This thesis investigates the most influential factors contributing towards the growth of the tele communication Industry in India, and analyzes the nature of effect these factors have on their respective industries’ growth - Telecommunication Essay introduction. The data collected is further used to discuss how these factors could be improved in order to better the existing conditions of the industry today. These guidelines provide important information and guidance on the practical procedures for the writing, supervision and submission of dissertations within the Department of Media and Communications. The growth in demand for telecom services in India is not limited to basic telephone services. India has witnessed rapid growth in cellular, radio paging; value added services, internet and global communication by satel item (GMPCS) services. The agents of change, as observed from international perspective, have been broadly categorized into economic structure, competition policy and technology. Economic reforms and liberalization have driven telecom sector through several transmission channels of which these three categories are of major significance. The effective research cannot be accomplished without critically studying what already exists in the form of general literature and specific studies. Therefore, it is considered as an important pre-requisite for actual planning and execution of research project. This helps to formulate hypotheses and framework for further investigation. In this research, the survey of literature has been classified into two parts – Abstract
This paper examines the trends, the research and studies done globally on open innovation and open business models in the field of Telecommunication Services. These include value added services pertaining to communications, online, web and media, mobile, triple/quad play, etc. on both consumer and enterprise side. In the face of severe competition, and commoditization, the current traditional Telco business models and services like Voice and Broadband are losing value rapidly causing the ARPUs of Telcos to drop, leading to a crisis in the Telecom industry. New business models based on Open Innovation & Open Business Models can help the Telcos survive and thrive through transformation
More Essay Examples on Communication Rubric
Background of the Problem China and India are among the largest and fastest growing economies in the world today, which share some key common elements. For example: geographically they share the same continent and are separated by a common border, demographically they are “giants”, with populations exceeding one billion, and historically the two countries have a rich and long history, making them world leaders until the 19th Century. Their development is also somewhat similar in economic terms although their economic growth differs in timing, intensity and key characteristics of development processes (Enrico and Marcello, 2011). The telecom industry is an interesting industry to study, not only due to its volatile nature in terms of technological breakthrough and its policies, but also due to the high growth rate of this industry over the past few decades and the significant contribution of the industry to the economies of these nations. China is now the world’s largest telecom market and according to analysts’ figures, there are more than 1.25 million cellular subscribers signing up every week (Pyramid, 2003)! Meanwhile, India has become the most competitive and one of the fastest growing telecom markets with an expected growth rate of over 26% and generated employment opportunities for about 10 million people (PTI, 2007). The numbers of subscribers were added at a rapid pace as shown in Figure 1, which adds to the growth and witnessed a scandal in the telecom ministry that has changed the nature and environment of foreign investment flowing into the country (Kate and Leila, 2012).
Growth of the Telecom Industry
Telecommunication basically is the transmission of signals over a distance for the purpose of communication, though the technology involved in communicating has changed significantly over the years. Like telecommunications itself, the telecommunications industry is broader than it was in the past. Telecommunication has a significant social, cultural and economic impact on the modern society. In 2008, estimates placed the telecommunication industry’s revenue at $3.85 trillion or just under 3 percent of the gross world product (Plunkett Research Limited, 2010). The telecom industry is one of the world’s fastest growing industries regardless of what the indicators being measured according to Wauschkuhn (2001). Indian Telecom Industry
“Comment: Politics and economics of Telecom liberalization in India” by Chowdary T.H. published in the Journal of Telecommunications Policy in 1998, describes the ideological background to more than 40-year monopoly of the Department of Telecommunications over Indian telecommunications. It traces how the monopoly was eased between 1986 and 1991 and the government had to give up its policy of central planning and control (Chowdary, 1998). This was the phase of pre-reforms in Indian telecom sector, which plays a vital role in setting the scene for growth post the 1991 reforms, and the Chinese telecom industry underwent a similar phase before the markets were opened for reforms. The paper also summarized the events that led to India opening its doors to Foreign Direct Investment (FDI). The analysts’ report published by Ernst and Young in collaboration with FICCI titled, “Enabling the next wave of telecom growth in India – Industry inputs for National Telecom Policy 2011” is a comprehensive report about the evolution of the telecom sector in India over the past decade. This report tracks the changes in terms of technological advancements, business dynamics and socioeconomic environment over the years. The research program studies in detail all the key segments of the telecom landscape — wireless, wire line, broadband, infrastructure, NLD, ILD, value-added services (VAS), equipment manufacturing, infrastructure and convergence. Moreover, it also identifies and evaluates the critical success factors that are applicable across all telecom segments such as spectrum, USOF, licensing framework, FDI, security, consumer affordability and the role of the regulator (Ernst and Young, FICCI, 2011). Last but not least, it also includes comprehensive interviews conducted with senior executives in the Indian telecom sector, which provides a firsthand perspective about various stakeholders involved in the telecom sector. Though the state owned Telecom Company Bharat Sanchar Nigam Limited (BSNL) remains as the pioneer in the telecom market of India, private operators obtained a high market share (Arun, 2011), among which, India’s largest mobile operator Bharti leads the pack with over one-fifth of the telecom market, followed by 16.71% from Reliance who is the third largest mobile operator, 16.52% from Vodafone as the fourth largest and 11.16% from the fifth largest mobile transport TATA Group business. The latest report released by Telecom Regulatory Authority of India (TRAI, 2010) indicated that India has 771.18 Million mobile users, 350 million fixed-line subscribers and nearly 180 million Internet subscribers.
