Industry Analysis and Desk Research On

Telecommunication Sector

Under the guidance of:- Satish N Pawar Sir

 
 

Presented By:-
HEXA-SQUAD
Vaibhav Gajanan Wankar 201532 Ankush Ravindra Olambe 201310
Amruta Bhaskar Desai 201539 Ankita Raviraj Shetty 201309
Apoorva Maneesh Kale 201311 Sayali Raosaheb Dhende 201455
INTODUCTION
The principal sector of the telecommunications industry is telephone communications.
Establishments in this sector operate both wireline and wireless networks. Wireline
networks use wires and cables to connect customers' premises to central offices maintained
by telecommunications companies.

The telecommunications industry is made up of cable companies, internet service providers,

satellite companies, and telephone companies. Telecommunications is defined as
communicating over a distance.

 Telecommunications is defined as communicating over a distance.

 The companies that make up the telecommunications sector are cable companies, internet
service providers, satellite companies, and telephone companies.
 A majority of the industry players focus on data services, high-resolution audio and video,
and increased connectivity.
India's telecommunication network is the second largest in the world by number of telephone
users (both fixed and mobile phone) with 1179.49 million subscribers as on 31 January 2021. It
has one of the lowest call tariffs in the world enabled by mega telecom operators and hyper-
competition among them. India has the world's second-largest Internet user-base with 747.41
million broadband internet subscribers in the country.

Players in the industry

BSNL, MTNL, Airtel, Reliance Communications, Aircel, Vodafone Essar, Tata
Indicom, Idea Cellular, Virgin Mobile, Uninor

Nature of competition

After a series of disruptions, mergers and a number of telecom players exiting

the market, India now has 3 major players in the telecom sector.
Vodafone Idea, Bharti Airtel and Reliance JIO. Once the sector had more than 10
players is now operating with just 3 players!
Current Market shares

Market Share

10.21

35.3

24.58

29.62

Jio Airtel Vi BSNL

Reliance Jio, Vodafone Idea (Vi), Bharti Airtel and state-run BSNL are the major
telecom players in the country. Amongst wireless subscribers, Jio had the highest
market share at 35.30 per cent as of January 31, followed by Airtel with 29.62 per
cent and Vi with 24.58 per cent, as per data of the Telecom Regulatory Authority of
India (TRAI). BSNL had 10.21 per cent market share.
Major Challenges

 Demand for Traditional Services Is Decreasing

 More Regulatory Scrutiny

 2020: The Year of 5G Adoption

 The Demand for More Thoughtful Companies

 Gearing Up for More New Technology

 Preparing for the Future

 Bharti Airtel Limited Promoters and Management Ethos
Management ethos and philosophy

• At Bharti Airtel, Corporate Governance focuses on creating and sustaining a deep relationship of trust and
transparency with all stakeholders.
• Vision:- is to enrich the lives of our customers. Our obsession is to win customers for life through an
exceptional experience.
• Mission : Hunger to win customer for life.
• Values: aim to work towards our vision, driven by our values of AIR - Alive, Inclusive & Respectful
• Alive: We are alive to the needs of our customers.
Inclusive: Airtel is for everyone

Top Management Founder and Chairman

Founder and Chairman : Sunil Bharti Mittal : Sunil Bharti Mittal

Vice-Chairman: Rakesh Bharti Mittal

Vice-Chairman, Bharti Enterprises: Akhil

Managing Director & Chief Executive Officer, India & South Asia, Bharti Airtel: Gopal Vittal

Managing Director and Chief Executive Officer, Airtel Africa : Raghunath Mandava

. Board of Directors:

Two executive and nine non-executive directors. Mr. Sunil Bharti Mittal, Chairman and Mr. Gopal Vittal,
MD & CEO (India and South Asia) are two executive directors on the board is 50% of the total board
strength.

Bharti has joint ventures with several global leaders: SingTel, SoftBank, AXA, Del Monte, the UK
Government, amongst others.
 Bharti Airtel’s Corporate Social Responsibility
(CSR)
[Link] At Bharti Airtel, business success is not just about profits and shareholder returns.

