SUBMITTEDBY PEENANKPAREKH 10BSP1087

IndustryOverview
The Indian telecommunications industry is one of the fastest growing in the world. Increasing network coverage and competitive tariffs these are the two most prominent catalysts that are contributing to the growth of the Indian Telecommunication sector. The industry has witnessed consistent growth during the last year on the back of rollout of newer circles by operators, successfulauctionofthirdgeneration(3G)andbroadbandwirelessaccess(BWA)spectrum,network rolloutinsemiruralareasandincreasedfocusonthevalueaddedservices(VAS)market. TheindustryhasplayedavitalroleinIndiasgrowthstoryandtheindustrytodaycontributesnearly 2% of the GDP. More significant is its contribution in generating direct (2.8 million people) and indirect(nearly7millionpeople)employmentinthecountry. The Indian Telecom Industry Services is not confined to basic telephone but it also extends to broadbandinternet(bothwirelessandfixed),cableTV,IPTV,DTHandRadioBroadcastingservices, SMS,softswitchesetc.

Growth of Telecom Sector According to the Telecom Regulatory Authority of India (TRAI), the number of telecom subscriber base in the country reached 846.32 million as on March 31, 2011, an increase of 36.22 per cent from 621.28 million in March 31, 2010. With this the overall tele-density (telephones per 100 people) has reached 70.89 (Urban 157.32, Rural 33.79). Indian telecom has become the second largest wireless network in the world after China. The wireless subscriber base has increased to 811.59 million at the end of March 2011 from 584.32 million in March 2010, registering a growth of 38.89 per cent. As per projections, wireless telephony will continue to fuel growth in the Indian telecom industry with mobile subscribers base in India is expected to reach 1.159 billion by 2013. Broadband subscription reached 19.67 million in March 2011 from 16.18 million in March 2010, growing at 21.57 per cent. Changes in structure of composition of Telecom Sector - Wireline vs. Wireless
(Inmillions) Wireline Wireless GrossTotal Annual Growth% March'04 40.92 35.61 76.53 40% March'05 41.42 56.95 98.37 29% March'06 40.23 101.86 142.09 44% March'07 40.77 165.09 205.87 45% March'08 39.41 261.08 300.49 46% March'09 37.97 391.76 429.73 43% March'10 36.96 584.32 621.28 45% March'11 34.73 811.59 846.32 36%

The growth of wireless services has been substantial, with wireless subscribers growing at a compounded annual growth rate (CAGR) of 57.1% since 2004, wireless have overtaken wirelines. According to Department of Telecommunication (DoT) annual report of 2010-11, the share of wireless phones has increased from 46.54% in 2004 to 95.90% in 2011. On the contrary, the share of fixed wireline has steadily declined.

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%a ageShareofW WirelineandWireless phonesinMarch200 04 %ageSha areofWirelin neandWireless ph honesinMarc ch2011 4.10% % 46.53% 53 3.47% Wireline e Wireless s 95.90% Wireline Wireless

Key Pla ayers The wir reless techn nologies cur rrently in u in ' India Telecom Industry ' are Global System use an m l for Mob Commu bile unications (GSM) and Code Divis ( sion Multip Access ( ple (CDMA). There are T primarily 11 GS SM and 5 CDMA operators providin mobile services in 22 A ng mmunication circles, including 'me n etro', 'A', 'B', and 'C' ca ategory serv vice areas, covering c telecom more th 2000 tow and citi across th country. han wns ies he Three ty ypes of play exists in ' Telecom Industry in India ' com yers i m n mmunity State o owned comp panies like - BSNL and MTNL. d Private Indian ow e wned compan like - R nies Reliance Inf focomm and Tata Teles d services. Foreign invested companies like V s Vodafone-Es ssar, Bharti Airtel, Id Cellula Loop i dea ar, Mobile, Uninor, et , tc. Mobile Operator r Bharti Airtel Relian nce Vodafo fone BSNL Tata Idea C Cellular Aircel Others s Total Revenu and Usag ue ge The cou untrys telecom sector has recorde a growth of 12% du ed h uring 2010- as comp -11 pared to 7% duri ing 2009-1 The rev 10. venue durin 2010-11 is Rs 11 ng 19845 cror The rev re. venue is expecte to grow f ed further during 2011-12 when the 3G services are rolled out in more towns. 2 s e In India VAS acco a, ounts for 9- per cent of the ope -10 nt erator's reve enue, which contribute 20 per h es cent to global telec com revenue es. All ope erators have shown an increase in Revenue ex i xcept BSNL during the year. On the other L e t hand ot ther private operators have shown significan growth. Aircels rev e n nt A venue incre eased by 36% to reach 5620 crore. Tata Teleservic achieved 22% grow and reco 0 a ces d wth orded revenu of Rs ue Mark Share ket 19.56% 16.18% 15.90% 13.83% 10.68% 10.58% 6.48% 6.79% 100.00%