Factors Affecting the Growth of the Telecom Industry and Their Current State Innovation was the key factor for the revenues of the telecom industry in the western countries. Today, however, new wireless applications, low-cost manufacturing innovations, and handset design are some of the areas in which the Asian countries are out-investing the United States and are seen resulting bottom-line impacts to their economies (National Research Council, 2006). In emerging markets, factors such as customer service, regulations and policies are some of the main factors that are shaping the industry. a) Performance of Operators
Roma Mitra Debnath and Ravi Shankar (2008) discuss the methodology used to benchmark the performances of service providers in order to create a loyal customer base as well as to retain it, and they claim customer service is one of the factors that influences the revenue growth of the telecom industry. b) Market Liberalization
Shilin Zheng and Michael R. Ward (2011) demonstrates the effects of market liberalization and privatization on Chinese Telecommunications, from which, they give an insight into the current state of the Chinese Telecom industry. India has also taken the privatization path in the telecommunications sector and the market is now mainly dominated by private companies with two state-run operators only. c) Policy and Regulation Issues
The telecommunications policy in countries like the United States of America is a framework of law directed by government and the regulatory commissions, most notably the Federal Communications Commission (FCC). One of the goals of the FCC is to best utilize this limited resource, in such a way, it brings the “highest and best use” (Wikipedia, 2003). The Government of India aims to develop the nation as a global telecommunication hub and provides regulatory support to the industry to achieve the goal and to propose ‘infrastructure’ status to telecom (IBEF, 2011).China’s successful reform on the other hand, is now often called another East Asian miracles,
has been attributed to policy changes to take advantage of comparative advantages in labor-intensive goods (Lin et al., 1996).
Factors Facilitating Growth of the Sector
The phenomenal growth in the Indian telecom industry was brought about by the wireless revolution that began in the nineties. Besides this, the following factors also aided the growth of the industry. Liberalization
The relaxation of telecom regulations has played a major role in the development of the Indian telecom industry. The liberalization policies of 1991 and the consequent influx of private players have led the industry on a high growth trajectory and have increased the level of competition. Post-liberalization, the telecom industry has received more investments and has implemented higher technology. Increasing Affordability of Handsets
The phenomenal growth in the Indian telecom industry was predominantly aided by the meteoric rise in wireless subscribers, which encouraged mobile handset manufacturers to enter the market and to cater to the growing demand. Further, the manufacturers introduced lower-priced handsets with add-on facilities to cater to the increasing number of subscribers fr om different strata of the society. Now even entry-level handsets come with features like colored display and FM radio. Thus, the falling handset prices and the add-on features have triggered growth of the Indian telecom industry. Prepaid Cards Bring in More Subscribers
In the late nineties, India was introduced to prepaid cards, which was yet another milestone for the wireless sector. Prepaid cards lured more subscribers into the industry besides lowering the credit risk of service providers due to its upfront payment concept. Prepaid cards were quite a phenomenon among first-time users who wanted to control their bills and students who had limited resources but greater need to be connected. Pre-paid cards greatly helped the cellular market to grow rapidly and cater to the untapped market. Further, the introduction of innovative schemes like recharge coupons of smaller denominations and life time incoming free cards has led to an exponential growth in the subscriber base. Introduction of
Calling Party Pays (CPP)
The CPP regime was introduced in India in 2003 and under this regime, the calling party who initiated the call was to bear the entire cost of the call. This regime came to be applicable for mobile to mobile calls as well as fixed line to mobile calls. So far India had followed the Receiving Party Pays (RPP) system where the subscriber used to pay for incoming calls from both mobile as well as fixed line networks. Shifting to the CPP system has greatly fuelled the subscriber growth in the sector. Changing Demographic Profile
The changing demographic profile of India has also played an important role in subscriber growth. The changed profile is characterized by a large young population, a burgeoning middle class with growing disposable income, urbanization, increasing literacy levels and higher adaptability to technology. These new features have multiplied the need to be connected always and to own a wireless phone and therefore, in present times mobiles are perceived as a utility rather than a luxury. Increased Competition & Declining Tariffs
Liberalization of the telecom industry has fuelled intense competition, especially in the cellular segment. The ever-increasing competition has led to high growth of subscribers and has put pressure on tariffs, which have seen a sharp drop over the years. When the cellular phones were introduced, call rates were at a peak of Rs 16 per minute and there were charges for incoming calls too. Today, however, incoming calls are no longer charged and outgoing calls are charged at less than a rupee per minute. Thus, the tariff war has come a long way indeed. Increased competition and the subsequent tariff war have acted as a major catalyst for attracting more subscribers. Apart from these major growth drivers, an improved network coverage, entry of CDMA players, growth of value-added services (VAS), advancement in technology, and growing data services have also driven the growth of the industry. Outlook
The telecom industry in India has experienced exponential growth over the past few years and has been an important contributor to economic growth; however, the cut-throat competition and intense tariff wars have had a negative impact on the revenue of players. Despite the challenges, the Indian telecom industry will thrive because of the immense potential in terms of new users. India is one of the most-attractive telecom markets because it is still one of the lowest penetrated markets. The government is keen on developing rural telecom infrastructure and is also set to roll out next generation or 3G services in the country. Operators are on an expansion mode and are investing heavily on telecom infrastructure. Foreign telecom companies are acquiring considerable stakes in Indian companies. Burgeoning middle class and increasing spending power, the government’s thrust on increasing rural telecom coverage; favorable investment climate and positive reforms will ensure that India’s high potential is indeed realized. Stages of Telecom Regulations in India
Before going through the regulation, we first point major driving forces that are responsible for present state of Indian telecommunications. 1. Liberalization: – The process of liberalization in India began with new economic policy in 1991. Telecom equipment manufacturing was delicensed in 1991 and value added services were declared open to the private sector in 1992. Following this radio paging, cellular mobile and other value added services were gradually opened to the private sector. This has resulted in large number of manufacturing units been set up in the country. As a result most of the equipment used in telecom area is being manufactured within the country.
2. National Telecom Policy 1994 :- In 1994 Government announced the National telecom policy with important objectives, including availability of telephone on demand, provision of world class services at reasonable prices, improving India’s competitiveness in global market and promoting exports, FDI and domestic investment, ensuring India’s emergence as major manufacturing/export base of telecom equipment and universal availability of basic telecom services to all villages. 3. Telecom Regulatory Authority of India (TRAI) :- The Telecom Regulatory Authority of India (TRAI) was established with effect from 20th February 1997 by an Act of Parliament, called the Telecom Regulatory Authority of India Act, 1997, to regulate telecom services, including fixation/revision of tariffs for telecom services which were earlier done by Central Government. TRAI’ mission was to create an environment needed for the growth of telecommunication at a pace that will enable Indian to play a major role in emerging global information society. One of the main objectives to provide a fair and transparent policy that facilitates fair competition. On 24 January 2000, TDSAT was set up to adjudicate any dispute between a licensor and a licensee, between two or more service providers, between a service provider and a group of consumers, and to hear and dispose of appeals against any direction, decision or order of TRAI. 4. New Telecom Policy: – The most important milestone and instrument of telecom reforms in India is the New Telecom Policy 1999 (NTP 99). The New Telecom Policy, 1999 (NTP-99) was approved on 26th March 1999, to become effective from 1st April 1999. NTP-99 laid down a clear roadmap for future reforms, thinking the opening up of all the segments of the telecom sector for private sector participation.
