TELECOM

The Indian Telecommunications network is the third largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world. Telecom is the exchange of information over significant distances by electronic means. A complete, single telecommunications circuit consists of two stations, each equipped with a transmitter and a receiver. The transmitter and receiver at any station may be combined into a single device called a transceiver. The medium of signal transmission can be electrical wire or cable (also known as "copper"),optical fiber or electromagnetic fields. The free-space transmission and reception of data by means of electromagntetic fields is called wireless. The simplest form of telecommunications takes place between two stations. However, it is common for multiple transmitting and receiving stations to exchange data among themselves. Such an arrangement is called a telecommunications network. Internet is the largest example. On a smaller scale, examples include:

Corporate and academic wide-area networks (WANs) Telephone networks Police and fire communications systems Taxicab dispatch networks Groups of amateur radio operators

OBJECTIVE
1. Work on telecom technology products and services. 2. Provide solutions for current and future requirements of telecommunication and converged networks including those of national importance especially related to rural applications, strategic sector and security agencies etc. 3. Provide market orientation to R&D activities and sustain C-DOT as a centre of excellence. 4. Build partnerships and joint alliance with academia, industry, solution providers, Telcos and other R&D organizations to offer cost effective solutions. 5. Support Telcos and service providers in the introduction of new technologies, features and services by optimal utilization of installed networks, pilots and studies. 6. To strengthen the Indian telecom manufacturing base, by transfer of technologies developed

Major Players
There are three types of players in telecom services: State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Infocomm, Tata Teleservices,) Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications)

Reliance Communication

It was establish in 1999 Reliance Telecom's cellular services are available in 340 towns within its eightcircle footprint. Reliance Infocomm also offered for the first time in India, mobile data services though its RWorld mobile portal. This portal leverages the data capability of the CDMA 1X network. Reliance Infocomm offers a complete range of telecom services covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications aimed at enhancing productivity of enterprises and individuals.

Tata Teleservices

It was establish in 1996 Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over 200,000 employees and more than 2.3 million shareholders. Tata Teleservices bouquetof telephony services includes Mobile services, Wireless Desktop Phones, Public Booth Telephony and Wireline services. Other services include value added services like voice portal, roaming, post-paid Internet services, 3-way conferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling card services and enterprise services.

Future Prospect
The company is also expanding its footprint, and has paid Rs. 4.17 billion ($90 million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime.

Vodafone

Year of Establishment Acquired majority stake in Hutch Essar in India, by buying out complete stake of Hutch in 2007, Essar is still minority stakeholder in company Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular licence for Mumbai. Vodafone Essar now has operations in 16 circles covering 86% of India's mobile customer base, with over 45.78 million customers. Vodafone Essar, under the Hutch brand, has been named the 'Most Respected Telecom Company', the 'Best Mobile Service in the country' and the 'Most Creative and Most Effective Advertiser of the Year'. It has operations in 25 countries across 5 continents and 40 Network partner networks with over 200 million customers worldwide.

Future Prospect
Vodafone Essar is expecting to touch over 35 million customers across 400,000 shops and thousand of hutchs own employees along with employees of its business associates.

Idea

Year of Establish 1995 Idea Cellular is part of the Aditya Birla Group, which is India's first truly multinational corporation. Aditya Birla Nuvo Ltd. holds 35.7 per cent, Birla TMT Holdings Ltd. 44.9 per cent, Grasim 7.5 per cent, and Hindalco 10.1 per cent in Idea.

Future Prospect
Idea also plans to enter rural and neglected circles as a strategy to gain subscribers. Other advancements in the telecom industry will help it cut costs - use of e-mail to send bills to customers; sharing cell sites; smaller base transmission stations that will mean lesser infrastructure requirements and expenses and independent tower operators. Along with its plan to go for a national long distance licence, it will also look at international long distance in the near future

Bharat Sanchar Nigam Limited (BSNL)

Its Year of Establishment 2000Bharat Sanchar Nigam Ltd. is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a

span of five years it has become one of the largest public sector unit in India. It has a network of over 45 million lines covering 5000 Network towns with over 35 million telephone connections.