1. Focus areas Bharti Airtel’s CSR and welfare activities.

• Promoting education children and livelihood enhancement projects
• Eradicating hunger, povertyand malnutrition
• Sanitation & Safe Drinking Water
• Academic Funds approved by Central Govt.
• Promoting gender equality, empowering women
2. CSR INITIATIVES OF BHARTI AIRTEL

 Bharti Foundation rolled out its flagship initiative, the Satya Bharti School Programme in 2006
 Farmers : vital information on weather, mandi prices, agronomy, horticulture, forestry, government schemes, etc. through its joint venture with IFFCO -
IFFCO Kisan Sanchar Limited (IKSL)
 Bharti Airtel follows a comprehensive Health, Safety and Environment Management policy
 Company contributed to Commonwealth Games of October 2010
 the company received 422 appreciation letters from various Law Enforcement agencies in the last one year alone.
 RELIANCE JIO Promoters and Management Ethos

Management ethos and philosophy:

• Vision: Reliance’s vision is to be our clients’ ’first call’ and preferred collaboration partner within our business .

• Objective: Reliance’s objective is long-standing and trustful client relationships created via excellent advice and service.

Top Management
Chairman and Managing Director: Mukesh Dhirubhai Ambani 

Indian corporate executive: Sandip Das

CEO: Pravir Kumar 

CFO: Rajneesh Jain

Chief Digital Officer: Vishal Sampat

President of Network, Global Strategy & Service: Mathew Oommen

President of Devices Business: Sunil Dutt

Directors : Akash M. Ambani, Isha M. Ambani

Chairman and Managing Director:

Mukesh Dhirubhai Ambani 
 RELIANCE JIO’s Corporate Social Responsibility
(CSR)
1. CSR Vision Promote sustainable and inclusive development as a responsible corporate citizen

2. CSR Objective Promote a comprehensive and integrated development through social and economic transformation Focus areas Bharti Airtel’s CSR and welfare
activities.

3. Core CSR Commitments (Programs / Activities)-

• Improving livelihood, alleviating poverty, promoting education, empowerment through vocational skills and promoting health and well-being.
• Promoting India’s art, culture and heritage, conducting promotional and developmental activities / programs
• Ensuring environmental sustainability, ecological balance and protection of flora and fauna

4. Corporate Governance Initiatives

 CSR programs / activities through Reliance Foundation and the contributions made by the Company to Reliance Foundation
 To provide an impetus to various philanthropic initiatives
 Initiatives towards social inclusion and environment conservation
 Reliance Foundation touched the lives of 4 million people in over 5000 villages and various urban locations.
 Reliance Foundation focuses on these core pillars - Rural Transformation, Education, Health, Urban Renewal and Arts, Culture & Heritage.
 Vodafone Idea Promoters and Management Ethos

Management ethos and philosophy:

• Vision - “to actively contribute to the social and economic development of the communities in which we operate.

• Vodafone Group has mobile operations in 22 countries, partners with mobile networks in 42 more, and fixed broadband operations in 17
markets.
• As of 30 June 2020, Vodafone Group had approximately 625 million mobile customers, 27 million fixed broadband customers and 22 million
TV customers, including all of the customers in Vodafone
• The Aditya Birla Group was named the AON best employer in India for 2018 - the third time over the last 7 years. The Group was earlier
ranked fourth in the world and first in Asia Pacific in the 'Top Companies for Leaders' study 2011, conducted by Aon Hewitt, Fortune
Magazine and RBL (a strategic HR and leadership advisory firm). The Group has also topped the Nielsen's Corporate Image Monitor 2014-15

Top Management
Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group

Mr. Nick Read, CEO, Vodafone Group

Mr. Ravinder Takkar, MD & CEO, Vodafone Idea Limited

Lalu Prasad Yadav presenting the JRD Tata Corporate

Leadership Award to Shri Kumar Mangalam Birla
 Vodafone Idea’s Corporate Social Responsibility (CSR)