Key features of NTP 99 include:
Strengthening of Regulator
National long distance services opened to private operators. International Long Distance Services opened to private sectors. Private telecom operators licensed on a revenue sharing basis, plus a one-time entry fee. Resolution of problems of existing operators envisaged. Direct interconnectivity and sharing of network with other telecom operators within the service area was permitted Department of Telecommunication Services (DTS) corporatized in 2000. Spectrum Management made transparent and more efficient
Regulatory Bodies in India
Under the Indian Telegraph Act, 1885 (ITA), the Central Government has exclusive right to establish & maintain telecommunication and to grant license to operators.  Amarchand Mangaldas and Suresh A. Shroff, Telecom regulations, page 1-2, 2004 6 The Department of Telecommunications, Ministry of Communications and Information Technology, Government of India (DOT), acts as a licensor, formulates and enforces policies, allocates and administers resources such as spectrum and number, and coordinates matters in relation to telecommunication services in India. The DOT also promotes standardization, research and development, private investment and the international co-operation in the matters relating to telecommunications services. Wireless Planning & Coordination (WPC) wing of the DOT is responsible for frequency spectrum management and exercises the statutory functions of the Central Government to issue licenses for allotment of spectrum and for establishing, maintaining and operating wireless stations. The Telecom Regulatory Authority of India (TRAI) is the independent regulatory body which is empowered to make recommendations, either by itself or on a request from the licensor on the matters relating to the telecommunications sector. The TRAI issues regulations on interconnection, quality of service, fixation and revision of tariff etc. Telecom Dispute Settlement Appellate Tribunal (TDSAT) is a special body setup exclusively to judge any dispute between the DOT and a licensee, or between two or more service providers, or between a service provider and a group of consumers etc. An appeal against any of the TDSAT shall be filed before the Supreme Court of India within a period of ninety days. No appeal shall lie when the decision or order was made with the consent of parties.
Aims and Objectives of the Dissertation
• To conduct an original investigation of an issue relevant to the content of your programme under the supervision of an academic member of staff.
• To construct a detailed plan of a research project.
• To review relevant literature on the selected issue.
• To identify relevant research questions.
• To operationalise the research questions.
• (In the case of an empirical dissertation) to select and justify an appropriate research design in relation to an area of theory, to select and employ suitable methods/techniques to investigate the empirical questions, and to analyze relevant data. • (In the case of a theoretical dissertation), to set out a coherent and focused argument that advances, clarifies and (where appropriate) reframes the theoretical questions. • To write a dissertation covering a review of the relevant theoretical and empirical literature, the research questions, an explanation and justification of the research conducted, and a discussion of the findings in relation to the background literature Overall Objective
The overall objective of this case study is to establish the relationship between the revenue of the telecom industry and its identical factors, which attempts to supplement the majority of the previous studies that fulfilling economic needs rather than academic desire. .Specific Objectives
The specific research objectives of this thesis are as mentioned below: 1. To identify the most influencing factors of competitiveness in Chinese and Indian telecom Industries. 2. To analyze the correlation between the selected factors and their contribution to the telecom industry revenue in both countries. 3. To suggest ways to improve these influencing factors to the benefit of future researchers and practitioners, in the telecom industry of both the countries Research questions as a summary
This dissertation intends to explore the following questions: 1. Why is the Indian telecommunications market so attractive to investors? 2. Why is India’s vast potential in the field of telecom difficult to tap? 3. What strategies have been followed by foreign companies entering the Indian market and what has been the result of following these entry strategies? 4. What lessons can be learnt from the experiences of companies trying to enter the Indian market so far? For example, what kinds of actions could help success in India, what kind of analysis should be done before stepping into the Indian telecom market, who all should be involved and to what extent? 5. What will be the prime sectors of Indian telecommunications for investment in future?
The purpose of the literature review was not only to gather current thinking and experience surrounding the topic of telecommunications for the poor, but also to search for examples of innovative approaches to service provision. Time did not allow for an extensive review of all the literature on the subject – especially as there is a wealth of information and opinion on market liberalization and regulatory issues. Rather, the review needed to focus on material of direct relevance to the specific topic of telecommunications and development. The conclusions confirm, to some extent, the premise of the project, and have been used in guiding the research. The starting point was a review of the communication needs of the poor – why should there be a demand for telecommunications services? With this poverty focus in mind, the document then presents experience from a number of countries of ICT initiatives designed to contribute to development goals. However, with regard to the development of telecommunications infrastructure, the trend is towards greater commercialization and liberalization of markets, but experience has shown that market forces can only go so far in meeting universal access needs, so a brief overview of strategies for developing rural service is presented, along with some specific commercial issues relating to markets in developing countries. Finally, the conclusions include a number of points that were taken into consideration when designing the field research.
With respect to infrastructural application, Hughes referenced reverse salient’s, or that which slows the development of a new infrastructure not specific to the infrastructure itself, i.e. a technological challenge stemming from a political challenge. He contends that the solution to the initial problem, that being one of politics, for example, need not focus on politics at all but can address itself directly to the technology in question (Hughes, 1983). This assertion becomes important to a country like Estonia, which finds it struggling with old paradigms of controlled telecommunications markets yet wishes to move to a liberalized market with a new communication infrastructure, wireless technology, as its springboard Fanie Cloete et al  defines policy framework as a written or unwritten constitution “decisions made by the governments in consultation with various stakeholders including business, labour and civil society, about how telecommunications systems will be operated and regulated in a country. In addition to the rules, telecommunications policy consists of a ‘complex set of discretionary public policy actions’ which affect the evolution of the telecommunications sector”
The findings of this literature review indicate that:
• The most frequently shared communication resources are information/data resources, • Telecommunications infrastructure and technologies are the next most frequently shared resources, • When resources are successfully shared, all parties benefit, • A few unsuccessful attempts of sharing resources have been recorded, along with lessons learned, • Impediments to sharing include security issues, concerns over system availability and reliability, service quality and performance, and institutional barriers, • Advantages of sharing include financial benefits to agencies from using shared resources and benefits to the public in terms of congestion mitigation, information transfer (e.g., traveler information systems), mobility (e.g., welfare-to-work paratransit), and safety (e.g., speed of incident response, incident avoidance), • Technology-based solutions exist to address technology-based concerns, and • Institutional issues can be addressed through leadership, enhanced knowledge and skills, open communication, responsiveness, and attractive pricing structures. In the last two decades, telecommunications infrastructure emerged as an important factor in interregional economic activities.
