presentation 03.09.11

8/3/2019 Presentation 03.09.11

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KULDEEP SINGH

CMD, MTNLwww.mtnl.in


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Presentation Plan

1 Telecom Industry Overview

2 MTNL Overview

3 Telecom Evolution

Telecom Emerging Environment4


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Presentation Plan


2 MTNL Overview

3 Telecom Evolution



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Telephony services (mobile and basic) and Internet services

dominate the Indian telecom services

The Indian telecom market generated revenues of approximately USD 20 billion in 200607. It registered a CAGR of

approximately 22 percent from 200203 to 200607. The CAGR from 200607 to 200910 is expected to stabilise at

21 percent. Apart from mobile telephony services, other value-added services are also gaining importance.

Telecom Services India

Mobile Services

VSATs

The Indian telecom services can be divided predominantly into basic, mobile and Internet services. It also

comprises smaller segments, such as Very Small Aperture Terminals (VSATs), and Global Mobile Personal

Communications by Satellite.

The growth witnessed in the mobile services and Internet services segments was higher as compared to other

services, such as basic services and radio services.


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Indian Telecom IndustryA Lucrative Option

In recent years, the Indian telecom industry has witnessed phenomenal growth. A conducive business environment,

favourable demographic outlook and the political stability enjoyed by the country have contributed to the growth

of the industry. India achieved the distinction of having the world's lowest call rates, the fastest sale of million

mobile phones, the world's cheapest mobile handset and the world's most affordable colour phone .

Particulars Wireless Wireline Total

Wireless + Wireline

Total Subscribers (Million) 851.70 34.29 8 85.99

Total Net Addition (Million) 11.41 -0.11 11.30

% of Monthly Growth 1.36% -0.32% 1.29%

Urban Subscribers (Million) 562.12 25.82 587.94

% of Monthly Growth 1.33% -0.18% 1.26%Rural Subscribers (Million) 289.57 8.47 298.05

% of Monthly Growth 1.42% -0.73% 1.35%

Teledensity 71.11 2.86 73.97


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Mobile Number Portability requests increase from105.70 lakh subscribers at the end of May 2011 to

129.85 lakh subscribers at the end of June 2011.

Active wireless subscribers on the date of peak VLR in

June- 2011 are 594.77 Million.

Broadband subscription reaches 12.32 Million in June-

2011 from 12.12 Million in May-2011.

Indian Telecom IndustryA Lucrative Option


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Major Players in different segments of Indian telecom industry

Basic Services Operators:

BSNL

MTNL

Reliance

TTSL

Bharti

Internet Services Operators:

BSNL

MTNL

Reliance

TTSL

Airtel

Sify

GSM Services Operators:

BSNL

MTNL

Reliance

Vodafone

Airtel

CDMA Services Operators:

BSNL

MTNL

Reliance

TTSL

Each circle is having atleast one Govt. operator & three Private

operator for ensuring competetion.


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Service Provider wise Market Share as on 30.06.2011


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Presentation Plan


2 MTNL Overview

3 Telecom Evolution



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Date of Establishment 1986RevenueMarket Cap 22648.5 ( Rs. in Millions )Corporate Address Jeevan Bharti Building,Tower 1 12th Floor,124 Connaught

CircusNew Delhi-110001, Delhi

www.mtnl.net.in/www.bol.net.in Customer Base Wire-line

WirelessBroad-BandISDNLeased Circuit

Business Operation Telecommunication - Service Provider in Delhi & MumbaiBackground The company started its operations by establishing telephone

system with a manual exchange. Later in 1986 MTNL (Mahanagar

Telephone Nigam) was established. In the same year it brought in

digital exchange world technology for the first time in .

MTNL, a state-owned telecom serviceFinancials Total Income - Rs. 50578.23 Million ( Year ending Mar 2010)

Net Profit - Rs. -26109.72 Million ( Year ending Mar 2010)

Overseas Operations Nepal, Marritus

MTNL Overview


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Presentation Plan


2 MTNL Overview

3 Telecom Evolution



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Wireline - Since 1878

Wireless Since 1946

2G (GSM/CDMA)Since 1983

2.5G: GPRS, EDGE, 2001X

3G: WCDMA

4G: NGN, IMS


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Services/Application

Fixed-line Services:Ring back Tone

Dial Tone

Emergency Services

Morning Alarm

Call Waiting

Call TransferFAX

Centrex

EPBAX

ISDN

Dynamic Lock

IN Services

VAS

Supplementary Services

Mobile Services:Ring Back Tone

Emergency Services

Call Waiting

Call Transfer

Call Conferencing

SMSMMS

VoIP

VAS

Supplementary Services

Data Services:Dial up Internet

ISDN

Leased Circuit

Broad Band

(ADSL/ADSL2+)

