1. Cellular Industry in India

2. Cellular Service Market
3. Introduction
Cellular services launched in India during 1999
Cellular services split into two, namely
GSM
CDMA
23 circles in India ,grouped under Metro, A, B and C.
Metro circle makes up to 20.7% of the total cellular usage in India.
4. Highest minutes of usage
India has the lowest call tariffs in the world, and thus, the highest minutes of usage as well.
5. GSM v/s CDMA
GSM900 and 1800 spectrum
GSM subscriber base crosses the 200mn mark in 07-08
Better roaming accessibility
CDMA uses 1800 MHz frequency band
Better call quality and surfing speed
Call costs cheaper
GSM
CDMA
6. GSM and CDMA subscribers comparison
7. Market Players
Airtel
Vodafone
Idea Cellular
Reliance
Tata Indicom
BSNL
8. Airtel
Bharti Tele-Ventures Ltd. (BTVL) aka BhartiAirtel
Co provides telephone and internet access over DSL in 14 circles.
Submarine cable landing station at Chennai
Airtel services include mobile services (GSM), broadband and telephone services, long-distance services and enterprise services.
Vodafone and SingTel holding Airtel stakes
Signed MoU with Nokia-Siemens for $9mn expansion of mobile and fixed network.
9. Vodafone
Vodafone Essar acquired 67%stake of Hutch for US$11.1bn
Voice Data Fone, providing voice and data services over mobile phones
Operates in 25 countries across 5 continents and 40 partner networks with over 200 mn customers worldwide
Rapid increase in revenue by 50% with an avg. of 1.5mn net additions per month
Among the fastest growing cellular service cos. of India
Earned profits of about 6756mn as on March 09
10. Idea Cellular
First cellular co to launch background tones, group talk and a complete suite of mobile email services
Initially started as a merger of Tata Cellular and Birla AT&T Communications in1995
The co had a split with the Tata taking an exit from the co for Rs.44.06bn
Launched 3 more circles, Rajasthan, Himachal Pradesh and UP (East)
Acquisition of Escotel in 2004 covered Maharashtra, Goa, Gujarat, AP, MP, Chattisgarh, UP (West), Haryana, Kerala and Delhi.
11. Reliance
Reliance Infocomm, Reliance Telecom and Flag Telecom a part of Reliance Communications Ventures (RCoVL)
Reliance Infocomm uses CDMA2000 technology
Reliance telecom-GSM services in 340 towns within 8 circles
CDMA services cover 19 states, almost 65% of India
Provides both wireless and wireline services as well as convergent digital network
12. Tata Indicom
Incorporated in 1995 and is the first one to provide CDMA mobile services
In 2002, acquired Hughes Telecom (I) Ltd andlaunched Talk World plan in 2007
With total investment of Rs. 19924 Cr. Operates in 20 circles in India
Partnership with Motorola, Ericsson, Lucent and ECI Telecom for reliable and advanced network
Leader in fixed wireless telephony with 3.8mn customer base
Includes wireless desktop phones, public phone booths, voice and data services
13. BSNL
First one to provide 3G services
Indias oldest and largest CSP and also largest PSU, market value $100bn
Provides services like wireline, CDMA mobile, GSM mobile, internet, broadband, carrier service, etc.
Worlds 7th largest Telecommunications Co
14. Market Share and Growth
Major growth drivers intl. and domestic long distance telephony services
According to Unified Licensing Policy 15% of operator revenue goes to the govt.
Indias cellular market has grown rapidlysince last few years and is poised to be the 2nd largest network globally by 2012
Almost 80% of the cellular subscriber base from pre-paid segment
Avg. growth rate is about 85% p.a.
15. MOST (Mobile Operators Shared Tower) started infra-sharing in India with the concept of multi-technology (GSM & CDMA) and multi operators (upto 6 operators) sharing a single tower.
Several Indian firms gaining a foothold in the global market.
16. Market Share of companies July 2009
Airtel105177635
Vodafone 78680291
BSNL 50700367
Idea 48516824
Aircel 23101900
Reliance12840939
MTNL4332631
Loop2350537
Total325701124
17. Marketing Strategies
Revenues used to reduce airtime tariffs, long distance calling prices and handset prices.
This reduction in airtime tariffs increases the demand for cellular services.
Cos focusing on rural areas for more connections.
Increasing VAS provided by different cellular cos
Other promotional strategies include celebrity endorsements, loyalty rewards, creative ads, business solutions, talktime schemes, etc.
Target market of cellular cos being the youth as it is the fastest growing segment of all.
18. Value Added Services
As per COAI, income from VAS was 10% of total income of service providers in 06-07
SMS57%
Caller line idntification6%
Other VAS19%
Ring tones7%
Content download6%
GPRS5%
VAS supplied by mobile network operators or VASP/CP
Many national and intl investors ready to invest in this segment of telecom market.
19. 3G Spectrum The Latest Buzz
20. 3G technology
Supports diverse multimedia applications
Enables triple play and broadband services
Requires huge bandwidth (15-20 MHz)
Providing high-speed internet, fast downloading and video calling.
More than 60 3G networks present across 25 countries.
Transfers both voice data and non-voice data
BSNL and MTNL spectrums allotted immediately and private cos to get spectrum allocations by 2009
21. Main highlight video calling
Finance Ministry decided of reserve price to be Rs. 4040cr. In 08 but it has been recently brought down by DoT to Rs. 3500cr.
Metro & Circle ARs. 160cr.
Circle BRs. 80cr.
Circle CRs. 30cr.
Govt. to earn about Rs. 30k-40k cr. for 4 spectrum blocks
22. Future Trends
Location based services
Mobile music will increase with better bandwidth
Migrattion to 3G will increase ARPU
Mobile commerce might be developed further
Mobile email will be driven by enterprises
Stocks on mobile will see an uptake
23. TRAI
TRAIs mission is to create and nurture conditions for growth of telecommunications in the country in a manner and at a pace which will enable India to play a leading role in emerging global information society.
Objective of TRAI - to provide a fair and transparent policy environment. In pursuance of above objective TRAI has issued from time to time a large number of regulations, orders and directives to deal with issues coming before it and provided the required direction to the evolution of Indian telecom market from a Government owned monopoly to a multi-operator multi-service open competitive market. The directions, orders and regulations issued cover a wide range of subjects including tariff, interconnection and quality of service as well as governance of the Authority.
24. COAI
The Cellular Operators Association of India (COAI) was constituted in 1995 as a registered, non-profit, non-governmental society dedicated to the advancement of communication, particularly modern communication through Cellular Mobile Telephone Services. With a vision to establish and sustain a world-class cellular infrastructure and facilitate affordable mobile communication services in India, COAI's main objectives are to protect the common & collective interests of its members.