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10,006 crore. Idea Cellulars revenue was up by 19.4% and Vodafones revenue increased by 15%. However Bharti Airtel, Reliance Communications and BSNL recorded a growth lower than the industry growth of 12% and consequently they lost revenue market share during the year. Bharti recorded revenue of Rs 37,534 crore (7.2% growth). Vodafone reached a significant mile stone of recording profits for the first time since its operations in India at Rs 110 crore for the year ended March 31, 2011. There has been a significant increase in network operating expenses besides governmental fees, levies, charges and penalties adding to margin pressures for the operators. India has a significantly high regulatory levy varying between 19% to 28% of the operator revenues. Rising interest rates have resulted in increase in debt servicing costs for operators. Consequently operators are under immense margin pressures (several reporting negative PATs). Similarly, most operators report a negative or low return on capital employed. In customer market share, Airtel holds the number one position, followed by Reliance Communication. But in Telecom industry, Revenue Market Share (RMS) is more relevant than the Customer Market Share (CMS) as Average Revenue Per User (ARPU) and Minutes of Usage (MoU) are more realistic parameters. The profitability of the telecom companies are decided by ARPU and MoU rather than the number of subscribers. Bharti commands 31.3% market share, it came down by 1.4% during the year. Bharti and Vodafone together now holds 53% market share. Consequently Rcom slipped to the Number 4 position in RMS after Bharti, Vodafone and Idea. In terms of ARPU, Airtel tops the chart with Rs 202, followed by Vodafone (Rs 180) and Idea (Rs 189) and Rcom (Rs 118). Similarly in the case of Minutes of Usage (MoU), Airtel leads with 458 minutes, followed by Idea by 401 minutes, Vodafone by 386 minutes and Rcom by 94 minutes. Potential for further Growth The success of the telecommunications sector had been limited to the urban areas till now. The vast rural market holds a huge potential to drive the future growth of the telecom companies. Conventionally, voice services have been the key driver for the development of the sector, and the telecom operators will also benefit from the Mobile Number Portability (MNP) and 3G services in the long term. While broadband connectivity and mobile VAS services are likely to open up newer markets, implementation of new technologies and applications by the telecom players will ensure complete efficiency in the business operations.

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Foreign Investment Policies and Regulations in Indian Telecom

In line with the global trend, the Institute of Chartered Accountants of India (ICAI) has proposed a roadmap for convergence with IFRS for certain defined entities (listed entities, banks and insurance entities and certain other large-sized entities) with effect from accounting periods commencing on or after April 1, 2011. Large-sized entities are defined as entities with turnover in excess of Rs.l00 crores or borrowings in excess of Rs.25 crores. India continues to be one of the fastest growing major telecom markets in the world. The mobile sector has grown from around 10 million subscribers in 2002 to pass the 750 million mark by the end of 2010 and the market was growing strongly into 2011. A number of factors have been responsible for the amazing growth in Indias telecom sector; apart from the obvious booming economy and the rapid expansion in the countrys middle class, the growth drivers include low tariffs, low handset prices and most notably a highly competitive market created by the government and the regulator. The government has continued to open the market up to more and more competition. Home to a clutch of global operators working with local companies, the government has continued to issue licences to new telecom operators. Competition in the market place has become even more intense over the last year or so. The launch of Mobile Number Portability (MNP) in 2011 added yet another dimension to this intensely competitive market. In 2010 the long-awaited 3G auctions finally took place. By year end and into 2011 the 3G networks were being rolled out on a large scale and the operators started delivering next generation services to customers. 3G has certainly provided yet another boost to the already huge mobile sector. Apart from the impact on the mobile market itself, the 3G spectrum auction earned revenue of US$14.6 billion for the government, an amount that far exceeded expectations and was welcomed by the government as a major contribution to improving the national deficit. All things considered the mobile industry should continue to grow for the time being. With only around 3% fixed-line penetration, India has nevertheless achieved a remarkable national coverage, with 98% of the population having some form of access to a telephone. Key highlights

