Intelsat and Inmarsat satellites and wide band submarine cable systems e.g.

FLAG, SEA-
ME-WE-2 and SEA-ME-WE-3. The company's ADRs are listed on the New York Stock
Exchange and its shares are listed on major Stock Exchanges in India. The Indian
Government owns approximately 26 per cent equity, M/s Pantone Finvest Limited as
investing vehicle of Tata Group owns 45 per cent equity and the overseas holding
(inclusive of FIIs, ADRs, Foreign Banks) is approximately 13 per cent and the rest is
owned by Indian institutions and the public. The company provides international and
Internet services as well as a host of value-added services. Its revenues have declined
from Rs. 70.89 billion ($1.62 billion) in 2001-02 to Rs. 48.12 billion ($1.1 billion) in
2002-03, with voice revenues being the mainstay. To reverse the falling revenue trend,
VSNL has also started offering domestic long distance services and is launching
broadband services. For this, the company is investing in Tata Teleservices and is likely
to acquire Tata Broadband.
HUTCH (Vodafone) :
Hutch’s presence in India dates back to late 1992, when they worked with local partners
to establish a company licensed to provide mobile telecommunications services in
Mumbai. Commercial operations began in November 1995. Between 2000 and March
2004, Hutch acquired further operator equity interests or operating licenses. With the
completion of the acquisition of BPL Mobile Cellular Limited in January 2006, it now
provides mobile services in 16 of the 23 defined license areas across the country. Hutch
India has benefited from rapid and profitable growth in recent years. It had over 27.8
million customers by the end of June 2008.
IDEA :
Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand
designs to become a national player, but in doing so is likely to become a thorn in the
side of Reliance Communications Ltd. IDEA operates in eight telecom “circles,” or
regions, in Western India, and has received additional GSM licenses to expand its
network into three circles in Eastern India -- the first phase of a major expansion plan that
it intends to fund through an IPO, according to parent company Aditya Birla Group
2.BARGAINING POWER OF CONSUMERS :
Recent Status :Indian Telecom industry is one of the fastest growing telecom markets in
the world. In telecom industry, service providers are the main drivers; whereas equipment
manufacturers are witnessing growth and decline in successive quarters as sales is
dependent on order undertaken by the companies. Airtel, Reliance, Tata and Sterlite are
some of the companies that are expected to spur the growth in 2008, as compared to
AMJ07. According to Cygnus estimates, telecom industry was expected to grow by 25%
in 2008 as compared to AMJ07, in terms of sales. EBDITA and PAT are expected to
grow by 32% and 34% respectively in 2008 as cost expenses are being control by major
companies like Airtel and Reliance. The major booster is the wireless mobile subscriber
base; crossing over 261m in March 2008. Other services like Internet subscriber base has
also provided significant impetus with its subscriber base reaching over 11m in March
2008. The total subscriber base of Wireline services stood at 39.42 million as on 31st
March 2008. The incumbents BSNL and MTNL have 80.05% and 9.33% market share
respectively in the subscriber base, while all the five private operators together have
10.62% share. Wireline subscriber base has been declining in the last few years.
Subscriber base for some of the companies like Bharti, Tata (Tele & Communications),
MTNL and Reliance increased marginally. On the other hand, BSNL, Shyam and
 Telelinks have lost marginal subscriber base in 3rd QUARTER OF 2008, as compared to
the previous quarter.
MARKET SHARE OF WIRELESS OPERATORS TILL 2008
3.Bargaining Power of Suppliers
:As far as telecom industry is concerned, it is service based industry which is intangible,
so in this case there are less suppliers or we can say the role of suppliers are almost
negligible in the case of telecom industry. We are trying to analyze that minor role
1.
Mobile hand set suppliers: - There can be many suppliers for handset, some of them are
Nokia, Sony Ericsson, Motorola, and Siemens etc. Many big telecom giants have their
own handset manufacturing (back ward integration) like Reliance Classic, Tata Indicom
or they have collaboration with some known companies like Reliance communication
have tie ups with Samsung and LG for their CDMA services.
2.
Some other suppliers for this industry can be the Optical fibre suppliers, Aluminum
suppliers (aluminum is required for the tower) but their bargaining power is limited.
3.
Other important parameters can be the software assistance where suppliers can have the
edge some of the main software solution provider are TCS, Infosys, Wipro, Satyam etc.
Again one thing is noticeable that big giants like Reliance and Tata have their own units
for software solution and companies like Vodafone, Spice are taking services from above
stated companies. So here software providers have bargaining power because suppose
Vodafone can’t go to Reliance info for their software solution so here suppliers can have
edge over the companies
.4.THREAT TO NEW ENTRANTS The Indian telecom sector offers unprecedented
opportunities for foreign companies in various areas, such as 3G, virtual private network,
international long distance calls, value added services, etc.
The market is witnessing M&A activities that are leading to consolidations in the
industry. This trend has assisted companies in expanding their reach in the Indian telecom
market to offer better services to customers.
The Indian telecom industry has always allured foreign investors. In fact, the cumulative FDI
inflow, from August 1991 to March 2007, in the telecommunication sector amounted to US$
3,892.19 million. This makes telecommunication the third-largest sector to attract FDI in India in
the post liberalization era.
In India large numbers of players are emerging in the market on the national level
from
its state level existence such as:

•Aircel

•Virgin

•Spice

•Idea

•Unitech
5.SUBSTITUTE TO PRODUCT : Telecom sectors offers a wide range of services in
India, such as wireline, CDMA mobile, GSM mobile, internet, broadband, carrier,
MPLS-VPN, VSAT, VoIP, IN, etc.Internet telephone It is emerging as a best option in
place of because it is cheaper and video as an added advantage.
As we can see that use of internet in our country is on growing rate. As there are many
tools which can be accessed through internet like video conferencing other important tool
is talking through internet for eg. Google talk, rediff bol, yahoo messenger. Important
thing is that internet is cheaper medium of communication and one can have many
facilities if he/she is connected to the world through the internet. As we have seen govt
has several plans to increase the speed of internet so that one can exploit the resources
which are available.

The Telecommunications Industry

in India

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