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2006 Asia - Telecoms, Mobile and Broadband in India


Attention: There is an updated edition available for this report.

This report provides a comprehensive overview of the trends and developments in telecommunications, broadcasting and pay TV markets in India. Subjects covered include:

Key Statistics
Market and Industry Overviews
Regulatory Environment
Major Players (fixed and mobile)
Infrastructure
Mobile Voice and Data Markets
Internet, VoIP, IPTV
Broadband (FttH, DSL, cable TV, wireless)
Convergence and Digital Media


In a manner that exudes a sense of the dramatic, India continues to be one of the fastest growing major telecom markets in the world. Sweeping reforms introduced by successive Indian governments over the last decade have dramatically changed the nature of telecommunications in the country. The mobile sector has grown from around 10 million subscribers in 2002 to 80 million (including both GSM and CDMA services) by early 2006, aided by a mix of higher subscriber volumes, lower tariffs and falling handset prices. Whilst GSM technology still dominates the market, CDMA has quickly grabbed a 23% market share. The mobile industry should continue its strong growth. The country’s telecom regulator, the TRAI, says that the rate of market expansion would increase with further regulatory and structural reform. The adoption of Unified Licensing, a change in the Access Deficit Charge regime, increased sharing of infrastructure and coverage of new areas by operators will contribute to ongoing growth. Fixed-line services, although not as spectacular as mobiles, are growing solidly. By early 2006, the country has passed the 50 million fixed line milestone.

The nature of the country’s telecommunications industry has certainly been changed by the sweeping reforms introduced by successive Indian governments over the last decade or so. In the early stages of change, the structure of the market was frequently criticised, but there has been an evolution through a series of mergers and takeovers among the mobile operators that has produced a welcome consolidation. The ‘licensing by circles’ policy is generally credited with having established a highly competitive and healthy telecoms market. This is certainly benefiting the country. With what is now seen as a well regulated commercial environment and with plenty of growth potential, India has become an attractive market for foreign investment. Of course, regulatory reform is very much regarded as a ‘work in progress’. The government has been pushing hard to further restructure the telecommunications regulatory regime.

In a country where the IT industry is booming, there is something ironic about its somewhat ambivalent approach to Internet. Whilst there appears to be considerable enthusiasm amongst the population for the Internet, this is not reflected in subscriptions. There were around 7 million subscribers to Internet access services in early 2006, the vast majority being dial-up subscriptions. But most significantly, an estimated 60% of users regularly access the Internet via the country’s more than 10,000 cybercafes. When it comes to high-speed broadband access, the slow take up rate has been especially obvious. The country’s corporate sector has been surprising lacking in interest to date. Only about 10% of Internet subscribers in the country have broadband access, representing a depressingly low national broadband penetration of less 0.1%. There were early signs that the broadband sector was about to gain some momentum.

