1. Wireless Technology – India
Dr. K. T. V. Reddy
Principal
PVPP college of Engineering, Sion
Web:
Governing Council Member, IETE, India
March 28, 2017
SSS, ACT2012

2. Telecom Industry Overview
Presentation Plan 1
Telecom Industry Overview 2
Telecom – Investment Attracting Sector 3
Regulatory Framework and Its Impact 4
Emerging Trends in Telecom Market 5
Major Players in Telecom Sector 6
Growth Avenues
March 28, 2017
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3. Background
Relationship between telephony and economic development is well recognized
Teledensity has been a good indicator of economy
Establishing quantitative relationship has not been easy
From plain telephony to a converged technology Telephone, computer, broadband, multimedia
All Packet communication
Cable TV
Digital, virtual and mobile
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4. Developing Countries Mixed picture
Some highly motivated relatively smaller countries have performed better than much larger (richer?) countries
Literacy, social and cultural factors
Interest in ICT
Dealing with diverse languages and scripts
Poor basic infrastructure
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5. Technology Advances Exceptionally favorable situation
Moving to All Packet Networks ( ~ 4G)
Mobile and Wireless Techs
Very large bandwidths
Rapid fall in costs
Technology as commodity
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6. Technology, some concerns
Not quite user friendly yet
Multiplicity of mutually incompatible standard and protocols
High costs
Handling local languages and scripts
Reliability and ruggedness
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7. India Large Populations, vast area
Over 60% still in rural areas, significant illiteracy More than 500,000 villages many still to be fully ‘served’
Large internal ‘digital divide’, disparities in living standards, lifestyle, etc.
ICT, a key for rapid development (self driven)
March 28, 2017
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8. India, Some Positive Factors
Large, younger, tech savvy population, not burdened by history!
Exceptional popularity of the cell phone
Democracy,... may be chaotic!
Extensive use of English
Appearance of Roman script for Indian languages
Satellite TV, Cable and Multimedia
Mass market, needs new business model
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9. The Indian Scenario Very slow growth till the 80s
Faster and faster growth from 90s
Impact of Privatization,  the Internet, the cellphone and affordability
Cellphone as a multiservice device
India has among the world's cheapest services
8+ million cellphones added every month!
PCs and Broadband Internet
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10. Digital Technology Starts a Revolution in India in the 80s
Digital (PCM) switching and transmission
First digital switch in a village (Kittur) in 1986
IBM PC, CMOS Technology, HLL, etc.
Demonopolization
Privatization  on a limited scale
Nationwide network of payphones
Low cost reliable international access from the remotest area
Ancillary industry
Enlightened leadership
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11. Present Situation
Currently 500 Million lines, million lines in 2015
More than 80 million lines added every month
Broadband DSL, slower growth still
Widespread usage of Internet, large number of ISPs, etc.
3G yet to pickup
Attention to rural areas
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12. The Impact in the80s The first digital rural exchange in 1986 -The RAX
Better facilities than most urban areas
International dialing, etc.
Economic impact study by National Institute of Bank Management Pune
There was significant increase in bank deposits
Helped farmer in his business
Awareness of new technology
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13. Reasons for the success of RAX
Very innovative approach
Very inexpensive
Rugged
Low power, can handle irregular power supply
Simple to use, maintain and manufacture
Developed with village at the focus
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14. 90s and the rise of the Internet
Mostly data networks
Internet usage in academics and research
Businesses, government, education...
‘Narrow’ band
Relatively expensive bandwidth
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15. The Convergence Cheaper bandwidths DSL based broadband to homes
All services, voice, data, video on a common data pipe  (IP)
Cable TV for broadband delivery
Digital Cinema
Integration of all services
Services with 100Mbps+
Wireless emerges as a key technology, WiFi, WiMax, etc.
Cellphone as a very low cost transaction device
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16. Benefits Digital divide still wide open
Benefits have not yet reached the village
Technology not yet affordable and manageable in rural areas
Expensive and not simple to use
Lot remains to be done in application development
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17. The Very Positive Side! Key role in promoting India's IT industry
Helped expansion of  exports especially IT business
Highly affordable broadband service
Broadband IP (2Mbps) replacing the std telephone line
Strong support for smaller businesses, SOHO, etc.
Many new value added services
New opportunities for innovation based on intelligent integration of diverse technologies
Technology supporting individual freedom and democratic processes
The chaotic, young India simply loves it!
A self-driven process for development
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18. Taking ICT to the Village
Several interesting initiatives coordinated by Swaminathan Foundation
A knowledge centre in every village
Many solutions driven by equipment suppliers, may not fully match the needs
The problem is not commercially attractive yet!
