Communications in India
Communications in India
Communications in India
India is the world's fastest growing Wireless market,[1][2][3] with 752 Million mobile phone
subscribers as of February, 2011[4].[5] It is also the second largest telecommunication network in
the world in terms of number of wireless connections after China.[6] The Indian Mobile
subscriber base has increased in size by a factor of more than one hundred since 2001 when the
number of subscribers in the country was approximately 5 million[7] to 752 Million by Feb 2011.
[5]
See List of countries by number of mobile phones in use.
As the fastest growing telecommunications industry in the world, it is projected that India will
have 1.159 billion mobile subscribers by 2013.[8][9][10][11] Furthermore, projections by several
leading global consultancies indicate that the total number of subscribers in India will exceed the
total subscriber count in the China by 2013.[8][9] The industry is expected to reach a size of
344,921 crore (US$74.85 billion) by 2012 at a growth rate of over 26 per cent, and generate
employment opportunities for about 10 million people during the same period.[12] According to
analysts, the sector would create direct employment for 2.8 million people and for 7 million
indirectly.[12] In 2008-09 the overall telecom equipments revenue in India stood at 136,833 crore
(US$29.69 billion) during the fiscal, as against 115,382 crore (US$25.04 billion) a year before.
[13]
Contents
[hide]
• 1 Modern growth
• 2 History
○ 2.1 Introduction of telegraph
○ 2.2 Introduction of the telephone
○ 2.3 Further developments
2.3.1 Indian telecom sector: recent policies
• 3 Emergence as a major player
○ 3.1 Privatization of telcommunications in India
○ 3.2 Telecommunications Regulatory Environment in India
• 4 Revenue and growth
• 5 Telephone
○ 5.1 Mobile telephones
○ 5.2 Landlines
• 6 Internet
○ 6.1 Low Speed Broadband (256 kbit/s - 2 mbit/s)
○ 6.2 High Speed Broadband (over 2 Mbit/s)
○ 6.3 Statistics
• 7 Broadcasting
• 8 Next generation networks
• 9 Mobile Number Portability (MNP)
• 10 International
○ 10.1 Submarine cables
• 11 Telecom Training in India
• 12 See also
• 13 References
• 14 External links
During this period, the World Bank and ITU had advised the Indian Government to liberalize
long distance services in order to release the monopoly of the state owned DoT and VSNL; and
to enable competition in the long distance carrier business which would help reduce tariff's and
better the economy of the country. The Rao run government instead liberalized the local services,
taking the opposite political parties into confidence and assuring foreign involvement in the long
distance business after 5 years. The country was divided into 20 telecommunication circles for
basic telephony and 18 circles for mobile services. These circles were divided into category A, B
and C depending on the value of the revenue in each circle. The government threw open the bids
to one private company per circle along with government owned DoT per circle. For cellular
service two service providers were allowed per circle and a 15 years license was given to each
provider. During all these improvements, the government did face oppositions from ITI, DoT,
MTNL, VSNL and other labor unions, but they managed to keep away from all the hurdles.[18]
After 1995 the government set up TRAI (Telecom Regulatory Authority of India) which
reduced the interference of Government in deciding tariffs and policy making. The DoT opposed
this. The political powers changed in 1999 and the new government under the leadership of Atal
Bihari Vajpayee was more pro-reforms and introduced better liberalization policies. They split
DoT in two- one policy maker and the other service provider (DTS) which was later renamed as
BSNL. The proposal of raising the stake of foreign investors from 49% to 74% was rejected by
the opposite political party and leftist thinkers. Domestic business groups wanted the government
to privatize VSNL. Finally in April 2002, the government decided to cut its stake of 53% to 26%
in VSNL and to throw it open for sale to private enterprises. TATA finally took 25% stake in
VSNL.[18]
This was a gateway to many foreign investors to get entry into the Indian Telecom Markets.
After March 2000, the government became more liberal in making policies and issuing licenses
to private operators. The government further reduced license fees for cellular service providers
and increased the allowable stake to 74% for foreign companies. Because of all these factors, the
service fees finally reduced and the call costs were cut greatly enabling every common middle
class family in India to afford a cell phone. Nearly 32 million handsets were sold in India. The
data reveals the real potential for growth of the Indian mobile market.[19]
In March 2008 the total GSM and CDMA mobile subscriber base in the country was 375 million,
which represented a nearly 50% growth when compared with previous year.[20] As the unbranded
Chinese cell phones which do not have International Mobile Equipment Identity (IMEI) numbers
pose a serious security risk to the country, Mobile network operators therefore planned to
suspend the usage of around 30 million mobile phones (about 8 % of all mobiles in the country)
by 30 April.[21] 5–6 years the average monthly subscribers additions were around 0.05 to 0.1
million only and the total mobile subscribers base in December 2002 stood at 10.5 millions.
