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India Telecommunications Sector IT Usage and Trends 2007-2011 Forecast and Analysis: An Overview

Product Type: Market Research Report
Published by: IDC
Published: February 2008
Product Code: R104-32781
Description

This IDC study provides the reader an overview of the IT spending trends by the telecom sector in India. It also provides insights into their important industry dynamics and opportunities, the trends shaping up in the vertical, emerging business challenges and issues, and the role that IT is playing in exploiting these opportunities and meeting these challenges. Along with this, the study also provides insights into componentwise IT spending patterns for the major product categories in the vertical for the year 2006 as well as a forecast of the same on a yearly basis until 2011.

"The total IT spending by the telecom sector in India was estimated to be US$1,515.9 million in 2006 and this is expected to increase at a compound annual growth rate (CAGR) of 16.3% for the forecast period to reach US$3,226.9 million by 2011. The major contribution in the telecom IT market comes from the services segment, which is forecast to increase at a CAGR of 17.2%, from US$590.4 million in 2006 to US$1,303.7 million in 2011. However, the major growth driver in the vertical is going to be the packaged software market, which is forecast to increase at a CAGR of 20.2% for the forecast period 2006?2011. Business and regulatory requirements like quality of service (QoS), customer relationship management (CRM), convergence, network expansion (especially in the rural areas), integrated and centralized billing solutions, data warehousing (DW), and operational support system (OSS)/business support system (BSS) modernization and consolidation are going to be the major drivers of increasing IT spend for the telecom vertical in the years ahead," says Arpan Gupta, assistant manager, Verticals Research, IDC India.

Table of Contents
Table of Contents

IDC Opinion

In This Study

Introduction

Methodology

Executive Summary

Table: Total IT Spend in Telecom Vertical, 2006-2011 (US$M)

Situation Overview

Overview of the Sector

Table: Telecom Services Industry, 2005-2006 and 2006-2007 (US$M)

Figure: Mobile and Fixed Subscriber Base, 2000?2007 (March 31)

Figure: Segmentwise Breakup of Telecom, 2005?2006 and 2006?2007

Table: Subscriber Base for 2006-2011, (M) (December 31)

Figure: Subscriber Base for 2006?2011, (December 31)

Figure: Public and Private Players' Subscriber Base, 1998?2006 (March 31)

Figure: Rural, Urban, and Total Teledensity, 1996?2006 (March 31)

Table: Teledensity for 2006-2011, (%) (December 31)

Figure: Teledensity for 2006?2011, (December 31)

Figure: Various Participants in Teledensity, March 31 2002 and March 31, 2006

Results for Quarter Ending June 31, 2007

Department of Telecommunications' Initiatives for Bridging the Rural Divide

Table: States Where the Village Public Telephones are to be Provided Under the Bharat Nirman Programme by November 2007

Figure: Coverage of Villages by Village Public Telephones

Figure: Growth of Telecom Sector ? Qualitative Analysis

Structure of the Sector

Table: Circle Regime in the Telecom Industry

Table: Cellular and Basic Service Operators in Telecom Circles

Figure: Penetration by Circle Category, March 31, 2006

Figure: Shared Contribution of Telecom Circles in Subscriber Base

Figure: Value Chain of the Telecom Industry

Segments in the Sector

Figure: Segments in the Telecom Sector

Fixed Wireline Market

Figure: Turnover of Fixed-Line Industry, 2004?2005 and 2006?2007

Table: Top Players in the Fixed-Line Segment, 2005-2006 and 2006-2007 (US$M)

Figure: Fixed-Line Market, 2005?2006 and 2006?2007

Drivers for Growth of Fixed-Line Services

Barriers to the Growth of Fixed-Line Services

Cellular Market

Figure: Turnover of the Cellular Industry, 2004?2005 and 2006?2007

Table: Top Players in the Cellular Segment, 2005-2006 and 2006-2007 (US$M)

Figure: Cellular Market, 2005 and 2006

Figure: Cellular Market in India, 2006?2007 (US$ Millions)

Figure: Market Share of GSM Operators, March 31, 2007

Figure: Market Share of Code Division Multiple Access Operators, March 31, 2007

Figure: Segmentwise Breakup of the Cellular Industry, 2005?2006 and 2006?2007

Figure: GSM and Code Division Multiple Access Segmentation of the Cellular Market, 2007?2011 (March 31)

Prepaid and Postpaid

Mobile Data Services

Table: Mobile Data Services Market, December 31, 2006 (US$M)

National Long distance Market

Table: Top Players in the National Long Distance Segment, 2005-2006 and 2006-2007 (US$M)

Figure: Turnover of the National Long Distance Industry, 2004?2005 and 2006?2007

Figure: National Long Distance Market, 2005?2006

Figure: National Long Distance Market in India, 2006?2007

International Long Distance Market

Table: Top Players in the International Long Distance Segment, 2005-2006 and 2006-2007 (US$M)

