INDIAN MOBILE TELECOMMUNICATIONS: 2007-2008 By- T.V. Ramachandran - - PowerPoint PPT Presentation

indian mobile telecommunications 2007 2008
SMART_READER_LITE
LIVE PREVIEW

INDIAN MOBILE TELECOMMUNICATIONS: 2007-2008 By- T.V. Ramachandran - - PowerPoint PPT Presentation

INDIAN MOBILE TELECOMMUNICATIONS: 2007-2008 By- T.V. Ramachandran Director General, COAI April 23, 2008 @ Mumbai INDIAS TRYST WITH DESTINY I see a nation that has the capacity and confidence to address and resolve these challenges.


slide-1
SLIDE 1

INDIAN MOBILE TELECOMMUNICATIONS: 2007-2008

By-

T.V. Ramachandran Director General, COAI

April 23, 2008 @ Mumbai

slide-2
SLIDE 2

2 2

INDIA’S TRYST WITH DESTINY

“ I see a nation that has the capacity and confidence to address and resolve these

  • challenges. The world believes that India, to

quote the great Jawaharlal Nehru, has a tryst with destiny. The time has come to redeem that pledge.”

James D. Wolfensohn, World Bank President, New Delhi

  • Nov. 18, 2004
slide-3
SLIDE 3

3 3

INDIAN MOBILE SECTOR IS VIGOROUSLY REDEEMING THAT PLEDGE….

Sl No. Country Q4 2007

1 India 25,454,786 2 China 18,958,322 3 United States of America 7,764,634 4 Indonesia 7,002,391 5 Pakistan 5,585,056

In Q4 2007, Topped Global Charts in terms of Net Additions In Q4 2007, Topped Global Charts in terms of Net Additions

Source: GSMA

slide-4
SLIDE 4

4 4

INDIAN MOBILE SECTOR IS VIGOROUSLY REDEEMING THAT PLEDGE….

  • Records tumbling month after month……..
  • In March 2008, over 7.6 million GSM additions! – GLOBAL

HIGHEST

 Estimated total mobile adds of nearly 10 Million!!!

  • “India’s wireless subscriber base during the first half of April

2008 will surpass that of USA and will become second largest wireless network in the world.”

  • TRAI Press Release, March 24, 2008

* Projected subscriber base Source: TRAI Press Release, March 24, 2008

slide-5
SLIDE 5

5 5

HOW DID WE GET HERE?!....

  • “There is no shortcut to any place worth going”

……..Beverly Hills

  • “The mode by which the inevitable comes to pass is

effort”

……..Oliver Wendell Holmes

Indian Mobile Saga is an Epic Story of Various Challenges. Actions and Course Corrections Indian Mobile Saga is an Epic Story of Various Challenges. Actions and Course Corrections

slide-6
SLIDE 6

6 6

THE INDIAN MOBILE : CAUSE & EFFECT

Source: TRAi and COAI

Forward Looking Policies, Enabling Regulatory Framework & Strong Industry Actions have Yielded Continuing Customer Benefits Forward Looking Policies, Enabling Regulatory Framework & Strong Industry Actions have Yielded Continuing Customer Benefits

NTP-99 3rd & 4th Cellular Operator Reduction in License Fee CPP Introduced Lowering of ADC Revenue Share ADC Regime Lowering of ADC Introduction of CDMA

6 0.32 0.4 0.44 0.44 1.6 2 3.58 14 14 0.88 1.2 1.88 3.58 6.5 13 33.31 51.53 96.63 157.58 2 4 6 8 10 12 14 16 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year ended March

Effective Charge (Rs/min) 20 40 60 80 100 12 140 160 180 Subscriber Figures (in mn)

slide-7
SLIDE 7

7 7

USD

INDIAN CONSUMERS GET THE WORLDS LOWEST MOBILE TARIFFS

Source: Merrill Lynch Global Matrix - Q1 2007

slide-8
SLIDE 8

8 8 Source: Merrill Lynch Global Matrix – Q1 2007

HIGHEST MINUTES OF USAGE

slide-9
SLIDE 9

9 9

THE INDIAN WIRELESS REVOLUTION

“..What matters most about a new technology is not how it works, but how people use it and the changes it brings about in human lives…”

…. Frances Cairncross

“..What matters most about a new technology is not how it works, but how people use it and the changes it brings about in human lives…”

…. Frances Cairncross

slide-10
SLIDE 10

10 10

MOBILE EMPOWERING All

“The mobile phone has moved beyond being a mere device to become a key “social object” present in every aspect of our daily lives”

International Telecommunications Union. ITU

.

slide-11
SLIDE 11

11 11

“the cell phone has allowed him to put his two sons – ages 16 and 12 -- into schools where they will get a good education”.

CELL PHONE TURNS OUT TO BE GROCER'S BEST BUY

….Washington Post

Small businessmen and vendors have witnessed nearly 25% rise in their businesses owing to uptake of mobile phones

slide-12
SLIDE 12

12 12

“The transformation in telecommunications has accomplished what

  • ur socialist policies couldn't — empower the less fortunate”.

……….Shashi Tharoor

MOBILE MIRACLE

“Living in several centuries simultaneously” “Living in several centuries simultaneously”

slide-13
SLIDE 13

13 13

INDUSTRY ACTIONS IN PUBLIC-PRIVATE PARTNERSHIP MODE

slide-14
SLIDE 14

14 14

TELECOM CENTRES OF EXCELLENCE IN ‘PPP’ MODE

  • India needs TCoEs’

 Capacity Building to sustain the explosive Growth  Benchmarking global best Technologies and Practices  Prepare for Mobile Info Security, Next Generation Networks,

Disaster Management services etc

 Plan a National Information Infrastructure to make India a

leading Mobile Information Society

 Innovate actions for bridging Digital Divide  To undertake India specific content & applications development

  • Concept Genesis in 2006, SEVEN TCoEs’ created in 2007-2008!!...

