电信业分析英文

TableofContent

ExecutiveSummary 3

AdvantageIndia 4

MarketOverview 6

RecentTrendsandStrategies 17

GrowthDrivers 22

Opportunities 31

IndustryAssociations 35

UsefulInformation… 37

EXECUTIVESUMMARY

Second-largestsubscriberbase

Risingpenetrationrate

Second-highestnumber

ofinternetusers

Affordabilityandlowerrates

Notee:TelecomRegulatoryAuthorityofIndia,ArancaResearch

Source:TelecomRegulatoryAuthorityofIndia,ArancaResearch

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AvailabilityofaffordablesmartphonesandlowerratesofdataareexpectedtodrivegrowthintheIndiantelecomindustry.

Indiahasthesecondhighestnumberofinternetsubscribersglobally.

Totalnumberofinternetsubscribersstoodat512.26millionbytheendofJune2018.

Telecompenetration,alsoknownastele-density,hasgrownrapidlyoverthecourseofthepastfewyears.

Tele-densitygrewfrom18.23percentinFY07to92.84percentinFY18.

Indiahasthesecondlargesttelecomnetworkintheworld.

Totalsubscriberbaseinthecountrystoodat1,189.08million,attheendofAugust2018.

Telecommunication

ADVANTAGEINDIA

ADVANTAGEINDIA

Indiarankssecondintermsofnumberoftelecommunicationsubscriptions,internetsubscribersandappdownloads*globally.

Moreover,Indiaisalsooneofthelargestdataconsumersglobally.Totalmobiledatausageinthecountrygrew144percentyear-on-yearto2,360PBpermonthin

December2017.^

ThegovernmentofIndiahasintroducedDigitalIndiaprogrammeunderwhichallthesectorssuchashealthcare,retail,etc.willbeconnectedthroughinternet.

Also,with70percentofthepopulationstayinginruralareasandatelecompenetrationof58.61percentasofAugust2018,theruralmarketwouldbeakey

growthdriverinthecomingyears.

ADVANTAGEINDIA

ThegovernmenthasbeenproactiveinitseffortstotransformIndiaintoaglobaltelecommunicationhub.

TheGovernmentofIndiaunveiledtheNationalDigitalCommunicationsPolicy,2018inSeptember2018.ThepolicyaimstoattractUS$100billionworthofinvestmentsandgenerate4millionjobsin

thesectorby2022.

Telecommunicationratingsinthecountryareexpectedtostartrisingwithinthenexttwoquarters(Q3andQ42018-19),providinghigherpricing

powertoincumbentplayers.

Notes:*CombinediOSAppStore,GooglePlayandthird-partyandroid,^NokiaMBiTIndex2018

Source:EconomicTimes,TRAI,AppAnnie,DepartmentofTelecommunications

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MARKETOVERVIEW

THETELECOMMARKETSPLITINTOTHREE

SEGMENTS

Telecom

Mobile(wireless)

Fixed-line(wireline)

Internetservices

Source:ArancaResearch

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IncludesInternetServiceProviders(ISPs)thatofferbroadbandinternetconnectionsthroughconsumerandcorporatechannels

Consistsofcompaniesthatoperateandmaintainswitchingandtransmissionfacilitiestoprovidedirectcommunicationsthroughlandlines,microwaveoracombinationoflandlinesandsatellitelink-ups

Comprisesestablishmentsoperatingandmaintainingswitchingandtransmissionfacilitiestoprovidedirectcommunicationsviaairwaves

TELECOMSUBSCRIBERBASEEXPANDS

SUBSTANTIALLY

Indiaiscurrentlythesecondlargesttelecommunicationmarketandhasthesecondhighestnumberofinternetusersintheworld.

India’stelephonesubscriberbaseexpandedataCAGRof17.44percent,reaching1,206.22millionduringFY07–18.

Tele-density(definedasthenumberoftelephoneconnectionsforevery100individuals)inIndia,increasedfrom18.3percentinFY07to92.84percentinFY18.

Totaltelephonesubscriberbaseandtele-densityreached1,189.08

millionand91.11percent,respectively,at

theend

ofAugust2018.