1. The Aditya Birla Centre for Community Initiatives and Rural Development.
2. Education –
 Formal schools  Balwadis  Quality elementary education  Aditya Bal Vidya Mandirs  Girl child education  Non formal education.
3. Health care -
 Primary health care centres  Mother and Child care projects  Immunization programmes with a thrust on polio eradication  Programmes to
address malnutrition  Anganwadi  Adolescent health  Health care for visually impaired, and differently abled  Preventive health care through
awareness programmes  Non communicable diseases.
4. Sustainable Livelihood -
 Formation of Self Help Groups for women empowerment  Skill Enhancement and Vocational training  Partnership with Industrial Training
Institutes  Agriculture development and better farmer focus  Animal Husbandry  Soil and Water conservation  Watershed development  Agro
Forestry
5. Infrastructure Development –
 Basic infrastructure facilities  Housing facilities  Safe drinking water  Sanitation & hygiene  Renewable sources of energy
6. Social Change –
 Dowry less marriage  Widow Remarriage  Awareness programmes on anti social issues  De-addiction campaigns and programmes  Espousing
basic moral values  Gender equality.
 Bharat Sanchar Nigam Ltd Promoters and Management
Ethos
Management ethos and philosophy:
• Vision:
Be the leading telecom service provider in India with global presence.
Create a customer focused organization with excellence in customer care, sales and marketing.
Leverage technology to provide affordable and innovative telecom. Services/products across customer segments

• MISSION:
Be the leading telecom service provider in India with global presence.

• OBJECTIVES:  
Increasing sales revenue with focus on subscriber retention & acquisition by way of strengthening sales & marketing,
quality of service and customer delivery.
Accelerate the pace of expansion of mobile & data services with up-gradation of technology.
Adopt policies and processes to enable transparent , quick and efficient decision making.
Developing marketing team with attitude towards customer care.
Increasing BSNL visibility in urban, sub-urban and rural areas.

Top Management
Chairman & Managing Director - Shri Pravin Kumar Purwar
Director - Consumer Fixed Access (CFA)- Shri Vivek Banzal
Director - Consumer Mobility (CM) - Shri Sushil Kumar Mishra
Director - (Enterprise)  - Shri V. Ramesh
Director - (HRD)- Shri Arvind Vadnerkar
Director - Finance- Smt Yojana Das
Govt. Director- Shri Navneet Gupta Joint Secretary(Admn.) DoT
Govt. Director- Shri Abhay Kumar Singh DDG (E&T) DOT

Chairman & Managing Director –

Shri Pravin Kumar Purwar
 Bharat Sanchar Nigam Ltd Corporate Social
Responsibility (CSR)
1. Natural disasters and calamities.
2. Provision of ambulances.
3. Provision of Broadband connections
4. Provision of GSM Mobile PCOs.
5. Provision of WLL data connection.
6. Initiatives towards social inclusion
7. Employee’s Welfare Activities: Staff Welfare Board (SWB) of the Company
8. Life Insurance scheme worth Rs. 50,000 for Landline, WLL, & GSM Post paid customers in Himachal Pradesh.
9. Initiatives towards environment conservation- Tsunami relief,Rs. 2,207 lakhs to the Prime Minister’s Relief Fund.
10.10 kw solar plants at 14 sites and wind power project at 6 USO funded sites in Rajasthan, Gujarat, Tamil Nadu, and
Maharashtra.
 MTNL - Promoters and Management Ethos
Management ethos and philosophy:
• The company has been making an effort to uphold the principles of Corporate Governance to ensure transparency, integrity and accountability in its
functioning.
• MISSION:
To remain market leader in providing world class Telecom and IT related services at affordable prices and to become a global player.
• Vision for Tomorrow
Become a total solution provider company and to provide world class telecom services at affordable prices.
Become a global telecom company and to find a place in the Fortune 500 companies.
Become the largest provider of private networks and leased lines.
Venture into other areas in India and abroad on the strength of our core competency.
• Corporate Objectives
To expand customer base and services.
To provide latest technology and services to the customers, at affordable prices.
To achieve the highest level of customer satisfaction and delight.
To diversify in other areas for providing telecom services at national and international levels.
To provide convergence of Telecom, Information Technology and related services.
To improve productivity by training and redeployment of man-power.
To work for social benefits.

