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CHAPTER -1
AN OVERVIEW AND CLASSIFICATION OF
INDUSTRY

1.1 INTRODUCTION:
Industries are part of the secondary activity. Secondary activities are
manufacturing convert raw material into products of more value of people.
Industry refers to economics activities concerned with the production of goods,
extraction of services and provision of services.

Industry analysis is the analysis of a specific branch of manufacturing, service, or

trade. Understanding the industry in which a company operates provides an
essential frame work for the analysis of the individual company that is company
analysis.

Industry analysis is conducted by the business entity or specifically an

entrepreneur to identify the factors which are influencing the sector that they have
already or thinking about investing in.

1.2 MEANING OF INDUSTRY:

“The industry is a category of active enterprises and organizations which produce

or sell products, services or source of revenue”. industries are commonly
categorized in economics as the primary industry, secondary industry and tertiary
industry.

1.3 Types of industry

1. Primary industry
2. Secondary industry
3. Tertiary industry

1.3.1 Primary industry:

The field of the economy of a nation comprises forestry, agriculture, fishing,

quarrying, mining and mineral [Link] could be categorized into two types.
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• Genetic industry: It includes all the production of raw materials which

can be enhanced by human involvement in the development process.
• Genetic industry: It includes all the production of raw materials which
can be enhanced by human involvement in the development process.

• Extractive industry: It includes the development of exhaustible raw

materials which cannot be extended by cultivation.

The primary industry continues to dominate undeveloped and developing

counties economies, but as secondary and tertiary sectors grow, their
proportion of economic production tends to decline.

1.3.2 Secondary industry:

The secondary industry sector (manufacturing industry) processes the raw

materials supplied by primary industries and practices them into consumer
products. Further procedures products that have been incorporated into product
lines by specific secondary industries. Develops capital equipment used to
produce customer and non-customer products. The sector is further divided into,

• Large scale industry: It involves massive investment capital in plants and

equipment, provides a vast and varied industry such as other industrial
sectors, has a complex industrial organization and often a skilled
specialist workforce, and produces a high quantity of production.

Examples - Steel and Iron manufacturing industry, petroleum refining

sector, etc.

• Small scale industry: It may be distinguished by the non- durability of

industrial products and a limited cost of capital in plant and machinery,
which may include nonstandard items, such as personalized or design
work.

Examples – Plastic manufacturing, textile industry, food processing etc.

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1.3.3 Tertiary industry:

In the tertiary industry sector, also known as the service industry, it involves
sectors that provide services or economic costs or produce wealth while
generating no tangible goods. In the free market and mixed economies, such
sector typically has a mixture of government and private companies.

Examples – Real estate service, banking and finance service, communication

services, etc.

1.4 Industrial sector classification:

Industries can be classified on the basis of raw materials, size, and ownership. Let
us understand the classification of industries one by one.

Raw Materials: Industries may be agro - based, mineral-based, marine-based,

and forest based depending on the type of raw materials they use.

Agro-based industries: Use plant and animal-based products as their raw

materials. Food processing, vegetable oil, cotton textile, dairy products, and
leather industries are examples of agro-based industries.

Mineral-based industries are primary industries that use mineral ores as their
raw materials. The products of these industries feed other industries. Iron made
from iron ores is the product of mineral-based industry. This is used as raw
material for the manufacture of a number of other products, such as heavy
machinery, building and materials.

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Marine-based industries use products from the sea and oceans as raw materials.
Industries processing seafood or manufacturing fish oil are some examples.

Forest-based industries utilize forest produce as raw materials. The industries

associated with forests are pulp and paper, pharmaceuticals, furniture, and
buildings.

Size: It refers to the amount of capital invested, the number of people employed,
and the volume of production. Classification of industries has also been done
based on size, industries can be classified into small-scale and large-scale
industries.

Small scale industries use a lesser amount of capital and technology as compared
to large scale industries that produce large volumes of products. Silk weaving and
food processing industries are small-scale industries. Cottage or household
industries are a type of small-scale industry where the products are manufactured
by hand, by the artisans. Basket weaving, pottery, and other handicrafts are
examples of cottage industry.

Large Scale Industries: Investment of capital is higher and the technology used
is superior in large-scale industries. Production of automobiles and heavy
machinery are large-scale industries.

Ownership: Industries can be classified into the private sector, state-owned or

public sector, joint sector, and cooperative sector.

• Private-sector industries are owned and operated by individuals or a

group of individuals.

• The public sector industries are owned and operated by the government,
such as Hindustan Aeronautics Limited and Steel Authority of India
Limited.

• Joint sector industries are owned and operated by the state and
individuals or a group of individuals. Maruthi Udyog Limited is an
example of a joint sector industry.

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• Co-operative sector industries are owned and operated by the producers

or suppliers of raw materials, workers or both. Anand Milk Union Limited
and Sudha Dairy are success stories of a cooperative venture.

1.5 INDUSTRIAL SECTOR CLASIFICATION

Classifications of industry analysis:

• Agriculture and Allied Industries

• Automobiles
• Aviation
• Banking
• Cement industry
• Chemicals
• Consumer durables
• Defence manufacturing
• E commerce
• Education and Training
• Electronics system Design and manufacturing
• Telecommunication
• Textile industry
• Insurance
• FMCG
• Road industry

1.5.1 E-Commerce

E-commerce has transformed the way business is done in India. The Indian E-
commerce market is expected to grow to US$ 111.40 billion by 2025 from US$
46.2 billion as of 2020. By 2030, it is expected to reach US$ 350 billion. By 2021,
total e-commerce sales are expected to reach US$ 67-84 billion from the US$
52.57 billion recorded in 2020.

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India‘s e-commerce market is expected to reach US$ 111 billion by 2024 and US$
200 billion by 2026.
Much of the growth for the industry has been triggered by an increase in internet
and smartphone penetration. As of July 2022, the number of internet connections
in India significantly increased to 784.59 million, driven by the Digital India
programmed. Out of the total internet connections, ~61% connections were in
urban areas, of which 97% connections were wireless.

1.5.2 Automobile Industry

In 2020, India was the fifth-largest auto market, with ~3.49 million units
combined sold in the passenger and commercial vehicles categories. It was the
seventh-largest manufacturer of commercial vehicles in 2019. The two wheelers
segment dominate the market in terms of volume owing to a growing middle class
and a young population. Moreover, the growing interest of the companies in
exploring the rural markets further aided the growth of the sector.

India is also a prominent auto exporter and has strong export growth expectations
for the near future. In addition, several initiatives by the Government of India and
major automobile players in the Indian market is expected to make India a leader
in the two-wheeler and four-wheeler market in the world by 2025.

1.5.3 Agriculture And Allied Industries Industry

Agriculture is the primary source of livelihood for about 58% of India‘s

population. Gross Value Added by agriculture, forestry, and fishing was estimated
at Rs. 19.48 lakh crore (US$ 276.37 billion) in
FY20. Share of agriculture and allied sectors in gross value added (GVA) of India
at current prices stood at
17.8 % in FY20. Consumer spending in India will return to growth in 2021 post
the pandemic-led contraction, expanding by as

much as 6.6%. The Indian food industry is poised for huge growth, increasing its
contribution to world food trade every year due to its immense potential for value
addition, particularly within the food processing industry. Indian food and grocery
market is the world‘s sixth largest, with retail contributing 70% of the sales.
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The Indian food processing industry accounts for 32% of the country‘s total food
market, one of the largest industries in India and is ranked fifth in terms of
production, consumption, export and expected growth. The total agricultural and
allied products exports stood at US$ 41.25 billion in FY21.