Note:CAGR-CompoundAnnualGrowthRate,FY19*-asofAugust2018

Source:TelecomRegulatoryAuthorityofIndia

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FY07

FY08

205.86

300.49

FY09

429.72

621.28

FY10

846.32

FY11

951.34

FY12

898.02

FY13

933.00

FY14

996.49

FY15

1,058.86

FY16

1,194.58

FY17

1,206.22

FY18

1,189.08

FY19*

GVrioswakthainpatotntalsupbosrtctrriabfefircs(amnidllitoenlet-odnenssit)y

1,400 100

92.9892.84

91.11

83.36 90

1,200 79.38

78.66 75.23 80

70.89

1,000 73.32 70

800 52.74 60

50

600 36.98

40

26.22

400 30

18.23

20

200

10

0 0

TelephoneSubscriber(inmillion) Teledensity

WIRELESSSEGMENTDOMINATESTHEMARKET

AsofAugust2018,totaltelephonesubscriberbaseofIndiareached1,189.08million.

Outofthetotal,wirelesssubscriberbaseaccountedfor98.13percentor1,166.90millionsubscribers.

Inthewirelesssegment,urbanregionsaccountedfor55.51percentshareinthewirelesstelecomsubscriptionsinthecountry,whileruralareasaccountedfortheremaining44.49percentshare.

Note:*-UptoAugust2018

Source:TelecomRegulatoryAuthorityofIndia

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CoVmispaokhsiatpioantnoafmtepleoprhtotrnaeffsicu(bmscillriobnertson(FnYe1s9)*)

1.60% 0.27%

43.66%

54.48%

UrbanWireless RuralWireless UrbanWireline RuralWireline

WIRELESSSUBSCRIPTIONSWITNESSROBUST

GROWTHOVERTHEYEARS

DuringFY07-18,wirelesssubscriptionsinthecountryincreasedata

CAGRof19.61percent,withthenumberofsubscribersreaching1,183.41millioninFY18.

Wirelesssubscriptions

1,166.90million.

at

the

end

of

August

2018

stood

at

Note:CAGR-CompoundAnnualGrowthRate,^CAGRisuptoFY18,*AsofAugust2018

Source:TelecomRegulatoryAuthorityofIndia

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FY07

165.11

FY08

261.07

FY09

391.76

FY10

584.32

FY11

811.59

FY12

919.17

FY13

867.80

FY14

904.51

FY15

969.89

FY16

1,033.63

FY17

1,170.18

FY18

1,183.41

FY19*

1,166.90

VisakWhiarpealetsnsamSupbosrctrtirpatfifoicn(minilMlioilnliotonn)nes)

^CAGR19.61%

1,400

1,200

1,000

800

600

400

200

0

WIRELESSTELE-DENSITYGROWSOVERTHEYEARS

Thewirelesssegment’stele-densitysurgedfrom14.6percentinFY07to91.09percentinFY18.Thefigurestoodat89.41percentattheendofAugust2018.

AsofendofAugust2018,urbanwirelesstele-densityhadreached

156.48percentwhileruralwirelesstele-densityreached58.25percent.

Note:tele-density-Thenumberoftelephonelinesforevery100peopleinacountry,GSM-GlobalSystemforMobileCommunications,CDMA-CodeDivisionMultipleAccess,FY19*-asofAugust2018

Source:TelecomRegulatoryAuthorityofIndia

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FY07

18.23

FY08

26.22

FY09

36.98

FY10

52.74

FY11

70.89

FY12

78.66

FY13

73.32

FY14

75.23

FY15

79.38

FY16

83.36

FY17

92.98

FY18

92.84

FY19*

89.41

VisakWhairpealetnsasmtepleo-rdtetnrasfiftiyci(nmInilldioian(t%o)nnes)

100.00

90.00

80.00

70.00

60.00

50.00

40.00

30.00

20.00

10.00

0.00

SURGINGTELECOMREVENUES

Indiantelecomsector’sgrossrevenuegrewfromUS$32.05billioninFY08toUS$39.49billioninFY18.

GrossrevenueofthetelecomsectorstoodatRs58,401crore(US$

8.71billion)duringthefirstquarterof2018-19.

Note:CAGR-CompoundAnnualGrowthRate,FY–IndianFinancialYear(April–March),FY19*-April-June2018

Source:TelecomRegulatoryAuthorityofIndia,ArancaResearch

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FY08

32.05

FY09

33.02

FY10

33.32

FY11

37.64

FY12

41.69

FY13

39.14

FY14

38.79

FY15

41.69

FY16

40.29

FY17

40.93

FY18

39.49

FY19*

8.71

TVeilesacokhmapSaetcntaomrGprorststrRafefvicen(mueill(iUonS$toBninlleiosn))

45

40

35

30

25

20

15

10

5

0

STRONGGROWTHINBROADBANDDRIVES

INTERNETACCESSREVENUES

TotalbroadbandsubscriptionsinthecountryincreasedataCAGRof

60.03 per cent during FY07–18 to reach 412.60 million.Subscriptionsstoodat463.65million,asofAugust2018.

