Abstract
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
- LEARN MORE
- 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
- Hardware
- Vertical Definitions
- Synopsis