1.5.4 Insurance Industry

The insurance industry of India has 57 insurance companies 24 are in the life
insurance business, while 34 are non-life insurers. Among the life insurers, Life
Insurance Corporation (LIC) is the sole public sector company. There are six
public sector insurers in the non-life insurance segment. In addition to these, there
is a sole national re-insurer, namely General Insurance Corporation of India (GIC
Re).

Other stakeholders in the Indian Insurance market include agents (individual and
corporate), brokers, surveyors and third-party administrators servicing health
insurance claims. In India, the overall market size of the insurance sector is
expected to US$ 280 billion in 2025.

The life insurance industry is expected to increase at a CAGR of 5.3% between

2019 and 2023. India ‘s insurance penetration was pegged at 4.2% in FY21, with
life insurance penetration at 3.2% and non-life insurance penetration at 1.0%. In
terms of insurance density, India ‘s overall density stood at US$ 78 in FY21.

1.5.5 Education Sector

India holds an important place in the global education industry. India has one of
the largest networks of higher education institutions in the world. However, there
is still a lot of potential for further development in the education system.

With -26.31% of India ‘s population in the age group of 0-14 years, India ‘s
education sector provides numerous opportunities for growth. India has the world
‘s largest population of about 500 million in the age bracket of 5-24 years, which
provides a great opportunity for the education sector. The education sector in
India was estimated at US$ 91.7 billion in FY18 and is expected to reach US$
101.1 billion in FY19.

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In India, the edtech market is expected to reach US$ 4 billion by 2025, from US$
750 million in
[Link] of colleges in India reached 39,931 in FY19. As of May 17, 2021,
number of universities in
India reached 981. India had 37.4 million students enrolled in higher education in
FY19. In FY20, Gross Enrolment Ratio in higher education in India was 27.1%.
ICAR is one of the largest national agricultural organizations in the world. It has
122 institutes and 67 agricultural universities across India, as of July 2021

1.5.6 Banking Industry

As per the Reserve Bank of India (RBI), India ‘s banking sector is sufficiently
capitalized and well-regulated. The financial and economic conditions in the
country are far superior to any other country in the world. Credit, market and
liquidity risk studies suggest that Indian banks are generally resilient and have
withstood the global downturn well.

Indian banking industry has recently witnessed the roll out of innovative banking
models like payments and small finance banks. RBI‟s new measures may go a
long way in helping the restructuring of the domestic banking industry. The digital
payments system in India has evolved the most among 25 countries with India ‘s
Immediate Payment Service (IMPS) being the only system at level five in the
Faster Payments Innovation.

The most prevalent trend in the financial services industry today is the shift to
digital, specifically mobile and online banking (more on each of those in a bit). In
today’s era of unprecedented convenience and speed, consumers don’t want to
have to trek to a physical bank branch to handle their transactions.

Market size:

The Indian banking system consists of 12 public sector banks, 22 private sector
banks, 46 foreign banks,56 regional rural banks, 1485 urban cooperative banks
and 96,000 rural cooperative banks in addition to cooperative credit institutions
as of September 2021, the total number of ATMs in India reached 213,145 out of
which 47.5% are in rural and semi urban areas.
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In 2020-2022, bank assets across sectors increased. Total assets across the
banking sector increased to US$ 2.67 trillion in 2022.

1.5.7 FMCG

Fast-moving consumer goods (FMCG) sector is India ‘s fourth-largest sector with

household and personal care accounting for 50% of FMCG sales in India.
Growing awareness, easier access and changing lifestyles have been the key
growth drivers for the sector.

The urban segment (accounts for a revenue share of around 55%) is the largest
contributor to the overall revenue generated by the FMCG sector in India.
However, in the last few years, the FMCG market has grown at a faster pace in
rural India compared to urban India. Semi-urban and rural segments are growing
at a rapid pace and FMCG products account for 50% of the total rural spending.

1.5.8 Road Industry

India has the second-largest road network in the world, spanning a total of 5.89
million kilometres (kms). This road network transports 64.5% of all goods in the
country and 90% of India‘s total passenger traffic uses road network to commute.

Road transportation has gradually increased over the years with improvement in
connectivity between cities, towns and villages in the country. In India, sale of
automobiles and movement of freight by roads is growing at a rapid rate.
Highway construction in India increased at 17.00% CAGR between FY16-FY21.
Despite pandemic and lockdown, India has constructed 13,298 km of highways in
FY21.

1.5.9 Cement industry: India is the second largest producer of cement in the
word. It accounts for more than 7% of the global installed capacity. India has a lot
of potential for development in the infrastructure and construction sector and the
cement sector is expected to largely benefit from it. Furthermore, on the back of
rising rural housing demand, the consumption of cement in India has been
growing consistently as it is one of the cheapest products to buy in terms of Rs.
/Kg. strong expansion of the industrial sector, which has fully recovered from the

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COVID-19 pandemic shock, is one of the main demand drivers for the cement
industry. As a result, there is a strong potential for an increase in the long term
demand the cement industry. Some of the recent initiatives, such as development
of 98 smart cities, is expected to provide a major boost to the sector.

Market size

The cement demand in India is estimated to touch 419.92 MT by FY 2027. As

India has a high quantity and quality of limestone deposits throughout the country,
the cement industry promises huge potential for growth. India has a total of 210
large cement plants out of which 77 are in the states of Andra Pradesh, Rajasthan
and Tamil Nadu. Nearly33% of India’s cement production capacity is based in
south India, 22% in North India, 13% in central and West India, and the remaining
19% is based in East India.

1.5.10 Manufacturing industry:

India is one of the strongest military forces in the world and holds a place of
strategic importance for the Indian government. The top three largest market
segments of the Indian defense sector are military fixed wing naval vessels and
rotorcraft, submarines, artillery, tactical communications, electronic Warfare, and
military and vehicles are some of the other well-known segments. Some of the
major defense manufacturing companies in India are Bharath Earth Movers Ltd
(BEML), Bharath Electronics Ltd (BEL) and Hindustan Aeronautics Ltd. (HAL).

Market size:

According the global power index, the Indian defense sector ranks fourth in terms
of fire power with a score of 0.0979. The Indian government has set the defense
production target at US$ 25.00 billion by 2025. India is one of the world’s biggest
defense spenders with a total outlay of Rs5.25 lakh crore, accounting for 13,3

of the total budget and indicating an increase over the budget estimates of 2021-22
by Rs 46 970 crore (US$ 5.9 billion).

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1.5.11 Telecommunication industry:

Now days, India is the world’s second -largest telecommunications market with a
subscriber base of 1.16 billion and has registered strong growth in the last decade.
The Indian mobile economy is growing rapidly and will contribute substantiality
to India’s Gross Domestic Product (GDP) according to a report prepared by GSM
association (GSMA) in collaboration with Boston consulting Group (BCG). In
2019, India surpassed the US to become the second- largest market in terms of the
number of app downloads.

The liberal and reformist policies of the Government of India have been
instrumental along with strong consumer demand in the rapid growth of the Indian
telecom sector. The Government has enabled easy market access to telecom
equipment and a fair and proactive regulatory framework, that has ensured the
availability of telecom services to consumers at affordable prices. The
deregulation of Foreign Direct Investment (FDI) norms have made the sector one
of the fastest- growing and the top five employment opportunity generator in the
country.

Market size:

India is the world’s second-largest telecommunications market. The total

subscriber base, wireless subscriptions as well as wired broadband subscriptions
have grown consistently. Tele-density stood at 84.88%, as of April 2022, total
broadband subscriptions grew to 788.77 million until April 2022 and total
subscriber base stood at 1.16 billion in April 2022.

Gross revenue of the telecom sector stood at Rs.64,801 crore (US$ 8.74 billion) in
the first quarter of FY22.

The total wireless data usage in India grew 16.54% quarterly to reach 32,397 PB
in the first quarter of FY22. The contribution of 3G and 4G data usage to the total
volume of wireless data usage was 1.78% and 97.74%, respectively, in the third
quarter of FY21. Share of 2G data usage stood at 0.48% in the same quarter.