Thenumberofwiredbroadbandsubscriptionsstoodat18.02million,attheendofAugust2018.

Wirelessbroadbandsubscribers#stoodat445.63million,attheend

of

August2018.

Note:CAGR-CompoundAnnualGrowthRate,^CAGRisuptoFY18,FY19*-uptoAugust2018,#IncludesMobiledevicesusersandFixedwirelesssubscribers

Source:TelecomRegulatoryAuthorityofIndia;

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FY07

2.34

FY08

3.87

FY09

6.22

FY10

8.77

11.87

FY11

FY12

13.79

FY13

15.05

FY14

60.87

FY15

99.20

FY16

149.75

FY17

276.52

FY18

412.60

FY19*

463.65

VisBakrohadpbaatnadmSpuobrstctrriapftfiiocn(sm(ilnliomniltloionnn)es)

^CAGR60.03%

500

450

400

350

300

250

200

150

100

50

0

NUMBEROFINTERNETSUBSCRIBERSINCREASING

ATAFASTPACE

ThenumberofinternetsubscribersinthecountryincreasedataCAGRof42.69percentduringFY06-FY18toreach493.96millionin2017-18.InternetsubscriptionsinIndiasurpassedthe500-millionmarktoreach512.26millionbytheendofJune2018.

Thenumberofinternetsubscribersinthecountryisexpectedto

doubleby2021to829million.OverallIPtrafficisexpectedtogrow4-foldataCAGRof30percentby2021.

Note:CAGR-CompoundAnnualGrowthRate;BSNL-BharatSancharNigamLtd,IP–InternetProtocol,^CAGRisuptoFY18,FY19*-asofendofJune2018

Source:TelecomRegulatoryAuthorityofIndia,BusinessMonitorInternational

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FY07

9.27

FY08

11.09

FY09

13.54

FY10

16.18

FY11

19.67

FY12

22.86

FY13

164.81

FY14

251.59

FY15

302.35

FY16

342.65

FY17

422.19

FY18

493.96

FY19*

512.26

VisakInhtaeprantentasmubpsocrrtiptrtaioffnics(minilMlioilnliotonn)nes)

^CAGR42.69%

600

500

400

300

200

100

0

EXPONENTIALGROWTHINDATACONSUMPTION

Indiaholdsthedistinctionofbeingthelargestconsumerofmobiledataglobally.

Dataconsumptioninthecountryhaswitnessedexponentialgrowthoverthecourseofthepastfewyears.

TotalwirelessdatausageinIndiagrewata147.67percentyear-on-

year

to10,418,076terabytesduring

thefirstquarterof

FY19.

Note:CAGR-CompoundAnnualGrowthRate

Source:TelecomRegulatoryAuthorityofIndia,LokSabha

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VTisoataklhWapiraetlneasmsDpoatrattUrasfafigce(m(inillTioenratboyntneess))

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

0

10,418,076

4,206,415

5,430,046

6,521,893

8,067,633

Q1FY18

Q2FY18

Q3FY18

Q4FY18

Q1FY19

EMERGENCEOFTOWERINDUSTRY

Asurgeinthesubscriberbasehasnecessitatednetworkexpansioncoveringawiderarea,therebycreatinganeedforsignificantinvestmentintelecominfrastructure

Tocurbcostsandfocusoncoreoperations,telecomcompanieshavebeensegregatingtheirtowerassetsintoseparatecompanies.Forexample:RelianceCommunicationshasdecidedtofinaliseadealtosellitsstakeinRelianceInfratel.ThevalueofthedealisaroundUS$3.68billion

Creatingseparatetowercompanieshashelpedtelecomcompaniesloweroperatingcostandimprovecapitalstructure;thishasalsoprovidedanadditionalrevenuestream

InspiredbythesuccessseenbyIndianplayersintowersbusiness,mostoftheoperatorsaroundtheworldarereplicatingthemodel