FTTHHSDPA (WCDMA)

LTE (4G)


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Switching Technologies

Transmission Technologies

Data Technologies

Evolution of Technologies


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Evolution of Switching Technologies

Fixed Line Switching Technologies:T-43 Board (Manual Exchange)

Strowger (Mechanical Exchange)

Cross Bar (Electromechanical Exchange)

Digital Exchange

IN

NGN/IMS

Mobile Switching Technologies:Pager/WLL/CorDECT

AMPS

CDMA

95A /95B

1X

2000EVDO

EVDV

WCDMA

GSM

2G

2G+GPRS

2G+ EDGE

2G + HSPA

WCDMA

4G (LTE)

MTNL presently has 100% digital & NGN exchanges for Wire-line & 3G for wireless network.


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Evolution of Transmission Technologies

PCM : 2MBPS

PDH : 155MBPS

SDH :

STM1 : 155.52 Mbps

STM4 : 622.08 Mbps

STM16:

CWDW/DWDM : Bandwidth in terms of lamda i.e. STM 16

FE/GE (each interface)

10GE/40GE (each interface)

MTNL presently has MPLS network in Delhi & Mumbai covering at-least

all centers of operations with 10G/40G Interface capabilities.


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Evolution of Data Technologies

Technology SpeedDial up Internet 56Kbps

ISDN 128Kbps

ATM

X.25

ADSL 2 MBPS

ADSL2+ 24 MBPS

Wi-fi

Wi-Max

HSDPA

FTTH


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Presentation Plan


2 MTNL Overview

3 Telecom Evolution



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Emerging Scenario

Customer Perspective

Operator Perspective


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The proliferation of multi-access, multi-use devices

Always-on, anywhere, ubiquitous communications

Ad-hoc conferencing- Leverages buddy lists to allow users to easily set up group

calls.

Chat- Allows users to talk at the same time they are sharing information and

applications.

Enhanced messaging- Allows users to escalate from IM to a voice call

Enhanced voice mail- Allows callers to leave messages in either voice, text, or email

format.

Application Share- A terminal user share an application than the opposite party can

use this shared application remotely.


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Electronic White Board- Both parties can write & draw on the same picture i.e.

discussion, remote teaching etc.

IP Centrex- Subscribers of domain/group can make intra-group calls with private

numbering plan.

Picture messaging. Leverages buddy lists and IM, allowing users to instantly share

photos

Find-me. Allows callers to choose to ring an alternative number

Location-based services. Allows users to specify areas of interest and have relevantinformation pushed to them based on their locale

Push-to-Talk. Near instant one-to-one or one-to-many walkie-talkie style calls

Session based transfers. Allows users to switch from voice, to video, to applicationsharing

e-Commerce/m-Commerce/e-learning


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Limitation of TodaysTelecom System

Expectations from New TelecomSystem

Circuit/Packet-switched Internet Protocol (IP) based

Vertical integration of

application and call control

layers, with dedicated networks.

Horizontally-integrated controls layers,

with simultaneous delivery of application.

Service related functions independent of

transport-related technologies

Limited mobility of end-userservices.

Broad-based generalized mobility.

Non-responsive network. New Network will be able to identify and

adapt to user needs in real time.

Operator Perspective


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Emerging Issues

FDI and other M&A activities increasing in number

Economic & Environmental Conditions

Spectrum Efficiency

Value Added Services

Interconnection

Technological Development

Regulations


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FDI and other M&A activities increasing in number

Major trends in the telecom sector is increasing M&A activity, de-regulation of telecom policies and

growing interest of international investors.

Deals

inTelecomS

ector

Vodafone purchased stake in Hutch from Hong

Kong's Hutchison Telecom International for

USD 11.08 billion.

Telekom Malaysia acquired a 49 percent stake in

Spice Communications for USD 179 million.

Maxis Communications acquired a 74percent stake in Aircel for USD 1.08 billion.

Ericsson to design, plan, deploy and

manage Bharti Airtel network and facilitate

their expansion in the rural areas, under a

USD 2 billion contract.

