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TELECOMMUNICATION
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.pdf  1472136931-TelecomJanuary2016.pdf (Size: 784.55 KB / Downloads: 15)



NUMBER OF INTERNET SUBSCRIBERS INCREASING AT A FAST PACE

The number of Internet subscribers increased at a CAGR of
52.11 per cent to 375 million in 2015 from 8.6 million in
2006
By December 2015, the number of internet users is
anticipated to reach 402 million. This will reach 462 million
by the end of June 2016 with the increasing number of
subscribers coming online especially through mobile
devices


NOTABLE TRENDS IN THE INDIAN TELECOM SECTOR


The green telecom concept is aimed at reducing carbon footprint of the telecom industry
through lower energy consumption
• Tata has invested around USD16.38 million to convert its 10,000 base stations from
indoor to outdoor to reduce energy consumption and carbon footprint across its 20
telecom circles in India so far
Expansion to Rural
Markets
• There are over 62,443 uncovered villages in India; these would be provided with village
telephone facility with subsidy support from the government’s Universal Service Obligation
Fund (thereby increasing rural teledensity)
• In September 2015, the rural subscriber base accounted for 41.42 per cent of the total
subscriber base, thereby fuelling the sector’s growth
• The most significant recent developments in wireless communication include BWA
technologies such as WiMAX and LTE
• In 2015, Airtel launched its 4G services in 296 cities across the India
• In 2015, BSNL started its first 4G Wireless Broadband Internet Service- WiMax
• Reliance Jio, has launched 4G services across pan- India as on December 2015


Department of Telecommunication is planning to issue a global tender for inviting
applications for setting up a Telecom Finance Corporation (TFC). The government has
fixed a deadline according to which TFC is expected to be operational by March 31, 2017
Rising investments
• Vodafone one of the leading players in the telecom sector in India, has disclosed its plans
to invest USD1310 million to upgrade and expand Vodafone India network coverage and
USD655 million to upgrade its technology centre
Outsourcing non-core
activities
• As part of the recent outsourcing trend, operators have outsourced functions such as
network maintenance, IT operations, and customer service
Mobile banking
• In May 2015, 340 million mobile banking transactions were reported, up 75 per cent from a
year ago
• Availability of affordable smartphones, along with a rise in the security level of mobile
transactions, is expected to boost growth of transactions conducted via phones, with the
overall transaction value being tripled in 2014 from last year


EMERGENCE OF TOWER INDUSTRY
TELECOMMUNICATION
A surge in the subscriber base has necessitated network expansion covering a wider area, thereby creating a need for
significant investment in telecom infrastructure
To curb costs and focus on core operations, telecom companies have been segregating their tower assets into separate
companies. For example: Reliance Communications has decided to finalise a deal to sell its stake in Reliance Infratel. The
value of the deal is around USD3.68 billion
Creating separate tower companies has helped telecom companies lower operating cost and improve capital structure; this
has also provided an additional revenue stream
Inspired by the success seen by Indian players in towers business, most of the operators around the world are replicating
the model
 


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