Download Document

GROWTH OF DOMESTIC TELECOM
MARKET IN INDIA
POTENTIALS FOR INVESTMENT AND
BUSINESS FOR FOREIGN PLAYERS
A CASE FOR KOREAN IT FIRMS
by
VINOD VAISH
Former Secretary DOT, Member TDSAT
DIRECTOR CMAI
10th June, 2009 Seoul, Korea www.cmai.asia
Telecom Administration in India
 Government of India- Department Of Telecom (DoT)
-
Policy making and Licensing
 Telecom Regulatory Authority Of India (TRAI)
-
Recommendatory Body for Licensing in Telecom And
Broadcasting
and
Regulator for
Telecom and
Broadcasting
 Telecom Dispute Settlement and Appellate Tribunal (TDSAT)
-
Adjudicating
Disputes
Body
for
Telecom
and
Broadcasting
Functions of Deptt. of Telecom
 Telecom Policy Formulation
 Telecom Licensing
 Wireless Spectrum Management
 Universal Service Obligation
 Standardization, R & D
 Administration of :

Indian Telegraph Act

Indian Wireless Telegraphy Act

Telecom Regulatory Authority of India Act
Major Milestones of the Indian Telecom Sector
 1991 –Liberalization of Telecom Sector .
Manufacturing opened to private
participation
 1992 – Bids invited for Mobile services in
Four Metros and the Radio
Paging
in 27 cities in
the country licensed
 1994 – Mobile and Basic Services opened for
the
private sector in the country
 1997 – Establishment of Independent
Regulator (TRAI)
 1999 – Migration to revenue share
Major Milestones of the Indian Telecom Sector
contd…
 2000 – Establishment of TDSAT
– NLD sector opened up
– Corporatisation of the operating arm
of DoT-Formation of BSNL
 2002
-- ILD Sector Opened up for private
participation Limited Internet
Telephony permitted to ISPs
Major Milestones of the Indian Telecom Sector
contd…
 2004- Broadband Policy Announced
 2005-
Full Internet Telephony
permitted to UASL Licensee
Telecom Service LicensesArea of Operation
License
Service Area
Access Services (CMTS+ Unified Services)
(19Circles+3
National Long Distance (NLD)
-All India
International Long Distance (ILD)
-All India
Internet Services including Internet Telephony
- All lndia & Service Area
Very Small Aperture Terminal Service ( VSAT)
Metro)
-All India
Public Mobile Radio Trunk Service (PMRTS)
- All India
Global Mobile Personal Communication by
Satellite (GMPCS)
INSAT MSS
- All India
Mobile Number Portability Service
- Zonal ( 1& 2)
Other Service Providers (Including BPO)
- All India (Registration)
Infrastructure Providers
- All India (Registration)
(IP-I)
- All India
Telecom Service Users in India
as on March 2009
Wire Line Subscribers:
37.9M (10.68 Rural)
Wireless subscribers:
382M (GSM 75.4% + CDMA
24.6%)
Internet Subscriber:
12.85M
Broadband Subscriber:
5.52Million(4.7M on DSL +
0.485M on cable + rest on
Fiber, wireless, leased line
and other technology)
VSAT Services
0.1 Million VSAT Terminals
Public Mobile Radio Trunk
35000
Annual Gross Revenue of
Telecom Sector
US $ 10 Billion
Opportunity Highlights in Indian Telecom
 One of the fastest growing In the world
-
( Adding around 10-15 Million in a Month)
 More than 430 Million Subscribers in April 2009
 State of the Art Networks – GSM, CDMA, IP
 Penetration
Rate(30%) remains lower than
markets, offering potential for rapid growth
 Consumer
data
services
remains
a
comparable
largely
untapped
opportunity
 Government encourages both existing as well as new entrants
Opportunities/ Potential Areas for Korean
companies in India
 3G and Broadband Wireless Access and applications
 Triple Play Services
 Next Generation network and services
 Cell phones , 2G & 3G : Fastest growing Cell phone
market.
 FTTH ( Fiber To The Home) -Passive Optical Networks
 Value added services in Mobile segment
 Transition from Ipv4 to Ipv6 in Indian Network
 Voice on IP protocol (VOIP) and Internet Telephony
 Security Equipment for IP networks (Internet, NLD ILD)
3G and Broadband Wireless Access
and applications
 The Government of India intends to allot spectrum Blocks in
the 2.1 GHz, 2.3 GHz and 2.5 GHz Bands through a fair and
transparent process
 Separate auction for 2.1 GHz (3 G Auction ) and 2.3 GHz and
2.5 GHZ bands (BWA Auction)
 Allotment to be carried out on service area wise basis though
there will be a simultaneous auction for all service areas
 3G auction in
2.1 GHz up to four blocks 2x5 MHz One
additional block reserved for BSNL/MTNL
 4 blocks of unpaired 20 MHz in2.3 and 2.5 GHz. One block
allocated for BSNL/MTNL remaining 3 blocks to be auctioned
Contd.
 As India braces for 3G roll out, newer and value
added applications will be possible through this
platform and vendors and developers will have
untapped opportunities
 Similarly in BWA ample opportunities will be
available for such applications
TRIPLE PLAY SERVICES
 Broadband Triple play converged services
(data/video/telephone) permitted for UASL
Licensees.
 IPTV holds a promising future for India.
 Target of achieving 20 million broadband by 2010
could also be helped by IP TV
 Major service providers are planning roll out of triple
play including IP TV
Next Generation Network and Services
 Major Telecom Players have started switching
towards IP based Next Generation Networks
 Korean companies can venture with Indian
companies to offer NGN Networks /equipments
 Some of the NGN services that will find very good
market in the country are Real Time voice and video
conversational services, Audio video and Text
conferencing, content delivery services such as
radio / video streaming, Video on demand ,
broadcast IPTV, messaging etc
Cell phones , 2G & 3G and CPE for
BWA
 Korean companies have significant market share in
cell phone handsets.
 India expects 500 million cell phones by 2010
 The launch of 3G holds a promise for good business
in this segment
Passive Optical Networks and FTTH
 Leading new technology for broadband access
promising bandwidth for new generation
applications such as HDTV , interactive gaming etc
 Korean companies have expertise of deployment in
their country . It has gained reputation for high
performance, low cost and exceptional stability
 Indian Telecom Service Providers have plans for its
deployment in the country e.g. Reliance in Mumbai
Value added services in Mobile
segment
The following services are popular in India
 Personalized service like ringtone download
 SMS based services
 Mobile TV
 Video on demand
 games
TRANSITION FROM IPV4 TO IPV6
NETWORK
 Korean Govt. has planned for full migration to IPV6