Into 2011, growth in Indias mobile market was continuing in its boom mode; By April 2011 the country had 827 million mobile subscribers, for a penetration of 69%; The mobile market was continuing to expand at an annual rate in excess of 40% into 2011; GSM was strengthening its position as the dominant mobile technology with 85% of the mobile subscriber market, as CDMA slipped further behind; After auctioning 3G spectrum licences in 2010, India was finally witnessing the large scale roll-out of 3G networks by operators across the country coming into 2011; The 3G auction delivered US$14.6 billion in revenue to the government and was certainly an unqualified success in this respect; An equally high profile auction of wireless broadband spectrum followed the 3G auction in 2010 and pumped even more energy into an already invigorated wireless broadband market; This auction raised another US$8.2 billion in revenue for the government.

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FII in Indian telecom FDI plays an important role in telecom sector as well as an economy as a whole. Earlier, there were very few public players like BSNL, MTNL, and VSNL in this sector but as the time progressed and competition increased, the private players like Airtel, Reliance, Tata, Vodafone, and Idea came into play which changed whole scenario of telecom sector. FDIs are important because they not only bring capital and technology into the market but they provide employment opportunities and effective productivity also. The liberalization measures post-1990 have changed with foreign investments radically, now portfolio as well as FDI are not only allowed but also actively encouraged. During the decade of the nineties, the ceilings on FDI in different sectors were progressively raised. In 2001, 100 per cent foreign investments were allowed in several industrial sectors. Also, 100 per cent Foreign Direct Investment is allowed in almost all the infrastructure sectors. FDI policy provides the investor friendly environment growth to the telecom sector. It is one of the sources pf huge funds to meet fast network expansion. During the year 2007-08, total FDI equity inflow was Rs. 3901 crores in India. FDI in Indian telecom sector has a bright future ahead. It is the third largest recipient of FDI after financial and non-financial services and computer hardware and software, which attract 20.43% and 15.21% respectively. Effects of FDI in Indian Telecom: Telecom service at subsidized prices. FDI inflows will allow multiple benefits such as technology transfer, market access and organizational skills. In India where 70% of population still resides in rural areas, there is a dire need of infrastructure in telecom, which FDI can provide. Foreign currency flowing in the country. Harmonious relationship with country from which foreign investment is being made. There will be increase in competition with local players, which will benefit consumers. It will have a multiplier effect. Telecommunication facility at reasonable price, affordable to many. More technological inflow, will improve voice & data quality. Free flow of capital is good for Indian consumers. Foreign direct investment in telecom has been hiked up from 49% to 74%. This move is positive for the sector, as it requires investments of Rs 700 900 million over the next 5 years.

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IMPORT AND EXPORT IMPORT SITUATION: The department of Telecommunications (DoT) has approved imports of Chinese telecom equipment by Indian mobile operators Reliance Communications and Tata Teleservices, bringing to an end a period of eight months in which none of Indias 15 mobile operators could import foreign equipment even as the industry was getting ready to offer next-generation services. Chinese telecom equipment majors Huawei and ZTE had earlier agreed inprinciple to give Indian security agencies access to their network source codes. This is one of the primary conditions for importing telecom equipment into the country as per the latest telecom security policy prepared by the DoT in association with the home ministry and security agencies. The government had earlier, informally barred the local mobile phone operators from placing orders with Huawei and ZTE on security concerns, resulting from the suspicion of security agencies that the Chinese equipment might have spying technology embedded in it to intercept sensitive conversations in times of a conflict between the two countries. EXPORT SITUATION:The following are the incentives by govt. For the exporters in the TELECOM Sector:10 year income tax holiday for EOU/EPZ/STP/EHTP units. Export income is exempt from income tax for all exporters. Tax holiday 100% for five years and 30% for next five years in a block of 15 years. Infrastructure Telecom equipment exempted from customs duty. Reduction of customs Duty on Mobile Phones to 0%. Exemption from Excise duty on Cellular Phones and it components, Pagers, Radio Trunking Terminals and Parts. Telecom services sector allowed the benefit of carry forward of losses on mergers.

