2.5GBetween 2nd and 3rd Generation
ADCAccess Defecit Charge
ARPUAverage Revenue Per User
AUSPIAssociation of Unified Service Provider of India
BSNLBharat Sanchar Nigam Limited
CDMACode Division Multiple Access
COAICellular Operators Association of India
DOTDepartment of Telecommunication
DTSDepartment of Telecom Service
EBITDAEarning Before Interest Tax Depreciation and Amortization FYFinancial Year
GSMGlobal System Mobile
IDCIndustrial design Centre
ILDInternational Long Distance
ILPIndustrial liaison Program
IPTVInternet Protocol Television
ISPInternet Service Provider
MPLS-VPNMulti-Protocal Label Switching-Virtual Private Network MTNLMahanagar Telephone Nigam Limited
NLDNational Long Distance
NPLCNational Private Leased Circuits
ROIReturn on Investment
TDSATTelecom Dispute Settlement Appellate Tribunal
TRAITelecom Regulatory Authority of India
USAUnited States of America
V-SATVery Small Aperture Terminal
WIMAXWorldwide Intreroterability for Microwave Access
WLLWireless in Local Loop
Telecommunications industry is one of the fastest growing industries in India due to a variety of factors. It has been evident that fast movers manage to capture the larger share of the pie. RCOM, with the aim of riding the wave of change, is looking not only at the domestic but the international market. And with technological advantages it as the potential to achieve the Vision 2010 of operating in 50 countries. With the favourable external environment, and a strategic position in market, RCOM can not only overtake the market leader by entering GSM segment. It is also favourable to enter the rural markets with the reduction in ADC. Now is the time to take advantage of the expected future reforms and the Indian growth story to capitalize on the goodwill of the parent company and the existing infrastructure.
1.1 Industry Definition
Telecommunications Services Sector – The GICS Telecommunications Sector contains “companies that provide communications services primarily through a fixed-line, cellular, wireless, high bandwidth and/or fibre-optic cable network”.
1.2 Scope of the report
This report is limited in scope by the geography and industry segment. It is limited to India and covers telecommunication services segment. It is also limited to Reliance Communications (RCOM), which is a subsidiary of Reliance Communication Ventures Limited (RCoVL). However, the overall external environment’s effect has been analysed.
1.3 Significance of Telecommunication Services
The Indian telecom market has been displaying sustained high growth rates. Riding on expectations of overall high economic growth, consequent rising income levels, and the fast-evolving technology, it offers unprecedented opportunities. A combination of factors is driving growth in the telecom market, promising rich returns on investments.
The other segments of Telecommunications industry revolve around Telecommunications Services and are almost dependent on it.
2.1 Industry overview
Indian telecom market comprises of three sub-markets (Exhibit 1). One of these is Telecommunications Services.
The industry has come a long way since the time first phone was introduced in the country (Exhibit 2).
The market is divided into 23 circles and different operators operate n different circles – some are present in specific circles while some have a Pan-India presence (Exhibit 3).
Although there are many sectors in the industry, more than fifty percent revenue is contributed by the wireless segment, as also it is the sector driving the growth and is the forerunner in technology advancement.
2.2 Industry Structure
2.3 Policy, law and regulation...