Top Management
DIRECTOR (HUMAN RESOURCES):SUNIL KUMAR
COMPANY SECRETARY:S R SAYAL
DIRECTOR (TECHNICAL):SANJEEV KUMAR
NOMINEE (GOVT):NAVNEET GUPTA
CHAIRMAN & MANAGING DIRECTOR:P K PURWAR
DIRECTOR (FINANCE):S K GUPTA
NOMINEE (GOVT):AMITABH RANJAN SINHA
AUDITOR:KUMAR VIJAY GUPTA & CO/VINOD KUMAR & ASSOCIATES
IND NAME:TELECOMMUNICATIONS - SERVICE PROVIDER
HOUSE NAME:GOVERNMENT OF INDIA
 MTNL Corporate Social Responsibility (CSR)

1. Natural disasters and calamities.

2. Provision of ambulances.
3. Provision of Broadband connections
4. Provision of GSM Mobile PCOs.
5. Provision of WLL data connection.
6. Initiatives towards social inclusion
7. Employee’s Welfare Activities: Staff Welfare Board (SWB) of the Company
8. Life Insurance scheme worth Rs. 50,000 for Landline, WLL, & GSM Post paid customers in Himachal Pradesh.
9. Initiatives towards environment conservation- Tsunami relief,Rs. 2,207 lakhs to the Prime Minister’s Relief Fund.
10.10 kw solar plants at 14 sites and wind power project at 6 USO funded sites in Rajasthan, Gujarat, Tamil Nadu, and
Maharashtra.
 External Environment

Latest government fiscal policy

 The Union Cabinet approved Rs. 12,195 crore (US$ 1.65 billion) production-linked
incentive (PLI) scheme for telecom & networking products under the Department of
Telecom.

 In April 2021, the government pointed out that firms such as Ericsson and Nokia are now
eager to expand their operations in India, and global companies like Samsung, Cisco, Ciena
and Foxconn have expressed interest to set up their manufacturing base in the country for
telecom and networking products.

 In March 2020, the government approved the Production Incentive Scheme (PLI) for Large- scale
Electronics Manufacturing. The scheme proposes production-linked incentive to boost domestic
manufacturing and attract large investments in mobile phone manufacturing and specified electronic
components including Assembly Testing, Marking and Packaging (ATMP) units.
 In December 2020, the Union Cabinet, chaired by the Prime Minister, Mr. Narendra Modi, approved a
proposal by Department of Telecommunications for setting up of Public Wi-Fi Networks by Public Data
Office Aggregators (PDOAs) to provide public Wi-Fi services through Public Data Offices (PDOs).

 On January 6, 2021, the Department of Telecommunications (DoT) issued Notice Inviting Applications
(NIA) for auction of Spectrum in 700 MHz, 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz
and 2,500 MHz bands. Last date for submission of applications for participation in the auction is February
5, 2021, and auction to commence online from March 1, 2021.

 On January 15, 2021, India and Japan signed an MoU to enhance cooperation in the field of Information
and Communications Technologies. The MoU was signed between the Union Minister for
Communications, Electronics and IT, Ravi Shankar Prasad, and the Japanese Minister for Internal Affairs
and Communications, Takeda Ryota.

 FDI cap in the telecom sector has been increased to 100% from 74%; out of 100%, 49% will be done
through the automatic route and the rest will be done through the FIPB approval route. FDI of up to 100%
is permitted for infrastructure providers offering dark fibre, electronic mail and voice mail.
Government Initiatives :

The Rs. 12,195 crore (US$ 1.65 billion) production-linked incentive (PLI) scheme or
telecom is expected to bring in investment of around Rs. 3,000 crore (US$ 400.08
million) and generate huge direct and indirect employment.