However, after a number of proactive initiatives were taken by regulators and licensors, the total
number of mobile subscribers has increased greatly to 706.69 million subscribers as of Oct 31st
2010.[5][22]
India has opted for the use of both the GSM (global system for mobile communications) and
CDMA (code-division multiple access) technologies in the mobile sector. In addition to landline
and mobile phones, some of the companies also provide the WLL service. The mobile tariffs in
India have also become lowest in the world. A new mobile connection can be activated with a
monthly commitment of US$0.15 only. In 2005 alone additions increased to around 2 million per
month in the year 2003-04 and 2004-05.[citation needed]
In June 2009, the Government of India banned the import of several mobile phones
manufactured in China citing concerns over quality and the lack of IMEI's which make it
difficult for authorities in India to track the sale and use of such phones.[23] In April 2010, the
Government was also reported to be blocking Indian service providers from purchasing Chinese
mobile technology citing concerns that Chinese hackers could compromise the Indian
telecommunications network during times of national emergency. A series of attacks on Indian
government websites and computer networks by suspected Chinese hackers has also made Indian
regulators suspicious with regards to the import of potentially sensitive equipment from China.
The companies reported to be affected by this are Huawei Technologies and ZTE.[24][25][26]
[edit] Telecommunications Regulatory Environment in India
LIRNEasia's Telecommunications Regulatory Environment (TRE) index, which summarizes
stakeholders’ perception on certain TRE dimensions, provides insight into how conducive the
environment is for further development and progress. The most recent survey was conducted in
July 2008 in eight Asian countries, including Bangladesh, India, Indonesia, Sri Lanka, Maldives,
Pakistan, Thailand, and the Philippines. The tool measured seven dimensions: i) market entry; ii)
access to scarce resources; iii) interconnection; iv) tariff regulation; v) anti-competitive practices;
and vi) universal services; vii) quality of service, for the fixed, mobile and broadband sectors.
The results for India, point out to the fact that the stakeholders perceive the TRE to be most
conducive for the mobile sector followed by fixed and then broadband. Other than for Access to
Scarce Resources the fixed sector lags behind the mobile sector. The fixed and mobile sectors
have the highest scores for Tariff Regulation. Market entry also scores well for the mobile sector
as competition is well entrenched with most of the circles with 4-5 mobile service providers. The
broadband sector has the lowest score in the aggregate. The low penetration of broadband of
mere 3.87 against the policy objective of 9 million at then end of 2007 clearly indicates that the
regulatory environment is not very conducive.[27]
[edit] Revenue and growth
The total revenue in the telecom service sector was 86,720 crore (US$18.8 billion) in 2005-06
as against 71,674 crore (US$15.6 billion) in 2004-2005, registering a growth of 21%. The total
investment in the telecom services sector reached 200,660 crore (US$43.5 billion) in 2005-06,
up from 178,831 crore (US$38.8 billion) in the previous fiscal.[28]
Telecommunication is the lifeline of the rapidly growing Information Technology industry.
Internet subscriber base has risen to 100 million in 2010.[29] Out of this 10.52 million were
broadband connections.[5] More than a billion people use the internet globally.
Under the Bharat Nirman Programme, the Government of India will ensure that 66,822 revenue
villages in the country, which have not yet been provided with a Village Public Telephone
(VPT), will be connected. However doubts have been raised about what it would mean for the
poor in the country.[30]
It is difficult to ascertain fully the employment potential of the telecom sector but the enormity of
the opportunities can be gauged from the fact that there were 3.7 million Public Call Offices in
December 2005[31] up from 2.3 million in December 2004.
The value added services (VAS) market within the mobile industry in India has the potential to
grow from US$500 million in 2006 to a whopping US$10 billion by 2009.[32]
[edit] Telephone
On landlines, intra-circle calls are considered local calls while inter-circle are considered long
distance calls. Currently Government is working to integrate the whole country in one telecom
circle. For long distance calls, the area code prefixed with a zero is dialed first which is then
followed by the number (i.e. To call Delhi, 011 would be dialed first followed by the phone
number). For international calls, "00" must be dialed first followed by the country code, area
code and local phone number. The country code for India is 91.
Telephone Subscribers (Wireless and Landline): 742.12 million (Oct 2010) [5]
Land Lines: 35.43 million (Oct 2010)[5]
Cell phones: 706.69 million (Oct 2010) [5]
Yearly Cell phone Addition: 218.29 million (Oct 2009-10)[5]
Monthly Cell phone Addition: 18.98 million (Oct 2010) [5]
Teledensity: 62.51 % (Oct 2010) [5]
Projected Teledensity: 1 billion, 84% of population by 2012.[33]
[edit] Mobile telephones
See also: List of mobile network operators of India
With a subscriber base of more than 680 million,[5] the Mobile telecommunications system in
India is the second largest in the world and it was thrown open to private players in the 1990s.
The country is divided into multiple zones, called circles (roughly along state boundaries).
Government and several private players run local and long distance telephone services.
Competition has caused prices to drop and calls across India are one of the cheapest in the world.
