MHRDM-2010-2013, K.

J Somaiya Institute of Management studies

Telecom Industry

History, Evolution, Overview, Impact on Indian GDP, Factors affecting Growth,

Trends and Future Perspective

Collin Cornelio (03)

Rupali Ganguly (09)
Deepak Gianani (12)
Kavita Naidu (24)
Shrija Rajan
Barkha Sharma (38)
1 Sanjeev Sood (43)
 Evolution of Telecom Industry in India.
2000

1999

1997

1986

1985 Cellular
DOT becomes
1947 Conversion of Services
launched in a corporation,
DOT into two BSNL
1883 wholly India, New
government- National
1881 TRAI Telecom
owned Introduced
companies: Policy is
1851 Nationalizati DOT (VSNL) and adopted.
Merger on of Established (MTNL) for
Telephone with the Foreign service in
services Postal Companies metropolitan
Operational
introduced in System areas.
land Lines
India
laid by Govt

2
Overview

• The Indian telecommunications industry is one of the fastest

growing in the world

• The rapid growth in Indian telecom industry has been contributing

to India’s GDP at large.

• Divided into two major segments i.e. fixed and wireless cellular
services

• Upcoming services - 3G and WiMax

• India is projected to become the second largest telecom market

globally by 2010.
3
Segments in Telecom Industry

 India telecom market is mainly divided into two major segments

namely, the Fixed Service Provider (FSPs) and the cellular services.
Fixed Service Provider Cellular Services

• Comprises land lines, basic • Two sub divisions: Code

services, domestic and long Division Multiple Access (CDMA)
distance call service and Global System for Mobile
Communications (GSM)
• The two major basic operators
BSNL and MTNL comprise almost • The GSM sector, the major
90 % of the FSPs in the country players are Vodafone, Airtel,
Idea Cellular, and Aircel
• 5 % are operated by private firms
and are mostly scattered in the • Major companies which
urban areas dominate the CDMA scenario are
Reliance Communications and
•The private basic service Tata Indicom
telephone operators cater to
offices, business firms, schools • Perfect Competition existed
and the corporate sector

4
 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
Loop

BSNL

MTNL CDMA Services Operators

Reliance Reliance

TTSL
TTSL

BSNL
Airtel

5
Demand & Supply Analysis - Telecom

 The interaction of ‘Demand Pull’ & ‘Supply Push’ has made

telecommunications one of the growth sectors in the world Economy

 Demand is pulled in the telecom

sector due to increasing dependency
on telecommunications by every
sector – social or economic

Supply Push – Growth is pushed by rapid technological developments which

continuously improve the efficiency of existing products, systems and
services

6
Telecom – An Oligopolistic Market

 The mobile telecom industry

• Limited players in the GSM market 
• Triopoly between Vodafone , Airtel and Reliance (MTNL)
• Intense competition
• High rates of customer attrition
• Heavy regulation by TRAI
• Homogeneity in products

 No winners surviving in an Oligopoly

 Survival strategies

 Forecasted changes

7
Telecom Policy - TRAI

 Telecommunication Regulatory Authority of India – Set up in 1997

 Acts as an independent regulator of the business of

telecommunications in the country

 The mission & objective of TRAI

 Issues huge numbers of directives, regulations, and orders that

deal with various subjects such as interconnection, service
quality, and tariff

8 Contd…
Telecom Policy - TRAI

 Authority promotes efficiency and encourage competition

 Powers and functions includes settlement of disputes that arise

between service providers

 Responsibilities:
• Make recommendations, either suo motu or on a request from the licensor
• Discharge the following functions
• Levy fees 
• Other functions such as administrative and financial functions as may be
entrusted to it by the Central Government or as may be necessary to carry
out the provisions of this Act

9
How did TRAI Help?
 TRAI recommended no cap on number of operators in each circle

 Combined with a leniency in M&A, this has lead to over 500 license
applications (equivalent to 22 PAN India operators), including from
companies with no telecom experience but wanting to capitalize on the
boom

 Even if 2 – 3 new players are

allowed in each circle, this
will increase competition which
would significantly effect
operator strategy and potentially pricing, as well

10
FDI – Inward & Outward

 Foreign direct investment (FDI) refers to long term participation by

country A into country B

 It usually involves participation in management, joint-

venture, transfer of technology and expertise

 There are two types of FDI : inward foreign direct investment and

outward foreign direct investment

 FDI plays an important role in telecom sector as well as an economy

as a whole

11
 Effect of FDI in telecom

 Telecom service at Subsidized prices

 FDI inflows will allow multiple benefits such as technology transfer, market
access and organizational skills.

