Executive Summary

India continued into 2005 to be one of the fastest growing major telecom markets in the world. The Telecom Regulatory Authority of India (TRAI) described the year ending March 2005 as one of ‘unprecedented growth’ in telecoms services throughout the country. The growth in mobiles continues to be remarkable, reaching 55 million in early 2005, as mobile tariffs fell by 35% over the previous 12 months. This ongoing growth came on the back of operators cutting tariffs and setting aggressive network roll-out schedules across the country. In the meantime, by comparison, growth in the fixed-line sector has been running at only 8%, having reached 46 million by early 2005.

There is no doubt that the sweeping reforms introduced by successive Indian governments over the last decade have dramatically changed the nature of the telecommunications industry in the country. The structure of the market was initially criticised, but the evolution of the market through a series of mergers and takeovers among the mobile operators has since seen a welcome consolidation. The ‘licensing by circles’ policy is now 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.

There is something paradoxical about India’s somewhat ambivalent approach to Internet. In a country where the IT industry is booming, there is considerable enthusiasm amongst the dial-up users. An estimated 60% of users regularly access the Internet via the country’s more than 10,000 cybercafes. But when it comes to high-speed broadband access, there is reluctance, especially within the corporate sector, and the take-up rate has been slow. By early 2005 there were an estimated 700,000 broadband subscribers - a penetration of less 0.1%. Predictions are that the broadband sector is about to gain some momentum at last.