[34]
The rates are supposed to go down further with new measures to be taken by the Information
Ministry.[35] In September 2004, the number of mobile phone connections crossed the number of
fixed-line connections and presently dwarfs the wireline segment by a ratio of around 20:1.[5] The
mobile subscriber base has grown by a factor of over a hundred and thirty, from 5 million
subscribers in 2001 to over 680 million subscribers as of Sep 2010 [5] (a period of less than 9
years) . India primarily follows the GSM mobile system, in the 900 MHz band. Recent operators
also operate in the 1800 MHz band. The dominant players are Airtel, Reliance Infocomm,
Vodafone, Idea cellular and BSNL/MTNL. There are many smaller players, with operations in
only a few states. International roaming agreements exist between most operators and many
foreign carriers.
India is divided into 23 telecom circles. They are listed below:[36]
• Assam
• Andhra Pradesh
• Bihar & Jharkhand
• Chennai
• Delhi & NCR
• Gujarat & Daman & Diu
• Haryana
• Himachal Pradesh
• Jammu and Kashmir
• Karnataka
• Kerala & Lakshadweep
• Kolkata
• Madhya Pradesh & Chhattisgarh
• Maharashtra (excluding Mumbai) & Goa
• Mumbai
• North Eastern States (Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, &
Tripura)
• Orissa
• Punjab
• Rajasthan
• Tamil Nadu excluding Chennai & Puducherry
• Eastern Uttar Pradesh
• Western Uttar Pradesh & Uttarakhand
• West Bengal (excluding Kolkata), Andaman & Nicobar Islands & Sikkim
The following table gives details regarding the subscriber base of each Mobile Service Provider
in India as of 31 Oct 2010
[edit] Internet
India has the world's third largest Internet users with over 100 million users (of whom 40 million
use the internet via mobile phones) as of December 2010.[39] Internet penetration in India is one
of the lowest in the world which is 8.4% of the population, compared to other nations like United
States, Japan or South Korea where internet penetration is significantly higher than in India.[40]
The number of broadband connections in India has seen a continuous growth since the beginning
of 2006. At the end of Oct 2010, total broadband Internet users in the country have reached 10.52
million. See List of countries by number of broadband Internet users
Broadband in India is more expensive as compared to Western Europe/United Kingdom and
United States.[41]
After economic liberalization in 1992, many private ISPs have entered the market, many with
their own local loop and gateway infrastructures. The telecom services market is regulated by the
TRAI and the DoT, which has been known to impose censorship on some websites.
See also: List of ISPs in India and Internet censorship in India
[edit] Low Speed Broadband (256 kbit/s - 2 mbit/s)
The current definition of Broadband in India is speeds of 256 kbit/s. TRAI on July 2009 has
recommended raising this limit to 2 Mbit/s.[42]
As of October 2010[update], India has 10.52 million broadband users, constituting 6.0% of the
population.[5] India ranks one of the lowest provider of broadband speed as compared countries
such as Japan, South Korea and France.[10][41]
Because of the increase in Broadband penetration and the quality of service steadily improving,
many non-resident Indians are now enjoying the ability to communicate with family in India
from around the world. However, many consumers complain that ISPs still fail to provide the
advertised speeds - some even failing to meet the 256 kbit/s standards.
[edit] High Speed Broadband (over 2 Mbit/s)
• Airtel has launched plans up to 16 Mbit/s on ADSL2+ enabled lines and is piloting new
30 Mbit/s and 50 Mbit/s plans in limited areas.[43]
• Beam Telecom offers plans up to 6 Mbit/s for home users and has 20 Mbit/s plans
available for power users in only Hyderabad city.[44]
• BSNL offers ADSL up to 8 Mbit/s in many cities.It also started offering FTTH speeds
ranging from 256Kbps to 100Mbps.[45]
• Hayai Broadband will offer FTTH services up to 100 Mbit/s, with an Internal network
speed of 1 Gbit/s.
• Honesty Net Solutions offers Broadband over Cable at up to 4 Mbit/s.
• MTNL offers VDSL at speeds up to 20 Mbit/s in selected areas [46]
• Reliance Communications offers 10 Mbit/s and 20 Mbit/s broadband internet services in
selected areas.[47]
• Tata Indicom offers 10 Mbit/s, 20 Mbit/s and 100 Mbit/s options under the "Lightning
Plus" tariffs structure/[48]
• Tikona Digital Networks Wireless Broadband service which is powered by OFDM and
MIMO 4th Generation(4G) technologies with 2 Mbit/s [49]
• O-Zone Networks Private Limited Pan-India public Wi-Fi hotspot provider giving
wireless broadband up to 2 Mb/s.[50]
See also: List of ISPs in India
The main problem consumers face with High Speed Broadband in India is that they are
frequently expensive and/or they have limited amounts of data transfer included in the plan.
[edit] Statistics
Internet Service Providers (ISPs) & Hosts: 86,571 (2004) Source: CIA World FactBook
Country code (Top-level domain): IN
[edit] Broadcasting
Main article: Media of India