed, and broadband networks, or a user could maintain a single integrated
contact list for all types of communications. A key point of IMS is that it is intended as an opensystems architecture: Services are created and delivered by a wide range of highly distributed systems
(real-time and non-real-time, possibly owned by different parties) cooperating with each other. It is a
different approach to the more traditional Telco architecture of a set of specific network elements
implemented as a single Telco-controlled infrastructure.
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CHAPTER- 6
CONCLUSION
If there is one sector in India that is showing tremendous growth as well as potential, its definitely
telecom. Being recognised as one of the most lucrative sectors globally the Indian telecom sector has
not only shown signs of profitability but also contributed significantly to the nations economy.
The objectives of study was to make an incisive analysis of the sector and a thorough study of its
development process. The objectives have been achieved. The gradual rise and fall of the telecom
companies along with the major developments have been highlighted. Telecommunication is important
not only because of its role in bringing the benefits of communication to every corner of India but also
in serving the new policy objective of improving the global competitiveness of the Indian economy
and stimulating and attracting foreign direct investment. . Interesting thing to know is that no other
market globally isgrowing at this pace.
Traditional telecom companies can no longer rely on conventional competitive tactics such as price
cuts, promotions and basic product bundling to maintain their edge in the consumer segment. Owning
infrastructure initially gives telecom companies some competitive edge but this is mitigated by nontraditional competitors that dont own a network but bundle their services attractively. Three new
attributes are coming into play and driving change in the marketplace that the traditional telecom
players must embrace to become successful content enablers, which create and deliver content. They
are trust, usability and customer experience.The telecom industry in 2020 will be very different from
the one we know today. Developingstrong partnership skills, focusing on customer user groups and
embracing Internet services willenable the telecom companies to thrive well into the future.
Telecom Industry in India is out of its nascent stage and the government together with the private
sector initiatives is on the path of making India the electronics manufacturing hub of the world. 10
years ago subscribers were made to pay for an incoming call; today they have the liberty to pay for per
second of their usage. We, definitely, have come a long way!\
ST. XAVIERS COLLEGE
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LIMITATIONS
The following are the limitations to my research and project:
The basis of collection of data is secondary and not primary and hence the question of
reliability on the same arises. If the data would have been collected from the primary source it
might had been more reliable and accurate
Further detailed analysis on the subject could have been done which is not carried out due to
the given time constraint.
Again if some other service providers would have been selected it may have given another set
of data for analysis which could have again affected the view about the industry.
Study and analysis drawn in the report is suggestive and not conclusive in nature.
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BIBLIOGRAPHY
Books:1. Author: Varadharajan Sridhar, The Telecom Revolution in India: Technology,
Regulation & Policy 1st edition, Nov 11.
2. Author: DilipSubramanium, Telecommunications Industry in India: State, Business and
Labour in a Global Economy 1st edition, Nov 11.
Article:o Department of Telecom Services (various issues). Annual Report, DTS, Ministry of
Communications, New Delhi.
o Cellular Statistics Cellular Operator Association of India
o Annual Reports of BSNL, Airtel, Vodafone, Reliance
o Voice and Data (May 2013): Mobile Number Portability - Poaching with Portability.
o Article on Indian Cellular statistics May 2013.
o Article by Economic Times: Cabined approved 100% FDI in telecom.
o Article on Indian Telecom by The Hindu Business Line.
o Article on Indian Telecoms growth story by Business Today.
o Articles by Deloitte and PwC.
Websites:
www.money control.com
www.trai.gov.in
www.dot.gov.in
www.airtel.in
www.vodafone.com
www.ideacellular.com
www.ibef.org
www.slideshare.net
www.scribd.com
www.doctoc.com
www.investopedia.com
www.indiatelecomnews.com
Business India, Article by MisbahNayeemQuadri
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INDIAN TELECOM INDUSTRY

A Perceptual Study Of Telecom Industry &

Name :Vikash Gupta

Under the supervision of :

UNLOCKING THE TELECOM INDUSTRY

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OBJECTIVE OF THE PROPOSED STUDY

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UNLOCKING THE TELECOM INDUSTRY

ST. XAVIERS COLLEGE

UNLOCKING THE TELECOM INDUSTRY

HISTORY OF TELECOM INDUSTRY

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Source: www. newtelegraphonline.com

Teledensity: Number of Telecom Subscribers per 100 Persons

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The number of Broadband Subscribers in India (in million)

Broadband Indian Scenario

No. of Broadband Subscribers

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1.2 RESEARCH PROBLEMS

1.3 LITERATURE REVIEW

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The International Telecommunication Union (ITU), the World Telecommunication

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2.1 History of Telecom in India

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2.2 Beginning of Telecommunications in India

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2000 Dot becomes a corporation, BSNL.

2.3 MARKET REVENUE

ST. XAVIERS COLLEGE

UNLOCKING THE TELECOM INDUSTRY

[SOURCE: TELECOM REGULATORY AUTHORITY OF INDIA (TRAI)]

2.4 TOTAL SUSSCRIBER BASE AND TELE-DENSITY

ST. XAVIERS COLLEGE

UNLOCKING THE TELECOM INDUSTRY

Overall Tele Density

[source : Telecom Regulatory Authority of India (TRAI)]

UNLOCKING THE TELECOM INDUSTRY

Overall Tele Density State-Wise

Overall Tele Density

[source : Telecom Regulatory Authority of India (TRAI)]

WIRELESS SUBSCRIBERS IN INDIA

UNLOCKING THE TELECOM INDUSTRY

Wireless Tele Density

[Source : Telecom Regulatory Authrity of India (TRAI)]

ST. XAVIERS COLLEGE

UNLOCKING THE TELECOM INDUSTRY

GROWTH OF WIRELESS SUBSCRIBERS

UNLOCKING THE TELECOM INDUSTRY

ST. XAVIERS COLLEGE

UNLOCKING THE TELECOM INDUSTRY

[Source : Telecom Regulatory Authrity of India (TRAI)]

ST. XAVIERS COLLEGE