EmergenceofTowerIndustry

Focusontowersharingtoreducecosts

Segregationoftowersintoseparatecompanies

Higheroperatingcostanddebtburden

Risingcompetition

Source:ArancaResearch

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RECENTTRENDS

ANDSTRATEGIES

NOTABLETRENDSINTHEINDIANTELECOMSECTOR

…(1/2)

GreenTelecom

ExpansiontoRural

Markets

EmergenceofBWA

Technologies

InternetOfThings(IOT

Notes:BWA-BroadbandWirelessAccess,TRAI-TelecomRegulatoryAuthorityofIndia

Source:ArancaResearch

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IoTistheconceptofelectronicallyinterconnectedandintegratedmachines,whichcanhelpingatheringandsharingdata.TheIndianGovernmentisplanningtodevelop100smartcityprojects,whereIoTwouldplaya

) vitalroleindevelopmentofthosecities.

RelianceJiohaspartneredwithSamsungElectronicstosetupanationwideInternetofThings(IoT)network.AsofMay2018,trialsfortheservicehavealreadybegunatafewlocations.

ThemostsignificantrecentdevelopmentsinwirelesscommunicationincludeBWAtechnologiessuchasWiMAXandLTE

InMarch2018,BhartiAirtelitsVoLTEservicesinKolkatawhileVodafonelaunchedVoLTEservicesinJaipurandJodhpur.

AsofJune2018,BSNLisexpectedtolaunchits5Gservicesby2020.

Thereareover62,443uncoveredvillagesinIndia;thesewouldbeprovidedwithvillagetelephonefacilitywithsubsidysupportfromthegovernment’sUniversalServiceObligationFund(therebyincreasingruraltele-density)

AsofJune2018,theruralsubscriberbaseaccountedfor44.16percentofthetotalsubscriberbase,therebyfuellinggrowthacrossthesector

Thegreentelecomconceptisaimedatreducingcarbonfootprintofthetelecomindustrythroughlowerenergyconsumption

TheGovernmentofIndia’sNationalDigitalCommunicationPolicy,releasedinSeptember2018,envisagesstrengtheningofmobiletowerindustrybypromotingandincentivisingdeploymentofsolarandgreenenergyfortelecomtowers.

NOTABLETRENDSINTHEINDIANTELECOMSECTOR

…(2/2)

Consolidation

Risinginvestments

Outsourcingnon-core

activities

Mobilebanking

Investmentsinoptical

fibrenetwork

Notes:NPCI-NationalPaymentCorporationofIndia

Source:’SearchingforNewFrontiersofgrowth:IndianBanks’-PwC,ArancaResearch,ReserveBankofIndia

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Aspartoftherecentoutsourcingtrend,operatorshaveoutsourcedfunctionssuchasnetworkmaintenance,IToperationsandcustomerservice

Thenumberofmobilewallettransactionincreased5percentmonth-on-monthto325.28millioninJuly2018.

InMarch2017,thegovernmentsetatargetofachieving25billiondigitaltransactionsforbankswiththehelpofPoSmachines,transactionsenabledandmerchants,whichhavebeenaddedinfirms

AsofMay2018,nearly400bankshavebeenpermittedtoprovidemobilebankingservicesinIndia.

RelianceJioInfocommisgoingtoexpanditsopticalfibrenetworktoover1,100citiesunderitsJioGigaFiberbrand.ThenetworkisundergoingbetatrialsasofJuly2018.

BhartiAirtelisplanningtolaunch6,000newsitesand2,000kmofopticalfiberinGujaratin2018-19.

VodafoneIndiaandIdeahavemergedintoVodafoneidea.

Airtel’sacquisitionofTataTeleservices’mobilebusinesswasgivenapprovalbyCompetitionCommissionofIndia(CCI)inNovember2017.AsofMay2018,thedealisawaitingmultipleregulatoryapprovalsincludingthosefromNationalCompanyLawTribunalandDepartmentofTelecommunications.

In2017,VodafonediscloseditsplanstoinvestUS$1,310milliontoupgradeandexpandVodafoneIndianetworkcoverageandUS$655milliontoupgradeitstechnologycentre

ThenewNationalDigitalCommunicationsPolicy2018hasenvisagedattractinginvestmentsworthUS$100billioninthetelecommunicationssectorby2022.