Future Prospect
BSNL plans to expand its customer base from present 47 millions lines to 125 million lines and infrastructure investment plan to the tune of Rs. 733 crores (US$ 16.67 million) in the next three year

Vision
c-dot to become world class telecom technology development centre

mission
To design and develop stste of the art technologies , product and solutiion To meet the telecom need of india , particularly of national importance in strategic sector and rural areas

Market share
Bharti airtel 30 % Vodafone essar 24% Idea 15% Bsnl 15% Reliance telecom 4 %

Product offered
1. Voice Mail service
This system is similar to the answering machine - if the user is not able to answer a callfor some reason the caller can leave messages in the voice mail box which can be later retrieved by the user

2. Short Message Service

The short message service is like a two-way pager. It gives an option of sending andreceiving text messages directly from one mobile phone to another without theintervention of an operator

3. Mobile Fax 1 Data Service

This service helps the subscriber to send and receive Faxes, access E-mail, downloadfiles from other systems and remotely log on to another computer and surf the Internet.

4. Cash Card
The cash card is a pre-paid and pre-activated card which allows the buyers to buy airtimein advance. All it requires is the payment of an initial amount. This is a useful service for people who travel to Delhi often and those who want to control the expenses on their calls.

5. Caller ID
Displays calling person's number.

6. Outgoing call restriction

To prevent or limit outgoing calls, for example, in peak hours. Also possible to excludeone or several countries, or any geographical region, to permit only local calls, or to limitthe outgoing calls to a listed number.

7. Call forward
Incoming calls can be forwarded to another fixed or mobile phone. Besides these someother services provided by Airtel are - Call conferencing, Call Broadcast ET cetera.It is inthe operators -Interest that they not only get many subscribers but also get them to use themobile facility frequently. In the early stages getting increases to

subscribe may be easier than getting them to talk since they will find it costlier to use the mobile phone ascompared to a conventional phone [if is believed that initially cell phones would be usedbuy

SWOT ANALYSIS OF INDIAN TELECOM INDUSTRY

1) Strengthsi. Huge Customer potential
i. Teledensity still being 48% and rural tele-density 21%. ii. The broadband subscribers grew from 0.18 million in 2005 to6.2 million as on 30 April 2009 and about 7.98 million, at the end of the December 2009.

b. High Growth Rate

i. Wireless subscribers growing at a CAGR of 60 per cent per annum since 2004.

c. Allowed FDI limit ranging from 74% to 100%

i. The total FDI equity inflows in telecom sector have been US$ 2223 million during April-November 2009-10

d. High return on Investment

i. Easier to create economies of scale thereby increasing return on investment

e. Liberalization efforts by Govt.

i. The share of private sector in total telephone connections is now 82.33% as per the latest statistics available for December 2009 as against a meager 5% in 1999.

f. Lower capital expenditure

i. The Indian telecom market is a high density area, which means more population per tower. This means lower capital expenditure cost

2] Weakness a) Poor Telecommunication Infrastructure

i. Result : Large number of call drops.

b) Late adopters of New Technology

i. India will be among the last countries in the world to get access to 3G technology. Some estimates suggest that nearly 132 countries across the world already have 3G technology and mobile services in one form or the other.

c) Most competitive market

i. 10 to 12 companies offer mobile services in most parts of India, globally, the average is 4.

d) A market strongly regulated by Government.

3] Opportunities
a. 3G Telecom services and 4G services b. More Quality Service
i. Mobile Number Portability will force the Service provider to improve their quality to avoid losing subscribers

c. Value added Services (VAS)

i. The mobile value added services include, text or SMS, menu based services, downloading of music or ringtones, mobile TV, videos, streaming, sophisticated m-commerce applications etc. ii. Mobile banking, Mobile Ticketing etc

d. Boost to Telecom Manufacturing Companies

i. Production of telecom equipments in value terms has increased from Rs. 412700 million (2007-08) to Rs.488000 million during 2008-09 and expected to increase to Rs. 575840 million during 2009-10.

e. Telecom Equipment Exports

i. The Indian telecom industry is expected to reach a size of Rs 344,921 crore by 2012 at a growth rate of over 26 per cent, and generate employment opportunities for

about 10 million people during the same period.The sector would create direct employment for 2.8 million people and for 7 million indirectly, according to a Frost and Sullivan report