Figure: Turnover of the National Long Distance Industry, 2004?2005 and 2006?2007

Figure: International Long Distance Market, 2005?2006

Figure: International Long Distance Market in India, 2006?2007

Internet and Broadband Market

Table: Top Players in the Internet Segment, 2005-2006 and 2006-2007 (Subscriber Base) (Lakhs)

Table: Top Players in the Broadband Segment, 2005-2006 and 2006-2007 (Subscriber Base) (Lakhs)

Figure: Turnover of the Internet and Broadband Industry, 2004?2005 and 2006?2007

Figure: Internet Subscribers, 2005 and 2006

Figure: Internet Subscribers, 2006 and 2007

Figure: Broadband Subscribers, 2005 and 2006

Figure: Broadband Subscribers, 2006 and 2007

For Governments

For Telecom Operators

For Consumers

Broadband Applications

Personal Services

Public Services

Commercial Services

Video and Entertainment Services

Broadband Services

Broadband Technologies

Technology Over Existing Infrastructure

Technology Over New Cable Infrastructure

Technology Over Wireless Infrastructure

Very Small Aperture Terminal Market

Table: Top Players in the Very Small Aperture Terminal Segment, 2005-2006 and 2006-2007 (US$M)

Figure: Turnover of the Very Small Aperture Terminal Industry, 2004?2005 and 2006?2007

Figure: Very Small Aperture Terminal Market, 2005?2006 and 2006?2007

Radio Trunking Market

Table: Top Players in the Public Mobile Radio Trunk Service Segment, 2005-2006 and 2006-2007 (Subscriber Base)

Figure: Subscriber Base of the Public Mobile Radio Trunk Service Industry, 2004?2005 and 2006?2007

Figure: Public Mobile Radio Trunk Service Subscribers, 2005 and 2006

Figure: Public Mobile Radio Trunk Service Subscribers, 2006 and 2007

Figure: Industry Segments Served by Public Mobile Radio Trunk Service Market, 2006 and 2007

Evolution of the Sector

Evolution of Reforms in the India Telecom Industry

Tracing of the Evolution of India Telecom Industry

Table: Milestones in the Evolution of the Telecom Industry

Table: Key Developments in the Telecom Industry Over the Last 15 Years

Figure: Evolution of the Telecom Industry

Regulatory Structure in the Sector

Telecom Reforms in India

Regulatory Structure for the India Telecom Industry

Figure: Governmental Overview for the Telecom Industry

Table: Outlined Functions of the Key Organizational Units in the Telecom industry

Ministry of Communication

Table: Budgetary Outlays for the Telecom Industry in the Five-Year Plans (US$M)

Telecom Commission

Department of Telecommunications

BSNL

ITI

MTNL

TCIL

WPC

TEC

CCA

V.T.M. Cell

Vigilance Functions

Monitoring Functions

C-DOT

COAI

AUSPI

TRAI

TDSAT

Key Regulatory Policies for the India Telecom Industry

Liberalization

Table: Key Developments in the Liberalization of the Telecom Sector

Foreign Direct Investment in the India Telecom Sector

Figure: Foreign Direct Investment Flow Into the Telecom Sector, August 1991?November 2006 (US$ Million)

Figure: Telecom Segments With Their Respective Shares of Foreign Direct Investment for August 1991?November 2006

NTP 1991

NTP 1994

NTP 1999

Figure: Key Objectives of the National Telecom Policy 1999

Other Important Policies and Observations in the India Telecom Sector

Table: Quality of Service Performance of Cellular Service Providers for Quarter Ending December 31, 2006 and March 31, 2007

Agenda of Department of Telecom for the Next Five Years

Network Expansion

Rural Telephony

Broadband

Manufacturing Research and Development

Infrastructure Sharing

Third-Generation Mobile Services and WiMAX

Introduction and Spread of Internet Protocol Television and Mobile TV

Research and Development

International Bandwidth

Competition

Vision 2020

Players in the Sector

Table: Presence of Players Across the Telecom Value Chain, March 31, 2007

Table: Service Providers Across Fixed-Line Segment in Different Circles, March 31, 2007

Table: Service Providers Across Cellular Segment in Different Circles, March 31, 2007

Table: Service Providers Across National and International Long Distance Segments, March 31, 2007

Table: Service Providers Across Unified Access Services License in Different Circles, March 31, 2007

Table: Service Providers Across Very Small Aperture Terminal Segment in Different Circles, March 31, 2007

Trends in the Sector

Table: Five Important Mergers and Acquisitions in the Telecom Industry in the Last Two Years

Figure: Traditional Billing System in the Telecom Industry

Figure: Converged Billing System in the Telecom Industry

Table: Value-Added Service Market and its Constituents for 2006 (US$M)