1. EXECUTIVE SUMMARY
2. KEY STATISTICS
3. TELECOMMUNICATIONS MARKET
3.1 Overview
3.2 Growth forecasts
3.3 Foreign investment
3.4 Universal service
4. REGULATORY ENVIRONMENT
4.1 The reform process
4.2 Telecommunications authorities
4.2.1 Ministry for Communications
4.2.2 Department of Telecommunications
4.2.3 Telecom Commission
4.2.4 Telecom Regulatory Authority of India (TRAI)
4.2.5 Telecom Dispute Settlement & Appellate Tribunal (TDSAT)
4.3 Regulatory background
4.3.1 National Telecom Policy 1999 (NTP-99)
4.3.2 Foreign equity
4.3.3 Licensing circles
4.3.4 Licence fees
4.4 Regulatory reforms
4.5 Quality of Service
4.6 Liberalisation
4.6.1 Policy highlights
4.6.2 Basic service
4.7 Fixed-line licences
4.7.1 National Long-distance (NLD)
4.7.2 International Long-distance (ILD)
4.7.3 Limited mobility policy
4.7.4 Tariffs
4.7.5 Additional mobile licences
4.7.6 Compensation
4.7.7 Other outcomes
4.8 Privatisation
4.8.1 VSNL
4.8.2 MTNL
5. FIXED NETWORK OPERATORS
5.1.1 Bharat Sanchar Nigam Limited (BSNL)
5.1.2 Bharti Telenet
5.1.3 Hughes Telecom
5.1.4 Mahanagar Telephone Nigam Limited (MTNL)
5.1.5 Tata Teleservices Ltd
5.1.6 Reliance Infocomm
5.1.7 BSNL/MTNL merger
5.2 International operators
5.2.1 Videsh Sanchar Nigram Ltd (VSNL)
5.2.2 AT&T-British Telecom
5.2.3 Bharti Telesonic
5.2.4 Reliance Communications
6. TELECOMMUNICATIONS INFRASTRUCTURE
6.1 National telecom network
6.1.1 Overview
6.1.2 Network development
6.1.3 Rural projects
6.2 National infrastructure
6.2.1 Overview
6.2.2 National projects
6.2.3 Wireless Local Loop (WLL)
6.3 International infrastructure
6.3.1 Overview
6.3.2 Submarine cable networks
6.3.3 Satellite communications
6.4 Infrastructure development
6.4.1 Voice over Internet Protocol (VoIP)
7. FIXED NETWORK MARKET
7.1 Overview
7.2 National market
7.3 International market
7.4 Fixed wireless services
8. DATA MARKET
8.1 Data infrastructure
8.1.1 Public data network
8.1.2 Leased lines, frame relay and ATM
8.1.3 Integrated Services Digital Network (ISDN)
8.1.4 Internet Data Centres (IDCs)
8.1.5 Multi Protocol Label Switching (MPLS)
8.2 Data services
8.2.1 Value-added services
8.2.2 Application Service Providers (ASPs)
9. INTERNET MARKET
9.1 Overview of Internet market in India
9.2 Profile of Internet users
9.3 Regulatory issues
9.3.1 Internet policy
9.3.2 National Internet Exchange of India (NIXI)
9.3.3 Pricing
9.4 ISP market
9.4.1 Major ISPs
9.4.2 Satyam Infoway Ltd (Sify)
9.4.3 Bharti BT Internet (Mantra online)
9.4.4 Videsh Sanchar Nigram Ltd (VSNL)
9.4.5 Mahanagar Telephone Nigam Limited (MTNL)
9.4.6 Pacific Internet India
9.4.7 Net4India
9.4.8 Dishnet
9.4.9 Data Access (India) Ltd
9.4.10 L&T Netcom
9.4.11 TataNova
9.5 Free Internet access services
10. BROADBAND NETWORKS AND SERVICES
10.1 Market overview
10.2 Broadband Policy 2004
10.3 Cable modems
10.4 Asynchronous Digital Subscriber Line (ADSL)
10.5 Wireless broadband
10.5.1 Internet via satellite
10.5.2 Other broadband networks
11. CONTENT AND E-SERVICES
11.1 E-commerce
11.1.1 B2B e-commerce
11.1.2 E-payment
12. MOBILE COMMUNICATIONS
12.1 Overview of India’s mobile market
12.1.1 Consolidation of industry players
12.1.2 Mobile statistics
12.1.3 Mobile market segments
12.1.4 Pricing and marketing strategies
12.1.5 Regulatory issues
12.2 Major mobile operators in India
12.2.1 Market overview
12.2.2 Mergers and acquisitions
12.2.3 Competition
12.2.4 Subscriber statistics and market share
12.3 Overview of major mobile operators
12.3.1 Bharat Sanchar Nigam Ltd (BSNL)
12.3.2 Bharti Cellular Ltd (AirTel)
12.3.3 BPL Mobile
12.3.4 Hutchison Essar Telecom Ltd
12.3.5 Idea Cellular (Birla AT&T-Tata BPL)
12.3.6 Mahanagar Telephone Nigam Limited (MTNL)
12.3.7 Reliance Telecom Ltd
12.3.8 Spice Telecom Ltd
12.4 Mobile technologies
12.4.1 Overview of mobile technologies used in India
12.4.2 GSM
12.4.3 CDMA
12.4.4 Third generation (3G) mobile
12.5 Mobile voice services
12.5.1 Prepaid
12.5.2 Satellite mobile
12.6 Mobile data services
12.6.1 Market overview
12.6.2 Short Message Service (SMS)
12.6.3 Multimedia Messaging Service (MMS)
12.6.4 General Packet Radio Service (GPRS)
12.6.5 Push-to-Talk over Cellular (PoC)
12.6.6 Binary Runtime Environment for Wireless (BREW)
12.6.7 Enhanced Data for GSM Evolution (EDGE)
13. BROADCASTING MARKET
13.1 Overview
13.2 Statistical overview
13.3 Regulatory issues
13.3.1 Cable Television Networks (Amendment) Bill
13.3.2 Convergence Bill 2001
13.3.3 Foreign investment
13.4 Free-to-Air TV
13.4.1 Doordarshan
13.5 Digital TV
13.6 Cable TV
13.6.1 Market overview
13.6.2 Cable TV regulatory environment
13.6.3 Cable infrastructure developments
13.6.4 Pay TV
13.6.5 Convergence
13.7 Internet Protocol TV (IPTV)
13.8 Satellite TV
13.8.1 Direct-to-Home (DTH) TV
13.8.2 Major cable and pay TV operators
13.9 Interactive TV
13.10 TV content
14. GLOSSARY OF ABBREVIATIONS