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The total number of internet subscribers reached 836.86 million in April -June
2022. The wireless segment accounted for 95.4% of the total telephone
subscriptions in June 2022.

Over the next five years, rice in mobile phone penetration and decline in data
costs will add 500 million new internet users in India, creating opportunities for
new businesses.

By 2025, India will need 22 million skilled workers in 5G -centric technologies

such as internet of things (IOT), Artificial Intelligence (AI), robotics and cloud
computing.

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CHAPTER-2

INDUSTRY GROWTH AND EVULUATION

TELECOMMUNICATION INDUSTRY

INTRODUCTION

Currently, India is the world’s second-largest telecommunications market with a

subscriber base of 1.16 billion and has registered strong growth in the last decade.
The Indian mobile economy is growing rapidly and will contribute substantially to
India’s Gross Domestic Product (GDP) according to a report prepared by GSM
Association (GSMA) in collaboration with Boston Consulting Group (BCG). In
2019, India surpassed the US to become the second-largest market in terms of the
number of app downloads.

The liberal and reformist policies of the Government of India have been
instrumental along with strong consumer demand in the rapid growth of the Indian
telecom sector. The Government has enabled easy market access to telecom
equipment and a fair and proactive regulatory framework, that has ensured the
availability of telecom services to consumers at affordable prices. The
deregulation of Foreign Direct Investment (FDI) norms have made the sector one
of the fastest-growing and the top five employment opportunity generator in the
country.

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History of telecommunications
The word telecommunications come from the Greek prefix tele-, which means
"distant," combined with the Latin word communicare, which means "to share."

Important telecommunication technologies include the telegraph, telephone, radio,

television, videotelephony, satellites, closed computer networks and the public
internet.

• 1876. The first telephone was invented by Alexander Graham Bell.

This early model required an interpreter, or telegrapher, at both ends.
These first telephones were intercom systems, where two phones were
connected directly.

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• 1877. The invention of the switchboard exchange telephone system

enabled any combination of two phone lines to connect and talk with
each other.

• 1891. Dial telephones were invented, which bypassed the need for an
operator on each call. This made it much quicker and easier to make
calls via telephone.

• 1947. The transistor was invented, which led to the development of

modern electronics, such as computers and calculators.

• 1948. Microwaves began to be used to transmit phone signals, in

places where phone wires did not exist.

• 1960. Phones began to transition from mechanical switching to

electronic switching, which enabled features such as voice messaging,
speed dialing and caller ID.

• 1984. The Bell System, which provided AT&T with a near-monopoly

over telecommunications services in the U.S., was broken up, opening
up space for competition for other providers.

• 1984. Cellular and personal communications service (PCS) phone use,

which offered mobile communications beyond two-way radio use, was
introduced.

• 1990s. Use of the modern internet became widespread.

• 2000s and beyond. The first decade of the 2000s saw mobile phones
grow increasingly sophisticated. By 2012, smartphone usage was
widespread

What is telecommunications (telecom)?

Telecommunications, also known as telecom, is the exchange of information over

significant distances by electronic means and refers to all types of voice, data and
video transmission.

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This is a broad term that includes a wide range of information-transmitting

technologies and communications infrastructures, such as wired

phones; mobile devices, such as cell phones; microwave communications; fiber-

optics; satellites; radio and television broadcasting; the internet; and telegraphs.

A complete, single telecommunications circuit consists of two stations, each

equipped with a transmitter and a receiver. The transmitter and receiver at any
station may be combined into a single device called a transceiver. The medium of
signal transmission can be via electrical wire or cable -- also known as copper --
optical fiber, electromagnetic fields or light. The free space transmission and
reception of data by means of electromagnetic fields is
called wireless communications.

Types of telecommunications networks

The simplest form of telecommunications takes place between two stations, but it
is common for multiple transmitting and receiving stations to exchange data
among themselves. Such an arrangement is called a telecom network. The internet
is the largest example of a telecommunications network. On a smaller scale,
examples include the following:

• corporate and academic wide area networks (WANs);

• telephone networks;

• cellular networks;

• police and fire communications systems;

• taxi dispatch networks;

• groups of amateur (ham) radio operators; and

• broadcast networks.

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Data is transmitted in a telecommunications circuit by means of an electrical

signal called the carrier or the carrier wave. In order for a carrier to convey
information, some form of modulation is required. The mode of modulation can
be categorized broadly as analog or digital.

In analog modulation, some aspect of the carrier is varied in a continuous fashion.

The oldest form of analog modulation is amplitude modulation (AM), which is
still used in radio broadcasting at some frequencies. Digital modulation actually
predates AM; the earliest form was Morse code. Modern telecommunications
use internet protocols to carry data across underlying physical transmissions.

Executive summary

1. SECOND-LARGEST SUBSCRIBER BASE ▪ India has the second-

largest telecom network in the world. ▪ In India, the total subscriber base
stood at 1167.82 million in April 2022
2. RISING PENETRATION RATE ▪ Telecom penetration, also known as
teledensity, has grown rapidly over the last few years. ▪ Tele-density
increased from 18.23% in FY16 to 88.17% in FY21. ▪ In December 2021,
tele-density stood at 85.91%.
3. SECOND-HIGHEST NUMBER OF INTERNET USERS ▪ India has
the second-highest number of internet subscribers globally. ▪ The total
number of internet subscribers reached 836.86 million in April-June 2022.

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4. HIGHER INVESTMENT FROM FOREIGN PLAYERS ▪ In January

2022, Google made a US$ 1 billion investment in Airtel through the India
Digitization Fund. ▪ Similarly, other global vendors such as Samsung,
Cisco, Ciena, Jabil, Foxconn, Sanmina and Flex have shown interest to set
up manufacturing in India for telecom and networking products under the
newly announced PLI scheme. ▪ FDI inflow in the telecom sector stood at
US$ 39.05 billion between April 2000-September 2022

Advantage India

1. ROBUST DEMAND • Tele-density of rural subscribers reached 58.16%

in April 2022. From around 4,200 petabytes in 2018, India's overall
wireless internet data usage has increased by almost 7x to 32,397 petabytes
in 2021. • Also, India is one of the biggest consumer of data worldwide.
As per TRAI, average wireless data usage per wireless data subscriber was
14.1 GB per month in FY20.

2. ATTRACTIVE OPPORTUNITIES • India's 5G subscriptions to have

350 million by 2026, accounting for 27% of all mobile subscriptions. The
Government of India has introduced Digital India programmer where
sectors such as healthcare, retail, etc. will be connected through internet.
For domestic consumption and export, Ericsson will start manufacturing
5G radio products in India. The PLI has already triggered entry of several
global players manufacturing mobile devices and components. By 2025,
India will need ~22 million skilled workers in 5Gcentric technologies such

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as Internet of Things (IoT), Artificial Intelligence (AI), robotics and cloud

computing.
3. POLICY SUPPORT • 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. On October 14,
2021, 31 companies comprising 16 MSMEs and 15 Non-MSMEs (eight
domestic and seven global companies) have been approved under the
Production-linked Incentive (PLI) Scheme. In October 2021, the
government notified 100% foreign direct investment (FDI) via the
automatic route from previous 49% in the telecommunications sector. To
drive the development of 6G technology, the Department of
Telecommunications (DoT) has developed a sixth generation (6G)
innovation group.