Good potential but no significant impact yet
Some problems with technology and affordability
The application and the technology yet to get together fully
The user may not be very comfortable yet
More field work, pilot trials and innovation required
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19. An Observation
A couple of months back, the securities firm CLSA came out with detailed analysis of the Indian IT industry which revealed that:
20-25% of India’s GDP expansion over the next 3-4 years will come from IT;
India’s IT exports will cross India’s oil imports from 2007/08 onwards assuming that oil prices are at around $65 a barrel;
The IT industry –directly and indirectly—will pick up a third of the addition to the urban labour force over the next three-four years.
Over the next three-four years, the IT industry will pick up around 80-85% of India’s employable engineers.
One in seven income tax payers in the country will be a IT professional by 2010 up from the current one in ten.
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20. Indian Telecom Industry Framework
Regulatory Framework provides level playing field for all operators
The Department of telecommunications (Government of India) is the main governing body for the industry.
Telephone 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 Bodies
Independent 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.
Handles spectrum allocation and management
Wireless Planning and Coordination (WPC)
Telecom Regulatory Authority of India (TRAI)
Independent regulatory body
DoT – Licensee and frequency management for telecom
Department of Telecommunications
Telecom Disputes Settlement and Appellate Tribunal (TDSAT)
Telecom disputes settlement body
Exclusive policy making body of DoT
Telecom Commission
Group on Telecom and IT (GoT-IT)
Handles ad hoc issues of the telecom industry
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21. Various important regulations and laws have been passed in the Indian telecom industry post-liberalisation era
Department of Telecommunication (DoT) is the main body formulating laws and various regulations for the Indian telecom industry.
ILD services was opened to competition
BSNL was established by DoT
Intra-circle merger guidelines were established
Number portability was proposed (pending)
Independent regulator, TRAI, was established
Private players were allowed in Value Added Services
Calling Party Pays (CPP) was implemented
Attempted to boost Rural telephony
Go-ahead to the CDMA technology
1994
1999
2002
2003
2004
2005
2007
1992
1997
2000
Internet telephony initiated
Unified Access Licensing (UASL) regime was introduced
2006
INDIA
Broadband policy 2004 was formulated—targeting 20 million subscribers by 2010
National Telecom Policy (NTP) was formulated
Decision on 3G services (awaited)
NTP-99 led to migration from high-cost fixed license fee to low-cost revenue sharing regime
Reduction of licence fees
FDI limit was increased from 49 to 74 percent
Reference Interconnect order was issued
ILD – International Long Distance
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22. Important regulations and their impact on the Indian telecom industry
Unified Access Service License Regime (UASL)
Unified licensing marked the end of the license regime in the Indian telecom industry. It helped in aligning convergent technologies and services. The establishment of the Unified Access Licensing Regime (2003) eliminated the need for different licenses for different services. Players are now allowed to offer both mobile and fixed-line services under a single license after paying an additional entry fee. This does not take into account national and international long-distance services and Internet access services.
NTP 99
Telecom Tariff Order
WLL
UASL, CPP
Lowering of ADC
Access Deficit Charges (ADC)
ADC makes it mandatory for a service provider at the caller’s end to share a percent of the revenue earned with the service provider at the receiver’s end in long-distance telephony. This subsidises the infrastructure costs of the service provider enabling access at receiver’s end, especially because rental for fixed-line services is low. Revision in the ADC regime is expected to be followed by further tariff reduction in telecom services.
Universal Service Obligation (USO)
The USO policy was laid along with NTP ’99 to widen the reach of telephony services in rural India. All telecom operators are bound to contribute 5 percent of their revenues to this fund. This system was put in place to bridge the wide gap between urban and rural teledensity, bringing it down from the current 31 percent. Initially, only basic service providers were under the purview of USO. Later, its scope was expanded to include mobile services also. Although it increases the cost burden for the telecom companies, USO helps in building the telecommunication infrastructure in the rural areas.
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23. 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.
Recent Deals in Telecom Sector
The Indian telecom industry has a 74 percent FDI limit in the telecom services segment.
The GoI has permitted 100 percent FDI in manufacturing of telecom equipment in India.
Vodafone purchased stake in Hutch from Hong Kong's Hutchison Telecom International for USD billion.
FDI in Telecom Sector
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 million.
Telekom Malaysia acquired a 49 percent stake in Spice Communications for USD 179 million.
The Indian telecom industry has always attracted foreign investors. In fact, the cumulative FDI inflow, during the August 1991 to March 2007 period, in the telecommunication sector amounted to USD 3,892 million. It is the third largest sector to attract FDI in India in the post-liberalisation era. FDI calculation takes into account radio paging, cellular mobile and basic telephone services in the telecommunication sector.
Maxis Communications acquired a 74 percent 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.
March 28, 2017
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24. Major Players in different segments of Indian telecom industry
Basic Services Operators
MOBILE SERVICES
GSM Services Operators
BSNL
Airtel
MTNL
Vodafone
Reliance
Idea
TTSL
Reliance
BSNL
Internet Services Operators
BSNL
CDMA Services Operators
MTNL
Reliance
Reliance
TTSL
TTSL
BSNL
Airtel
MTNL – Mahanagar Telecom Nigam Ltd.