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Telecom sector post liberalization(1991) and Policy Reforms

The Indian Telecommunications network with 621 million connections (as on March 2010) is the third largest in the world. The sector is growing at a speed of 45% during the recent years. This rapid growth is possible due to various proactive and positive decisions of the Government and contribution of both by the public and the private sectors. The real problem that we were facing is as a Indian economy during 1980s was the balance of payment mismatched. Indian economy wasnt able to sustain under such condition for long time. In late 1990s India was facing current account deficit because of import export mismatched and India was in verge of becoming bankrupt as RBI refused to give more money to govt. because of paucity of money therefore for a question of sustainability for country arose and finally India accepted liberalization. Liberalization The process of liberalization in the country began in the right earnest with the announcement of the New Economic Policy in July 1991. Telecom equipment manufacturing was deliascensed in 1991 and value added services were declared open to the private sector in 1992; following which radio paging, cellular mobile and other value added services were opened gradually to the private sector. This has resulted in large number of manufacturing units been set up in the country. As a result most of the equipment used in telecom area is being manufactured within the country. A major breakthrough was the clear enunciation of the governments intention of liberalizing the telecom sector in the National Telecom Policy resolution of 13th May 1994. National Telecom Policy 1994 In 1994, the Government announced the National Telecom Policy which defined certain important objectives, including availability of telephone on demand, provision of world class services at reasonable prices, improving Indias competitiveness in global market and promoting exports, attractive FDI and stimulating domestic investment, ensuring Indias emergence as major manufacturing / export base of telecom equipment and universal availability of basic telecom services to all villages. It also announced a series of specific targets to be achieved by 1997. Telecom Regulatory Authority of India (TRAI) The entry of private service providers brought with it the inevitable need for independent regulation. The Telecom Regulatory Authority of India (TRAI) was, thus, established with effect from 20th February 1997 by an Act of Parliament, called the Telecom Regulatory Authority of India Act, 1997, to regulate telecom services, including fixation/revision of tariffs for telecom services which were earlier vested in the Central Government. TRAIs mission is to create and nurture conditions for growth of telecommunications in the country in manner and at a pace,

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which will enable India to play a leading role in emerging global information society. One of the main objectives of TRAI is to provide a fair and transparent policy environment, which promotes a level playing field and facilitates fair competition. The TRAI Act was amended by an ordinance, effective from 24 January 2000, establishing a Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT) to take over the adjudicatory and disputes functions from TRAI. New Telecom Policy 1999 The most important milestone and instrument of telecom reforms in India is the New Telecom Policy 1999 (NTP 99). The New Telecom Policy, 1999 (NTP-99) was approved on 26th March 1999, to become effective from 1st April 1999. NTP-99 laid down a clear roadmap for future reforms, contemplating the opening up of all the segments of the telecom sector for private sector participation. It clearly recognized the need for strengthening the regulatory regime as well as restructuring the departmental telecom services to that of a public sector corporation so as to separate the licensing and policy functions of the Government from that of being an operator. Key features of the NTP 99 include: a) b) c) d) Strengthening of Regulator. National long distance services opened to private operators. International Long Distance Services opened to private sectors. Private telecom operators licensed on a revenue sharing basis, plus a one-time entry fee. Resolution of problems of existing operators envisaged. e) Direct interconnectivity and sharing of network with other telecom operators within the service area was permitted. f) Department of Telecommunication Services (DTS) corporatized in 2000. g) Spectrum Management made transparent and more efficient. Broadband Policy 2004 Recognizing the potential of ubiquitous Broadband service in growth of GDP and enhancement in quality of life through societal applications including tele-education, tele-medicine, egovernance, entertainment as well as employment generation by way of high-speed access to information and web based communication; Government has announced Broadband Policy in October 2004. The main emphasis is on the creation of infrastructure through various technologies that can contribute to the growth of broadband services. The SACFA/WPC clearance has been simplified. The setting up of National Internet Exchange of India (NIXI) would enable bringing down the international bandwidth cost substantially, thus making the broadband connectivity more affordable. The prime consideration guiding the Policy includes affordability and reliability of Broadband services, incentives for creation of additional infrastructure, employment opportunities, induction of latest technologies, national security and brings in competitive environment so as to reduce regulatory interventions. By this new policy,

