A Presentation on BSNL

Broadband

Presented By:
Bharat Mannam
18068,Tps-B
 Contents
• Global Telecom Scenario

• Growth of Telecom in India

• Role of BSNL

• Role Of TRAI and TDSAT

• Opportunities & Challenges

Global Telecom Scenario
 Telephone connections in millions

35.997 220.743
1090.504 837.195 Africa
America
Asia
Europe
Oceania

1744.815

• Mobile. 2699.270 M Fixed.1229.987 M Total. 3929.257 M

• Population 6563.69 M Teledensity. 60.02
Countries with more than 100% Teledensity
• Africa – Seychelles
• Americas – Argentina, Aruba, Bahamas, Barbados, Canada,
Jamaica, Puerto Rico, United States of America
• Asia- Japan, Korea (Rep.), Qatar, Singapore, Taiwan,UAE
• Europe- Andorra, Austria, Belgium, Bulgaria, Croatia,
Cyprus, Czech Republic, Denmark, Estonia, Finland,
France, Germany, Greece, Greenland, Hungary, Iceland,
Ireland, Italy, Latvia, Lithuania, Luxemburg, Malta,
Monaco, Netherlands, Norway, Poland, Portugal, Russia,
Slovak Republic, Slovenia, Spain, Sweden, Switzerland,
Ukraine, United Kingdom
• Oceania- Australia, New Zealand
 Mobile Tariffs in India one of the Lowest
0.25
0.23
0.22

0.2 0.19

0.17
0.16

0.15

0.11 0.11 0.11

0.1 0.09
USD

0.05 0.05
0.05 0.04
0.03
0.02

Hong Kong
Argentina
Philippines

Malayasia
Belgium

Thailand

Pakistan
France

Taiwan

China

India
Brazil
Italy

UK
Growth of Telecom in India
 Growth of Telecom in India

• 1994 National Telecom Policy – 1994

announced
• Aug 1995 Kolkata became the first metro to
have a cellular network
• 1997 Telecom Regulatory Authority of
India was setup
• 1999 Tariff rebalancing exercises gets
initiated
• March 1999 National Telecom Policy – 99
announced
 Growth of Telecom in India

• Aug 1999 License fee (revenue share) reduced from

provisional 15% to 12%, 10% & 8% on
Circle wise basis (A type, B type & C type
circles)
• 2000 TRAI Act amended & separate tribunal
proposed
• Jan 2001 TDSAT started functioning
• Jan 2001 Policy announced for additional licenses in
Basic and Mobile Services
• Jan 2001 Limited mobility allowed to Basic Services
(CDMA spectrum allotted to Basic Service
Operators)
 Growth of Telecom in India

• Oct-2002 BSNL entered in to GSM cellular operation

w.e.f 19th October, 2002. Made incoming
call free & initiated tariff equalization process
• Tariff for GSM cellular mobiles reduced
• Nov 2003 Unified Access (Basic & Cellular) Service
License (USAL) introduced as a first step
towards Unified License Regime
• Technology neutral and allows provisioning
any kind of service
• Apr 2004 License fee reduced by 2% across the board for
all the access licenses.
 Teledensity-Rural & Urban
Teledensity
70

60 Rural Urban Total 60.04

50 48.52

40 39.45

30 26.88
23.21
20 20.74
18.31
14.32 12.74
10.37 12.2
10 8.36 8.95 7.9
6.94 5.11 7.02 5.88
2.32 2.86 3.58 4.29
0.52 0.68 0.93 1.21 1.49 1.57 1.73 1.86
0

2007(Nov)
2006
1999

2000

2001

2002

2003

2004

2005

2007
Year
 Role of
Bharat Sanchar Nigam Limited
Bharat Sanchar Nigam Limited
Company Profile (as on 31.12.2007)

 Corporatized on 1st October 2000

 Connects length and breadth of INDIA except Delhi

& Mumbai

 37516 Digital Exchanges with 29051 exchanges in

rural areas on reliable media.
Present Status (as on 31.12.2008)
Customer Base
in million
• Wireline Customers : 31.72
• WLL Customers : 4.09
• GSM Customers : 32.71
• Total Customers : 68.51
• Broadband customers : 1.45
• Internet Customers : 3.35
Present Status (Contd…)
• Village Public Telephones (VPTs) : 5.18 Lakh
• Largest Transmission Network in the Country
– OFC Network : 5.29 Lakh RKMs
– M/W Network : 0.50 Lakh RKMs
– Satellite Earth Stations : 217 Numbers