STRATEGIESADOPTED

Marketingstrategy

Differentiation

Reducednumberof

plans

Pricingstrategy

Notes:CDMA–CodeDivisionMultipleAccess,GSM-GlobalSystemforMobileCommunication

Source:Companywebsites,ArancaResearch

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Playerspricetheirproductsverycarefullyduetothepricesensitivenatureofcustomersandhighcompetitioninthesector.

Playershavereducedthenumberofplansonofferandnowofferalimitednumberofsimpletariffplansalongwithparticularmarqueeplans.

Thishassimplifiedchoosingplansforcustomersandcustomerscanchoosethebestdealsforthemselves.

Playersdifferentiatethemselvesbyprovidingdifferentservicestocustomers.

BhartiAirtelhasalreadypartneredwithAmazonPrimeandHotstarandisexpectedtotieupwithNetflixtoofferfreesubscriptiontoNetflix’scontentonitsmobilecustomers.

Playersareusinginnovativemarketingstrategiestosucceedinthissector.Forexample,

InAugust2015,IdeaCellularlaunchednewcampaign“Getideaanddance”

Airtellaunchednewadcampaign“AirtelmyPlanFamily”

KEYCOMPANIESINTHEMARKET

Source:Companies’websites,Bloomberg

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Company Ownership Presence

MahanagarTelephoneNigamLtd(MTNL)

Government(56.3percent),LifeInsuranceCorporation(18.8percent)

Fixed-lineandmobiletelephony(inDelhiandMumbai),dataandInternet

BharatSancharNigamLtd(BSNL)

Government(100percent)

Fixed-lineandmobiletelephony(GSM

–outsideDelhiandMumbai),dataandInternetin22circles

BhartiAirtel

BhartiGroup(45.48percent),PastelLtd(14.79percent),IndianContinentInvestment(6.65percent)

Broadbandandmobile(GSM)in22circles

VodafoneIndia

Vodafone(84.5percent),PiramalEnterprises(11.0percent)

Broadbandandmobile(GSM)in22circles

Telecommunication

GROWTHDRIVERS

SECTORBENEFITSFROMRISINGINCOME,GROWING

YOUNGPOPULATION

Increasinginvestments

Growingdemand

Policysupport

Higherrealincomeandchanginglifestyles

Reductioninlicensefee

HigherFDIinflows

Inviting

Resulting

in

Growingyoungpopulation

RelaxedFDINorms

IncreasingMandAactivity

Note:FDI-ForeignDirectInvestment,MOU-MinutesofUsepermonthandpersubscriber,M&A-MergersandAcquisitions

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Encouragesfirmstoexpandtoruralareas

IncreasingMOUanddatausage

RISINGINCOMEANDGROWINGRURALMARKET

FUELSDEMANDFORTELECOMSERVICES

IncomeshaverisenatabriskpaceinIndiaandwillcontinuerisinggiventhecountry’sstrongeconomicgrowthprospects.GDPpercapitaofIndiaisexpectedtogrowataCAGRof7.47percentfromUS$1,481.56in2012toUS$3,273.85in2023.IncreasingincomehasbeenakeydeterminantofdemandgrowthinthetelecommunicationsectorinIndia

Theemergenceofanaffluentmiddleclassistriggeringdemandforthemobileandinternetsegments

Ayoung,growingpopulationisaidingthistrend(especiallydemandforsmartphones.

Notes:CAGR-CompoundAnnualGrowthRate,*Estimatesafter2013,^Datafor2005,2006and2025isfromBCG,for2017fromIBM-KalaariCapitalandfor2018fromRedseerConsulting

Source:IMFWorldEconomicOutlookDatabaseApril2018

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2012

1,481.56

2013

1,485.60

2014

1,610.36

2015

1,638.76

2016

1,749.16

2017

1,982.70

2018

2,134.75

2019

2,334.14

2020

2,538.82

2021

2,762.31

2022

3,006.54

2023

3,273.85

Indianresidentsshiftingfromlowtohighincomegroups(%)

MillionHousehold,100%^

GDPpercapitaatcurrentprices*(US$)

3,500

3,000

2,500

2,000

1,500

1,000

500

0

100% 209.10 266.50 267 271.5 304.80

90% 44.0% 31.0% 30.7% 27.6% 18.0%

80%

70% 46.0%

46.0%

60% 45.0% 45.3%

50% 42.0%

40%

30% 20.0%

20% 15.0% 15.0% 16.2%

10% 8.0% 11.0%

3.0%1.5% 6.0%2.0%6.4%2.6%7.3%2.9%5.0%

0%

2005 2016 2017 2018 2025F

Elite(>US$30800) Affluent(US$15400-30800)

