1. Rate War In
Telecom
Sector in
India
Submitted by:
Pallavi Syal
Ritesh Goyal
P. Sonika

2. CONTENTS
 INTODUCTION
 TELECOM SERVICE PROVIDER
 MAJOR SCHEMES OF SERVICE PROVIDERS
 CONSUMER BENEFITS
 EFFECTS ON SERVICE PROVIDERS
 CONCLUSION

3. INTRODUCTION
India is the fourth largest telecom market in Asia after China, Japan and South
Korea. The Indian telecom network is the eighth largest in the world and the
second largest among emerging economies. At current levels, telecom
intensiveness of Indian economy measured as the ratio of telecom revenues to
GDP is 2.1 percent as compared with over 2.8 percent in developed economies.
Indian telecom sector has undergone a major process of transformation through
significant policy reforms. The reforms began in 1980s with telecom equipment
manufacturing being opened for private sector and were later followed by National
Telecom Policy (NTP) in 1994 and NTP'1999.
Historically, the telecom network in India was owned and managed by the
Government considering it to be a natural monopoly and strategic service, best
under state's control. However, in 1990's, examples of telecom revolution in many
other countries, which resulted in better quality of service and lower tariffs, led
Indian policy makers to initiate a change process finally resulting in opening up of
telecom services sector for the private sector.

4. TELECOM SERVICE PROVIDER
 Vodafone Essar, previously Hutchison Essar is a cellular operator in India that
covers 23 telecom circles in India. It offers both prepaid and postpaid GSM cellular
phone coverage throughout India with good presence in the metros. It is among the
top three GSM mobile operators of India.
 The businesses at Bharti Airtel has always been structured into four individual
strategic business units (SBU’s) - Mobile Services, Airtel Telemedia Services &
Enterprise Services. The mobile business provides mobile & fixed wireless services
using GSM technology across 23 telecom circles while the Airtel Telemedia
Services business offers broadband & telephone services in 95 cities and has
recently launched a Direct-to-Home (DTH) service, Airtel digital TV. Globally, Bharti
Airtel is the 3rd largest in-country mobile operator by subscriber base, behind China
Mobile and China Unicom.
Reliance Communications (formerly Reliance Infocomm), along with Reliance
Telecom and Flag Telecom, is part of Reliance Communications Ventures (RCoVL).
It is an Indian telecommunications company. According to National Stock Exchange
data, Anil Dhirubhai Ambani controls 66.77 per cent of the company, which
accounts for more than 1.36 billion shares. It is the flagship company of the
Reliance-Anil Dhirubhai Ambani Group.

5.  Aircel is a mobile phone service provider in India. It offers
both prepaid and postpaid GSM cellular phone coverage. Aircel was founded by
NRI businessman C Sivasankaran. Aircel is a joint venture between Maxis
Communications Berhad of Malaysia and Apollo Hospital Enterprise Ltd of India. It
is India’s seventh largest GSM mobile service provider with a subscriber base of
over 18 million. It has a market share of 6.3% among the GSM operators in the
country. Aircel has won many awards for its services. Aircel got the highest rating
for overall customer satisfaction and network quality in 2006 by Voice and Data.
Aircel was rated as the top mid-size utility company in Business World’s ‘List of
Best Mid-Size Companies’ in 2007.
 Tata Teleservices Limited (TTSL) is a part of the Tata Group of companies, an
Indian conglomerate. It operates under the brand name Tata Indicom in various
telecom circles of India. In Nov 2008, Japanese telecom giant NTT Docomo picked
up a 26 per cent equity stake in Tata Teleservices for about Rs 13,070 crore ($2.7
billion) or an enterprise value of Rs 50,269 crore ($10.38 billion). In Feb 2008,
TTSL announced that it would provide CDMA mobile services targeted towards the
youth, in association with the Virgin Group on a Franchisee model basis.

6. Some of the Major Schemes of service provider
 Tata Indicom provide 10 minutes local call for just Re1.
 Reliance Communication Provides All STD calls At Rs.0.50 per minute.
 Vodafone Provides various schemes to their customers.
 Idea Provides Gang Plan to their customer.
 Airtel Provides special Number Facility
 Dolphin provides Unlimited Free Local Calls to MTNL and Dolphin Numbers.

7. Consumer Benefits
 Low Call Rates
 Best Services Provided by the Telecom Company
 Free or Low rate SMS
 Other Special Bonus Cards to Customers

8. Effects on Service Provider
 Low Profits
 High Competition
 It is hard to determine which service provider offers reliable services and
which not.
 Service Quality May be Low.
 Highly Qualified Management is Needed

9. Conclusion
 Customers get benefit
 Reduction in Revenue of service Provider
 Best Service Available in Low Rate For customers
 High Competition in Market

10. Thank
You