Advancements in information technology have provided new opportunities to businesses by enabling them to establish and maintain contacts with suppliers and customers over greater distance and remote locations. Furthermore, developments in information and communications technologies provide increasing support for locational freedom by diminishing the importance of geographic proximity. Cairncross (1997), for example, argues that with the revolution in information technology, electronic proximity will replace geographic proximity and bring the “death of distance.” If her argument holds and electronic proximity provides a lower cost substitute for physical proximity in transactions, search by firms for better telecommunications infrastructure is likely to reshape regional development patterns, leading to higher rates of growth for better-endowed regions. However, it is quite unlikely that the advancements in information and communications technologies will provide similar opportunities in different sectors. The present literature on telecommunications regulation provides little insight on the differential impact of telecommunications investment on sectoral output. These studies typically recognize the importance of state and federal regulations on the level of infrastructure provision, but fail to adequately address the role of telecommunications infrastructure on sectoral performance and interregional economic development patterns. The lack of research on the relationship between local telecommunications policymaking and regional growth contrasts starkly with the growing interest in the policymaking world on assessment of the role of telecommunications infrastructure in sectoral economic activities. For example, within the United States, over the last two decades, many states have commissioned studies on how to use telecommunications infrastructure strategically in promoting different sectors as part of their economic development efforts2 .
In contrast to the interest in the policymaking world, academic research examining the relationship between telecommunications infrastructure and economic growth typically focuses on national level aggregate estimates3 and ignores the role of telecommunications infrastructure investment in explaining the divergent path of sectoral growth patterns4. In general, the literature on the impact of telecommunications infrastructure on national productivity reports a positive relationship between telecommunications infrastructure and economic growth. A central question in the theory of economic growth is the contribution of the different factors of production to aggregate output. In a perfectly competitive economy, contribution of a factor to private production is rewarded according to its marginal contribution. The reward earned by a factor is equal to its marginal product. However, some factor inputs generate spillovers or externalities that make their marginal social benefit and effect on output deviate from their marginal benefit as measured by the rewards they earn in private production. Infrastructure services are certainly this type of factor inputs and it is difficult to precisely charge the true marginal cost of service to a user as measured only by the marginal benefit to individual users (Diewert, 1986). It is possible, however, to estimate the marginal benefit of infrastructure services for all users. Therefore estimation of aggregate production function has become the dominant method for evaluating the social returns to infrastructure investments. However, production function studies have been criticized on the grounds of econometric problems.5 subsequently; more recent refinements of the production function approach are focused on the model’s statistical properties The telecom industry in India and China is relatively new compared to their western counterparts, but they are now growing and evolving at an unimaginable pace.
As a result of being a high profit generator, the telecommunications industry has historically been an agent of the government and owned by the state in both the countries. But over the last two decades, there has been a concerted effort to loosen the shackles of governmental control (Deutsche Bank, 2004). On one hand, it has taken the form of privatization of the state owned telecommunications; and on the other hand, it has opened up the domestic market to provide licenses to new entities for bringing in competition to the existing monopoly operators. According to figures from 2006, the Mobile subscribers in India were growing at a CAGR of around 85% since 1999 and over 4 million mobile subscribers were being added every month (TRAI, 2006). On the other hand China registered a growth of 16% in the mobile subscriber base in the year 2005 with monthly addition of 5 million subscribers every month (TRAI, 2006).
The analysts’ report published by Ernst and Young in collaboration with FICCI titled, “Enabling the next wave of telecom growth in India – Industry inputs for National Telecom Policy 2011” is a comprehensive report about the evolution of the telecom sector in India over the past decade. This report tracks the changes in terms of technological advancements, business dynamics and socioeconomic environment over the years. The research program studies in detail all the key segments of the telecom landscape — wireless, wire line, broadband, infrastructure, NLD, ILD, value-added services (VAS), equipment manufacturing, infrastructure and convergence. Moreover, it also identifies and evaluates the critical success factors that are applicable across all telecom segments such as spectrum, USOF, licensing framework, FDI, security, consumer affordability and the role of the regulator (Ernst and Young, FICCI, 2011).
Last but not least, it also includes comprehensive interviews conducted with senior executives in the Indian telecom sector, which provides a firsthand perspective about various stakeholders involved in the telecom sector. Though the state owned telecom company Bharat Sanchar Nigam Limited (BSNL) remains as the pioneer in the telecom market of India, private operators obtained a high market share (Arun, 2011), among which, India’s largest mobile operator Bharti leads the pack with over one-fifth of the telecom market, followed by 16.71% from Reliance who is the third largest mobile operator, 16.52% from Vodafone as the fourth largest and 11.16% from the fifth largest mobile transport TATA Group business
India has attracted a wide variety of research, owing to the substantial number of intervention projects. Two studies are highlighted, each on different specific projects, to provide a more general view as opposed to a relatively narrow evaluation that a single-project study allows for. The first study was undertaken by the M.S.Swaminathan Research Foundation and supported by the International Development Research Center in Canada. It assesses the impact of ICTs on rural areas of India by focusing on a project established in six villages in Pondicherry. The project created a hub-and spoke-model of data-cum-voice communication, allowing the villages to communicate with each other as well as the internet.
