Vikas Kapoor
India is currently the second-largest telecommunication market and has the third highest number of internet users in the world
India’s telephone subscriber base expanded at a CAGR of 19.22 per cent to 1,002 million over FY07-15
Teledensity (defined as the number of telephone connections for every hundred individuals) increased from 18.3 in FY2007 to 79.67 in FY 2015
In May 2015, total telephone subscription stood at 1,002 million, while Tele density was at 79.67 %
Advent of 4G in India
User requirements are growing faster than ever and the limitations of the current mobile communication systems have forced the researchers to come up with more advanced and efficient technologies. 4G mobile technology is the next step in this direction. 4G is the next generation of wireless networks that will totally replace 3G networks. It is supposed to provide its customers with better speed and all IP based multimedia services. 4G is all about an integrated, global network that will be able to provide a comprehensive IP solution where voice, data and streamed multimedia can be given to users on an “Anytime, Anywhere” basis. At present we have many technologies each capable of performing functions like supporting voice traffic using voice over IP (VoIP), broadband data access in mobile environment etc., but there is a great need of deploying such technologies that can integrate all these systems into a single unified system. 4G presents a solution of this problem as it is all about seamlessly integrating the terminals, networks and applications.
3G vs. 4G
First, the basics: The “G” stands for generation, meaning 4G is the most current generation of cell phone network coverage and speeds. 3G technology created the first networks fast enough to make smartphones effective. Before that, they were too slow to allow you do all the things that make smartphones great, like streaming videos, surfing the web and downloading music.
But it’s 4G that’s really allowed smartphone technology to spread its wings. That’s because it’s much, much faster than 3G. So when you want to download a new game or stream a TV show in HD, you can do it without buffering and delays.
4G is pretty much everywhere now, but even if you happen to be in a place that only has 3G, your phone will automatically switch to 3G so you’ll experience no call problems-just slower Internet speeds.
Benefits of 4G Wireless
Easy Installation
4G is very easy to install and to maintain. All it takes is a cell phone that is 4G capable or a PC card or USB port that you can easily plug into a laptop. No need for modems, cords, cables, and special software. It is perhaps simplest and easiest way to go online.
Faster Speed
4G internet connections are about 4 times faster than predecessors. For instance you can download an entire movie in just minutes as opposed to several hours.
Better Signal
4G is the latest in internet technology so expect better signal. In fact, 4G is known to have a more reliable signal than any other service available on the market. With 4G wireless, you can rest assured that you can get your internet connection every time you need it.
Wider Coverage
As opposed to WiFi and other wireless internet solutions, 4G has a much wider network. WiFi limits coverage to just a few hundred feet and traveling a little further than that will deny you access to the connection. 4G technology turns your block or city into a hotspot. Coverage can go as far as 30 miles or more.
Better Security
4G guarantees high security. Its protocol makes use of a security plan that is the most advanced in wireless technology. Its very strong and reliable network prevents information from being taken or hacking to take place.
ECOSYSTEM – 4G Handsets
VOLTE – Voice over Long Term Evolution (LTE), HD Voice & much faster Data speed
Operators are gearing up for the 4G network rollout. For vendors and ecosystem partners, greater emphasis on 4G enabled handsets at competitive price points will be the order of the day. End-users’ desire to upgrade and keep abreast with the latest technology will continue to drive strong growth for the smartphone market throughout the course of 2016.
Handset Market Size
Driven by strong adoption of data consumption on handheld devices, the total mobile services market revenue in India is expected to touch US$ 37 billion in 2017, registering a Compounded Annual Growth Rate (CAGR) of 5.2 per cent between 2014 and 2017, according to research firm IDC.
According to a study by GSMA, smartphones are expected to account for two out of every three mobile connections globally by 2020 making India the fourth largest smartphone market.
The broadband services user-base in India is expected to grow to 250 million connections by 2017, according to GSMA.
India added the highest number of net mobile phone subscriptions of 13 million during the third quarter of 2015@.
In spite of only 5 per cent increase in mobile connections in 2015, overall expenditure on mobile services in India is expected to increase to US$ 21.4 billion in 2015, led by 15 per cent growth in data services expenditure, as per research firm Gartner.
The Indian telecom sector is expected to generate four million direct and indirect jobs over the next five years according to estimates by Randstad India. The employment opportunities are expected to be created due to combination of government’s efforts to increase penetration in rural areas and the rapid increase in smartphone sales and rising internet usage.
Investment
Some of the major developments in the recent past are:
* LYF a true VOLTE handset launched by Reliance JIO, a Pan India 4G Operator(Mobility Services yet to be launched).
* Walmart India Private Limited’s president has shown interest in opening its chain of stores in Haryana, while Micromax has also offered to set up a mobile handset manufacturing unit in the National Capital Region (NCR).
* Bharti Airtel has planned to invest Rs 60,000 crore (US$ 9.02 billion) over a period of three years under Project LEAP with a view to boost its telecom network capacity thereby improving the quality of voice and data services to its customers.
* Reliance Communications Ltd, India’s fourth largest mobile services provider, has agreed to acquire Sistema Shyam TeleServices Ltd (SSTL).
* Videocon Industries Ltd plans to set up a mobile handset assembly plant along with manufacturing set top boxes in Punjab for an investment of Rs 500 crore (US$ 76.7 million) over three years.
Around 60 Plus True 4G/VoLTE enabled devices / Handsetsalready available in the market
Life Ahead – Telecom in India
PricewaterhouseCoopers (PwC) has published its “Five trends for Indian telecom in 2016”-a preview of what the market may expect from one of India’s most dynamic industries of late:
* Consolidation towards a 5+1 market: The market will settle on an oligopolistic five private sector players, and one state-owned one. Combinations may come in the form of outright mergers, or of spectrum sharing such as recently announced by Idea and Videocon.
* Network experience prevails over customer experience: In other words, operators will continue to focus on providing a high quality, consistent network experience offering the speeds and coverage expected by customers. Differentiating that experience (reference net neutrality debates) is not for India, just yet.
* Data monetization to move away from telcos: This continues a theme from 2015, and predicts that new revenues in the industry generated from data service will flow more and more to data service and applications providers, and not to telecom operators.
* OEMs to climb the value chain: Network technology providers are expected to do more to leverage their potential in usage analytics, packet-probing and pushing content-based offerings, all in a bid to protect their challenged revenue base.
* More regulatory scrutiny on quality: The regulatory authorities are likely to go harder on ensuring operators keep to their commitments for providing a quality service, and doing so transparently and responsibly.
For 2016, PwC introduces a “big wish” too, dedicated this year to seeing India’s National Optical Fiber Network (NOFN) finally start to show some real, on-the-ground progress.
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