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SURESH GYAN VIHAR

UNIVERSITY
JAIPUR

SYNOPSIS
ON
TELECOM INDUSTRY IN
PUBLIC AND PRIVATE
SECTOR

SUBMITTED TO:
SUBMITTED BY:

DR.PREETI SHARMA
AGARWAL

MR. VISHAL

INTRODUCTION
Indian telecom sector is more than 165 years old. Telecommunications
was first introduced in India in 1851 when the first operational land lines
were laid by the government near Kolkata (then Calcutta), although
telephone services were formally introduced in India much later in 1881.
Further, in 1883, telephone services were merged with the postal system.
In 1947, after India attained independence, all foreign telecommunication
companies were nationalised to form the Posts, Telephone and Telegraph
(PTT), a body that was governed by the Ministry of Communication. The
Indian telecom sector was entirely under government ownership until
1984, when the private sector was allowed in telecommunication
equipment manufacturing only. The government concretised its earlier
efforts towards developing R&D in the sector by setting up an
autonomous body Centre for Development of Telematics (C-DOT) in
1984 to develop state-of-the-art telecommunication technology to meet
the growing needs of the Indian telecommunication network. The actual
evolution of the industry started after the Government separated the
Department of Post and Telegraph in 1985 by setting up the Department
of Posts and the Department of Telecommunications (DoT). The entire
evolution of the telecom industry can be classified into three distinct
phases.
Phase I- Pre-Libralisation Era (1980-89)
Phase II- Post Libralisation Era (1990-99)
Phase III- Post 2000
Until the late 90s the Government of India held a monopoly on all types
of communications as a result of the Telegraph Act of 1885. As

mentioned earlier in the chapter, until the industry was liberalised in the
early nineties, it was a heavily government-controlled and small-sized
market, Government policies have played a key role in shaping the
structure and size of the Telecom industry in India. As a result, the Indian
telecom market is one of the most liberalised market in the world with
private participation in almost all of its segments.

Evolution of telecom industry

Review of literature
Anderson (2013), in his single executive interview titled Developing a
route to marketstrategy for mobile communications in rural India An
interview with Gurdeep Singh,Operations Director, Uttar Pradesh, Hutch
India suggests that managers need to go beyond traditional approaches to
serving the poor, and innovate by taking into accountthe unique
institutional context of developing markets. His practical implication says
thatthe experience of Hutchison Essar in India provides some important
lessons for mobilenetwork operators (MNOs) and other firms in other
developing markets who are hopingto serve the rural poor
Mani (2013) addresses a number of issues arising from the growth of
telecom services inIndia since the mid-1990s. It also discusses a number
of spillover effects for the rest of the economy and one of the more
important effects is the potential to develop a major manufacturing hub in
the country for telecom equipment and for downstream industriessuch as
semiconductor devices. The telecom industry in India could slowly
become anexample of the service sector acting as a fillip to the growth of
the manufacturing sector
Narayana (2013) estimates the contribution of telecommunication (or
telecom) servicesto aggregate economic growth in India. Estimated
contribution is distinguished between public and private sectors to
highlight the impact of telecom privatization on economicgrowth.
Knowledge of policy determinants of demand of telecom services is
shown to beessential to enhance growth contribution of telecom services

Telecom industry : Indian players

PUBLIC SECTOE BSNL


OVERVIEW
The Bharat Sanchar Nigam Limited, countrys largest cellular service
operator was set up in the year 2000. It is a state owned telecom company
with its headquarters located in New Delhi. BSNL is also the largest land
line telephone establishment in India. As of April, 2011 87.1 million users
have been reported to be BSNL users. India's fastest growing cellular
service , along with postpaid and prepaid services brings cellular
telephony to the masses, through innovative technology and strategic
pricing.
This ambitious service uses state-of-the-art GSM technology to attain
global excellence and leadership in business. Our entry into this sector has
brought GSM cellular service at an affordable cost to the common man.
All serving a single objective, to provide better communication to
millions across India.
feature of this services are following:

Strong network coverage.

Easy to setup

Roaming

Available on prepaid as well as postpaid.

Attractive prices & tariff plans

Services are provide BSNL company


Market Share : As of 30 November 2013, BSNL had 12.9%
marketshare in India and stands as 5th Telecom Operator in India
and 67% market share in ADSL Services
Managed Network Services : BSNL is providing complete Telecom
Services Solution to the Enterprise Customers I.e MPLS
Connectivity, Point to Point Leased Lines and Internet Leased Lines
Universal Telecom Services : Fixed wire line services and landline
in local loop (WLL) using CDMA Technology called bfone
and Tarang respectively. As of 30 June 2010, BSNL had 75%
market share of fixed lines.
Internet: BSNL provides Internet access services through dial-up
connection (as Sanchar net through 2009) as Prepaid, Net One as
Postpaid and ADSL broadband as BSNL Broadband BSNL held
55.76% of the market share with reported subscriber base of 9.19
million Internet subscribers with 7.79% of growth at the end of
March 2010. Top 12 Dial-up Service providers, based on the
subscriber base, It Also Provides Online Games.