An important feature of this project was that staff within the village centers created locally useful content, based on queries and requests of the inhabitants. The staff designed and developed many locally useful databases on issues such as grain prices and government entitlements, with all of them transformed in voice format for the illiterate and in the local language. Other key features were the female involvement in the management and use of the centre and also of the sense of ownership that was created, allowing for formal confidence barriers to be broken. Participatory rural appraisal was used as a planning method to assess how far the community was willing to go in operational sing the local center, in effect gauging the level of real demand. The study by the Foundation analyzed usage from January 1999 to June 2000: • Total number of users was 15651
• 18% of users were female, which is 6 times that of public reading rooms •
Approximately one third of users were asset less families • 4% of users were illiterate
• 23% of total registered were one-time users only
• The pattern of usage indicated that educational purpose (such as use of CD-ROMs) and accessing government sector data were the two most important uses of the system A significant development was the emerging interest, especially among the youth, to create content that could be shared within the network. These related to commercial information, education opportunities and employment opportunities. Additionally, willingness was shown to establish an accounts transaction system for locally-based micro-credit groups using the data network. Importantly, much of the interest was from women, demonstrating technological demands. The main issue of the research related to sustainability in a context where most users tend to be ultra-poor. The key determinant of sustainability was identified as being a strong formation of partnerships between local bodies and the local administration, creating relevant and useful village centers. Development of applications, such as an online system for community banking, and other locally useful material was furthermore deemed to contribute to continuing sustainability. The study highlighted conclusions that many other researchers have reached; that current government control of telecommunications was preventing services from being offered at a low cost, but that once deregulation had taken place, expansion would be immense.
A second illuminating study in India assessed a rural Intranet project entitled Gyandoot. This is a community-owned, self-sustainable project, working with the District Administration to establish information kiosks providing commercial Internet and voice connectivity in villages of the Dhar District of Madhya Pradesh. The target users have a population of 1.7 million, 60% of whom live below the poverty line. During the design phase, villagers expressed information gaps the absence of information about prevailing agriculture produce auction centre rates, land records and application submissions. The development of the kiosks aimed to meet those demands. The study analysis of user demand showed that each kiosk had between 50 and 120 users per month, with the principal use being for locally produced agricultural services such as the trading rates of relevant agricultural produce. The research also revealed a high demand for improved ease of contact with local authorities and the Government. The kiosks have developed their own database of welfare forms, which villagers use to make complaints and recommendations to the authorities. This was shown to be a highly popular and useful service. Distribution of users was found to be mostly adults between 25 and 30 years, using the service for business. However, the research did highlight the growing demand in the younger generation, particularly students, as they realized the potential that the Internet held for work and for obtaining exam results with more speed. The kiosks will develop to target these younger users in the future. The skewness of usage according to gender was found to be quite high, with only 20% of all users being female. This was deemed to be primarily because many women did not know of the existence or of the potential benefits of the kiosk. The research also recognized the impact that education had on kiosk usage.
Most of the registered users were between the 5th Class and Post-graduate level, with illiterates constituting only 5%. A central and unique focus of this research was on the problems of publicity and marketing. It was found that even at a distance of 3km from the kiosk, awareness and usage patterns began depleting, therefore not achieving the aim of poor-inclusive service, as the majority of extreme poor lived in the most isolated areas. The study also discovered that an anti-publicity mechanism was created through the inability of the kiosks to meet the desired services of the inhabitants, principally concerning land records. As the centers were not meeting the needs of the people, communication through the community network started to create negative mindsets and inhabitants were discouraged from attending. A suggested remedy for this problem was for owners of the kiosks to go directly into all villages with a mobile connective machine and give a thorough demonstration of exactly what is possible so that impressions will be realistic.
The research also stressed the importance of audio-visual marketing as the most effective and accessible. The study of the Gyandoot NGO project provides useful information of demand and the real problems of including the poor. Although being an NGO initiative the project did not focus on the financial issues or sustainability, it does suggest ideas for commercial service provision. Again, this study highlights the importance of local content and the availability of useful, accessible information if both inhabitants and villagers are to effectively benefit from the funds spent on providing ICTs.
To Examine the Extant structure, capacity, and capabilities of all identified telecommunications firms and related institutions so as to provide base line information on the sector. To highlight the response dynamic and strategies of selected firms as a result of the market and technological challenges. What is the nature of response and competently are firms dealing within the changing and competitive environment of telecommunications. To examine institutions and government policies set for the development of the sector To suggest the policies to promote development of inter-firm intra-firm and of technological progress within the telecommunication sectors
Strategies for Developing Rural Service
Experience has shown that market forces can only go so far in meeting rural/universal service and access needs. In most countries the most remote and disadvantaged areas have not provided the obvious incentives needed for commercial investment, therefore there is a need for some intervention and policy creation to ensure that services are rolled-out to these areas. A number of strategies for developing rural service have been implemented including: • Enforced obligations on monopolies
•Rural obligations for mobile operators
•Cross-subsidization of tariff structures
• Universal development fund
• Minimum subsidy auction
Further details of these policy strategies are given below, including relevant case studies and examples of when policies are used in combination or alone
Broad scope of communication sciences
Good international links even in small fields (in a Finnish context) High social significance, in the best interests of Finnish society Multidisciplinary and international research teams very common Many examples of high-quality research and top researchers Quick to respond to societal and cultural research issues Previous networking activities good foundation for national cooperation Active international mobility and contacts to international organizations Good library and information services at universities
Good equipment base
Status as a scientific discipline
Staff restructurings (in particular reductions in support staff) at universities take time away from research Unclear distribution of research between universities and polytechnics Research directions too influenced by how research funding is allocated Contemporary (e.g. technology-oriented) research projects and studies too focused on case studies Research insufficiently targeted at theory formation
Need for PhDs in the field not recognised outside the universities Currently no permanent forum for national cooperation
No Centres of Excellence or FiDiPro Professors (Finland Distinguished Professor Programme) in the field
Large university units create new kinds of research combinations New regional opportunities in collaborations between universities and polytechnics New kinds of innovative cooperation models with other disciplines Intradisciplinary coordination, in particular in utilisation and development of infrastructure Highlighting broad scope in international contexts, applying it to international research projects
Rapid internationalisation of early-stage researchers, contacts to units at the cutting edge of research
Open access publishing
New research directions thanks to a rapidly changing world and the quick response ability of research New research questions and opportunities for multidisciplinary projects thanks to increased multiculturalism in Finland Identification of new research interfaces New contacts outside academia thanks to new formats for dissertations
Value of communication sciences in new, larger but increasingly profiled university units Relying on skewed publication and quality indicators
Ability to respond to the challenges of contemporary phenomena at the theory level Finding talented and motivated graduate students
Requirement of mobility viewed as an intrinsic value; importance of high-quality work environments – whether domestic or foreign – not sufficiently emphasized Scarce university resources possible threat to keeping ICT and other such equipment (that quickly becomes outdated) up to date Rising service fees for material acquisition and limited availability of material due to a lack of resources in archives services and libraries
The objective of this paper is to investigate the telecommunication markets in India, Singapore and Thailand in order to find the potentiality of the markets which could be considered by the company to expand its business in telecommunication field and also to take a proper strategy. At meanwhile, the global competitiveness of telecommunication industry of these three countries will be discussed. The analysis is based on the relevant theory of competitiveness includes the Diamond theory (Porter, 1990) from Michael Porter and SWOT analysis. Practical information were collected accordingly 1) To know about the experience of mobile users in India Explore and discover the advanced mobile usage patterns of the evolving Indian telecom
consumers and, in the process, obtain a clear list of their preferences and dislikes. 2) To share some of these “ndings with Indian organizations to help them provide a better mobile experience to the users We aim to share some of the research data (primarily the outcome of our survey) with the organizations to help them rethink their value proposition and come up with products and services which create a win-win situation for both the organizations and its mobile user customers. 3) To periodically monitor trends in mobile user behavior In a rapidly growing mobile economy consumers’ usage patterns, purchases and preferences are evolving at a fast pace. Keeping this view in mind, we plan to conduct this research on an annual basis so as to gauge the ever-changing trends in the telecom industry in India.