3] Threats
a. Telecommunication Policies
i. e.g. Trai's 2G direction affecting new players most notably Tata Teleservices, Norways Telenor and Essar-owned Loop Telecom ii. Renewal of 2G license on the basis of market rates of 3G auctions iii. TRAI intentions of rolling out 4G or the fourth-generation technology, known as the ultra-broadband in 2-3 years raising fears rendering 3G services somewhat obsolete.

b. Declining ARPU (average Revenue per user)

i. E.g. price wars like per-second billing which is deflating revenues and making sure the survival of the fittest

c. Partiality on the part of the Govt.

i. E.g.Allowing 3G service in a PSU (MTNL,BSNL) before auctioning to Private Sector .

conclusion
Indian telecom is worlds fastest growing telecom expected grow three fold by2012.Tremendous strides in this industry have been facilitated by the supportive and liberal policies of the Government. Especially the Telecom Policy of 1994 which opened the doors of the sector for private players. Rising demand for a wide range of telecom equipment has provided excellent opportunities for investors in the manufacturing sector.Provision of telecom services to the rural areas in India has been recognized as another thrust area by govt.which also helps for the enormous opportunities in this sector. Therefore telecom sector in India is one of the fastest growing sectors in the country and has been zooming up the growth curve at a feverish pace in the past few years. And even the Indian Wireless Market is booming which has plenty of room for growth

BANKING
In general terms, the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit A bank is an organization which lend money to the borrowers for a purposeful task, and provide a facility to deposit n withdraw money when needed and charge for itThe last decade has seen many positive developments in the Indian banking sector. Thepolicy makers, which comprise the Reserve Bankof India (RBI), Ministry of Finance and relatedgovernment and financial sector regulatory entities, have made several notable efforts toimprove regulation in the sector. The sector now compares favourably with banking sectors in theregion on metrics like growth, profitability andnon-performing assets (NPAs). A few banks haveestablished an outstanding track record of innovation, growth and value creation. This isreflected in their market valuation. However,improved regulations, innovation, growth andvalue creation in the sector remain limited to asmall part of it. The cost of banking intermediation in India is higher and bank penetration is far lower than in other markets. Indias banking industry must strengthen itself significantly if it has to support the modern and vibrant economy which India aspires to be. While the onus for this change lies mainly with bank managements, an enabling policy and regulatory framework will also be critical to their success. The failure to respond to changing market realities has stunted the development of the financialsector in many developing countries. A weak banking structure has been unable to fuel continued growth, which has harmed the long-termhealth of their economies. In this white paper,we emphasise the need to act both decisivelyand quickly to build an enabling, rather than a banking sector in India.

OBJECTIVE OF BANKING The principal object of the Bank will be to promote the interests of all its members to attain their social and economic betterment through self-help and mutual aid in accordance with the Cooperative Principles. The objects of the Bank shall be to engage in any one or more of the forms of business enumerate in Section 6 as amended by Section 56 of the Banking Regulation Act, 1949 and in particular to carry out the following forms of business:

To do banking business on Co-operative Principles by accepting for the purpose of lending or investment of deposits of money from members as well as the public, repayable on demand or otherwise and withdrawable by cheque, draft, pay order or otherwise. To raise funds by issue of shares and/or any other securities as permitted by the Regulatory Authority. To encourage thrift, self-help and co-operation among members. To prevent members from falling into permanent indebtedness and to assist them financially in times of difficulty and to help them to get out of debt. To engage in any one or more of the following forms of business namely: (i) The borrowing, raising or taking up of money; (ii) The lending or advancing of money to members either upon or without security; (iii)The drawing, making, accepting, discounting, buying, selling, collecting and dealing in bills of exchange, hundies, promissory notes, coupons, drafts, bills of lading, railway receipts, warrants, certificates, scrips and other instruments and other securities whether transferable or negotiable or not; (iv)The granting and issuing of letters of credit, travellers` cheques and circular notes and to do all forms of foreign exchange business; (v) The buying, selling and dealing in bullion and species on behalf of member customers;

ROLE OF THE SECTOR IN ECONOMY

. 1.