Reliance Communications Limited has sold a five percent equity

share capital of its subsidiary Reliance Telecom Infrastructure

Limited to international investors across the US, Europe and Asia.

The deal was worth USD 337.5 million.
http://en.wikipedia.org/wiki/Image:VodafoneNewLogo.jpg


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Economic & Environmental Conditions

Worlds largest democracy

Independent judiciary

Skilled and competitive labour force

The government promoting telecom manufacturing by providing tax sops andestablishing telecom specific Special Economic Zones

Unified Access Service License Regime (UASL)

Universal Service Obligation (USO)

Increasing mobile subscriber numbers and low level of teledensity offers large

opportunities to Indian companies

Green Telecom

Utilization of less Carbon Content emission equipment

Un-conventional Power Sources for equipments


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Spectral Efficiency

Spectrum Sharing/Trading

Optimum Utilization

Spectrum Re-farming

Price Discovery


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Interconnection

Interconnection crucial for communicating across networks:Various types of Interconnection in changing scenario:

Interconnection between access service providers

Interconnection with long distance operators

Interconnection with ISPs

Mobile Termination Charges

Interconnection models:

TDM based interconnection

IP based interconnection


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Value Added Services

Video On Demand

Interactive Gaming

T.V.

Tele/Video Conferencing

M-commerce


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Emerging Technologies

Fixed Mobile Convergence

Common Core for Wire-line & Wireless (MPLS)

Next Generation Network (IP Multimedia Subsystem)

Cloud Computing

FEMTO-CELL

4G (LTE) System

FTTH


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Regulatory Framework

The Department of telecommunications (Government of India) is the main governing body for the industry.

Telecom Regulatory Authority of India (TRAI) assists the Government of India (GoI) to take timely decisions and

introduce new technologies in the country.

Indian Telecom Industry Framework

Indian Government

BodiesIndependent Bodies

They formulate various policies and pass laws to

regulate the telecom industry in India.

They undertake various research activities and monitor

the quality of service provided in the Indian telecom

industry. They also provide various recommendations to

improve the status of telecom operations in India.Wireless Planning

and Coordination

(WPC)

Department of

Telecommunications

Telecom Commission

Group on Telecom

and IT (GoT-IT)

Handles spectrum allocation

and management

DoT Licensee and

frequency management for

telecom

Exclusive policy making body

of DoT

Handles ad hoc issues of the

telecom industry

Telecom Regulatory

Authority of India

(TRAI)

Telecom DisputesSettlement and

Appellate Tribunal

(TDSAT)

Independent regulatory body

(1997)

Telecom disputes settlement

body


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Go-ahead to

the CDMA

technology

INDIA

Private players

were allowed in

Value Added

Services

National Telecom

Policy (NTP) was

formulated

1992

1994

1997

Independent

regulator, TRAI,

was established

NTP-99 led to

migration from high-

cost fixed license fee

to low-cost revenue

sharing regime

1999

2000

2002

BSNL was

established

by DoT

ILDservices was

opened to

competition

Internet

telephony

initiated

Reduction of

licence fees

2003

Calling Party Pays

(CPP) was

implemented

Unified Access

Licensing (UASL)

regime was

introduced

Reference

Interconnect

order was

issued

2004

Intra-circle merger

guidelines were

established

Broadband

policy 2004 was

formulated

targeting 20

million

subscribers

2005

FDI limit was

increased from

49 to 74 percent

Attempted to

boost Rural

telephony

2009

Number

portability

3G services

2010

Department of Telecommunication (DoT) is the main body formulating laws and various regulations for the Indian

telecom industry.

Various important regulations and laws have been passed in the

Indian telecom industry post-liberalisation era

ILD International Long Distance

www.mtnl.in


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Telecom Regulatory Authority of India

Prevailing Regulatory frameworkTRAI set up in 1997 by government of India

Independent regulator for business of

Telecommunication in the countryMandated to provide an effective framework

To protect the interest of consumers

To encourage the growth of telecom

To form transparent and fair policy environment

To ensure fair competition


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Features of Telecom Regulatory Authority of India

Cost basedTechnology neutral

Level playing field

Consumer centric

Light touch regulations

Ensure fair competition


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Benefits from Telecom Regulatory Authority of India

Exponential growth in tele-density

Affordable tariffs

Increase in number of operators

Intense competition


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presentation 03.09.11

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