 In India where 70% of population still resides in rural areas, there is a dire
need of infrastructure in telecom, which FDI can provide

 Harmonious relationship with country from which foreign investment is

being made

 There will be increase in competition with local players, which will benefit
consumers

 More technological inflow, will improve voice & data quality

12
FDI – Outward

Bharti-Zain deal

 The board of Kuwait’s Zain Telecom has accepteda$10.7-billion (Rs

49,700 crore) offer from BhartiAirtel for the bulk of its African
assets

 Acquire 100% of Zain’s African operations

 Spice Mobiles to own 65% in JV with Malaysia’s CSL

13
 M-VAS

 Different VAS categories are – Entertainment (Ringtones, Caller Ring-back tones, Games), M-Commerce
(Services allowing transactions on mobile phones, eg. Fees deposition, Booking Air Tickets) and
Information (Bank Balance Enquiry, Air/Train Ticket Status, News Alerts, Stock Prices).
 High speed data services such as web browsing, mobile TV, video calls, music & video, applications
download are on the top of the list which mobile users use frequently.
 The Indian M-VAS industry is projected to register a turnover of Rs 280 billion by 2013 from the 97
billion in 2010 with the rollout of the 3G Spectrum.
 VAS which constitutes 10-12 per cent of the total revenues for telecom operators would also see a rise of
20 % by 2013.
 About 51 per cent of MVAS revenue in India is driven by short messaging service applications.
The VAS Value Chain
Content copy
Customized Technology
right owners. Content Moblie operators
content creators enablers
(saregama, portals/aggregators (Airtel/Reliance/
(one 97) (onmobile.weba
sony, star, (Indiatimes) Hutch)
roo)
zee)
14
 VAS SUCCESS STORY - ONE97
 One97 was launched at the end of 2000, has seen investment from Intel Capital, Softbank Asia
Infrastructure Fund and Silicon Valley Bank. Today, over 400 million telecom consumers use its
services.

 In early 2010, One97 was named the Emerging Company of the Year by Voice & Data magazine and
was rated a Top 10 Fastest Growing Indian company in the Deloitte Fast 500. At the time, One97 had
a sustained growth of 428% CAGR.

 When US President Barack Obama visited India, One97’s mobile application Dakia impressed him so
much that he spoke about it in his speech in Parliament.

 Dakia is a kind of personalized voicemail service that provides the farmer with regular updates about
some of his critical farm related concerns—such as the price of onions at the wholesale mandi or when
electricity for running tubewells will be available etc.
 By December 2010, its 31-year-old founder Vijay Shekhar Sharma was declared the “Mobile VAS
Person of the Year” One97 is doing a Rs. 120 crore IPO in 2011.

15
 Rural Telephony

 India's rural telecom sector is poised for explosive growth in the next 5 to 10 years, grabbing a
40 % share of the new market, a study released on 16/03/2011.

 “Of the estimated new 250 million Indian wireless users, in next 5-10 years approximately 100
million will be from rural areas," a/c to the FICCI.
 
 The operators have demonstrated they can achieve profitability by reducing fixed costs,
controlling variable costs and carefully tailoring services to the requirements of their customers
in the rural areas.
 
The government will likely phase out the Access Deficit Charge (ADC) a levy imposed on
private players in rural areas and roll out new incentives for mobile networks in rural India. 
 

16
 Rural Telephony

 “Erecting wireless telecom towers in India's tough rural terrain is still expensive and
logistically challenging, reinforcing the desirability of sharing,” The Govt. will levy
taxes and flexible rates on tower sharing for the private players.

 An ultra-low cost handset of approximately Rs 840 with built-in subsidies, lifetime

validity and minimal maintenance have promoted mobile usage in remote areas.