• Internet Nodes operational at all District

Headquarters.
• All wiredline connections enabled for Dial-up Internet
Services.
Financial Achievement (Last 3 Years)
(In Rupees Crore)
S. # Parameter 2004-05 2005-06 2006-07

1 Total Income 36090 40177 39517

2 Gross Profit 6183 8954 8933

3 Net Profit 10183 8940 7806

4 Sundry Debtors 3632 3455 3206

5 Capital 10476 8892 8142

Expenditure

6 Net Fixed 61769 60188 57934

Assets
7 EPS 15.75 15.3 13.95
 BSNL’s Milestones
• Set up on 1st October,2000
• Introduced cellular services on 19th October,2002 and has 32.7
million customers as on date
• Became market leader within 6 months, in its areas of operation
• Introduced limited mobility WLL services w.e.f. December 2000,
and has 4 million customers as on date
• Introduced dial up internet facility w.e.f. December 2000
• Introduced CLI based internet facility w.e.f. December 2003
• 3.35 million Internet Customers with BSNL
• Introduced Broadband in the country w.e.f. 14.11.2005 and has 1.45
million customers
New Initiatives
 WiMAX: Tender Invited for 1000 BTS at Rural Block HQs
covering 25000 village communities
centres
 IPTV
 Launched in Three Cities viz. Bangalore, Pune &
Kolkata
 Agreement signed with Franchisees for another
50 Cities

 VOIP EOI under Issue

Developmental Plans (2008-09)
 Expansion of 13.5 m GSM lines.

 Expansion of 3m Broadband.

 Expansion of 2 m WLL (CDMA) lines

 Introduction of 200K IP Transit Switch.

 Addition of 1206 K TDM TAX

 Addition of 200 IDRs Satellite System for Inaccessible

Stations.
 Role Of TRAI & TDSAT
in Indian Telecom Growth
TRAI
• Setup in 1997
• Protection of Consumer Interest
• Nurture Conditions for Growth of Telecom in India
• Major Activities
– Reduced levies on Operators.
– Reduced upper limit in tariff (Local, STD & ISD) and other Inter-
operators tariffs.
– Directives on number of network access service providers.
– Policy guidelines on new services like 3G, WiMAX, Internet Telephony,
Radio Paging, VSAT, etc.
– Regular monitoring of Quality of Service parameters
 Role Of TRAI & TDSAT
in Indian Telecom Growth
TDSAT
• An integrated & comprehensive dispute settlement
mechanism.

• Set up on 29th May 2000 & started hearing w.e.f. Jan 2001

• 83% cases disposed off from 2001 till 2007

Opportunities & Challenges in
2008 and years to come
 Opportunities
• Rural tele-density is less than 10%.
• Overall tele-density is only 24%.
• Broadband penetration is just 0.25%, hence vast scope.
• BPO business is growing fast: Telecom can ride on it.
• Value added services like M-Commerce, M-Marketing, Special
Information, Ring tones, etc. offer venues of additional revenue.
• As globalization is increasing, more percentage of global
business for Indian telecom.
• Technologies like NGN, 3G, WiMAX, will open up new
frontier of business.
 Challenges
• No. of operators are increasing per circle: hence
more competition
• ARPUs are going down
• Cost/ Customer is very high in rural areas
• Spectrum – a scare commodity
• Infrastructure readiness in rural
• PC prices are very high
• Availability of Contents in local language
• Availability of Contents for Rural Population
• International Bandwidth is costly
• Telecom Manufacturing in India.
 Growth- the way ahead
• Network expansion
– 250 million by 2007 - Already achieved
– 600 million by 2012
• Rural connectivity
– 100 million by 2010
– 200 million by 2012
• Broadband
– 20 million broadband connections and 40 million
internet connections to provide by 2010
– Broadband connections to provide on demand across
the country by 2012
Thank You