In April 2021, the government pointed out that firms such as Ericsson and Nokia are now
eager to expand their operations in India, and global companies like Samsung, Cisco,
Ciena and Foxconn have expressed interest to set up their manufacturing base in the
country for telecom and networking products.

In March 2021, TEPC (Telecom Equipment Export Promotion Council) organised India
Telecom 2021—a platform for convergence of technologies and business exchange.
Financial Analysis

During period (March 2011 to March 2018), total subscribers increased at an annual
compounded rate of 4.03 percent and mobile subscribers increased at a compounded
annual growth rate of 5.5 percent. Average Revenue per User (ARPU) declined steadily
Revenue
EBITDA
 Recent Developments

Impact of covid and introduction of new policy

1) Implementation of exemption for the telecom industry

2) Rising demand and current infrastructure

3) Impact of lock down restrictions.

A) Impact on manufacturing of hardware and other system
B) Addition of new subscribers
C) Impact on tariffs
D) Subscriber retention
E) Power tariff

4) outlook and way forward

 
Impact of key player (jio) on the industry
 
The numbers are staggering. Data collated by Kotak Institutional Equities shows that at
an industry level, data volumes rose 4160% to 20.3 billion GB in the July-September
2019 period. This is in comparison to the April-June 2016 quarter, or just before Jio’s
launch. On a per customer basis, data usage rose from merely 500 MB per month in 2016
to 10.6 GB last year.
 
The number of data subscribers doubled and their share among the total subscriber base
increased to 57%, from 32% in June 2016, shows the data collected from Telecom
Regulatory Authority of India’s quarterly performance indicator reports. The share of
customers using 3G and 4G services rose to 52% of the total subscriber base, up from
14% three years ago.
 
Top mergers and acquisitions in telecom sector
 

Vodafone – Hutchison Essar Merger in 2007

 Idea buys 80% in Spice telecom

 Telenor buys Unitech Wireless

 Reliance Industries – Infotel

 Reliance Communications – Aircel merger

 Vodafone – Idea merger

 
 
 RECENT KEY DEVELOPMENT AND INVESTMENTS

Investment/Major Development :
In June 2020, Jio Platforms Ltd. sold 22.38% stake worth Rs 1.04 trillion (US$ 14.75 billion) to
ten global investors in a span of eight weeks under separate deals, involving Facebook, Silver
Lake, Vista, General Atlantic, Mubadala, Abu Dhabi Investment Authority (ADIA), TPG Capital
and L. Catterton. This is the largest continuous fundraise by any company in the world.
In April 2021, Elon Musk’s SpaceX has started accepting pre-orders for the beta version of its
Starlink satellite internet service in India for a fully refundable deposit of US$ 99. Currently,
Department of Telecommunications (DoT) is screening the move and more developments will
be unveiled soon.
India had over 500 million active internet users (accessed Internet in the last one month) as of
May 2020.
Achievements :
Department of Telecommunication launched ‘Tarang Sanchar’ - a web portal sharing information on mobile
towers and EMF Emission Compliances. Payments on unified payments interface (UPI) hit an all-time high
of 2.30 billion (by volume), with transactions worth Rs. 4.31 lakh crore (US$ 59.08 billion) in January
2021. Over 75% increase in internet coverage from 251 million users to 446 million.

Road Ahead :
Revenue from the telecom equipment sector is expected to grow to US$ 26.38 billion by 2020. The number
of internet subscribers in the country is expected to double by 2021 to 829 million and overall IP traffic is
expected to grow four-fold at a CAGR of 30% by 2021.
The Indian Government is planning to develop 100 smart city projects, and IoT will play a vital role in
developing these cities. The National Digital Communications Policy 2018 envisaged attracting investment
worth US$ 100 billion in the telecommunications sector by 2022. App downloads in India is expected to
increase to 18.11 billion in 2018F and 37.21 billion in 2022.