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the Government intends to make available transponder capacity for VSAT services at competitive rates after taking into consideration the security requirements. The service providers permitted to enter into franchisee agreement with cable TV network operators. However, the Licensee shall be responsible for compliance of the terms and conditions of the licence. Further in the case of DTH services, the service providers permitted to provide Receive-Only-Internet Service. The role of other facilitators such as electricity authorities, Departments of ITs of various State Governments, Departments of Local Self Governments, Panchayats, Departments of Health and Family Welfare, Departments of Education is very important to carry the advantage of broadband services to the users particularly in rural areas. Target has been set for 20 million broadband connections by 2010 and providing Broadband connectivity to all secondary and higher secondary schools, public health institutions and panchayats by 2010.

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Scams & Audits Done In Telecom Sector

In Financial Year 2007-2008, TRAI (Telecom Regulatory Authority of India) appointed CAG (Comptroller & Audit General of India) to audit the books of 5 telecom companies. This move came in effect after an audit was done by DoT (Department of Telecom) which came out with no results. The audit was done for the following telecom companies: 1. 2. 3. 4. 5. Bharti Airtel Vodafone Reliance Communications Tata Telecom BSNL

The main reason to scrutinize the books of companies was to find out the following heads: a. b. c. d. e. Service-wise revenue Other sources of income Supplementary and support income Cost details Operational Expenses

The audit aimed at auditing accounts of these telecom operators to ensure they paid proper revenue share to the government as per the telecom licence rules. Moreover CAG has sought details from the Department of Telecom on the total available spectrum in the country and how much has been allocated to private telecom operators from 2000 onward and at what value. The audit also revealed that Reliance Communications has violated government guidelines for raising $1.5 billion of overseas loans, paying compounding charges to the Reserve Bank of India (RBI) after the telecom major was found to have. Some facts which were revealed by CAG in the summary of their report are as follows: Audit is of the view that such discussion with different stake holders represented in the Telecom Commission would certainly have benefitted Department of Telecommunications in arriving at a more credible and transparent procedure for allocation as also for ascertaining the true value of 2G spectrum. The entire implementation process does not withstand the test of scrutiny, and hence, the widely held belief that it has benefitted a few operators and has not been able to maximise generation of revenue from allocation of such a scarce resource. This has now been confirmed in Audit. The role of Telecom Regulatory Authority of India would also appear to have been reduced to that of a hapless spectator as its recommendations were either ignored or applied selectively. The entire process of allocation of 2G spectrum raises serious concern about the systems of governance in the Department of Telecommunications which need to be thoroughly.

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PORTERS 5 FORCES MODEL (FOR TELECOM INDUSTRY)

1. Threat of New Entrants (Moderate): It comes as no surprise that in the capital-intensive telecom industry the biggest barrier to entry is access to finance. To cover high fixed costs, serious contenders typically require a lot of cash. In addition, it is important to remember that solid operating skills and management experience is fairly scarce, making entry even more difficult. 2. Power of Suppliers (Low): At first glance, it might look like telecom equipment suppliers have considerable bargaining power over telecom operators. Indeed, without high-tech broadband switching equipment, fiber-optic cables, and mobile handsets and billing software, telecom operators would not be able to do the job of transmitting voice and data from place to place. But there are actually a number of large equipment makers around. There are enough vendors, arguably, to dilute bargaining power. A company has a variety of suppliers to choose from, because most of the suppliers would be eying to get the contract to be the supplier of the company. 3. Power of Buyers (High): Lack of differentiation amongst the service providers has led to sort of commoditization of the product. A company provides the same service as others provide, this lack of differentiation gives customer an edge to bargain with service providers, they can switch to any other provider any time they want. Fierce competition among the competitors also offers a great deal to bargain. 4. Availability of Substitutes (High): Products and services from non-traditional telecom industries pose serious substitution threats. Cable TV and satellite operators now compete for buyers. The cable guys, with their own direct lines into homes, offer broadband internet services, and satellite links can substitute for high-speed business networking needs. The threat of the substitutes for any company is very high in Indian market as the already existent players have a huge market share and better brand perception among the consumers, making it tough for a company to win the trust of its customer and increase its market share. 5. Competitive Rivalry (High): Competition is "cut throat". The wave of industry deregulation together with the receptive capital markets paved the way for a rush of new entrants. New technology is prompting a raft of substitute services. Nearly everybody already pays for phone services, so all competitors now must lure customers with lower prices and more exciting services. This tends to drive industry profitability down. In addition to low profits, the telecom industry suffers from high exit barriers, mainly due to its specialized equipment. A new company will face a cut throat competition from its well established competitors.