“Take-up of the PPP Model in Record Time!” “Take-up of the PPP Model in Record Time!”

slide-15
SLIDE 15

15 15

THE TCoEs

No Proposed Field of Excellence Associated Institute Sponsor

1. Next Generation Networks & Network Technology IIT, Kharagpur Vodafone Essar + Texas Instruments 2. Policy, Regulation, Governance, Customer Care & Marketing IIM, Ahmedabad IDEA Cellular 3. Telecom Technology & Management IIT, Delhi Bharti Airtel 4. Information Security & Disaster Management of Info Infrastructure IISc, Bangalore Aircel Ltd + Texas Instruments 5. Technology Integration, Multimedia & Computational Mathematics IIT, Kanpur BSNL + Alphion 6. Telecom Infrastructure & Energy IIT, Chennai Reliance 7. Rural Applications IIT, Mumbai Tata Teleservices 8. Spectrum Management (proposed) WPC Government + Industry Consortium

“Never Before in History has Innovation Offered Promise of so Much to so Many in so Short a Time”

…. Bill Gates

“Never Before in History has Innovation Offered Promise of so Much to so Many in so Short a Time”

…. Bill Gates

slide-16
SLIDE 16

16 16

SHARED INFRASTRUCTURE

1. Project “MOST” – Mobile Operators Shared Tower

Kick started infra-sharing in India and demonstrated proof of concept of the possibility of multi-technology (GSM & CDMA) and multi operators (upto 6 operators) sharing a single tower 2. Unique USOF Scheme to Incentives setting up of Shared Passive Infrastructure in Rural Areas:

Subsidy for setting up and managing 7871 towers in 500 districts spread over 27 states.

Subsidy proposed for another 11,000 towers in the Second Phase. 3. ‘Guidelines on Infrastructure Sharing’ announced on April 01,2008

  • Active Infrastructure Sharing Permitted
  • Procedures/Policies Streamlined

Sharing Vital for Cost Efficiencies in intensely Competitive Market Sharing Vital for Cost Efficiencies in intensely Competitive Market

slide-17
SLIDE 17

17 17

OTHER INITIATIVES

1. Subscriber Verification

Apex Advisory Council for Telecom in India - 4 stage process for verification

Re-verification of existing prepaid subs – completed re- verification of ~ 85 million subs in stipulated time of 10 months!! 2. Setting up of Telecom Sector OMBUDSMAN

Low cost and expeditious redressal mechanism for consumer grievances – to be operationlized shortly 3. Mobile Instant Messaging

Provides an interoperable real time, fast-paced, multi-party conversation environment.

Implemented across all GSM operators

slide-18
SLIDE 18

18 18

THE OPPORTUNITIES AHEAD

Rural India Beckons !!!....

  • Mobile affordability not really an issue anymore….
  • Lifetime prepaid a great success…..
  • Over 700 million waiting to be connected….
  • Over 50% of the new connections now outside urban areas…..
  • Industry launching a special ‘Rural Chalo’ mobile scheme to attract

50 million new rural subscribers…. “To Get Rich, Sell to the Poor & the Rural” “To Get Rich, Sell to the Poor & the Rural”

slide-19
SLIDE 19

19 19

Value Added Services: Scope for Trebling of Revenues!!... 1. Mobile Music:

  • Sales already surpassed physical music sales
  • By 2009, over 75% of total music sales expected to be mobile music
  • Rs 3600 cr mobile music revenue in 2009

“If music be the food of mobiles, do play on……” 2. Other VAS Opportunities

  • Mobile Banking
  • Ticketing
  • Maps
  • Mobile DATA/INTERNET Access,
  • E-Mail,
  • Search,

3. Enormous potential for Regional Content…..

THE OPPORTUNITIES AHEAD

“Application is the KING but ‘Content’ is the EMPEROR!!!....” “Application is the KING but ‘Content’ is the EMPEROR!!!....”

slide-20
SLIDE 20

20 20

THE 3G OPPORTUNITY

  • Government guidelines expected soon
  • Apart from meeting the data speed requirements of the urban and

ITES/BPO sector, 3G will help meet the crucial broadband requirements of the rural sector

  • Opportunities enormous in rural Health Care, Education and

Governance

  • Mobile Broadband to Overtake Fixed Broadband by 2010

In India,when You think Broadband, Think Mobile Broadband In India,when You think Broadband, Think Mobile Broadband

slide-21
SLIDE 21

21 21

THE CHALLENGES

  • The huge burden of levies & duties

 Licence fee, USO levy & Spectrum Usage Charges need to be

reduced

  • Early release of Spectrum by Defence.
  • Management of Cost efficiencies to cope with the state of

hyper competition

 > 12-14 operators in each circle!!

Each Challenge is an Opportunity, Waiting to be Exploited… Each Challenge is an Opportunity, Waiting to be Exploited…

slide-22
SLIDE 22

22 22

…MUCH ACHIEVED, BUT YOU AIN’T SEEN NOTHING YET !!!

Million

Year Ended December 2006 2007 2008 2009 2010 2011 2012 Mobile Subs

149 235 330 430 525 633 741

Even at 750 mln, mobile penetration only about 64% ! Even at 750 mln, mobile penetration only about 64% !

slide-23
SLIDE 23

23 23

THANK YOU!!

tvram@coai.in