by 2011
India is also planning to move toward IPV6 keeping
pace with international community
Korean companies can explore this important
segment of business in India since they are the
leading players in this area.
Lawful Interception Systems in India to be upgraded
to IPv6
By December 2010 all new equipment shall have to
be IPv6 compliant
Voice on IP protocol (VOIP) and Internet
Telephony
 Voice on IP permitted to NLD/ILD for transportation
of traffic within their networks.
 Phone to phone internet telephony permitted to
UASL licensees.
 Restricted internet telephony permitted to ISPS.
 Proposals under consideration to further liberalize
internet telephony.
 Internet Telephony and voice hold a promising future
for companies and players in this segment.
SECURITY APPLICATIONS
 More and more IP networks are being introduced in
the Indian telecom network there is a good
requirement of security applications from the
service provider, security agencies
 To name a few those required by ISPS / NLDs/ ILDs
for their IP operations.
BRIDGING THE DIGITAL DIVIDE
 A major chunk of Indian Population resides in rural




areas
It has thrown a challenge to provide rural
connectivity for voice, video and data.
The telecom companies are encashing this
opportunity and the rural India has started giving
them good revenues and profitability
There is lot left for businesses in rural India and
telecom has a major share left into it
Korea can venture to offer a technology suiting to
rural India
THANKYOU
WWW.CMAI.ASIA