Research Question & Limitation
By analyzing these determinants of telecommunication industry, there is much strength and weaknesses presented from these research objects. We can compare these research objects with each other to examine in great detail in order to understand their competitiveness.
How are the effectiveness and competitiveness of telecom markets of these research objects? If a particular industry sector‘s competitiveness could be determined by these factors Porter indicated in his theory and if the result we obtained reflects and represents this particular industry sector‘s national competitiveness relatively in the practical environment.
The research limitation will be that some data could not be quantified in some topics from these research objects. For example, how to measure the determinant ―Chance‖. It could be analyzed in a general way and acquire concepts but It may be difficult to compare with each other among these research objects in a absolute standard such as a numerical comparison.
What are the competitive factors contributing towards the revenue of the Chinese and Indian telecom industry?
This Chapter discusses the research methodologies adopted and the various data collection methods used for the thesis. The research methods were designed considering the research objectives of this paper. Hence, the strategy employed and the instruments developed were to determine the major factors contributing towards the revenue of Chinese and Indian telecom Industries. To answer the research question, the factors that have the potential to influence the telecom industry in both Chinese and Indian markets were shortlisted based on Porter’s Five Forces model and further developed as key questions in the questionnaire. Results obtained from the questionnaire were used as the primary data. This was then processed along with the secondary data collected from statistical reports, to determine the factors that directly influence the telecom industResearch for the 2013 edition of the India Mobile User’s Experience Monitor saw an active participation of 2892 participants. Raw data for research was collected through a survey delivered through Emails, online forms, telephonic interviews and in-person conversations. This large number of participants makes it the biggest research in India till date (November 2012) on mobile users’ experience. Our survey activity lasted over two months (September-October 2012). Views and opinions of the participants were collected by the volunteers from across various states of India. The research team made e#orts to ensure that we get representation from varied age groups, economic strata and states of India. Our approach to accommodate variety and large number of respondents gave us authentic data that tells us the true story. We analyzed this data and made logical inferences to come-up with recommendations based on factual information.
The research was conducted in the following manner:
Desk research of exogenous factors
Data analysis and interpretation:
Case studies of international and domestic telecommunications company
Interpretation of results of the in-depth interviews
Conclusions drawn from observations
Majority of the respondents belonged to the age group of 21-34 Majority of the respondents are from the middle income group This research mainly focuses on consumer behavior
A total of 2892 responses were recorded. Almost 66% of the respondents were males. It was noted that gender did not play any role in deciding what type of mobile phone one will be likely to buy Higher percentage of males were comfortable in using their mobile phone for online banking and getting directions from online maps It was seen that 87% of respondents having smart phones had enabled Internet on their handsets in comparison to 54% respondents who had simple feature phone. Smart phone users are more likely to use their handsets for conducting web based activities It is observed that, at 60%, smart phones have least penetration amongst non-working and low earning respondents. Smart phone penetration increases as income of the respondents increases Having only 50% penetration, smart phones are relatively less popular in 45+ age groups
Significance of the Study
Both China and India are deemed as the fast growing markets, and economists claim that these two countries would continue to contribute more than half of the world’s economic growth despite slow down during recent times (The Economic Times, 2012). This thesis, by applying the theoretical framework of Porter in comparing the industrial competitiveness of two nations, aim at developing recommendations for improving competitive strategies for their industrial performances. This study will elucidate knowledge about the competitiveness of telecom industries in the two countries. On one hand, this knowledge will help in realizing the prevailing business environment in
this sector in both China and India, while on the other hand; the study findings will serve as lessons to be shared by other developing countries in shaping their telecom industries. Therefore, the findings of this thesis will be useful for researchers, academicians and practitioners. PESTEL
Stable political situation in the country
Stable primary and secondary legislative framework
Governmental support to the telecommunications sector
Transposition of relevant EU directives (2002/21/EC, 3003/19/EC, 2002/22/EC, 2002/58/EC)
Functioning of Ministry for information society and telecommunications Establishment and proper functioning of the Agency for electronic communications and postal services Relevant service market defined
Liberalization of markets and promotion of competition
Strategic business alliances in the telecommunications
Corporate social responsibility and focus on human capital Harmonization with environmental standards
Defined tariff and fee system
Establishment of e-Government
Size and type of economy (small, open and liberalized economy) Constant GDP growth
Free capital movement
Constant increase in foreign direct investments, growth of capital markets, privatization processes Decrease of inflation, unemployment and average weighted effective active interest rate High degree of investment in telecommunications sector (11-13% GDP) CEFTA and SAA agreements
Service sector participation in GDP more than 60%
Increase in HDI index and global competitiveness index
Growth in area of economic freedoms
telecommunications companies subsidiaries of big multinational telecoms (Norwegian, German, etc..) High penetration of electronic communications
Focus on optimization of processes, goods and services
Favorable investment and business climate
Removal of business barriers
Improvements in comfort and living standard
Importance of virtual social networks
Recognition of T-brand as an innovative and modern company Focus of the telecommunications companies on individual customer and his specific needs and preferences Increase in education levels
ICT awareness of citizens
Openness to global trends
Significant need for knowledge and know-how transfer from around the world Social aspect of statutory symbol of mobile phone, TV and Internet for Montenegrins “Brain drain” of highly skilled labor force
Recognition of telecommunications sector as creators of high value-added knowledge and innovation Technological factors
Globalized networked information services and technologies and online technical and customer support Direct access to data (market research, global financial data, data on competitors, most suitable and strategically advantageous partner companies, economic and business indicators and demand segregation according to various parameters) Establishment of Intranet and electronic system networking High degree of technology transfer and successful marketing strategies Intertwined telecommunications and information technologies Technological potential of exploitation of intellectual capital Security for the increase of virtualization and virtual networking Integration of processes across the globe