4. INCREASING INVESTMENT • In Union Budget 2022-23 the

Department of Telecommunications was allocated Rs. 84,587 crore (US$
11.11 billion). Of this, Rs. 30,436 crore (US$ 3.99 billion) was revenue
expenditure at 36% of the total expenditure and Rs. 54,150 crore (US$
7.11 billion) was capital expenditure at 64.01% of total expenditure. Under
Union Budget 2021-22, the government allocated Rs. 14,200 crore (US$
1.9 billion) for telecom infrastructure that entails completion of optical
fiber cable-based network for Defense services, rolling out broadband in
2.2 lakh panchayats and improving mobile services in the North East.

5. Current Industry Structure

The Current structure of the telecom industry in India has both players,
private and public sectors. All segments of the telecom industry were
permitted for the private players, including ILD, NLD, basic cellular, and
internet. The following diagram represents the structure of the telecom
industry in terms of service providers.

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Figure 1

TOP TELECOMMUNICATION COMPANIES IN

INDIA

1. Bharati airtel
2. GTL Infrastrtucture Ltd.
3. Himachal Futuristic Communications Ltd. (HFCL)
4. Indus Towers Ltd.
5. Mahanagar Telephone Nigam Ltd. (MTNL)
6. Reliance Jio Infocomm Ltd.
7. Tata Communications Ltd.
8. Tata Teleservices Maharashtra Ltd.
9. Tejas Networks Ltd.
10. Vodafone Idea Ltd.

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Bharti Airtel Ltd

Bharti Airtel Ltd was founded by Sunil Mittal in the year 1995. It is headquartered
in New Delhi India. The company operates in about 20 countries across South
Asia and Africa. Airtel provides GSM, 3G, 4G LTE mobile services, fixed-line
broadband, and voice services depending upon the country of operation. Its
divisions include Mobile Services, Telemedia Services, Digital TV services, Airtel
business, and tower infrastructure services. The company ranks top among
telecom companies in India.

GTL Infrastructure Ltd

GTL Infrastructure Ltd was founded in the year 2004. The company is
headquartered in Navi Mumbai, Maharashtra, India. The company is a part of
the Global Group and is known as India’s independent telecom tower company.
The company has about 28,000 towers located across 22 telecom cities in India,
which enables telecom service providers to offer 2G, 3G, and 4G services across
the country. To get more information about the company like key executives’
details, turnover, or number of employees subscribe to Fundoodata paid plans.

Himachal Futuristic Communications Ltd (HFCL)

Himachal Futuristic Communication Ltd was founded in the year 1987. The
company specializes in manufacturing high technological telecom equipment,
optical fiber cables, and telecom projects. The company has its headquarters
located in Himachal Pradesh, India. The company is one of the top telecom
companies in India. The company also offers professional engineering services,
including installation and commissioning services for the development of the
optical transport network.

Indus Towers Ltd.

In India, Indus Towers (formerly known as Bharti Infratel) owns over 38,500
towers across 11 circles. Indus Towers is India’s largest mobile tower installation
company. In India, 3 out of every 5 calls made are through an Indus site. The

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company is one of the top telecom companies in India. With Fundoodata paid
plans, you can access more information about the company like the number of
employees, turnover, decision-makers details, and more.

Mahanagar Telephone Nigam Ltd (MTNL)

It is among the top telecom companies in India. It is headquartered in New Delhi.

The company is serving Mumbai and New Delhi. The product range of MTNL
includes fixed-line, mobile telephony, wired, wireless broadband, fiber-to-the-
home, dial-up, internet, IPTV, digital television. MTNL has set up a wholly-
owned subsidiary called Mahanagar Telephone Mauritius Limited (MTML) in
Mauritius, providing mobile and international long-distance services. With
Fundoodata paid plans, you can access more information about the company like
the number of employees, turnover, decision-makers details, and more.

Reliance Jio Infocomm Ltd

The company is owned by the famous Reliance Industries Ltd. Reliance Jio
Infocomm Ltd was founded by Mr. Mukesh Ambani in the year 2007 and is
headquartered in Mumbai, India. The company operates a national LTE network
with coverage across all 22 telecom circles. The company uses voice-over LTE
(VOLTE) to provide voice service on its network. To get more information about
the company like key executives’ details, turnover, or number of employees
subscribe to Fundoodata paid plans.

Tata Communications Ltd

Tata Communications Ltd was founded in the year 1986 and is headquartered in
Pune, Maharashtra, India. The company is a part of the famous TATA
Group. The company offers voice and data transmission services; Internet
connectivity services; and other value-added services, such as unified
conferencing and collaboration, managed hosting, mobile global and roaming, and
signalling, and other managed services. The company is one of the top 10 telecom
companies in India.

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Tata Teleservices Maharashtra Ltd

The company is Indian broadband and telecommunication services provider. It is

based out in Mumbai, Maharashtra. The company is a subsidiary of the Indian
Conglomerate, Tata Group. Its product range includes fixed-line, mobile
telephony, fixed-line internet services, digital television, and network services.
The company is offering various Pre-Paid and Post- Paid tariff plans. To get more
information about the company like key executives’ details, turnover, or number
of employees subscribe to Fundoodata paid plans.

Tejas Networks Ltd

Tejas Networks Ltd was founded in the year 2000 and has its headquarters located
in Bangalore, India. The company provides carrier-grade communications
equipment and solutions for the telecom industry. The company is a supplier of
optical networking equipment to telecom carriers across the world. The company
offers products such as converged packet optical, packet transport network, and
enterprise Ethernet switches and provides mobile backhaul, video transport, and
wireless broadband access.

Vodafone Idea Ltd

One of India’s top and leading telecom companies, Vodafone Idea Ltd is India’s
largest telecom operator with its headquarters located in Mumbai, Maharashtra.
Vodafone Idea is a pan-India integrated GSM operator offering 2G, 3G, and 4G
(LTE) mobile services under two brands named Vodafone and Idea. The
company is the second-largest mobile telecommunications network in the world.
The company was formerly known as Idea Cellular Ltd. To get more information
about the company like key executives’ details, turnover, or number of employees
subscribe to Fundoodata paid plans.

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Growth and Development of Telecommunication in India

The Indian Telecom Industry comprises of various segments that are an indicator
of its growth and development. It is broadly divided into two segments, Fixed
Communication and Mobile Communication. The Wireless Communication is the
fastest growing segment of the Indian

Telecom Industry. Through the development of wireless communication, it has

become easier to transmit information between two or more points that cannot be
connected by an electrical conductor. The wireless technologies being employed
presently by the Indian Telecom Industry are Cellular (mobile) phones,
Television, Radio etc. The private telecom operators now dominate the wireless
market. However, this was not the case in the beginning. The changes in the
market structure were mainly due to the changes in the National Telecom Policy
of 1999. The Government of India is providing benefits to private players to grow
in this sector. Mobile phone communication is one of the best known examples of
wireless technology and is also known as cellular phone communication.

