1

OBJECTIVES:
 Introduction.

 2G news.

 3G news.

 DoT.

 T.R.A.I.

 Chinese products and companies.

 Impact of Unior And Docomo in the market.

 Over view in terms of numbers.

2
INTRODUCTION

What is 2G?.
2nd generation of mobile telephony systems

Uses digital encoding

Supports high bit rate voice.

 Limited data communication

 Supports GSM , TDMA, CDMA.

3
 What is 3G?.

- Is the third generation of wireless technologies.

- Has enhancements over previous wireless technologies - high-speed

transmission, advanced multimedia access and global roaming.

-Used with mobile phones and handsets - connects the phone to the Internet
or other IP networks .

- Helps make voice and video calls.

-Japan was the first country to introduce 3G on a large commercial scale.

- There are about 60 3G networks across 25 countries

4
DEPARTMENT OF TELECOM.
• Policy, Licensing and Coordination matters relating to telegraphs,
telephones, wireless, data, facsimile and telematic services and other like
forms of communications.

•International cooperation in matters connected with telecommunications

including matters relating to all international bodies dealing with
telecommunications such as International Telecommunication Union (ITU),
its Radio Regulation Board (RRB), Radio Communication Sector (ITU-R).

•Promotion of standardization, research and development in

telecommunications.

•Promotion of private investment in Telecommunications.

•Financial assistance for the furtherance of research and study in

telecommunications technology.
5
TELECOMM REGULATORY AUTHORITY OF
INDIA
 Creates and nurtures conditions for growth of telecommunications - manner
and a pace to enable India to play a leading role in emerging global
information society.
 
 Main objective of TRAI - provide a fair and transparent policy environment
- facilitates a field for fair competition

6
ON TO NEWS

7
2G NEWS.
 2G slots was sold for a price far below than its actual price.

 TRAI - Companies to pay one-time fee for holding 2G radio-spectrum

beyond 6.2 megahertz (MHz) based on 3G prices.

 TRAI's recommendations may hit major players .

 Beneficiaries of TRAI’s recommendation - Unitech, Datacom, Loop,

Aircel, even Tatas and Reliance Communications

8
3G NEWS
 22 circles allocated.

 Allocated 3 slots of 2.3Ghz band width of 5*2 Mhz.

 Key players in the market TATA tele, Rcom, Vodafone Essar.

 Allotted auction – base price – 35,00 crores,BWA it is Rs 1,750 crore.

 Allowed for 3 bids for 3G slots.

9
10
 Cont..
 WHY 3G AUCTIONS IN INDIA WON'T GO THE EUROPEAN WAY ?

- Company board sets a maximum price it is willing to pay for the

spectrum.

-Secondly, there is no incentive to speculate as the full payment has to

be made in less than a month. No company will risk bidding prohibitive
amounts and then default and lose earnest deposits of hundreds of crores

11
Wi-MAX TECHNOLOGY
 Wi- MAX – worldwide interoperability for microwave access.

 Transmission possible up to 50km.

 Will slowly replace existing Wi Fi services.

 It’s a technology that is in its infant stage in INDIA.

12
DEPARTMENT OF TELECOMMUNICATION.

 Department of Telecom has rejected several applications from telecom

operators - to buy equipment from Chinese vendors due to security reasons

 Tata Teleservices to the Department of Telecom - permission to import

CDMA equipment from Chinese vendors .
 DoT seeks to skip TRAI in deciding on existing licences

 TRAI's views are to be sought only when the Government plans to issue
new licences – for future techs and 4G.

13
TELECOM REGULATORY AUTHORITY OF
INDIA
 TRAI - spectrum beyond 8 MHz in the non-metros , to be returned.

 Operators to pay a one-time fee for spectrum beyond 6.2 MHz.

 New players with GSM spectrum of 4.4 MHz – entitled an additional 1.8
MHz of 2G spectrum -without additional payment

 Trai has recommended three sets of frequency bands - 450 mhz, 800 mhz
and 2.1 ghz.

