{"id":51451,"date":"2019-08-21T19:00:50","date_gmt":"2019-08-21T13:30:50","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?p=51451"},"modified":"2019-08-21T17:58:04","modified_gmt":"2019-08-21T12:28:04","slug":"7-pm-a-wake-up-call-for-dot-21st-august-2019","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/7-pm-a-wake-up-call-for-dot-21st-august-2019\/","title":{"rendered":"7 PM | A wake-up call for DoT | 21st August, 2019"},"content":{"rendered":"\n<p><strong>Context: <\/strong>Indian\ntelecom sector present challenges<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The telecommunications industry has\nimpact on every aspect of our lives, from the simple reality of enabling\ntelephonic communication between people in different locations to enabling\nsupply-chains to work seamlessly across continents to create products and\nfulfill demands. <\/li><li>Telecommunication services are now\nrecognized as a key to the rapid growth and modernization of the economy and an\nimportant tool for socioeconomic development for a nation.<\/li><\/ul>\n\n\n\n<p><strong>Present\nscenario of Indian telecom sector:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Growth\nrate:<\/strong>\nIndia is currently considered the world&#8217;s second-largest telecom market. It has\nregistered a strong compound annual growth rate (CAGR) of 19.96 per cent in its\nsubscriber base during the last decade. <\/li><li><strong>Density:<\/strong> The\nmobile segment&#8217;s Tele-density swelled around six times from 14.6 per cent in\nFY07 to 81.38 per cent in FY16. The number of Internet subscribers in the\ncountry increased at a CAGR of 78.81 per cent, with the number reaching 342.65\nmillion in March 2016 from 8.6 million in 2006. <\/li><li><strong>Generations:<\/strong> The\nsector is expected to witness an extremely high growth rate in the coming\nyears, given the favorable regulatory support by the government and the\nintroduction of 4G and by 2022 Indian telecom sector is preparing to launch 5G<\/li><li><strong>Reforms:<\/strong> In\nthe first decade of the 21st century, the government further liberalized the\nentry of private and foreign investors in the sector, especially in the mobile\ntelephony space. The impact was affordable services for a large number of\nIndian residents, especially the Indian middle class<\/li><li><strong>Disruptions:<\/strong>\nRecent disruption has been witnessed in 2016 with the entry of Jio and it has\nannounced the free voice calls, drop in data tariffs, sharp competition among\nIndian telecom companies. <\/li><li>It has brought the telecom industry to a\nnew level in terms of tariffs, services and technology and has also created\nsubstantial expectations among mobile customers. This kind of cut-throat\ndisruption by a new player (with huge financial muscle) is expected to bring\nconsolidation in the industry. <\/li><\/ul>\n\n\n\n<p><strong>Challenges facing by telecom sector in India:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Technological constraints:<\/strong> To\nbe able to provide access, mobile operators need spectrum, which is a scarce\nresource. In comparison to other countries the amount of spectrum available for\ncommercial use is low. <\/li><li>Since the practice of the government is\nto auction it at an exorbitant cost. Therefore, it becomes difficult for mobile\noperators to provide services at reasonable speeds and at low prices that\nencourage adoption and usage.<\/li><li><strong>Headsets\nconstraints:<\/strong> In order to experience a good Internet browsing,\ndownload and Video, it really becomes important for us to provide consumers a\nphone having advanced features at an affordable cost. Such phones are widely\ncalled as smart phones. <\/li><li>These phones have many other features\nover and above providing access to the Internet. The current price of smart\nphones is also a hurdle to adoption. This telecom sector is a technologically\ndynamic industry as the new products and technologies are being invented and\ndeployed quite frequently. <\/li><li><strong>Content constraints:<\/strong> More\nand more contents are to be made available in all of regional languages. Also,\nthese contents should be focused in addressing their local problems or\nproviding knowledge to the prevalent occupation of that region. <\/li><li>Currently, most of the content that is\navailable on the Internet is in English. This language is still spoken by a\nsmall fraction of the people in India. Also, using the Internet or browsing is\nnot a pleasant experience on the small screens of a mobile phone. <\/li><li><strong>Over\nthe top services:<\/strong> Over the Top (OTT) applications such as\nWhatsApp, OLA, Viber and so on do not need permission or a pact with a\ntelecommunications company (telco).<\/li><li>It was necessary earlier for app\nproviders to deal with telecom operators to collect money from customers\nthrough billing but now OTTs run on a different business model either funded by\nbusiness or through revenue earned through advertisements. <\/li><li>Due to lack of credit card penetration,\nthe app provider will have to go through a telecom operator in the event it has\nto charge customers. So either a mobile operator has to buy the app or make it\navailable for purchase on its platform. <\/li><li>Therefore, app developer finds himself\nsqueezed between these two &#8211; content provider and the network operator and does\nnot get good returns on his effort.<\/li><li><strong>Government\nand regulations:<\/strong> There is a need to examine the role of the\ngovernment and the various institutional actors in the fray. The government&#8217;s\nprime concern seems to be in the revenue it collects through various auctions\nof Radio frequency spectrums<\/li><li><strong>Revenues:<\/strong> Revenues normally grew at a steady clip of 5-9 per cent per\nannum. In the past four years, however, the industry\u2019s revenues fell by 20 per\ncent. The telcos debt (excluding the tower business) has tripled and is now a\nwhopping Rs 4.3 trillion. <\/li><li>The debt is now 2.6\ntimes its annual revenues. Government revenues (licence and spectrum usage\nfees) have fallen by 36 per cent.<\/li><\/ul>\n\n\n\n<p><strong>Way forward: <\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The telecom sector in India have to deal\nwith various challenges like maintaining the sufficient spectrum, Adoption of\nnew technologies faster to be able to use new features and techniques to serve\nthe customers with better and feature rich service, Government and regulatory\nagencies, various mobile handsets available from various companies brings lot\nof issues and content partners etc.<\/li><li>Also, it is evident from the current\nscenario that the Voice alone will not be sufficient to generate revenue and\nhence the focus is required to be shifted towards various data services.<\/li><\/ul>\n\n\n\n<p>Source: <a href=\"https:\/\/www.business-standard.com\/article\/opinion\/a-wake-up-call-for-dot-119082001390_1.html\">https:\/\/www.business-standard.com\/article\/opinion\/a-wake-up-call-for-dot-119082001390_1.html<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Context: Indian telecom sector present challenges The telecommunications industry has impact on every aspect of our lives, from the simple reality of enabling telephonic communication between people in different locations to enabling supply-chains to work seamlessly across continents to create products and fulfill demands. Telecommunication services are now recognized as a key to the rapid&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/7-pm-a-wake-up-call-for-dot-21st-august-2019\/\">Continue reading <span class=\"screen-reader-text\">7 PM | A wake-up call for DoT | 21st August, 2019<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49370,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[130,9],"tags":[],"class_list":["post-51451","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-7-pm","category-public","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2019\/07\/7-PM.png?fit=1000%2C500&ssl=1","views":{"total":0,"cached_at":"","cached_date":1704836497},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/51451","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=51451"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/51451\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49370"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=51451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=51451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=51451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}