s is the case with the developing countries, they present a large untapped market. With a population of more than one billion and one of the fastest growing economies, India’s poential as a market cannot be softpedalled.
That India is on the verge of a telecommunications revolution has become a cliché now. It won’t be an exaggeration to say that the revolution is nearing completion’in the country which was unthinkable in the not-so-distant past.
Recently, BSNL (Bharat Sanchar Nigam Ltd.) had requested for bids to help it set up 63.5-million mobile lines in a deal estimated to be a worth up to $4.8 billion. Considered to be the world’s single-largest request for the proposal involving GSM procurement, the mobile standard most commonly used in India, the deal shows the surging demand of mobile phones in India.
The phone subscriber base is on the rise in India, according to the government sources. By the end of January 2006, the number of phone users in the country hit 130.8 million, with the addition of 32 million new connections during April-January of the current fiscal. Out of 32 million new additions 31 million were wireless, which is about 97 per cent of the total additions.
The mobile subscriber base in the country crossed the 100-million mark in the month of May, according to the latest estimates. With 100.6 mobile phone users as of May, India is ranked fifth in the world in respect to the number of cellular subscribers. This has put the country in the league of China, the US, Japan and Russia.
Apart from being the fastest-growing mobile telephony country, India is also the most competitive. As a result, it is also the cheapest. Stiff competition in the telecom sector over the years has led to prices plummeting for everything from handsets to talk time. Talk-time tariffs have come down by more than 74 per cent over a couple of years. “The telecom service sector has shown unprecedented growth during 2003-04, mainly driven by intense competition and aggressive pricing,” says Pradip Baijal, former Chairman, Telecom Regulatory Authority of India.
The latest figures show that 4.3 million users were added to the mobile subscriber base compared to April’s addition of 3.9 million mobile subscribers. While GSM-based cellular operators’ subscriber base has touched 75.3 million, that of the CDMA operators touched 25.3 million. The GSM operators added 3.2 million subscribers, while CDMA operators added about 1.1 million new users taking the total number of the addition to about 4.3 million.
However, the mobile services in India are largely city-centric and the service providers have realized the need to expand their networks in rural areas where two-thirds of the country’s billion-plus people live.
India’s top mobile services firm, Bharti Airtel, has retained numero uno position among GSM providers, adding about 1.2 million new subscribers, propelling its user base to nearly 21.9 million customers. The GSM provider has a market share of 29 per cent.
India’s top telecom firm by sales, the State-run Bharat Sanchar Nigam Ltd. added more than 400,000 users in May, raising its GSM user base to 18 million. Hutchison Essar Telecom Ltd., the Indian wireless operation of Hong Kong’s Hutchison Telecommunications International Ltd., added 700,000 new users in May. The firm’s subscriber base stood at about 16.8 million customers. Idea Cellular has added 0.4 million users, while Mahanagar Telephone Nigam Limited (MTNL) has signed up 0.1 million. The mobile phone boom has been driven by the cuts in call rates offered by more than ten companies. The Department of Telecommunications in India has been taking steps in the direction of enabling the telecommunication growth in the country.
Bharti Tele-Ventures (now called Bharti Airtel Ltd.), which offers services under the brand Airtel, has come a long way since a major initiative was taken in 1992 by the DOT when private-sector participation was opened in the cellular services. In 1994, Bharti secured rights to serve New Delhi.They launched the service in November 1995, within a year of receiving the licence. Since then, there has been no looking back.
The businesses at Bharti Airtel have been structured into two main strategic business groups – the Mobility–Leaders business group and the Infotel Leaders business group. The Mobility business group provides GSM mobile services across India in twenty-three telecom circles, while the Infotel business group provides broadband and telephone services, long-distance services and enterprise services. All these services are provided under the Airtel brand. Bharti Airtel is the only operator to provide mobile services in all the 23 circles in India. The company also provides telephone services and Internet access over DSL in 15 circles.
The company has been awarded the–“Best Indian Carrier” in the Telecom Asia Awards 2006, for the second consecutive year. Manoj Kohli, President, Bharti Tele-Ventures Limited, said, “It is a matter of great pride for us to be recognized as the Best Indian Carrier in 2006 for the second consecutive year. It is heartening to note that Bharti’s efforts in creating world-class telecom infrastructure are being recognized across the world. This award is a testimony to our uncompromising standards in reaching out to our customers. I thank all our stakeholders including our valued customers, channel partners and our employees for enabling us to emerge as India’s finest telecom service.”
Airtel has recently introduced the first lifetime pre-paid plan with an installment payment facility for the first time in India. Customers can get lifetime connectivity for 12 installments of Rs.99 per month under this plan, captioned “easy lifetime pre-paid”.
After the completion of the installments, the Airtel mobile user becomes eligible for life-long connection. The Easy Lifetime prepaid also offers the user full talk time on all recharges and select easy charge denominations. Explaining the new plan, Sanjay Kapoor, Joint President, Mobility, Bharti Airtel Limited, says, “When Airtel introduced the lifetime pre-paid last year, it marked the beginning of unprecedented growth in mobile telephony in India. Now, with the ‘easy lifetime pre-paid’, we propose to take customer convenience and affordability to a whole new level. This plan especially comes as a boon for the B- and C-class SECs and further endorses Airtel’s resolve to make mobile telephony a way of life in India.” The plan is open to new as well as existing customers.
Bharti has also ventured into Europe. Recently, Jersey Telenet Ltd., a subsidiary of Bharti Global, has been granted a licence to run comprehensive telecom services in Jersey. The services for which a licence has been granted include 2G and 3G mobile services and international long-distance services.
According to Sunil Bharti Mittal, Chairman & Group Managing Director, Bharti, “We are delighted at this opportunity to provide telecom services in Jersey. Having spearheaded the growth of the telecom sector in India, Bharti is committed to providing world-class telecom services now in Jersey as well.”
This is the second international telecom venture of Bharti Global. Telecom Seychelles, a subsidiary of Bharti Global, has been offering mobile and basic telephone services in Seychelles since 1998 under the Airtel brand. Over the years, the company has continuously led the market in Seychelles with new products and has played a crucial role in making mobile and landline services more affordable for its customers in Seychelles.
In short, Bharti is India’s telecom big gun. Like India’s economy, it is growing fast. But challenges are many. Remaining at the top in the fiercely competitive landscape is the main one.