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PEST ANALYSIS a) Political Factor: High entry fees in 3G market: In India legal obligations are there regarding 3G auction and bidding which limits it to the existing players and not available to the new entrants this political factor forbids the entry of new companies in to 3G services. Reduction in tariff plan: Earlier the tariff rates were higher due to high taxes, but now it has become lowest in the world by tax reforms. Extension of license period: Government has replaced the license fees with revenue sharing scheme and extended the license period from 10 year to 20 years. A company can merge with another operator only after 3 years of receiving license. This rule can be eased to help new companies merge with established players. b) Economic Factor: India is one of the most vibrant and fastest growing telecom market in the world enjoys the steady growth rate of 10 million mobile users every month .India has a moderate but still a healthy growth rate which will provide a good base for new as well as existing companies to grow with growing economy. c) Social Factor: Perception of new entrant in the market: A new brand in the Indian market it will be facing problems regarding the perception of a new entrant, this image will adversely affect the buying capacity of customers, they will think about the network, and the kind of service they will get after sale. Social status: Anything customers buy that reflects their social status, people will be conscious about their social status this will affect a new companys growth adversely. d) Technological Factor: The business in a country is greatly influenced by the technological development. The technology adopted by the industries determines the type and quality of goods and services to be produced and the type and quality of plant and equipment to be used. A company should be aiming to come up with something new that is not been available to its competitors.

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Future of Telecom Sector

Will the Indian telecom sector become a sunset industry? With the availability of high bandwidth 3G networks and increasing Smartphone penetration, telecom players will have to gear up to embrace m-commerce in a big way. Else, the sector might well become a sunset industry. The Indian telecom industry is at a crossroads. Unless it opts for innovation, it might well become a sunset industry. Companies will have to look much beyond consolidation which almost seems like a given, considering the considerable advantages that will accrue to players who will tie up across various circles to combat the varied challenges facing them. Players have to take full advantage of technologies like 3G and offer more mobile value-added services (MVAS) that can generate more revenues. And most importantly, they will have to channelize their efforts into adopting mobile commerce (m-commerce). Currently, some baby steps have been taken to promote m-commerce but this is more because of the ingenuity of users rather than any foray from telecom operators. According to industry body Associated Chambers of Commerce and Industry of India (ASSOCHAM), the MVAS industry is projected to register a turnover of Rs280 billion by 2013 up from the current Rs97 billion, after the rollout of 3G services in India. Players in the Indian telecom space had better get their m-commerce act together. According to a research report from analyst firm Berg Insight, the worldwide number of users of mobile banking and related services is estimated to grow at a compounded annual growth rate (CAGR) of 59.2% to reach 894 million users in 2015 from 55 million users in 2009. The Future of Networks in 5 Steps 2010-2020 decade will be the decade of the network, but a very different kind of network. By 2015, I think there will 5 fundamental changes or shifts occurring: 1) There will be one network: Wireless and Wire line networks will have converged to form a single, high performance, cost-optimized aggregation and core IP network, with either wireless or wired edges. In fact, even the distinction between the wireless and wired edge connectivity will be blurred as devices embed Ethernet ports, Wifi and LTE modems. 2) The network will be intelligent: As Moores law continues its seemingly inexorable progression, the cost of processing and the associated memory and storage will have decreased to the point where the economics of embedding application-level functionality in the network makes sense. This will allow much more efficient use of network resources, and a concomitant improvement in the user Quality of Experience (QoE).

