Project Report on Telecommunications Industry in India-Marketing Dissertation Topics
In January 2009, the total telecom subscriber base grew by 15.25 million. During the month, the wireless segment recorded the highest-ever subscriber additions, adding 15.40 million subscribers to 362.3 million. The wireline segment, though, declined by 0.15 million subscribers in January 2009 to 37.75 million.
On the policy front, TRAI has amended interconnection usage charges regulations.
Key player actions during the month were:
• Reliance Communications (RCom) added 4.95 million subscribers
• Bharat Sanchar Nigam Ltd (BSNL) launched 3G mobile services
• BSNL launched ‘India golden fifty' plan
• Aircel commenced GSM operations in Kerala and Bengaluru
Demand
On the back of a net addition of 15.25 million subscribers in January 2009, the total telecom subscriber base reached 400.0 million. During the month, the wireless subscriber base grew to 362.3 million whereas the fixed wireline subscriber base fell by 0.15 million to 37.75 million.
Mobile segment adds 15.4 million subscribers in January 2009
The mobile segment added 15.4 million subscribers in January 2009 as compared to 10.8 million in December 2008.
Despite the Mumbai circle being one of the most-penetrated markets in the country, the January 2009 month saw net additions reach 1.2 million as compared to an average of 0.5 million additions over the previous quarter. Although this can be largely attributed to RCom launching its GSM service, Idea Cellular also recorded robust additions in the Mumbai circle. The company added 280,000 subscribers in January 2009 as compared to 83,621 subscribers in December 2008. Since its launch in Mumbai in August 2008, Idea has consistently increased its share in net additions, so far garnering 3.3 per cent market share in the circle.
In October 2008, Vodafone and Idea launched services in Bihar. Since the two players started operations, Bharti Airtel, the market leader in the circle, has reported a marginal erosion in its market share, from 38.1 per cent to 36.9 per cent. Meanwhile, Idea has more than doubled its subscriber net additions to 0.26 million in January 2009 from 0.12 million in the previous month.
BSNL registered a strong performance in Punjab, adding 243,056 subscribers in January 2009 as compared to an average run rate of 42,540 subscribers over the last quarter. This translated into the company increasing its market share from 17.6 per cent to 18.7 per cent between December 2008 and January 2009.
Post acquisition by Idea, Spice Communications had reported lackluster performance in the Karnataka and Punjab circles. However, in January 2009, net additions in Karnataka rose sharply to 108,304 subscribers as compared to 13,005 subscribers from the October-December 2008 period. However, its Punjab operations continued to witness average growth vis-à-vis the last quarter.
Subscriber additions in the Gujarat circle rose to 1.3 million in January 2009 from an average of 0.53 million over the last quarter. The rise was largely on account of RCom (CDMA plus GSM), which accounted for 64 per cent of net additions.
Fixed wireline segment declines by 0.15 million in January 2009
The fixed wireline subscriber base declined by 0.15 million in January 2009 to 37.75 million.
Player actions
RCom adds 4.95 million subscribers in January 2009
RCom (GSM plus CDMA) added around 4.95 million subscribers in January 2009, with the majority of additions coming from its newly launched GSM services across 14 circles. These were the highest-ever monthly subscriber additions from any operator in India. RCom had averaged net additions of 1.75 million (GSM plus CDMA) from October-December 2008.
BSNL launches 3G mobile services
BSNL's 3G mobile services were commercially launched in February 2009 in 11 cities, namely Agra, Ambala, Jalandhar, Jaipur, Dehradoon, Shimla, Lucknow, Ranchi, Durgapur, Haldia and Patna.
The initial subscription cost to avail of the company's 3G services is Rs 300. BSNL has a number of voice-based pre-paid plans ranging from Rs 350-1,350, and post-paid plans for a monthly fee of Rs 500-2,500. For access to data services, the monthly fee is Rs 250-3,001.
BSNL launches ‘India golden fifty' plan
BSNL launched ‘India golden fifty' plan. The plan, which came into effect on March 1, 2009, has a monthly rent of Rs 375 inclusive of taxes. Under the plan, the charge for a STD and local call is Rs 0.50 per minute whereas an on-net local and STD call is Rs 0.20 and Rs 0.30, respectively. Local SMSs will be charged Rs 0.50 under the plan.
Aircel launches GSM services in Kerala and Bengaluru
Aircel entered the Kerala and Bengaluru markets with the launch of its GSM mobile services in February 2009. The company now has operations in 12 circles and is looking to launch in the Delhi, Mumbai, Uttar Pradesh East and West and Maharashtra circles in the first half of 2009-10.
Policy
TRAI amends interconnection usage charges regulations
The Telecom Regulatory Authority of India (TRAI) has issued the Telecommunications Interconnection Usage Charges (Tenth Amendment) Regulations in March 2009. The new charges will be applicable from April 1, 2009. The key features of the new regulations are:
• The termination charge for all types of domestic calls, i.e. mobile-to-mobile, fixed-to-fixed, fixed-to-mobile and mobile-to-fixed, has been reduced to 20 paise per minute from 30 paise per minute.
• The termination charge for incoming international calls has been increased from 30 paise per minute to 40 paise per minute.
• The transit/carriage charge from Level-II Trunk Automatic Exchange to Short Distance Charging Area (SDCA) has been reduced from 20 paise per minute to 15 paise per minute.
• Intra-SDCA transit charge to be less than 15 paise per minute as compared to the existing less than 20 paise per minute.
• The ceiling on carriage of domestic long distance calls has been retained at 65 paise per minute.
• The termination charge for 3G voice calls will be the same as 2G voice calls.