Netting and settlement of payments

Banks act as both collection and paying

agents for customers, participating in interbank clearing and settlement systems to collect, present, be presented with, and pay payment instruments. This enables banks to economies on reserves held for settlement of payments, since inward and outward payments offset each other. It also enables the offsetting of payment flows between geographical areas, reducing the cost of settlement between them.

2.

Credit intermediation Banks borrow and lend back-to-back on their own account
as middle men.

3.

Credit quality improvement Banks lend money to ordinary commercial and

personal borrowers (ordinary credit quality), but are high quality borrowers. The improvement comes from diversification of the bank's assets and capital which provides a buffer to absorb losses without defaulting on its obligations. However, banknotes and deposits are generally unsecured; if the bank gets into difficulty and pledges assets as security, to raise the funding it needs to continue to operate, this puts the note holders and depositors in an economically subordinated position.

4.

Maturity transformation Banks borrow more on demand debt and short term
debt, but provide more long term loans. In other words, they borrow short and lend long. With a stronger credit quality than most other borrowers, banks can do this by aggregating issues (e.g. accepting deposits and issuing banknotes) and redemptions (e.g. withdrawals and redemption of banknotes), maintaining reserves of cash, investing in marketable securities that can be readily converted to cash if needed, and raising replacement funding as needed from various sources (e.g. wholesale cash markets and securities markets).

5.

Money creation whenever a bank gives out a loan in a fractional-reserve

banking system, a new sum of virtual money is created

NUMBER OF PLAYER
Allahabad bank
Allahabad bank was established in 1865 by a group of Europeans and is the oldest public sector bank in India. In 1920 P&O Banking Corporation group took over Allahabad bank. In October 1989, United Industrial Bank Limited was merged with Allahabad Bank and entered into a merchantbanking.The bank cater in various products and services credit card, demat account, various deposit schemes and there are various investment opportunities for NRIs are lucrative and endless. The head office of the bank is located in Kolkata in 1923. By the end of the 19th century Allahabad bank had branches at Jhansi, Kanpur, Lucknow, Bareilly, Nainital, Kolkata and Delhi. At present the bank have 2154 branches all over India and 211 ATMs. On June 2006 the Bank crossed National Boundary and opened its representative Office at Shenzen, China. On October 2006 bank opened its first branch under CBS. The Bank opened its first overseas branch at Hong Kong on February 2007.

Service provided
Home loan Education loan Auto loan fixed loan saving loan

State bank of india

The inception of State Bank of India dates back to the first decade of the nineteenth century with the establishment of Bank of Calcutta in Calcutta on 2 June 1806. With the first five year plan released in 1951, the focus was primarily laid on rural development. With this motive in mind, State Bank of India was formed on 1 July 1955. Today SBI is the largest lender of the country in terms of alance sheet size, number of branches, market capitalization and profits. The bank is entering into many new businesses with strategic tie ups Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services, structured products etc each one of these

initiatives having a huge potential for growth. It presently has 82 foreign offices in 32 countries across the globe. It has also 7 Subsidiaries in India SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards. It has more than 10000 branches and 8500 ATMs

Service provided
Credit card Auto loan home loan personal loan fixed deposit saving account education loan

ICICI Bank
ICICI Bank is second largest private sector bank in India. In 1994 ICICI limited an Indian financial institution, and was its wholly-owned subsidiary. ICICI main aim was to set up a development financial institution through which finances could be provided for medium- term and long-term project to Indian businesses. ICICI Bank offers various services in personal, NRI and business banking areas. In Personal banking segment it offers Loans, Credit Card, Investment, Insurance, Demat, Property and Wealth Management services. The bank is the largest issuer of credit cards in India. While Business Banking services include Corporate Net Banking, Cash Management Trade Services, FX Online, SME Services, Online Taxes and Custodial Services. ICICI bank has a network of 1,308 branches and 3,950 ATMs in India and presence in 18 countries. The Bank currently has subordinates in the United Kingdom, Russia and Canada, branches in Unites States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. UK subsidiary has established a branch in Belgium and Germany.