Growth of Subscriber base (in million) from 2007 to 2016

Financial Year Wireless Wireline Total

2006-2007 14.61 3.61 18.22
2007-2008 22.78 3.44 26.22
2008-2009 33.71 3.27 36.98
2009-2010 49.6 3.14 52.74
2010-2011 67.98 2.91 70.89
2011-2012 76 2.66 78.66
2012-2013 70.85 2.47 73.32
2013-2014 72.94 2.3 75.23
2014-2015 77.27 2.12 79.38
2015-2016 81.38 1.98 83.36

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Service Financial Year in millions

Providers
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Bharathi 37.14 61.98 93.92 127.6 162.2 181.2 188.2 205.3 226.0 252.2
2 0 8 0 9 2 1
Vodafone 26.44 44.13 68.77 100.8 134.5 150.4 152.3 166.5 183.8 197.9
6 7 7 5 6 0 9
Idea 14.01 24.00 43.02 63.82 89.50 1 121.6 135.7 157.8 174.6
12.72 1 9 1 9
Reliance 28.01 45.79 72.67 102.4 135.7 153.0 122.9 1 109.4 102.5
2 2 5 7 10.89 7 2
Bsnl 30.99 40.79 52.14 69.45 91.83 98.51 101.2 94.65 77.22 101.1
1 1
Aircel 5.51 10.61 18.48 36.86 54.84 62.57 60.07 70.15 81.40 87.66
Tata 16.02 24.33 35.12 65.94 89.14 81.75 66.42 63.00 66.32 59.70
Telenor 0.00 0.00 0.00 0.00 0.00 0.00 31.68 35.61 45.62 52.43
Sistema 0.00 0.00 0.39 3.78 10.06 15.80 11.91 9.04 8.86 7.65
Videocon 0.00 0.00 0.00 0.03 7.11 5.95 2.01 4.99 7.13 5.15
MTNL 2.94 3.53 4.48 5.09 5.47 5.83 5.00 3.37 3.51 3.57
Loop 0.00 0.00 2.16 2.84 3.09 3.27 3.01 2.90 0.00 0.00
Quadrant 0.00 0.00 0.00 0.00 0.00 0.00 1.37 2.17 2.73 3.19
Etisalat 0.00 0.00 0.00 0.00 0.97 0.782 0.00 0.00 0.00 0.00
S Tel 0.00 0.00 0.00 1.01 2.82 3.43 0.00 0.00 0.00 0.00
HFCL 0.15 0.30 0.60 0.33 1.47 1.33 0.00 0.00 0.00 0.00
Unitech 0.00 0.00 0.00 4.26 22.79 42.43 0.00 0.00 0.00 0.00
BPL 1.07 1.29 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Spice 2.73 4.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Shyam 0.10 0.1 1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total 165.1 261.0 391.7 584.3 811.5 919.1 867.8 904.5 969.8 1033.
1 7 6 2 9 7 0 1 9 63
Service-provider wise

Subscribers base (in million) from 2007 to 2016

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INVESTMENT/MAJOR DEVELOPMENT

With daily increasing subscriber base, there have been a lot of investment and
development in the sector. FDI inflow in the telecom sector stood at US$ 39.02
billion between April 2000-September 2022.

Some of the developments in the recent past are:

• In January 2022, Google made a US$ 1 billion investment in Airtel

through the India Digitization Fund.

• In October 2021, Vodafone Idea stated that it is in advanced talks to sell a

minority stake to global private equity investors including Apollo Global
Management and Carlyle to raise up to Rs. 7,540 crore (US$ 1 billion)
over the next 2-3 months.

• In October 2021, British satellite operator Inmarsat Holdings Ltd.

announced that it is the first foreign operator to get India’s approval to sell
high-speed broadband to planes and shipping vessels. Inmarsat will access
the market via Bharat Sanchar Nigam Ltd. (BSNL) after BSNL received a
license from the Department of Telecommunications.

• In October 2021, Dixon Technologies announced plans to invest Rs. 200

crore (US$ 26.69 million) under the telecom PLI scheme; this investment
will include the acquisition cost of Bharti Group’s manufacturing unit.

• In September 2021, Bharti Airtel announced an investment of Rs. 50

billion (US$ 673 million) in expanding its data centre business to meet the
customer demand in and around India.

• In August 2021, Tata Group company Nalco announced that the company
is in talks with Canadian firm Tele sat to sign a commercial pact for
launching fast satellite broadband services in India under the latter’s
Lightspeed brand, a move which will pit the combined entity against
Bharti Enterprises-backed One Web, Elon Musk’s SpaceX and Amazon.

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• In March 2021, Vodafone Idea Ltd. (VIL) announced that the acquired
spectrum in five circles would help improve 4G coverage and bandwidth,
allowing it to offer ‘superior digital experience’ to customers.

• In March 2021, Advanced Television Systems Committee (ATSC) and

Telecommunications Standards Development Society, India (TSDSI)
signed a deal to boost adoption of ATSC standards in India in order to
make broadcast services available on mobile devices. This allows the
TSDSI to follow ATSC standards, fostering global digital broadcasting
standard harmonization.

• In the first quarter of FY21, customer spending on telecom services

increased 16.6% y-o-y, with over three-fourths spent on data services. This
spike in consumer spending came despite of the COVID-19 disruption and
lack of access of offline recharges for a few weeks

• India had over 500 million active internet users (accessed Internet in the
last one month) as of May 2020.

GOVERNMENT INITIATIVES

The Government has fast-tracked reforms in the telecom sector and continues to
be proactive in providing room for growth for telecom companies. Some of the
key initiatives taken by the Government are as follows:

• In Union Budget 2022-23 the Department of Telecommunications was

allocated Rs. 84,587 crore (US$ 11.11 billion) out of which Rs. 30,436
crore (US$ 3.99 billion) was revenue expenditure which was 36% of the
total expenditure and Rs. 54,150 crore (US$ 7.11 billion) was capital
expenditure which is 64.01% of total expenditure.

• To drive the development of 6G technology, the Department of

Telecommunications (DoT) has developed a sixth generation (6G)
innovation group.

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• In October 2021, Telecom Secretary Mr. K. Rajaraman inaugurated the

Quantum Communication Lab at the Centre for Development of
Telematics (C-DOT), Delhi, and unveiled the indigenously developed
Quantum Key Distribution (QKD) solution by C-DOT. QKD can support a
distance of >100 kms on standard optical fiber.

• In August 2021, the Department of Telecommunications (DoT) initiated

discussions with banks to address financial stress in the telecom sector,
particularly Vodafone Idea Ltd. (VIL) that urgently requires fund infusion
to stay afloat.

• FDI cap in the telecom sector has been increased to 100% from 74%; out
of 100%. In October 2021, the government notified 100% foreign direct
investment (FDI) via the automatic route from previous 49% in the
telecommunications sector. FDI of up to 100% is permitted for
infrastructure providers offering dark fiber, electronic mail and voice mail.

• Following are the achievements of the Government in the past four years:

o Department of Telecommunication launched ‘Tarang Sanchar’ - a

web portal sharing information on mobile towers and EMF
Emission Compliances.

o Payments on unified payments interface (UPI) hit an all-time high

of 3.65 billion (by volume), with transactions worth ~Rs. 6.54
trillion (US$ 87.11 billion) in September 2021.

o Over 75% increase in internet coverage—from 251 million users to

446 million.

RECENT TRENDS AND STRATERGIES

1. Internet of Things

IoT devices and sensors influence almost all industries of the technology
economy. It improves people’s quality of life, allows businesses to increase their

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profits, and improves management. IoT is also beneficial for governments looking
to decrease their information technology (IT)-related expenses. Interconnection
between devices, sensors, infrastructure, and computing elements further enables
new ways for management. For example, decentralized operations, condition-
based monitoring, and predictive maintenance ensure efficient communications
between various IoT devices. In this way, IoT automates production processes
and allows the implementation of Industry 4.0 concepts in the telecom sector.

2. Connectivity Technologies

Connectivity technologies are constantly evolving and include both wired and
wireless communications. The development of communications technology is
critical in today’s IT environment, with increasing data volumes, IoT devices, and
people using the internet. Further, users increasingly share high-quality digital
data, such as videos, photos, and music. All of these factors, along with
the increasing use of satellite communications, contribute to the emerging telecom
trends with innovation in connectivity technologies.

3. 5G Network & Technology

5G technology is the next big upgrade for telecommunication networks and

devices. It provides a much higher speed, than previous cellular broadband
network standards, and, most importantly, has much lower latency. Latency is
very important for cloud gaming as well as VR content streaming. Massive
machine-type communications (mMTC) that 5G networks provide enable the
creation of high-density IoT networks, from IIoT to smart homes. Such
widespread applications make 5G one of the most important upcoming technology
trends for the telecommunication sector.