TTSL – Tata Teleservices Ltd.
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BSNL – Bharat Sanchar Nigam Ltd.

25. Emerging technologies – 3G and WiMax to assist in penetration of telecom services in India5
The Indian government plans to auction the spectrum for 3G services by inviting bids from domestic as well as foreign players, and creating a competitive environment that offers better services to consumers. Therefore, the 3G spectrum is among the major investment opportunities and growth drivers of the telecom industry.
The immense potential for 3G is reflected by the 30–40 percent annual growth in Value-Added Services.
Cell phone manufacturers are striving to develop USD 100 priced 3G handsets for the Indian market.
India expects to replicate its 2G growth in 3G services. 6
WiMAX has been one of the most significant developments in wireless communication in the recent past. Since this mode of communication provides network access in inaccessible locations at a speed of more than 4 Mbps, it is expected to be a major factor in driving telecom services in India, especially wireless services. Thus, it will lead to the increased use of telecom services, Internet, value-added services and enterprise services. WiMAX is expected to accelerate economic growth and assist in providing better education, healthcare and entertainment services.
It is estimated that India will have 13 million WiMAX subscribers by 2012.
Aircel is the pioneer in WiMAX technology in India.
The state-owned player, BSNL, aims to connect 74,000 villages through WiMAX.
Bharti, Reliance and VSNL have acquired licenses in the 3.3GHz range to utilise the opportunities offered by this domain.
March 28, 2017
SSS, ACT2012

26. Huge Potential of Indian Broadband Markets
Indian Broadband Subs Penetration
S-Curve in Addressable Market
S-Curve in Addressable Market: affordable population excluded population under poverty line and below 15 years old
India 30%
10％
Start-up Period
Fastest growth period
Saturation Period
90％
50％
Key Point
India 0.45％
Source: TRAI
As we know that, india’s economy grow very fast in past decade .at the same time, the mobile market developed rapidly, the mobile subscriber has reached 347 minillion at the end of 2008.
There are almost 1 billion population in india, so the mobile penetration is about 30%. As the experience, one technology’s development will walk a S-curve, including start-up period, fastest growth period, and saturation period. The india mobile penetration is between 10% to 50%, so we judge that India mobile market had entered into explosive growth period.
Because mobile penetration is still low , so mobile market is still potential.
the telecommulication delevped very fast, too.From the picture, we can see that, although the subscribers growth rate become slower, the number of the mobile subscribers keep growth quickly. Until the end of 2008, there are 347 million mobile subscribers in india, as we know that, india has 1.1billion population, From the experience of other countrys in the world , we can judged india mobile market is in a developing period now.
Broadband markets is still in its infancy stage with low penetration rate.
A big gap with other developing/developed countries anticipates a huge potential.
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27. Hype Cycle for Wireless networking Infrastructure
Source：Gartner
For a new technology, people are usually keen on the advantages. Their overenthusiasm generates the peak of inflated expectations.
When the new technology is put into commercial use, people find that there is a variety of limits. Thus the trough of disillusionment occurs.
The new technology enters the stage of practical application and enjoys stable development in line with the commercial law.
WiMAX 16e is entering the stage of practical application. In the following years, WiMAX 16e will see broad application throughout the world. 16e+ is available at the end of 2010, WiMAX is about 3 years ahead of LTE in the Product chain.
EV-DO Rev. B
Innovation Trigger
Peak of Inflated Expectations
Trough of Disillusionment
Slope of Enlightenment
Plateau of Productivity
Time
Expectations
Years to Mainstream Adoption:
less than 2 years
2 to 5 years
5 to 10 times
more than 10 years
obsolete before plateau
WiMAX 16e
HSPA
TD-SCDMA
WiFi
LTE
Cloud Computing
M2M
HSPA+
WCDMA
WiMAX is entering the stage of practical application
WiMAX 16m
LTE-Advance
WiMAX 16e+
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28. Indian Telecom Statistics
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29. Existing Operators Service Providers Technology March 28, 2017
Bharat Sanchar Nigam Limited (BSNL)
GSM, CDMA & Fixed Line
Bharti Airtel Limited (Airtel)
GSM & Fixed Line
Reliance Communications Limited (RCOM)
Vodafone Essar Limited (Vodafone-Essar)
GSM
Idea Cellular Limited (Idea)
Tata Teleservices Limited (TTSL)
Tata Teleservices Maharashtra Limited (TTML)
CDMA & Fixed Line
Mahanagar Telephone Nigam Limited (MTNL)
Aircel Cellular Limited (Aircel)
Reliance Telecom
Loop Mobile Limited (Loop mobile)
HFCL Infotel Limited (HFCL)
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30. Thanks! Sources DOT TRAI COAI & AUSPI Ernest & Young IMRB BDA
Telecom India Daily (internal research)
……..open internet
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31. Conclusion India has benefited immensely from ICT
It has given an opportunity of rapid economic and social development
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32. Thank You !
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