Operators could learn from business models that have been experimented across the
developing world for expanding rural connectivity.
 Strong economic growth has resulted in increase in the average income of the
consumers thereby increasing their purchasing power is also one of the major factor
behind the development of telecom sector in India.
 Another major reason is the easy availability of cheap and skilled labor which is
beneficial for its expansion.
17
 Rural Telephony

 Apart from 200.77million fixed connections, 5,70,000 uncovered VPTs have been
provided in the rural areas as on March 2010, covering 96% of the villages in India.
 More than 3 lakh PCOs are operating in the rural areas. Further, Mobile Gramin
Sanchar Sewak Scheme (GSS) – a mobile Public Call Office (PCO) service is
provided at the doorstep of villagers. At present, 2772 GSSs are covering 12043
villages.
 Sanchar Dhabas (Internet Cafes) provide Internet services in more than 3500 Block
Headquarters out of the total 6337 Blocks in India.
 The target of 80 million rural connections by 2010 have already met during year
2008 itself.
 USOF, a subsidy support scheme, is also being utilized for sharing wireless
infrastructure in rural areas with about 19,000 towers by 2010.

18
 Market Share : The Big 5 !!!!!

PLAYERS MARKET SHARE

Bharti Airtel 21.64 %
BSNL 17.48 %
Vodafone 17.22 %
Reliance 14.66 %
Idea 11.81 %
19 Others 17.19 %
 Players – marketing strategies, growth
 There are 3 types of players in the Indian Telecom Industry.
 1) State owned Companies (MTNL and BSNL)
 2) Private Indian owned Companies (Reliance Communication, Tata Teleservices)
 3) Foreign Invested Companies (Bharti Airtel, Vodafone Essar, Idea etc.)

I WANT ONLY 1 SIM CARD!!!!

20
 BSNL
Founded DoT IN 1985 became a Corporation BSNL in
2000
Head Quarters Bharat Sanchar Bhawan. New Delhi

Key People Shri S. C. Misra C.M.D

Industry Telecommunications

Products Wireless/Telephone/Internet/Television.
Revenue Rs. 32,045 Crores.
Net Income RS. 86,476 Crores.

Slogan “Connecting India” “Faster than your

thoughts”
Website www.bsnl.co.in
Ambassadors Preeti Zinta, Deepika Padukone

Market Shares 17.48 %

21
 Strategy of BSNL

 The world’s 7th largest Telecommunications Company in the World.

 AIM :- To bridge the Rural-Urban digital divide with its wide network giving services.
 3G SERVICE :- BSNL started 3G services in 290 cities and acquired more than 6 Lakh customers.
It plans to roll out 3G services in 760 cities across the country in 2010-11.
 BROADBAND SERVICES : - The shift in demand from voice to data has made BSNL plan a
strategy for extensive expansion of the Broadband services. The Broadband customer base of 3.56
Million customer in March'2009 is planned to be increased to 16.00 million by March 2014.
 TARGETS :- Rural sector by introducing the latest telecom services, like VAS, cheaper rates, etc.
 CUSTOMER SATISFACTION :- Set up around 3200 customer service centers across the country to
help in obtaining the connections, provide easy fault repair services and 3 rd party transfers.
 QUALITY ASSURANCE :- Set up 81 QAC’ across India to study the quality of the telecom
supplies made to BSNL and modify accordingly.
 SERVICES:- Conducts market research surveys to evaluate its services vis-à-vis others and modify
according to the market demands.
 ISP :- The no. 1 ISP in India and has more than 3 million internet customers due to cheap rates as it’s
being governed by the Govt.

22
 BSNL STRATEGIES

High Tariff

IDEA
AIRTEL
Narrow Network VODAFONE RELIANCE
Wide Network
Coverage
Coverage

BSNL

23 Low Tariffs
 Type BSE and NSE
Founded 1985
Head quarters New Delhi. India
Key People Sunil Mittal
Industry Telecom
Products Mobile and Fixed telecommunication
operator. Airtel DTH
Revenue US $ 9.29 Billion
Slogan Express yourself
Web Site www.airtel.in
Brand Ambassador Shah rukh Khan, Sachin Tendulkar,
Kareena Kapoor, Vidya Balan,
Madhavan, A.R.Rahman
Issue in Shares 3797529041
24
Market Share 21.64 %
 AIRTEL STRATEGY Marketing Mix : 4 P’s