Customer Description BT is one of the world’s leading providers of communications solutions serving customers in Europe, the Americas and Asia Pacific. Its principal activities include networked IT services, local, national and international telecommunications services, and higher-value broadband and internet products and services. In the UK, BT serves more than 20 million business and residential customers with more than 30 million exchange lines, as well as providing network services to other licensed operators. BT is known internationally as a major technology player – pioneering the digital advances that are shaping and driving the information age. Problem
BT’s employees are highly mobile and needed the flexibility to work securely at multiple locations. “Hot desking” to give employees access to the company’s network was tried but was difficult, expensive and impractical. Wireless technology was generally agreed to be the most beneficial solution and with this came they need to establish the best of breed security for the wireless infrastructure. Employees had laptops and other wireless enabled devices and needed to access email, customer records, and other work applications at multiple locations. The need to do this securely was imperative in the solution BT chose.BT has multiple sites some of which are located in the heart of city centers and many offices could detect more than 30 other Wireless LANs. This meant that a complete site survey had to be carried out at each location to understand what the complexities were and how many networks wireless actually invaded BT’s airspace. At some sites in central London, the initial survey detected that at regular intervals alarms might be raised from the automated bus stop updates. This type of traffic, while not a threat could create multiple security alarms. Other locations in more rural settings provided different problems of distance between buildings and large communal areas. The risks for BT as an organization and the implications for its management team if the solution they chose was not scalable were immense. The problem of partitioning friendly neighboring wireless LANs from those that could present a malicious threat was essential. The threats to any wireless deployment are rogue or unauthorized access so the problem for BT was to be able to analyze existing and zero day
threats in real-time against historical data to accurately detect all attacks and anomalous behavior originating inside or outside the organization. Doing this while providing IT support for over 60,000 workers seamlessly and without increasing IT management time was seen to be essential. Requirements
BT needed a solution that could detect intruders and rogue access points automatically and secure their airwaves cost effectively. It needed a solution that could distinguish between the multiple legitimate neighboring wireless networks and those that were malicious. In addition it needed to be able to terminate wireless connections between an intruder and an authorized access point and also to terminate authorized devices with rogue access points. Most particularly it required the vendor it chose to be able to enforce the BT security policy to its entire mobile workforce without disrupting its business. The solution had to work with the Cisco based network infrastructure Solution
BT evaluated several Wireless LAN security products before deciding which one to purchase. The evaluation process was exacting. Michael Malcolm RF Manager at BT said “I was a sceptic. I was not going to allow wireless connectivity at BT unless I was convinced that it could be provided securely.” The evaluation and testing process was extremely rigorous and thorough. The site surveys were completed using Air Defense Architect which provides complete design and simulation of wireless LANs based on building-specific environments. This product accurately and predicatively helped design the Wireless networks (802.11) before the actual deployment of access points, sensors and other wireless devices. For the deployment BT chose to use Air Defense Enterprise provided through a specialist solutions provider in the UK called Pentura. They have currently deployed sensors in 15 of 21 sites in the UK and plan to roll out the solution across European offices. The Air Defense system helps BT to: • Increase the productivity of its workforce
• Define, enforce and measure adherence to their security policy • Continuously monitor the WLAN providing maximum security and operational integrity of the network • Ensure BT employees are not logging onto rogue or
neighboring networks • Confirm wireless devices are within permitted areas
Currently most research in this area is preliminary and hesitates to formulate concrete conclusions and recommendations for investment in ICTs. This is primarily because projects and innovative provision in marginalised communities are still in pilot and experimental phases. Nevertheless, based on this and anecdotal evidence, some authors are identifying the benefits of telephone access over internet access, as regards development impact on the poor. The focus of recent work has been for the great part supply-driven. As Universal Access had become widely recognised as the primary goal for telecommunications provision, research has been concentrated on assessing new technologies and ways of physically reaching isolated communities. This has led to the development of wireless technologies and low cost solutions to the access problem. Evaluations have been made using indicators such as; number of fixed lines, number of public payphones per village, and number of personal computers wired up to the Internet. This has led to levels of success being measured by purely quantitative indicators. Although this is highly important it gives a skewed picture of the telecommunications situation in many communities by not taking into full account the demand side of the market. Analysis of real levels of demand and usage of telecommunications is still very limited and mainly focuses on the evaluation of community telece3ntres through questionnaires and surveys. Again this work is in its early stages as most telecentres and communication kiosks in remote areas have only been operating for two or three years. Some useful data has been collected on the application of different forms of telecommunications, and social factors affecting this although, there appears to be a lack of research regarding what forms of technologies communities want and what forms are profitable and useful to provide. Research has often found that there is little productive use in providing access to the web for rural communities, if there is no content available of relevance to them or in a language that they can understand. The availability of countrywide research is currently very limited and again strongly concentrated in the Latin American region. A multitude of investigations into the provision and use of ICTs have been undertaken in
rural America, Australia and Canada but how far this relates to the situation in remote communities in developing countries is questionable. Primarily these countries do not experience the language and literacy barriers that discourage many developing countries from further technological use, and additionally infrastructure and financial barriers are far less. However, information on small enterprise activity and agricultural uses for technology is useful. A further trend in current research work is the focus on NGO and donor projects as opposed to commercial initiatives. This may be explained by the recent growth in funds dedicated to ICTs for development and the subsequent evaluation of their projects that donors undertake. Again these projects mainly involve the introduction of community telecentres and their usage, and evaluation does not consider the questions of sustainability or profit for commercial activity. However, these project results do propose replicable initiatives that could be adapted for the commercial environment and may encourage private businesses to more seriously consider the profitability of rural telecommunications. This review suggests that there are a number of important factors that remain to be addressed