Aspirers(US$7700-15400) Nextbillion(US$2300-7700)

Strugglers(<US$2300)

STRONGPOLICYSUPPORTCRUCIALTOTHE

SECTOR’SDEVELOPMENT…(1/3)

Tocompensatetheconsumersincaseofcalldrop

Standardsofqualitywirelineandwireless

services

Relaxed

FDInorms

SkillDevelopment

Notes:FDI-ForeignDirectInvestment,FIPB-ForeignInvestmentPromotionBoar

Source:TRAI,ArancaResearch

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InMay2017,MicrosoftIndiasignedaMemorandumofUnderstandingwiththeTelcomSectorSkillCouncil(TSSC)toencourageskilldevelopmentthrough“ProjectSangam”.

InamajorpushforPrimeMinisterNarendraModi's'SkillIndia'mission,Microsoft'sIndian-bornCEOSatyaNadellalaunchedaCloudhostedplatformnamedas"ProjectSangam"tohelpthegovernmentnotonlytrainbutalsoassistpeoplegetjobsviaprofessionalnetworkingwebsiteLinkedIn,whichwasacquiredbythecompanylastyear.

FDIcapinthetelecomsectorhasbeenincreasedto100percentfrom74percent;outof100percent,49percentwillbedonethroughautomaticrouteandtherestwillbedonethroughtheFIPBapprovalroute

FDIofupto100percentispermittedforinfrastructureprovidersofferingdarkfibre,electronicmailandvoicemail

In2015,TelecomRegulatoryAuthorityofIndiamaderegulationstoamendtheStandardsofqualityofwireline(telephoneservice)andcellularmobiletelephoneservices.Theseregulationshasbeenlaiddowntoensurebetterandeffectivecompliancewiththequalityofserviceregulationsandtoprotecttheinterestofthecustomers

InAugust2017,TRAIdirectedoperatorstohaveacall-droprateofnotgreaterthan2percent.

ThepolicymeasuresofTRAIhavehadpositiveimpact.Call-dropsinthecountryhavedecreasedfrom0.94percentin2016to0.52percentinMarch2018.

STRONGPOLICYSUPPORTCRUCIALTOTHE

SECTOR’SDEVELOPMENT…(2/3)

TelecommunicationTariffOrder

Setupinternet

connections

Reductioninlicense

fees

MakeinIndia

Notes:USOF-UniversalServiceObligationFund;OFC-OpticalFibreCable,WiMAX-WorldwideInteroperabilityforMicrowaveAccessTelecommunications

Source:TRAI,ArancaResearch

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InMay2017,thecentralgovernmentannouncedthePhasedManufacturingProgramme(PMP)topromotedomesticproductionofmobilehandsets.ThisinitiativewillhelpinbuildingarobustindigenousmobilemanufacturingecosysteminIndia,andincentiviselargescalemanufacturing.

InJanuary2015,theGovernmentofIndiarecommendedreductioninlicensefeesoftelecomoperatorsby6percent,telecomoperatorscurrentlypay8percentofadjustedgrossrevenueaslicencefee

Theissuanceofseveralinternationalandnationallong-distancelicenseshascreatedopportunitiesandattractednewcompaniesintothemarket

TheDepartmentofInformationTechnologyintendstosetupover1millioninternet-enabledcommonservicecentresacrossIndiaaspertheNationale-GovernancePlan

On8thAugust2016,theTelecomRegulatoryAuthorityofIndia(TRAI)madethe10thamendmenttotheTCPR(TelecomConsumersProtectionRegulations)permittingtelecomcompaniestoofferdatapackshavingmaximumvalidityof365days

InFebruary2018,TRAIpassedtheTelecommunicationTariff(63rdamendment)order,accordingtowhich,telecomfirmsarefreetogivepromotionalofferstocustomersaslongastheoffersaretransparent,non-predatoryandnon-discriminatory.

STRONGPOLICYSUPPORTCRUCIALTOTHE

SECTOR’SDEVELOPMENT…(3/3)

Financialsupport

Enhancedspectrumlim

Telecommunicationamendmentorderforbroadcastingandcable

services

IndianMobileCongres

Notes:USOF-UniversalServiceObligationFund;OFC-OpticalFibreCable

Source:TRAI,ArancaResearch

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InOctober2018,IndiaheldthesecondeditionoftheIndianMobileCongress.Theconferencebroughttogethermorethan5,000delegatesand50,000visitors.