Figure: Market Share of Value-Added Service Constituents, December 31, 2006

Content for Rural Markets

Figure: Summarized Picture of Major Trends in the Telecom Industry

Factors Favoring the Growth of Telecom Industry in India

Economy on a High Growth

Demographic Changes

Investment Opportunity

Key Factors in Favor of India for High Telecom Growth

Figure: Mobile Subscriber Base in India and China for the First Nine Years of Wireless Operations

Figure: Per Minute Cellular Tariffs, 2006

Figure: Summarized Picture of Factors Favoring the Growth of Telecom Industry

Challenges in the Sector

Table: GSM and Code Division Multiple Access Average Revenue per User, December 31, 2006 and March 31,2007 (US$)

Table: Average Revenue per User per Month for Quarter Ending March 31, 2007 - GSM, (US$)

Table: Average Revenue per User per Month for Quarter Ending March 31, 2007 - Code Division Multiple Access, (US$)

Figure: Average Revenues per User Have Fallen but the Telecom Revenues Have Grown, 2000?2006

Figure: Average Revenue per User by Technology, 2006?2011

Figure: Summarized Picture of Major Challenges in the Telecom Industry

Role of IT in the Sector

Key Technological Requirements of the Telecom Service Providers

Networking and Integration

Datacenters/Warehousing

Customer Relationship Management

Figure: Integrated Customer Relationship Management System in a Telecom Organization

Figure: Benefits of Customer Relationship Management for the Telecom Service Providers

Business Intelligence

Geographical Information Systems

Storage Solutions

Document Management Services

Quality Management

Security

Convergence and VoIP

Migration Services

Commercial off-the-Shelf Procurement

Business Support System/Operational Support System Consolidation and Modernization

Integrated Accounts System/Centralized Billing System

Solutions for Interconnections

Business Management/Workflow Management Systems

Intelligent Office Automation Solutions

Enterprise Resource Planning

Figure: Major Enterprise Resource Planning Modules Deployed in the Telecom Industry

Sales Force Automation

Increased Usage of Disaster Recovery Solutions in the Telecom Industry

Outsourcing

Regulatory Compliances

Wireless Services' Solutions (Intelligent Networks)

Help Desk Management

Web Portals (eProcurement)

Conclusion

Future Outlook

Forecast and Assumptions

Table: Key Forecast Assumptions for India Mobile Services, 2007-2011

Overall IT Market in Telecom

Table: Overall IT Spend in Telecom, 2006-2011 (US$M)

Table: Overall IT Spend in Telecom, 2006-2011 (%)

Overall Hardware Market in Telecom

Table: Overall Hardware Spend in Telecom, 2006-2011 (US$M)

Table: Overall Hardware Spend in Telecom, 2006-2011 (%)

Overall Servers Market in Telecom

Table: Overall Servers Spend in Telecom, 2006-2011 (US$M)

Table: Overall Servers Spend in Telecom, 2006-2011 (%)

Overall Clients Market in Telecom

Table: Overall Clients Spend in Telecom, 2006-2011 (US$M)

Table: Overall Clients Spend in Telecom, 2006-2011 (%)

Overall Storage Market in Telecom

Table: Overall Storage Spend in Telecom, 2006-2011 (US$M)

Table: Overall Storage Spend in Telecom, 2006-2011 (%)

Overall Peripherals Market in Telecom

Table: Overall Peripherals Spend in Telecom, 2006-2011 (US$M)

Table: Overall Peripherals Spend in Telecom, 2006-2011 (%)

Overall Networking Equipment Market in Telecom

Table: Overall Networking Spend in Telecom, 2006-2011 (US$M)

Table: Overall Networking Spend in Telecom, 2006-2011 (%)

Overall Software Market in Telecom

Table: Overall Software Spend in Telecom, 2006-2011 (US$M)

Table: Overall Software Spend in Telecom, 2006-2011 (%)

Overall Services Market in Telecom

Table: Overall Services Spend in Telecom, 2006-2011 (US$M)

Table: Overall Services Spend in Telecom, 2006-2011 (%)

Overall Others Market in Telecom

Table: Overall Others Spend in Telecom, 2006-2011 (US$M)

Table: Overall Others Spend in Telecom, 2006-2011 (%)

Market Context

Change in Scope of Verticals Definition in 2006

Table: Comparison of the Scope of the Vertical - 2005 Versus 2006

Change in Scope of Products Definition in 2006

Table: Comparison of the Scope of the Product Categories - 2005 Versus 2006

ESSENTIAL GUIDANCE

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Related Research

Definitions

Vertical Definitions

Telecom

Product Definitions

Hardware

Personal Computers

Traditional Workstations

Servers

Storage

Disk Storage Systems

Tape Automation

Printers and Multifunction Peripherals

Smart Handheld Devices

Handheld Devices

Converged Handheld Devices

Network Equipment

LAN Switches

WAN Network Infrastructure

Other Add-Ons

Packaged Software

Services

Synopsis

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