PRODUCT PRICE PLACE PROMOTION

Cell Phones Lower end Showroom Print Media
Sim Cards Offers Shopping malls Electronic Media
Plug to surf Devices Schemes Chain Stores Outdoor Media
Handsets for CDMA Retail Shop Sales promotion
Office
Home
Institutions

25
 Strategy for Bharti Airtel
 PRODUCT :-
 A) Airtel prepaid
 B) Airtel Postpaid
 C) Blackberry wireless Handheld value added services.
 PRICE :-
 A) Customer based pricing strategies
 B) Flexing pricing mechanism controlled by TRAI
 PLACE :-
 A) Wide and extensive presence even in the remotest areas.
 B) Airtel distributors like, Paan shops/Grocery stores/Chemists, etc.
 PROMOTION :-
 A) Large scale print and video advertising.
 B) Celebrities like Shahrukh Khan and Sachin Tendulkar are brand ambassadors.
 C) Airtel’s signature tune in 2002 by A.R.Rahman is the most widely downloaded
tune in India
26
Growth of Telecom Industry
Wireline V/s Wireless

Trend in Teledensity

Year Mar-99 Mar-06 Mar-09 Mar-10 Mar-11

% 2.32% 12.70% 36.98% 60.99% 67.67%

27
Factors Contributing to the Growth - Telecom
 Shifting focus on Rural Markets

 Internet/Broadband

 Mobile Number Portability

 FDI (Foreign Direct Investment) – 74% - 100%

28
Privatization of the Sector

 Liberalization in the telecom industry – 1994

 National Telecom policy 1994 announced

 Meeting the demand shortfall through

Privatization

29 Contd…
Privatization of the Sector

Year on year demand supply gap in the eve of privatization

30 Contd…
Privatization of the Sector

Meeting the Telecom Demand Shortfall in India through Privatization Year 2001

31 Contd…
Privatization of the Sector

Year of Mobile
Boom – 2003
Role of Telecom in India’s GDP

 Contribution of Indian telecom industry to Country’s GDP

 Bridging the Rural - Urban Digital Divide

 Rural Market Penetration

33
Globalization of Telecom Industry
 The telecom sector in India witnessed unparalleled growth especially over
the last decade as compared to global standards .

 In the case of wireless telephony, India has grown from having a zero
subscriber base a decade ago to becoming the second largest market in the
world after China in 2009 with 752 Million mobile phone subscribers as of
February, 2011

 The last couple of years have witnessed investments of a whooping 8.5

billion dollars in this sector with 550 million dollars being in the form
Foreign Direct Investment

34 Contd…
Globalization of Telecom Industry

 In1994 the first National Telecom Policy was announced and in the August
of 1995 Kolkata became the first Indian city to have cellular networking

 On 24 January 2000, a Telecommunications Dispute Settlement and

Appellate Tribunal (TDSAT)was set up to take over the disputes functions
from TRAI. It was set up to solve any dispute between a licensor and a
licensee, between two or more service providers, between a service
provider and a group of consumers, and to hear and dispose of appeals
against any direction, decision or order of TRAI.

 Impending auction of the 3G spectrum is sure to provide another huge leap

to the telecom industry in India. In such a situation efforts must be made by
both the government and industry to have organized and systematic growth
so that the entire potential of the sector can be tapped.

35 Contd…
Globalization of Telecom Industry
 The telecom boom in India can be attributed to policies of liberalisation,
globalization, certain reforms by the government and most importantly
competition

 India provides a safe ,secured and transparent market for the telecom
companies and moreover the investment policies and other lucrative
incentives have made foreign collaborations possible and India one of the
fastest growing markets

36
International Players
 Telenor ASA (Sweden), Sistema JSFC-CLS (Russia), Etisalat (UAE) and
Bahrain Telecommunications Company (Batelco), Bahrain, successfully
entered Indian markets

 Meanwhile, Japan's NTT DoComo picked up a 26% stake in the sizeable

mobile operations of Tata Teleservices as part of their India strategy

 Idea Cellular's purchase of Spice Communications brought together two

well established regional players and consequent entry of Telecom Malaysia
into Idea

 Mergers of Mobile Telephone Networks South Africa (MTN) with Bharti

Airtel Limited and then later with Reliance Communications Limited

37
Road Ahead
 In 2008-09 the overall telecom equipments revenue in India stood at
136,833 crore (US$30.38 billion) during the fiscal, as against 115,382 crore
(US$25.61 billion) a year before

 It is projected that India will have 1.159 billion mobile subscribers by 2013

 The Telecom sector revenues would touch $30 billion by 2013 registering
a compound annual growth rate (CAGR) of 12.5 percent between 2009-
2013.