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[Link] Intelligence

Artificial intelligence (AI) and machine learning (ML) are other big telecom
trends impacting the industry. Digital transformation requires the extraction of
meaningful information from data, gathered by IoT sensors and devices. At the
same time, the expansion and complication of the internet create the need for high
speeds and low latencies, prompting new solutions for internet connection
management. To this end, startups develop AI solutions that resolve numerous
problems related to network performance.

5. High Resolution Content

The penetration of smartphones and reliable internet leads to increased

consumption of high-quality, and often heavy-to-transfer, content. The growth in
high-resolution content, in turn, drives improvements in the quality of traditional
information media such as videos, pictures, and music. Novel telecommunications
help businesses adapt to new types of information media, such as virtual,
augmented, and mixed reality- (VR/AR/MR) and cloud-based gaming. These new
types of content require not only high-speed transmission but also low latency,
prompting startups to develop high-capacity telecommunication networks.

6. Cybersecurity

The increasing number of cyber-attacks and low-security IoT devices, new central
processing unit (CPU) hardware vulnerabilities, and the growing dependence on
computing infrastructure makes tackling security risks challenging. In any
industrial network, systems are continuously managed in an attempt to stay ahead
of evolving cyber threats, but these methods often conflict with the network’s core
requirements of reliability and availability. Startups innovate industrial networks
by allowing systems to remain dynamic when faced with attacks or vulnerabilities.

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7. Cloud Computing

Cloud computing is a fast-growing technology trend within telecommunications.

The spreading of IoT devices and the use of more sophisticated ML algorithms
leads to the high demand for computing power. There are many benefits of
migrating data, applications, and other business elements to a cloud computing
environment. From equipment, platforms, infrastructure, and company
functions, cloud startups offer greater connectivity and integration solutions for
businesses. All connected environments, from cities and factories to houses and
cars, require improvements in cloud integration technologies.

8. Communication Models

The spread of smart and IoT devices also leads to an increase in communication
channels, such as machine-to-machine (M2M), vehicle-to-everything (V2X),
device-to-device (D2D), human-to-machine. Communication models differ in the
connectivity technologies they use from hardware to software. Communication
models are combined to include next-generation Wi-Fi & Bluetooth, which are the
basis for new products and technologies for a wide range of companies – from
large banks and car manufacturers to startups and scaleups.

9. Software-Defined Networks (SDNs)

In today’s increasingly digital environment, business applications require high-

performing and extensive networking operations. Particularly for cloud
computing, it is essential for businesses to deploy, manage, and support
connectivity across a variety of environments. Typically, complex tools are
required to build and manage modern software-defined networking technology.
Some vendors only provide solutions that work on their equipment, which then
limits the extent of communications capabilities. Startups develop SDN to
improve network performance, monitor its performance, and enable centralized
control.

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10. Edge Computing

Edge computing brings data computation and data storage closer to the source of
data instead of a centralized remote cloud. This reduces latency, increases
bandwidth, and simplifies maintenance while it allows industrial manufacturing
companies to expand their computing capacity by combining devices with edge
data centres at lower costs. Lower latencies and high speeds are required for
modern applications, like cloud gaming and VR. Edge Computing greatly
improves the quality of experience for end-users and lowers data exchange
requirements

ADAVANTAGE AND DISADVANATAGES OF

TELECOMMUNICATION

“Communications technology is a crucial part of both todays and tomorrow’s

society.”
Telecommunication also referred to as e-commuting or e-work, is that the term
used when individuals cash in on the various technological advances to figure
from anywhere they desire, giving themselves. Furthermore, it’s important to
notice that telecommuting should be approved by the employer whereas
telecommuting may be a topic of which opinions differ. Not every organization
allows its employees to figure at their home rather than at the particular office.
Telecommuting seems to be mainly driven by a change in management attitudes,
improvements in technology, savings in office costs, and therefore the demand
from the staff (Haynes, 2000).
Advancements in telecommunication technologies have greatly impacted the
way people interact with each other at a worldwide level. In today’s world, they
communicate easily through voice calls, video calls, and data sharing
applications. By adopting a classy telecom system, many businesses have
realized improved productivity, better customer service, and increased growth.

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Advantages of Telecommunication

• Quick and accessible communication

• Lack of time period
• Saves time
• Saves gasoline (do not need to drive distance)
• More than two people can communicate with at least one another at
an equivalent time
• Next “best thing” to being there
• Easy to exchange ideas and knowledge via phone and/or fax
• Worldwide access
• Easy access to the people you would like to contact.
• Less effort in using transportation just to satisfy a private personally.
• You can just occupy your home and use a telephone or a cell phone if
you would like to speak to someone.
• Enable end-users to speak electronically and share hardware,
software, and data resources.
• This makes corporation to do the transaction at the point only and in
a very fast way from many remote locations, exchange business
documents electronically with customers and suppliers, or remotely
monitor and control production processes.
• Interconnect the pc systems of a business so their computing power is
often shared by end-users throughout an enterprise.
• Make the organization work with collaboration and communication
among the staff inside and out of doors a corporation.
• Speed
• Develops new products and inventions
Disadvantages of Telecommunication
• Cultural Barrier
• Misunderstanding
• Prank calls
• Sometimes expensive
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• High electric bills

• Remote areas don’t have access
• Remote areas might not be ready to afford the necessary equipment
• Cannot see whom you’re speaking with
• Cannot see facial expressions, therefore results in misunderstandings
• Cultural baiers
• Poor connections or downed power lines during/after storms

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CHAPTER- 3

SWOT ANALYSIS OF TELECOM INDUSTRY IN INDIA

An Overview of the Indian Telecom Industry

The telecommunication in India began with the telegraph in which the first
electric telegraph line was started between Calcutta and Diamond Harbor in
[Link] British East India Company began to use it in 1851.

In 1881, the Oriental Telephone Company Limited of England was granted

the license for opening the exchanges of the telephone at Calcutta, Bombay,
Madras, and Ahmedabad in which it was the first formal telephone service
provider in India. Before that and in 1880, the request of both telephone
companies, Oriental Ltd and The Anglo-Indian Telephone Company Ltd
request for the government of India to permit them establishing their
telephone exchange was refused. And that was because of the governmental
monopoly on the establishment of telephones.

Up to 1984, the Indian telecom sector was owned by the government, and the
private sector was only permitted to manufacture the telecom equipment. In
1984, and after the department of post and telegraph was separated in 1985,
the telecom industry evolved. A new department of posts and department of
telecommunications (DoT) were formed.

The Department of Telecom (DoT), In the year 1975, was responsible for the
telecommunication services in the entire country. The government opened the
telecommunications market up for private investment in the 1990s due to the
rapidly increasing demand for telephones. That was a part of liberalization-
privatization globalization policies. So, the investment was permitted for the
private sector, and the mobile telecom sector was opened for competition.
The National Telecommunication Policy (NTP) was announced by the
government after that period and most specifically in 1994 to define
particular objectives like provision for world-class services with affordable
price, availability of telephones and basic telecom services, increasing the
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competitiveness of the Indian telecom market, promoting exports and

attracting foreign direct investments (FDI). TRAI (Telecom Regulatory
Authority of India) was first established in 1997. This reduced government
interference in the decision-making of tariffs and policies. In 2000, The
Government of India renamed the department of telecom (DoT) as Bharat
Sanchar Nigam Limited (BSNL).

India entered the arena of 3G in 2008 in which the government-owned MTNL

and BSNL enabled mobile and data services. Later on, and in 2010, private
corporations started launching their services. In 2010, India was ranked third
worldwide in terms of telecommunication network after China and USA.
With 638 million subscribers of telephone both landline and mobile, in which
584 million mobile phone connections. The country was expected to exceed
the USA and become the second world's largest industry after China in the
next few years.