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3) The network will be open and sustainable: 4) The network will be a platform: Increasingly, applications will run in the network not over it. 5) The network will be green: the more than 30x growth in capacity that is predicted to occur as smart devices and tablets proliferate over the coming years, and person-toperson communications are usurped by Machine-to-Machine communications, must optimize the energy cost per bit in order that the environmental impact of building these networks is minimized and the operational cost of running them does not become prohibitive. After the roll out of 3G (EVDO/HSPA) from operators, next big thing for Indias telecom sector is going to be roll out of 4G services. The number of 4G network deployments is increasing worldwide and about 22 percent of device subscription revenues will be generated by suites of operator-branded premium services. The research firm predicts that the total 4G mobile consumer service revenue including mobile internet services will be more that $70 billion worldwide in 2014. Future dated WiMAX IEEE 802.16m and LTE Advanced is considered as 4G. Operators will work towards optimizing these 4G services and in turn this will enable a proliferation of mobile devices, such as smartphones, netbooks and PNDs. Several operators will be offering pooled device subscriptions.In the coming months and years, internet access service will be the killer 4G service. This doesnt surprise ABI because 4G networks are data-only. The research firm expects a suite of premium Web 3.0 services to collectively drive significant consumer adoption, revenues and profits. This suite will include location services, such as turn-by-turn directions and POIs; multimedia services, such as VoD and P2P video sharing; media broadcast services, such as pay-per-view TV and digital radio; and gaming services, such as multi-player and augmented reality games. These services will be integrated with popular Web 2.0 features and will be delivered to PCs, TVs and mobile devices. Services will be delivered over the internet, over cable networks, and over wireless networks. Operators will take advantage of this market opportunity by breaking down their walls and building open ecosystems. They will partner with third-party service providers from whom they can license and re-brand services; theyll work with network and handset OEMs to influence infrastructure and device specs; and theyll join ecosystem development organizations. LTE is the fastest developing mobile technology ever as 173-180 network operators have committed to LTE worldwide. LTE on 700 Mhz band can revolutionize growth of internet in India, as it has these benefits:

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Better coverage (m more than 3 times comp pared to LT on 2.3GH TE Hz) Lower cost of roll out as few BTS requir r l red Max on p, from all these devices and equipm ment using generated f As WiM adoptio ramps up revenue g WiMax will total $51.3 billion by 2015, up from $7.4 billion in 2 n p 4 2010

reless opera ators can significantly increase their ARP and im y e PU mprove their ROI by r 4G wir g er ), pared to off fering data o only service Operator can see es. rs offering Voice ove IP (VoIP) as comp even more ROI wi cloud-ba ith ased delivery as com mpared to di irectly man naging in-ho ouse VoIP platform added t study, tit Maxim ms, the tled mizing Oper rator Value from VoIP Services. Launchi 4G VoIP service will result in a 25-50 percent in ing 0 ncrease in A ARPU, a 1 percent 10 increase in IRR and a 5X-10X increase in NPV vers a data-on service strategy, e d X n sus nly Operators deployin VoIP ov 4G netw ng ver works are fa aced with a critical dec cision as to whether th should hey build an manage a in-house VoIP platfo or partn with a cl nd an orm ner loud-based, hosted VoIP solution provider r. With mobile data c consumption already pu n ushing the b boundaries o 3G and c of continuing to increase at an as stounding r rate, telecom operators all across the world are looking to the fas m s g ster, more reliable data speed made possible by 4 technolo to reduc the stres on their networks, ds 4G ogy ce ss improve customer s e satisfaction, and open t door to n offerin like high definition videos, 3, the new ngs h D exper riences, and graphic-int tensive gam mes: The up-sides of mo oving from 3 to 4G are numerous - faster, mo reliable data consum 3G s ore mption for consum mers, and mo opportun for prof ore nity fitable reven generati for servi provider To nue ion ice rs. realize 4 4G's full pot tential and b begin seeing a return on their exten g n nsive investm ments, service provider need back office syst rs k tems that ar just as rob re bust, fast, flexible and s smart as the network. e The futu ure-proof de esign of the Convergys 4G Monetization Solut tion can hel take prov lp viders not just from 3G to 4G, but into th future of w m he wireless stan ndards and technology. Convergys next s' generati 4G billin and custo ion ng omer care so olution enha ances servic providers ability to m ce s' monetize their hig speed voice and data network. gh a