 The Telecom subscriber base is also expected to grow at a CAGR of 12.5

percent and would cross 770 million by 2013.

38
Road Ahead
 Mobile market penetration is projected to increase to 63.5 percent in
2013 from 38.7 percent in 2009

 The churn rate – the rate at which a subscriber switches their operator –
would cross 59 percent in 2013 from 53 percent currently.

 The number of people with prepaid connections, accounting  for 93 percent

of the subscriber base in 2008, will continue to swell to exceed 96 percent
by 2013, surpassing 740 million.

39
 SWOT – Telecom Industry
Strengths Weaknesses
 ‡Huge Customer potential. (High Tele density)  ‡Poor Telecommunication
Infrastructure. (large call drops)
 ‡Allowed FDI limit ranging from 74% to 100%.
( US$ 2223 million during April-November 2009-  Late adopters of New Technology.
10) (after 123 countries using 3G tech.)

 High Growth Rate. (wireless subscribers grew at a  Most competitive market. (10/12
CAGR of 60% p.a. since 2004) service providers-globally max .4)

 ‡High return on Investment. (Easier to create  Huge financial resources reqd.(‡E.g

Economies of Scale) Auction of 3G license reached Rs
15814.15 crores)
 Liberalization efforts by Govt. (Pvt. Sector share is
around 82.33 %.)  VAS is restricted because of literacy
& language problems
 ‡Lower capital expenditure.
(High Density– more population per tower – low  ‡A market strongly regulated by
expenditure cost). Government

40
SWOT – Telecom Industry
Opportunities Threats
 ‡More Quality service through introduction of 3G & 4G
 ‡Telecommunication Policies
e.g. TRAI intentions of rolling out 4G or
the fourth-generation technology, known
 ‡Value Added services as the ultra-broadband in 2-3 years raising
fears rendering 3G services somewhat
 Boost to Telecom Manufacturing Companies obsolete.

 ‡Horizontal Integration  ‡Declining ARPU (average Revenue per

Entry Into other consumer segments leveraging the present user)
channels E.g. DTH service like Reliance BIG TV, Tata E.g. price wars like per-second billing
SKY, Airtel digital TV by telecom majors like Reliance, which is deflating revenues and making
Tata and Airtel Respectively. sure the µsurvival of the fittest ‡Partiality
on the part of the Govt.
 Providing fibre Connectivity to 2,50,000 village E.g. Allowing 3G service in a PSU
panchayat by 2012 (MTNL,BSNL) before auctioning to
Private Sector
 ‡More scope in content related services, since, the
consumer is influenced by local culture  ‡Content Piracy

41
 Current Trends - Telecom
New players entering rural markets

 Airtel, BSNL and Reliance leading in the race to access rural markets.

 Smaller players DoCoMo witnessing the biggest jump in proportion of subscribers

coming from the rural areas (increased from 10% to 18% in one quarter).

 Uninor, has a high proportion of subscribers coming from the rural areas at 34%.

 Aircel is the only operator whose proportion from rural areas has actually gone
down.

 Handset manufacturers are targeting the rural market to increase their subscriber

base.

 Current Trends - Telecom
“Olive Telecommunications” has launched a mobile phone that runs on regular
“AAA” batteries.
Mobile phone “FrvrOn” has a rechargeable lithium-ion battery common to mobile
phones, but also a facility to include a AAA, dry-cell battery
Rs. 1699

43
 Current Trends - Telecom
Mobile Number Portability (MNP)

 Keep Your Number. Change Your Network

 Switch between mobile operators without having to change their phone numbers

 Benefits of competition via increased choice and more compelling retention

strategies.

 Telecom Regulatory Authority of India (TRAI) has fixed a one-time rate of Rs.
19
 Current Trends - Telecom
MNP has existed in U.K, Germany, Hong Kong and the
Unites States.

 More recently introduced in other South East Asian

countries such as Singapore and Taiwan.