in this and other future studies; these can be summarised as follows: The social and financial importance of accurately equating demand with supply. Different individuals/enterprises need customised ICT services depending on development and income etc. A blanket ‘one size fits all’ approach will be unsuccessful and wasteful of resources. To be sustainable and economical ICT provision must be primarily a commercial initiative with welfare intervention only where absolutely necessary. New research should focus on demand issues, as opposed to supply that has been the previous focus. A key to successful ICT access is the customisation of services and the creation of relevant content. The importance of gender and how it affects location and quantity of usage. The importance of a far-reaching marketing and advertising strategy, appropriate to the target community. The importance of developing new, appropriate business models for provision, as a western-style model does not accurately reflect real demand in developing countries. The emergence and growth of youth demand should be assessed and ways to effectively meet it developed. This review has provided evidence of significant levels of potential demand for ICTs in underprovided communities
in developing countries. However, a factor limiting this analysis is the possible existence of a substantial time lag between ICT investments and their effects. Thus it is possible that real demand may actually grow significantly in the coming years as the full effects of ICTs in newly accessed areas are realised. A further important note to be recognised is that ICTs are, at best, one factor among others that furthers community and enterprise development. ICT access should not be treated in isolation as research shows that access to other knowledge links, shills and infrastructure etc are at least as important as ICT. When considering new policy decisions and business strategies, one must consider that access to new information for communities is the aim, not the introduction of technology.
There are a few preliminary remarks to be made concerning statistical data. The first relates to figures about residential or private use of the phone. In practice, there is often some overlap with use for work purposes. While many people may try to keep their domestic and work lives distinct and hence do not appreciate being called at home, others often make and receive work related calls on their home line. This is probably increasing to the extent that there is a growth in teleworking or mobile working using home as a base. (The specific experience of teleworkers will be discussed below, in section 12.2). Meanwhile, French findings indicate that almost half of all employees use the telephone in the workplace for making and receiving personal calls (Perin, 1994:6).
The other observations concern the need to avoid positivist assumptions about taking data at face value. Instead, it is important to appreciate the social factors shaping the construction of seemingly ‘hard data’ a point which a few writers in this literature touch upon (For a further discussion of the processes shaping data, see Haddon, 1990). For example, in one French study the author speculated that some teenage participants might be intentionally falsifying some of their claims about the number of calls made from home and their motives for making those calls because they did not want their parents
to find out about certain calls (Claisse 1989:273-74). We need to ask of other groups whether there is ever any possible motivation to present their activities in a certain light. Second, a substantial number of those studied had difficulties in classifying their calls according to the categories offered to them by researchers (to be discussed in more depth below, section 4.1.2.). This should make us a little wary of being overconfident about the precision of such data, especially when different researchers use different sets of classificatory categories. If we look at another technology, the home computer, many market researchers conceived of this as an individual possession when conducting surveys to investigate, for example, whether more men than women or more people of a particular age group had these machines. In practice, there may be a consensus in some households that a computer is a particular person’s possession. But in other households the PC is ‘for the family, or ‘for the children’, or else possession remains contested and ownership unclear (Haddon, 1990:22-23). While the basic phone has not been researched as a personal possession, some surveys have certainly assumed that the mobile phone belongs to a particular person that may well not do justice to the complex realities of different households.
The final reasons why seemingly ‘hard’ quantitative data may be ‘softer’ than they first seem concerns reliance on memory and the introduction of evaluations. One Berlin study noted that statistically there should be an approximately equal amount of incoming and outgoing calls over the whole of their sample, even if individual households or social groups had a different balance (Schabedoth et al., 1989:104). But they found that more people (56%) thought that their last calls had been made by them. The researchers argue that this may reflect the disposition of people to remember processes where they were active: in this case, initiating the call. Similarly, when remembering or attributing motivations for calls, those surveyed were more likely to say that they phoned someone for a chat or else that they were seeking information rather than attribute either of these motivations to people who called them. In a different part of their survey, 60-70% of women participating on behalf of their households thought that they used the phone most often, but only 30% of men answering questions about their households said that their wives used the phone more (Schabedoth et al., 1989:108).
While the perceptions may be interesting in their own right it is important to bear in mind that at least some questions do not lead to data which simply mirror reality.
Cheaper smart phones will certainly help the mobile service providers, as a smart phone user is more likely to have an increased data usage. Telecom service providers should try and introduce more lucrative o”ers or schemes to encourage non-smart phone users to access Internet from their mobile phones. Considering the high level of competition in the market the issue of dropped call should be immediately addressed by the service providers. Online banking and online shopping are among the least utilized Internet facilities on mobile phones. Marketers should encourage users for making purchases online. Shopping through mobile handsets may result in more frequent purchases. Measures should be taken to increase the awareness about 3G and its bene#ts. Our findings suggest that smart phone users are more likely to access Internet from their mobile devices. More communication with these users will help in creating a win-win situation for everyone. Smart phones will make it convenient for the customer to surf Internet and do shopping; operating cost of the seller will come down and at the same time mobile industry would gain from the usage of their service in executing transactions. For India marketers, the good news is that the mobile users want to stay connected with the brands. However, the periodicity of this communication should not be more frequent than say weekly. There’s a very strong negative feedback from the mobile users on the amount of spamming and unwanted promotional messages. Perhaps this is the time every marketer needs to review not only their teams but perhaps also how the channel/aliases are interacting with the consumers in terms of outbound campaigns. Email emerges as the top favorite channel for the consumers to receive promotional over and updates though SMS still has traction. More consumers buy when they receive an o”er on Email than any other channel. With growing Smartphone shipments in India, we forecast the continued rise of the Email and social channels for consumer engagements.