Service provided
Credit loan Auto loan home loan personal loan education loan saving account fixed deposit

HDFC BANK
HDFC Bank was established in August 1994. The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank received stature of scheduled commercial bank in January 1995

HDFC bank has a nationwide network of 1,725 Branches and 4,865 ATM's in 780 Indian towns and cities. Besides this HDFC banks ATM can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders. Customers in over 500 locations are also serviced through Telephone Banking. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a strong and active member base

Service provided
Credit card Auto loan Home loan Personal loan Fixed deposit Saving account Educational loan

Axis Bank
Axis bank started operation in 1994 in India with its registered office in Ahmedabad and its Central office in Mumbai. This bank was the first private sector bank to start its operation in India after the government of India allowed private banks to start their operations. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation Ltd. and other four PSU companies, i.e. National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United Insurance Company Ltd. Bank offers services both in retail and corporate banking.Several branches of the bank also operates on Sunday. The bank's registered office is located in Ahmedabad and its Central Office is in Mumbai. The bank provides 24 hrs banking convenience to its customers through its largest ATM network in the country with 2595 ATMs and network of 608 branches

Services provided
Credit card Auto loan Home loan Personal loan Fixed deposit Saving account Education loan

a)
Checking Account Savings Account Money Market Account

Retail Banking

Certificate of Deposits (CD's) Individual Retirement Accounts (IRA's) Credit card Debit card Mortgages Home Equity Loan Mutual Funds Personal Loan

b)
Business loan

[edit]Business (or Commercial) Banking

Capital raising (Equity / Debt / Hybrids) Mezzanine finance Project finance Revolving credit Risk management (FX, interest rates, commodities, derivatives) Term loan Cash Management Services (Lock box, Remote Deposit Capture, Merchant Processing

Strengths of bank
Valuable contributor to GDP over a period of 15 years and of pivotal importance to the Islands economy. High standard regulatory environment. Flexible work permit system and good quality staff offering personal client service.

Weaknesses
Weak retail and mass affluent customer proposition. General perception of Isle of Man as vanilla jurisdiction that is is not attractive to the up-scale clients required. Lack of legitimate access to markets, especially the EU. Lack of competitive differential with other offshore centres. Rigid legislation that inhibits business development. Opportunities Unified trade body to lead finance sector programme change. Active and aggressive targeting of corporate & private clients, and institutions that attract such clients, to shift focus from mass affluent to HNW business. Morphing of Banking and CSP propositions to create a bigger market share for all. Co-ordinating business relationships across the IoM finance sector to increase revenue, thus investing in the ecosystem.

Threats

 ESD significantly impacts business levels, affecting the Savings Banks in particular. Anti-offshore regulations in foreign target markets restricting the development of products and new markets. Downsizing and reduction in banking operations in favour of rival jurisdictions. Outsourcing to cheaper jurisdictions Subsequent impact on rest of finance sector ecosyste

Opportunities of bank
Unified trade body to lead finance sector programme change. Active and aggressive targeting of corporate & private clients, and institutions that attract such clients, to shift focus from mass affluent to HNW business. Morphing of Banking and CSP propositions to create a bigger market share for all. Co-ordinating business relationships across the IoM finance sector to increase revenue, thus investing in the ecosyste

conclusion
Banks provide security and convenience for managing your money and sometimes allow you to make money by earning interest. Convenience and fees are two of the most important things to consider when choosing a bank. Writing and depositing checks are perhaps the most fundamental ways to move money in and out of a checking account, but advancements in technology have added ATM and debit card transactions and ACH transfers to the mix. All banks have rules about how long it takes to access your deposits, how many debit card transactions you're allowed in a day, and how much cash you can withdraw from an ATM. Access to the balance in your checking account can also be limited by businesses that place holds on your funds. Debit cards provide easy access to the cash in your account, but can cause you to rack up fees if you're not careful.

 While debit cards encourage more responsible spending than credit cards, they do not offer the same protection or perks to consumers. Regularly balancing your checkbook or developing another method to stay on top of your account balance is essential to successfully managing your checking account and avoiding fees and bounced checks. If you have more money than you need to manage your day-to-day expenses, banks offer a variety of options for saving, including money market accounts, CDs, high-interest online savings accounts and basic savings accounts. To protect your money from electronic theft, identity theft, and other forms of fraud, it's important to implement basic precautions such as shredding account statements, having complex passwords and only doing online banking through secure internet connections