 MNP was also introduced in Pakistan in 2007.

www.changemynetwork.com allow mobile users to 

make an informed choice based on their usage will only
help mobile users facilitate their transition to a more cost-
effective network.

45
 Emerging Trends - Telecom
Major trends in the telecom sector is increasing M&A activity, de-regulation of
telecom policies and growing interest of international investors.

Deals in Telecom Sector

Vodafone purchased stake in Hutch Telekom Malaysia acquired a 49

from Hong Kong's Hutchison percent stake in Spice
Telecom International for USD Communications for USD 179
11.08 billion. million.

Reliance Communications Limited has sold a five percent

equity share capital of its subsidiary Reliance Telecom Maxis Communications acquired a
Infrastructure Limited to international investors across the 74 percent stake in Aircel for USD
US, Europe and Asia. The deal was worth USD 337.5 1.08 billion.
million.

Ericsson to design, plan, deploy and

manage Bharti Airtel network and
facilitate their expansion in the rural
areas, under a USD 2 billion
contract.

46
Emerging technologies – 3G and WiMax to assist
in penetration of telecom services in India
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.

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
47 opportunities offered by this domain.
Job Opportunities
 The industry is expected to reach a size of 344,921 crore (US$76.57 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

 According to analysts, the sector would create direct employment for 2.8
million people and for 7 million indirectly

 Nowadays almost every sector and industry uses telecom technology be it

aviation, ports, health, public utilities or the government

 The industry demands the very best of technical and management skills and
expertise the industry demands the very best of technical and management
skills and expertise

48
Job Opportunities
 In the future, communication sector is going to employ more people than
electronics, computer science or common basic sciences, as is shown in the
following chart

49
 Hierarchy of Needs

Self-
Actualization
Internet
Esteem Mobile Phones

Belonging
Shelter

Safety

Food/Water
Psychological

1943 - MASLOW 2011 - INDIA

50
 Telecom Industry Boom in India
 Mumbai’s Rafiq Nagar slum is in the news because 18 children
have died here since April. It is a garbage dump with not a single
toilet for its 10,000-odd residents. But almost every single resident
of the slum has a mobile phone.
 In September, according to the TRAI, there were 687.71 million
mobile phone users in India. About 17.71 million subscribers were
added in the month of September. That’s a growth of 2.55%.
India’s wireless tele-density is now 57.99.
 UN figures show that more than half the nation—665 million—
does not have access to a private toilet.
 Half this nation has never read a newspaper.
 Half this nation does not have access to public healthcare.
 But more than half this nation owns a mobile phone.
51
 Telecom Industry Boom in India

 The industry reached a point of maturity with the

announcement of the National Do Not Call Registry.
 India got a low-cost smartphone—Android,—for under Rs.
5,000, with all the latest applications.
 The cost of a phone call fell to 1 paisa for 6 seconds (on
DoCoMo), the lowest anywhere in the world.
 Indian’s are burning up the data pipes with a searing 100
million song downloads a month!
 India became one of the few countries to assign spectrum to
WiMAX. The 3G spectrum was alloted.
 And 2G delivered the most spectacular scam of our times.
52
 INNOVATION

 Bangalore’s Symphony Services.

 Mohan Hebbar, vice-president, is in the talks of delivering a
video streaming service for a Bollywood producer.
 First Day First Show will now be right there on your cheap
but smart phone that has the ability to manage digital rights,
video streaming and payments over mobile networks.

53
 TELE-MEDICINE

 With increase in cell phone users to around 700 million and

introduction of 3G services in the country, remote treatment and
diagnosis of patients through mobile phones would become a
reality.
 The Gujarat health department plans to connect all villages
through its telemedicine network. The state government hopes to
cover 500 villages soon.
 People can call up and talk to paramedics in call centers who can
suggest the primary action to be taken in case of any health
emergency. Also, they would be able to suggest generic and over
the counter drugs."

54
Conclusion
 One industry that is always adding new trends to the market

 Correct segmentation helps the industry to grow year on year

 By providing services like mobile banking, internet access on the

mobile phone, video calls, hundreds of games, live updates of recent
events, bulk sms’s and many more such value adding services,
industry ensures that customers of all age & categories are able to
take advantage of the services and meets their requirements

 Industry has helped improving standard of living by providing

mobile phones falling under various pricing categories - options to
choose from a variety even to a poor class customer

55
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