4:2 The Present Scenario of the Indian Telecom Industry:

The present scenario of the telecom industry is discussed in terms of the
evolution of mobile technology from 1G to 4G, current industry structure,
total subscribers and teledensity, internet subscription, telecom's gross
revenue, and foreign direct investment.

The Evolution of Mobile Technology from 1G to 4G:

The wireless sector technology updated from 1G to 5G resulted in providing
customers with mobile broadband and faster data speed.

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Figure1

Total subscribers and Tele-density

Presently, India is the second-largest telecommunication market and has the
world's second highest number of internet users, which are accounted for 12
percent of global internet users. India's telephone witnessed an expansion in
the number of subscribers at a compound annual growth rate (CAGR) of 3.78
percent, in which the number of mobile subscribers in the country reached
1,183.51 million in FY19. In the same year, Tele-density (defined as the
number of telephone connections for every 100 individuals), as well as total
telephone subscribers in India, stood at 90.11 percent with a total number
reached to 1,177.02 million. In FY20 (till January 2020), the data shows a
slight decline in the number of subscribers and tele-density representing
87.45 percent with a total number of 1,177.02 subscribers.

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Figure 3

Source: Telecommunications (IBEF 2020)

Internet Subscription
As shown in the below diagram, the number of internet subscribers in India in
FY16 was 342.65 million and doubled in FY20, to reach 687.62 million. And
there is an expectation that the internet subscribers are going to reach 829
million by 2021. India has the highest data usage per smartphone in the
world, with an average of 9.8 GB per month as of 2019 records, and by 2024,
it is expected to double to 18 GB.

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Figure 4

Source: Telecommunications (IBEF 2020)

Telecom Sector gross Revenue

The gross revenue of the telecom industry fell from US$ 40.29 billion in
FY16 to US$ 33.97 billion in FY19. The telecom sector total revenue stood at
Rs 121,527 crore (US$ 17.39 billion) in FY20 (April-September 2019).
Hence, there is an expectation that the gross revenue of the telecom industry
is going to grow 7 percent in [Link] because of stabilizing tariff war and
the increase in the subscriber's spending due to minimum recharge plans.

Figure 5

Source: Telecommunications (IBEF 2020)

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[Link] Foreign Direct Investment (FDI) in Indian

Telecommunications
During April 2000-December 2019, Foreign Direct Investment (FDI) inflow
into the telecom sector with a total of US$ 37.11 billion. The FDI into the
telecom sector at that period accounted for nearly eight percent of total FDI
inflow into the country. In May 2020, Deals Involving Facebook, Silver
Lake, Vista, and General Atlantic, Reliance Jio raised US$ 9.50 billion. And
the most significant action in this regard is that 100 percent FDI in Bharati
Airtel was allowed by the Government of India.

Figure 6

Source: Telecommunications (IBEF 2020)

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SWOT Analysis in Indian Telecom Industry

Table 1

Strengths Weaknesses

Huge customer potential Low customer retention power

High growth rate The high cost of infrastructure
Relaxed FDI norms Late adoption of 4G and
Advanced technology advanced wireless technologies
Affordability and lower rates Low broadband penetration

Opportunities Threats

Mobile penetration Intense competition

Changing population psychograph Government policies
Increase in Internet users Spectrum auction
Untapped rural market Lack of fixed-line penetration
5G introduction New technology can change market
dynamics

Strengths:

Huge customer potential

The Indian telecommunication industry is the second-largest market
and the second highest country in terms of internet subscribers in the
world. Mobile subscribers reached 1,183.51 million in FY19—
internet users in India, representing 12 percent of global users.

High growth rate

In FY20 (till September 2019), gross revenue of the telecom sector In
India stood at Rs 121,527 crore (US$ 17.39 billion. India is currently
the second-largest telecom market in the world and has registered
strong growth in the past decade and a half. India has also recorded a
165 percent growth in app downloads in the past two years. In the first
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three months of 2019, Indian telecom registered 4.8 billion downloads

of mobile applications.

Foreign direct investment (FDI)

Indian telecom sector witnessed a relaxation in foreign direct
investment (FDI). From 74 percent, FDI in the telecom sector has
been increased to 100 percent. Dark fiber, electronic mail, and voice
mail infrastructure providers were permitted up to 100 percent of FDI.

Advanced technology
Indian telecom is already using 4G technology, which is advanced.
And it is expected to advance to the 5G technology in the coming few
years.

Affordability and lower rates

As per a report by Ericsson (2019), India monthly uses an average of
9.8 GB data per smartphone, representing the highest data usage per
smartphone in the world. The Indian telecom sector is expected to be driven
by the availability of affordable smartphones and data with lower data.
Weaknesses:

Low customer retention power

Customers of the telecom companies have a lower level of loyalty,
and they frequently move from one company to another. That's is
considered as weaknesses for the telecom companies.

The high cost of infrastructure

The infrastructure of the telecom industry is costly in general, and
moving from one generation to another requires a high budget.

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Late adoption of 4G and advanced wireless technologies

4G technologies were first deployed in Stockholm, Sweden, an Oslo,
Norway in 2009, India was late to adopt 4G technology in which it
was adopted three years later in 2012 by Airtel.

Low broadband penetration

taking internet connectivity to homes or businesses using an optical
fiber or fixed-line is known as fixed broadband. Broadband
penetration is still at a lower level compared to China and other
European countries. While Indian broadband penetration is around
47%, Chinese is at 95%, and other European nations at about 95-
115% (Nokia MBiT 2020)

Opportunities

Mobile penetration
In 2015, 18.55 percent of the total population of India accessed the
internet from their mobile phones. It increased to 32 percent in 2020,
and there is an expectation that it will grow to 35 percent in 2023.
And that indicates marginal rise in the country's mobile internet user
base (Statista 2020).

Changing population psychograph

Previously telecom service was thought of as an emergency service;
recently, telecom service has become an essential part of life in the
country, while it was previously thought of as emergency service.

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Increase in Internet users

According to TRAI (2019), the total number of Internet subscribers is
687.62 million. And the internet subscribers are expected to reach 829
million by 2021.

Untapped rural market

Rural teledensity increased from 43.05 percent as of March 2016 to
58.03 percent by January 2020. Hence over 62,443 villages in India
are still uncovered, and those villages will be provided with a
telephone facility with subsidy support from the government's
Universal Service Obligation Fund. Therefore, increasing the rural
teledensity and fueling growth across the country.

5G introduction
According to Patrik Cerwall (2018), the Indian government is stating
that 5G technology will be introduced in 2020, but a significant
uptake expected to take place in 2022 with a projection of 38 million
subscriptions of 5G technology in 2024. And that represents 2.7
percent of all mobile subscriptions at the time.

Threats and Challenges

Intense competition
The Indian telecom industry is characterized as a competitive market
where new companies enter the market and others exit. The disruptive
entry of Reliance Jio over three years ago forced other companies to
decrease the price of their services in order to retain their customers.
Companies faced a challenge encountering Reliance Jio, and the
telecom industry was weighed down by nearly Rs 8 lack crore of debt.

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Government policies
The government policies, licenses, tariffs, sharable revenues, etc. are
such threats maybe imposed by the government. Also, giving licenses
for foreign companies to enter the market is considered a threat to the
existing companies in the industry.

Spectrum auction
India has less than 40% of the available spectrum as compared to
European nations and 50% as compared to China. Also, the
government auction spectrum at a high cost.

Lack of fixed-line penetration

Compared to most of the developed countries having a very high
penetration of fixed lines, India has very little penetration of fixed-
line in its network, whereas. India has only around 25% of Towers
that are connected with fiber networks, while an excess of 70% is
there in developed nations. Towers are required for the 5Gnetwork to
be connected with very high-speed systems. And that's a challenge for
the telecom industry in India.