 Reliance and Tata Teleservices 1.25 MHz each is offered- CDMa.

14
 Cont…
 CDMA operators are free to bid both in the 2.1 GHz and the 450 MHz
bands.

 TRAI- 2G spectrum beyond 6.2 MHz at 3G auction rates will yield

additional revenues of Rs 35,000 crore for the government - Chairman –
J.S.Sharma.

15
SECURITY CONCERNS
 Department of Telecom issued a directive banning operators from
providing SMS services in J&K

 IME number made mandatory in India.

 All Chinese handsets banned.

 Huawei lodged complaint against departments move .

 Huawei invites Govt to inspect India offices

16
UNINOR AND DOCOMO
DOCOMO:
 Introduced per second billing- june 2009.

 Competitors were hit – bharti airtel.

 As time progressed competitors were forced to change their plan.

 Impact – industries market share increased while revenue decreased –

38,755 cr in sept 2009 while dec 2008 -39478 cr .
 Added 4 million subscriber while introduction phase against 3 million each
for Vodafone and Bharti and 2 million for RCom

17
UNINOR:

 Joint venture – Unitech and Telenor group.

 Marketing strategy – Inspiration and not aspiration – used their employees.

18
OVER VIEW IN TERMS OF NUMBERS
 Telephone subscribers increased to 600.69 million at the end of February-
Growth rate of 3.22 per cent.

 Tele-density 51.05 per cent - TRAI

 Wireless subscriber base, including GSM and CDMA, increased to 563.73

million - growth of 3.44 per cent. Wireless tele-density stands at 47.91 per cent.

 Wire-line subscriber base declined from to 36.96 million at the end of February.

 Broadband subscriber base increased from to 8.59 million in February, a growth

of 6.95 per cent.

19
Cont…

Market Share

 Bharti Airtel has the largest market share with 22.1 per cent

 Second is Reliance Communications with 17.6 per cent market share

 Third, Vodafone with 17.2 per cent of the total cellular subscribers.

 BSNL and MTNL, hold 84.92 per cent of the wireline market share.

 Overall wireline tele-density is 3.14.

20
 BSNL's loss may top Rs 3,500 cr, says House panel

-payment of arrears amounting to Rs 3,600 crore to non-executive

employees
-reducing tariffs in highly competitive market, sharp reduction in landline
revenue, stoppages of licence fee revenue.

21
GLOBAL PLAYERS
Company Origin Subscribers/Milli Revenue/Billion-
on “$”
China Mobile CHN 532.9 66.2
Vodafone UK 333 65.7
China Unicorn China 284 22.6
Telefonica Spain 264 79.1
America-Movil Mexico 201 29.3
France telecom France 192.7 64.1
Bharati-Zain India 163.8 9.2
At&t US 150 123
Verizon –Comm. US 87.7 107.8
NTT DoCoMo Japan 54.6 44.6

22
INDIAN PLAYERS :
 TelecomGSM - Aircel · Airtel · BSNL· Cheers Mobile Service  · Idea
Cellular · Loop Mobile (Formerly BPL)  · MTNL· Reliance · Spice
Telecom · Tata DoCoMo· Vodafone · Uninor· Videocon MobileService· S
Tel

 CDMA - BSNL  · MTNL  · MTS India  · Reliance· Tata Indicom  ·

Virgin Mobile India (MVNO)

 Wireline - BSNL · Airtel  · MTNL  · Reliance · Tata Indicom· Shyam

Telelink

 MNP Clearinghouse - Interconnection Telecom Solutions· Syniverse

Technologies

23
NEWS
MNP

 (Mobile Number Portability) has been ringing all doors for a while - mid

part of 2009.
 If implemented - advantageous for people – to switche their mobile
numbers.
 Change over to other service provider of his own choice without changing
his number .
 It was announced that it will be launched on December.

24
SOURCES OF INFORMATION
 Business Line.
 The Economic Times.
 The New Indian Express.
 www.dot.gov.in

25