31. KEY STATISTICS
2. TELECOMMUNICATIONS MARKET
2.1 Overview of India’s telecom market
2.2 Growth forecasts
2.3 Foreign investment
2.4 Universal service
2.5 Analysis - structural separation - Bharti leads the way - May 2006
3. REGULATORY ENVIRONMENT
3.1 Analysis - policies and regulations - May 2006
3.2 Analysis - spectrum reform in India - May 2006
3.3 Telecommunications authorities
3.3.1 Ministry for Communications (MoC)
3.3.2 Department of Telecommunications (DoT)
3.3.3 Telecom Commission
3.3.4 Telecom Regulatory Authority of India (TRAI)
3.3.5 Telecom Dispute Settlement & Appellate Tribunal (TDSAT)
3.4 Regulatory background
3.4.1 Licensing circles
3.4.2 Licence fees
3.4.3 Licence dispute
3.5 National Telecom Policies
3.5.1 National Telecom Policies 1999 (NTP-99)
3.5.2 Addendum to NTP-99
3.5.3 Proposed new National Telecom Policy
3.6 Foreign investment
3.7 Regulatory reforms
3.8 Quality of service
3.9 Liberalisation
3.9.1 Policy highlights
3.9.2 Basic service
3.9.3 Local Loop Unbundling (LLU)
3.10 Fixed-line licences
3.10.1 National Long-distance (NLD)
3.10.2 International Long-distance (ILD)
3.10.3 ‘Fixed’ mobile
3.10.4 Tariffs
3.10.5 Compensation
3.10.6 Other outcomes
3.11 Privatisation
3.11.1 VSNL
3.11.2 MTNL
4. FIXED NETWORK OPERATORS
4.1 Overview of the operators
4.1.1 Bharat Sanchar Nigam Limited (BSNL)
4.1.2 Bharti Telenet
4.1.3 Hughes Telecom
4.1.4 Mahanagar Telephone Nigam Limited (MTNL)
4.1.5 Tata Teleservices Ltd
4.1.6 Reliance Infocomm
4.1.7 BSNL/MTNL merger
4.2 International operators
4.2.1 Videsh Sanchar Nigram Ltd (VSNL)
4.2.2 Data Access
4.2.3 Bharti Telesonic
4.2.4 Reliance Communications
5. TELECOMMUNICATIONS INFRASTRUCTURE
5.1 National telecom network
5.1.1 Overview
5.1.2 Network development
5.1.3 Rural and regional networks
5.1.4 Next Generation Networks (NGN)
5.2 National infrastructure
5.2.1 Overview
5.2.2 National projects
5.2.3 Wireless Local Loop (WLL)
5.3 International infrastructure
5.3.1 Overview
5.3.2 India-Pakistan
5.3.3 Submarine cable networks
5.3.4 Satellite communications
5.4 Infrastructure developments
5.4.1 Voice over Internet Protocol (VoIP)
5.4.2 IP networks
6. BROADBAND AND INTERNET MARKET
6.1 Overview of broadband market
6.2 National Broadband Policy 2004
6.3 Cable modems
6.4 Personal computers
6.5 Digital Subscriber Line (DSL)
6.6 Wireless broadband
6.6.1 Analysis - TeNeT wireless project - May 2006
6.7 Satellite
6.7.1 DirecPC
6.7.2 Bharti Broadband Networks
6.7.3 Reliance broadband network
6.8 Other broadband networks
6.9 Internet market
6.9.1 Overview of Internet market
6.9.2 Regulatory issues
6.9.3 ISP market
6.9.4 Content and e-services
7. CONVERGENCE
7.1 Overview of media convergence
7.2 Digital TV
7.2.1 Internet Protocol TV (IPTV)
7.3 Broadcasting market
7.3.1 Overview
7.3.2 Analysis - A view of India’s broadcasting market - May 2006
7.3.3 Statistical overview
7.3.4 Regulatory issues
7.3.5 Free-to-Air TV
7.3.6 Cable TV
7.4 Satellite TV
7.4.1 Direct-to-Home (DTH) TV
7.4.2 Major cable and pay TV operators
7.5 TV content
8. MOBILE COMMUNICATIONS
8.1 Overview of India’s mobile market
8.1.1 Mobile statistics
8.1.2 Mobile market segments
8.1.3 Pricing and marketing strategies
8.2 Regulatory issues
8.2.1 New Telecommunications Policy - 1999 (NTP99)
8.2.2 Year 2006
8.2.3 Year 2005
8.2.4 Year 2004
8.3 Mobile technologies
8.3.1 Overview of mobile technologies used in India
8.3.2 GSM
8.3.3 CDMA
8.3.4 Third Generation (3G) mobile
8.4 Major mobile operators
8.4.1 Market overview
8.4.2 Mergers and acquisitions
8.4.3 Competition
8.4.4 Subscriber statistics and market share
8.4.5 Overview of major mobile operators
8.5 Mobile voice services
8.5.1 Prepaid
8.5.2 Satellite mobile
8.6 Mobile data services
8.6.1 Market overview
8.6.2 Short Message Service (SMS)
8.6.3 Multimedia Messaging Service (MMS)
8.6.4 General Packet Radio Service (GPRS)
8.6.5 Push-to-Talk over Cellular (PoC)
8.6.6 Binary Runtime Environment for Wireless (BREW)
8.6.7 Enhanced Data for GSM Evolution (EDGE)
8.6.8 Mobile TV
8.7 Mobile applications
8.7.1 Mobile entertainment
9. GLOSSARY OF ABBREVIATIONS
Exhibit 1 - Major telecommunications players
Exhibit 2 - ISRO satellite network - March 2006
Exhibit 3 - Broadcasting Standard and major broadcasters
Exhibit 4 - Information on FTA turned Pay and New Pay Channels - 2005
Exhibit 5 - Overview of major channels available to consumers in India
Exhibit 6 - CDMA 2G deployment in India - 2005


Table 1 - Country statistics India - 2005
Table 2 - Telephone network statistics - 2005
Table 3 - Internet provider statistics - 2005
Table 4 - Internet user statistics - 2005
Table 5 - Broadband statistics - 2005
Table 6 - Mobile statistics - 2005
Table 7 - National telecommunications authorities
Table 8 - Fixed-line services vs mobile services and penetration - 2005
Table 9 - Telephone services to villages - December 2005
Table 10 - Fixed-line basic services* by operator - December 2005
Table 11 - Fixed-line growth and teledensity - 1995 - 2006
Table 12 - Growth of VPT scheme - 2001 - 2005
Table 13 - PCOs in operation and market share by operator - 2005
Table 14 - Fixed WLL subscriber growth - 2004 - 2006
Table 15 - International undersea cable capacity - 1997 - 2005
Table 16 - Broadband subscriber growth - 2001 - 2005
Table 17 - Broadband subscribers by access - 2005
Table 18 - Broadband and Internet subscriber targets - 2005; 2007; 2010
Table 19 - Cable modem subscribers - 2001 - 2005
Table 20 - DSL subscriber growth - 2001 - 2005
Table 21 - Internet subscriber and user growth - 1995 - 2006
Table 22 - Internet host computers - 1995 - 2005
Table 23 - Top 10 ISPs - subscribers and market share - 2005
Table 24 - Commercial value of e-commerce sector - 2000; 2005
Table 25 - Broadcasting market overview - 2005
Table 26 - TV household growth - 1995 - 2005
Table 27 - Total TV industry revenue growth - 2000 - 2005
Table 28 - Pay TV subscriber growth - 2002 - 2006
Table 29 - Pay TV (cable) operators - 2004
Table 30 - Mobile subscriber growth - GSM and CDMA and annual growth - 2002 - 2005
Table 31 - GSM mobile subscriber growth and annual growth - 1997 - 2006
Table 32 - Mobile operators (GSM & CDMA) - subscribers and market share - December 2005
Table 33 - WLL technology-based subscribers - March 2006
Table 34 - Mobile services revenue - 1996 - 2006
Table 35 - GSM mobile subscriber market share by circle - February 2006
Table 36 - GSM mobile subscribers by region/circle - 2004 - 2006
Table 37 - GSM mobile operators - subscribers per operator and market share - 2005
Table 38 - CDMA mobile operators - subscribers per operator and market share - 2005
Table 39 - Mobile operators - subscribers and annual change - 2005
Table 40 - Operator market share (GSM & CDMA) - July 2005
Table 41 - ARPU prepaid/postpaid/blended ARPU per month (in rupees) by circle - December 2005

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