New Technology can change the market dynamics: the

potentiality of replacing the entire industry dynamics and the threat of
creating substitute for the telecom services exist due to the potential
new technology. Technology keeps evolving and changing, so
companies need to adapt and upgrade with new technologies.

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CHAPTER-4

SUMMARY OF FINDINGS, SUGGESTIONS AND

CONCLUSION

Findings:

The telecom industry has been growing rapidly over the past few years, driven by
the increasing demand for high-speed internet, wireless connectivity, and digital
services. Here are some key findings on the telecom industry:

1. Revenue growth: The global telecom industry generated revenues of over

$1.9 trillion in 2020, and this figure is projected to increase to $2.4 trillion
by 2025. This growth is driven by the increasing adoption of mobile
devices, the rise of the Internet of Things (IoT), and the expansion of 5G
networks.
2. Mobile data usage: The use of mobile data has been growing at an
unprecedented rate, driven by the increasing number of connected devices
and the rise of digital services. The average mobile data usage per month
per smartphone user is expected to increase from 8.9 GB in 2020 to 24 GB
by 2025.
3. 5G networks: The deployment of 5G networks is gaining momentum, with
several countries rolling out commercial services. By 2025, 5G networks
are expected to cover over one-third of the world's population, and it is
projected that there will be over 3.5 billion 5G connections by 2026.
4. Competition: The telecom industry is highly competitive, with several
players vying for market share. The competition is intensifying as new
players enter the market, and existing players diversify their offerings to
stay ahead of the curve.
5. Regulatory environment: The telecom industry is subject to several
regulations aimed at promoting competition, ensuring consumer
protection, and safeguarding national security. These regulations vary by

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country and can impact the growth and profitability of players in the
industry.

Overall, the telecom industry is a dynamic and rapidly evolving sector, and
companies that can stay innovative, customer-focused, and agile will be well-
positioned to succeed.

Suggestions:
The telecommunications industry is a rapidly evolving sector, and as such, there
are several suggestions that can help players in this industry stay competitive and
continue to grow:

1. Embrace emerging technologies: The telecom industry is heavily reliant on

technology, and it is crucial for players in this sector to stay on top of
emerging technologies like 5G, IoT, and AI. Investing in these
technologies will not only improve the quality of services offered but also
provide new opportunities for revenue growth.
2. Focus on customer experience: With the increasing competition in the
telecom industry, providing a seamless customer experience is critical.
Telecom companies should invest in providing fast and reliable
connectivity, improving customer service, and providing personalized
experiences.
3. Diversify offerings: Telecom companies should look beyond traditional
voice and data services and explore new business models and revenue
streams. For instance, they can offer cloud-based services, content
streaming, and e-commerce platforms.
4. Partner with other players: Collaboration with other players in the industry
can help telecom companies expand their offerings and improve customer
experience. Partnerships can be with other telecom providers, content
providers, or even non-telecom companies.

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5. Address security concerns: The telecom industry is also prone to cyber

threats, and it is crucial for players to invest in robust security measures to
protect customer data and critical infrastructure.

Overall, the telecom industry is poised for growth, and companies that stay
innovative, customer-focused, and agile will be well-positioned to succeed.

Conclusion

The Indian telecom industry has a strong position in terms of mobile and
internet subscribers, high growth rate, relaxed foreign direct investment
norms (FDI), advanced technology, and affordability of services at a lower
rate. The Indian telecom industry is yet to focus more on getting the
advantages of such future opportunities such as mobile penetration, changing
population psychograph as they started using mobiles not only for necessity,
rather mobiles are used for many activities recently, and this trend is going to
be more common among the rural areas in the future, increase in internet
users, untapped rural market, and adopting 5G technology.

On the other side, the Indian telecom Industry is struggling with such
deficiencies like a lower level of customer retention power and their frequent
movement from one service provider to another, high cost of infrastructure,
lower broadband penetration, and late adoption of 4G technologies. The
telecom industry faces threats of intense competition, government policies,
spectrum auction, and lack of fixed-line penetration.

The study recommends the Indian telecom companies to focus more on the
rural market, which is a potential opportunity for growth. The Indian
government needs to work more on developing the telecom infrastructure to
be able to adapt to the new technology like 5G. At the same time, mobile
penetration is high; the penetration of the fixed-line is low. Hence this issue is
to be considered by the telecom industry decision-makers. Fixed-line should
not be left behind. It needs to be tapped to compete with the global market.

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Learning Experience and Bibliography

Learning Experience
I actually started by doing an industry report about Telecommunication,1st
chapter include an overview of the various types of industries, and industrial
sector classification. In this chapter I learn what is industry sector, what are
the classifications of industry, and advantages of various types of industries.

And the 2nd chapter include how the telecommunication industry was growth
and development. In this chapter I understand market size, how
telecommunication industry will develop, regulatory framework of
telecommunications industry, how was technology changed the telecom
industry.

And the 3 chapter 3 is very important part of this industry analysis [Link]
includes introduction of telecommunication company, SWOT analysis, what
is Strengths, weakness, opportunities and Threats, of telecommunication
sector, In this chapter we can understand the what is Strengths, weakness,
opportunity and Threat of Telecommunication and how Telecommunication
company will turn his weakness to Strength. How they can utilize their
opportunities. All are understanding in these 3 chapters.

Finally, we prepare the 4th chapter it includes overall conclusion about

telecommunication sector. And what suggestions we give to implementation
of the telecommunication industry. I consulted my department
communication’s journals, the textbook I had, my university library as well as
the internet. Many times, I visited my guide for guidance, asking for books
they could recommend: my interesting they did recommend some which was
quite helpful throughout my report.

In this industry report very help very help for increasing my knowledge in the
telecommunication sector.

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Bibliography

1. Deo, A. (2017). Telecom Industry in India: Evolution, Current Challenges &

Future Road Map. Indira Management Review, 11(1), 92-105.
2. Dun & Bradstreet Research–Sectoral Round Table Conference
Series
([Link]
3. Economic Survey 2019-20: Intense competition led to stress in telecom industry,
the Economic Times.
4. Ericsson 2019, "Data usage per smartphone is the highest in India" retrieved
from: [Link]
smartphone-isthe-highest-in-india--ericsson [ Accessed on 25th June, 2020]
5. Petrik Crewel (2018). "India's mobile subscriber base to touch 1.42 billion by
2024, 80% to use 4G" The Economic Times.
6. Pritish, M., & Saxena, T. (2015). An analysis of the Indian telecom industry.
IOSR Journal of Business and Management, 17, 35-42.
7. Shah, N. (2008). Critically analyze the customer preference and satisfaction
measurement in Indian Telecom Industry. Retrieved on January 2011from
[Link] SlideShare. net/guest377d84/telecom sector-thesis.
8. Statista 2019. "Mobile phone internet user penetration in India from 2015 to
2018 with a forecast until 2023". Retrieved
from:[Link]
user-penetration/[ Accessed on 24th June, 2020]
9. Telecom Regulatory Authority of India–Tech Sci Research January 2016
([Link]
10. Telecom Sector 2020. Current Affairs for UPSC IAS. Retrieved from:
[Link] [ Accessed on 23th June,
2020]

11. Telecom Talk 2008-2020 "History of Indian Telecommunications." Retrieved

from:[Link] [
Accessed on 24th June, 2020]

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12. Telecommunications, IBEF Report (2020). Retrieved from:

[Link] [ Accessed on
22nd June, 2020]
13. TRAI Report 2019. Retrieved from:
[Link]
reports. [ Accessed on 21st June, 2020]
14. Vatsala Goyal, Prem raj Suman. "The Indian Telecom Industry" (PDF). IIM
Calcutta. Archived (PDF) from the original on 31 March 2010. Retrieved 26
May 2010.

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