Exhibit 1 – Major telecommunications players
Exhibit 2 – ISRO satellite network - 2004
Exhibit 3 – CDMA deployment in India – 2004
Exhibit 4 – EDGE deployments in India – July 2004
Exhibit 5 – Broadcasting Standard and major broadcasters
Exhibit 6 – Overview of major channels available to Indian consumers




Table 1 – Mobile subscriber growth – 2003 – 2005
Table 2 – Country statistics India – 2005
Table 3 – Telephone network statistics – 2005
Table 4 – Internet provider statistics – 2004
Table 5 – Internet user statistics – 2004
Table 6 – Broadband statistics – 2004
Table 7 – Mobile statistics – 2005
Table 8 – National telecommunications authorities
Table 9 – Telephone services to villages - December 2004
Table 10 – Foreign Direct Investment levels – 1994 - 2004
Table 11 – Fixed-line basic services* by operator – December 2004
Table 12 – Fixed-line growth and teledensity – 1995 - 2005
Table 13 – Growth of VPT scheme – 2002 - 2004
Table 14 – CDMA mobile subscriber growth and penetration – 2002 - 2005
Table 15 – CDMA mobile subscribers by operator – 2004
Table 16 – International undersea cable capacity – 1997 - 2004
Table 17 – Fixed-line subscribers* and penetration – 1996 - 2005
Table 18 – Fixed-line subscribers by operator – 2004
Table 19 – Internet subscriber and user growth – 1995 - 2004
Table 20 – Internet host computers – 1995 - 2003
Table 21 – Top 10 Internet Service Providers – December 2004
Table 22 – Broadband subscriber growth – 2003 - 2004
Table 23 – Broadband subscribers by access – June 2004
Table 24 – Broadband Internet subscriber targets – 2005, 2007, 2010
Table 25 – Cable modem subscribers – 2003 - 2004
Table 26 – ADSL subscriber growth – 2001 - 2004
Table 27 – Commercial value of e-commerce sector – 2000, 2005
Table 28 – Mobile subscriber growth - GSM and CDMA - and annual growth – 2002 - 2005
Table 29 – GSM mobile subscriber growth and annual growth – 1997 - 2005
Table 30 – Mobile services revenue – 1996 - 2005
Table 31 – ARPU by market category - September 2004
Table 32 – Mobile subscriber market share by circle – December 2004
Table 33 – GSM mobile subscribers by region/circle – 2002 - 2004
Table 34 – Mobile tariffs in SAARC countries – September 2004
Table 35 – GSM mobile subscribers by operator – Metro Region – March 2005
Table 36 – GSM mobile subscribers by operator – Circle A – March 2005
Table 37 – GSM mobile subscribers by operator – Circle B – March 2005
Table 38 – GSM mobile subscribers by operator – Circle C – March 2005
Table 39 – GSM mobile operators by market share – March 2005
Table 40 – Top 5 mobile operators by market share – December 2004
Table 41 – CDMA mobile subscribers* by operator – 2003 - 2004
Table 42 – CDMA mobile operators by market share – December 2004
Table 43 – Prepaid versus post-paid cellular subscribers – March 2004
Table 44 – ARPU per month (in rupees) prepaid and postpaid – December 2004
Table 45 - Broadcasting market overview - 2004
Table 46 – TV household growth – 1995 - 2004
Table 47 – Total TV industry revenue growth – 2000 - 2005
Table 48 – Pay TV subscriber growth – 2002 - 2005
Table 49 – Pay TV (cable) operators – 2004