PRIVATE SECTOR AIRTEL


OVERVIEW
Also known as Bharti Airtel Limited was started in July 1995, with its
head office based in New Delhi. Airtel runs its operations in as many as
19 countries across the world and is also ranked fifth as telecom service
provider globally. As of April 2011, figures show that Airtel has over
164.61 million users which make it the biggest mobile service operator in
India. Its service includes both 2G and 3G. Bharti Airtel Limited is an
Indian multinational telecommunications services company headquartered
in New Delhi, India. It operates in 20 countries across South Asia, Africa,
and the Channel Islands. Airtel provides GSM, 3G and 4G LTE mobile

services, fixed line broadband and voice services depending upon the
country of operation. It is the largest cellular service provider in India,
with 192.22 million subscribers as of August 2013. Airtel is the largest
mobile operator in South Asia and the fourth largest in the world by
subscriber base.
features
Total Cost Control
Pre activated STD/ISD without deposits or rentals
Strong Network coverage
Instant Balance and Validity Enquiry
Recharge your airtel Prepaid
Prepaid Roaming
More with airtel Prepaid
Reach us Anytime Anywhere

SWOT ANALYSIS OF BSNL

STRENTHS
Pan-india reach
Experienced telecom
services provide
Total telecom services
provide
Huge customer base
Easy deployment of new
services
Selling capacity of 25
million per annum
Has an excellent network
coverage across India

WEAKNESSES
Poor marketing strategy
Bureaucratic
organizational set up
Limited number of value
added services
Poor knowledge
management
Low brand visibility and
low brand loyalty
Non-optimization of
network capabilities

OPPORTUNITIES
Tremendous market growing at
20 lac customers per months
Untapped broadband services
Adoption of Next Generation
Networks (NGN) is global
Untapped rural markets
Strong strategic alliances with
network companies may help
BSNL Communication to focus
on marketing its services

THREASTS
Competitors low price offering
Mobile Number Portability
Competition from private
operators

Saturation point in Basic


telephony service

SWOT ANALYSIS OF AIRTEL

STRENTHS

Cost advantage
Highly skilled workforce
Largest operator
Innovation
Strategic alliances
High brand visibility
Strong advertising with
celebrity brand ambassadors

OPPORTUNITIES

WEAKNESSES

To prove credibility
Price pressures
Need to government
Awareness
Price competition from BSNL
Untapped Rural Market

THREASTS

Fast expanding cellular market


Low penetration level in rural
market
Attain higher value services
Latest and low cost technology

New entrant's low price offering


Saturation point in Basic
telephony service
Mobile Number Portability

Other competition

Objective
To know about the telecom sector of india
To understand theFactors Facilitating Growth OF
BSNL and AIRTEL
To analysis the critical issue and challenges of BSNL
and AIRTEL

Research methodology
Methodology is the basic framework and the approach that
has to be followed to carryout the approach used to collect
the data, the sources of primary data, i.e., from whereand how
it has been collected.
Research is a diligent and systematic inquiry or investigation
into a subject inorder to discover or revise facts, theories,
applications etc.
Methodology is system of methods followed by particular
discipline.Thus, Research Methodology is the way how we
conduct our research.In the present project report type of
research conducted is Quantitative research.Exploratory
research is undertaken which involves extensive scanning of
secondary data.For my project most of the finance related
books have been considered . The bestwebsites are considered
which gives all the efficient and effective
information.References for the project are from the websites
and books and the companys annualreports.It is assured that
the project has been completed with full dedication, sincerity
andrequired intensity of hard work.

RESEARCH DESIGN
It helps to tackle the problem of bringing various phases of
research under control. Theresearch design helps to design
the decision with respect to:

What type of data is needed?


From where data can be found?
What period of time study include?
How much material will be needed?
What technique of gathering data will be adopted?
How will data be analyzed? Generally three types of
research are included in research design. These are as
follows:

Exploratory research
Descriptive and diagnostic research
Experimental research In the present project report both
primary and secondary data is taken so descriptive
andexploratory research is done. This research focuses on
discovery of insights andrelationships among various
financial factors among various companies.Companieswhich
are taken as a sample of Indian Telecom Industry is based on

the market share.2from the Top five companies and 2 from


the Bottom five companies (Ratings have been provided to 10
companies in the telecom industry according to

their respective marketshare )have been


considered for comparison with BSNL.

DATA COLLECTION
Sources of PRIMARY data will be with
the help of questionnaire

BIBLIOGRAPHY
Information has been sourced from
namely, books, newspapers,
journals,industry portals, government
agencies, industry news and
developments andthrough access to
database.

http://www.BSNL.co.in
http://www.Google.com
http://www.traigov.in
http://www.Airtel.co.in
http://www.Vodafone.co.in
http://www.Reliance.co.in
http://www.Idea.co.in

1)
Sharma Seema and Lokesh
Singla (2012), Telecom equipment
Industry:Challenges and
Prospects

2)
R.P. Rustagi, Financial
Management, Edition 2012-13
3)
S.N. Maheshwari, Financial
Management, Edition 2012-13
4)
T.S Grewal, Analysis of Financial
Statements, Edition 2012-13