GlobalandlocalindustryleaderssuchasSamsung,Intel,Ericsson,Nokia,Airtel,RelianceJioandVodafoneparticipatedintheevent,apartfromothers.

In2015,telecomauthorityissuedthisordermandatingeveryDTHoperatortospecifythetariffforsupplyandinstallationofthecustomerpremisesequipment.DTHoperatorshouldspecifytherefundablesecuritydeposit,installationcharges,monthlyrentalchargeandactivation

Theprescribedlimitonspectrumwouldbeincreasedfrom6.2MHzto2x8MHz(pairedspectrum)forGSMtechnologyinallareasotherthanDelhiandMumbai,whereitwillbe2x10MHz(pairedspectrum)

it Telecomplayerscan,however,obtainadditionalfrequency;therewillbeanauctionofspectrumsubjecttothelimitsprescribedforthemergeroflicenses

InJanuary2018,thegovernmentrevisedcaponspectrumholdingfrom25percentto35percent.

TheUSOFisexpectedtoextendfinancialsupporttooperatorsprovidingservicesinruralareasandencourageactiveinfrastructuresharingamongoperators

NATIONALDIGITALCOMMUNICATIONSPOLICY-2018

NationalDigitalCommunicationsPolicy,2018

ConnectIndia

PropelIndia

SecureIndia

ProvideUniversalbroadbandconnectivityat50Mbpstoeverycitizen

Provide1GbpsconnectivitytoallGramPanchayatsofIndiaby2020and10Gbpsby2022

Enablefixedlinebroadbandaccessto50percentofhouseholds

Achieve‘uniquemobilesubscriberdensity’of55by2020

and65by2022

Ensureconnectivitytoalluncoveredareas

AttractinvestmentsworthUS$100billionindigitalcommunicationssector

IncreaseIndia’scontributiontoglobalvaluechains

Creationofinnovationledstart-upsindigitalcommunicationssector

Train/Re-skill1MillionmanpowerforbuildingNewAgeSkills

AcceleratetransitiontoIndustry4.0

Establishacomprehensivedataprotectionregimefordigitalcommunications

Ensurenetneutralityprinciplesareupheld

Developanddeployrobustdigitalcommunicationnetworksecurityframeworks

Buildcapacityforsecuritytestingandestablishappropriatesecuritystandards

Addresssecurityissuesrelatingtoencryptionandsecurityclearances

Note:Mbps–Megabitspersecond,Gbps–Gigabitspersecond

Source:NationalDigitalCommunicationsPolicy,2018

28

Telecommunication

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FOREIGNINVESTMENTSFLOWINGIN…(1/2)

FDIinflowsintothetelecomsectorduringApril2000–June2018

totalledtoUS$31.75billion.

Duringthisperiod,FDIintothesectoraccountedfor

nearly8.15percentoftotalFDIinflowsintothecountry.

a

share

of

Note:*-UptoJune2018

Source:DepartmentofIndustrialPolicyandPromotion(DIPP)

29

Telecommunication

Forupdatedinformation,pleasevisit

FY01-FY11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19*

FY01-FY19*

FDIinflowsintelecommunicationinApril2000-June2018Visakhapatnamporttraffic(milliontonnes)

(US$billion)

35.00

1.5931.75

30.00 6.21

25.00 5.56

20.00 1.32

2.90

15.00 1.31

1.960.30

10.59

10.00

5.00

FOREIGNINVESTMENTSFLOWINGIN…(2/2)

VodafoneIndiaandIdeaCellularhavemergedinto‘VodafoneIdea’tobecomeIndia’slargesttelecomcompany,asofSeptember2018.

ForeigninvestmentinIndia

Notes:M&A-MergerandAcquisition,PE-PrivateEquity

Source:ThomsonBanker,DealTracker,GrantThornton,ArancaResearch

30

Telecommunication

Forupdatedinformation,pleasevisit

Target

Acquirer

Acquisitionprice(US$million)

Divisionacquired

BhartiAirtel

Singtel(2018)

411.02

Increaseinstaketo48.90percent

AscendTelecomInfrastructurePvt.Ltd.

IDFCAlternatives(2017)

54.29

33percen