Received: 4 August Revised: 9 August Accepted: 19 August
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1 Growth and Progress of Mobile Telecommunication in Punjab Amandeep Kaur Research Scholar, Punjabi University, Patiala Dr. Sawinder Kaur Assistant Professor, Punjabi University, Patiala Abstract The telecom sector has been recognized as an important tool for socio-economic development for a nation. Mobile telecommunication has emerged as one of the fastest growing segment in the Indian telecom industry. The purpose of the study is to assessing growth of mobile telecommunication services in Punjab. The data has been collected for the time period starting from 2009 to 2017 regarding Subscriber base, Teledensity, Percentage of pre-paid and post-paid connections in total subscriber base, Market share of both the sectors i.e. public and private sector etc. The Indian telecom sector is presently the second largest globally by subscriber base after China. The study shows that subscriber base is million with Teledensity in Percentage of pre-paid and post-paid connections in total subscribers is per cent and 5.4 per cent respectively in GSM Services and per cent and per cent in CDMA services. It is suggested that this sector ensure superior delivery of core services like voice clarity, geographical network coverage etc. to sustainable growth of mobile telecommunication services in Punjab. Keywords: Subscriber Base, Teledensity, GSM, CDMA, Pre-paid, Post-paid. Introduction Communication sector has assumed the position of a key infrastructure for socio-economic development in an increasingly knowledge-intensive world. The reach of telecom services to all regions of the country has become an integral part of an innovative and technologically-driven society. India s telecom sector has emerged as one of the fastest growing sector of the Indian economy. India s telecommunication network is the second largest in the world, next only to china. It has one of the lowest call tariffs in the world enabled by mega telecom operators and hyper competition among them. Major segment of the telecommunication are fixed and wireless (Mobiles). This research paper is focused on mobile telecommunication segment. The mobile telecommunication system in India is the second largest in the world and it was thrown open to private players in the 1990s. According to TRAI (Telecom Regulatory Authority of India) wireless subscribers in India are million and in Punjab these are million in December According to Department of Telecommunication, as per some estimates, the mobile industry in India currently contribute to 6.5 percent (USD140 billion) to country s GDP and employs 4 million people direct and indirect. The dominant players are Bharti, Vodafone, BSNL (Bharat Sanchar Nigam Limited), Aircel, Reliance communication group, Telenor, Tata, Sistema, Reliance JIO (Joint Implementation Opportunities), Quadrant, MTNL (Mahanagar Telecom Nigam Limited). Mobile telecommunication further divided into two categories i.e. GSM (Global System for Mobile Telecommunication) and CDMA (Code Division Multiple Access). GSM and CDMA are both dominant technologies in mobile phones. The only difference is that in terms of calls, technology, security factors, data transfer speed and their global reach. It provides two types of subscription i.e. pre-paid and post-paid. Pre-paid means pay first and use later and Post-paid means use first and pay later. Mobile telecommunication has started its technology creation and evolution since early Mobile telecommunication generations is given below: First Generation (1G) ( ): 1. Advanced 228 The research journal of social sciences September 2018 volume 9 number 9
2 Mobile Phone Service (AMPS) 2. Total Access Communications System (TACS). Second Generation (2G) ( ): 1. Global System for Mobile Telecommunication (GSM) 2. Personal Digital Mobile (PDC). 2.5 Generation (2.5G) ( ): 1. General Packet Radio Service (GPRS) 2. PDC-P 3. CDMA One. Third Generation (3G) ( ): 1. Third Generation Partnership Project (3GPP) 2. Third Generation Partnership Project 2 (3GPP2) 3. High Speed Circuit-Switched Data (HSCSD) 4. Enhanced Data Rates for Global Evolution (EDGE) 5. Universal Mobile Telecommunication System (UMTS) 6. Global Positioning System (GPS). 3.5 Generation (3.5G) ( ): 1. HSPA (High-Speed Downlink Packet Access). Fourth Generation (4G) (Now): The objective of the 3G is to develop a new technologies and new protocol to further enhance the mobile experience. 1. Global System for Mobile Telecommunication (GSM) 2. General Packet Radio Service (GPRS) 3. IMT-2000 International Mobile Telecommunications 4. Wireless Fidelity (Wi-Fi) 5. Bluetooth. Fifth Generation (5G) (Probably 2020): Currently there is no 5G technology deployed. When this becomes available it will provide very high speed to the consumers and provide efficient use of available bandwidth. Objectives of the study 1. To analyze the components of mobile telecommunication in Punjab. 2. To analyze the growth and progress of mobile telecommunication in Punjab. Research Methodology This study is based on secondary data. The data has been collected from various reports of TRAI (Telecom Regulatory Authority of India), DOT (Department of Telecommunications), Various websites, Newspapers and Journals etc. The time period of the study has been taken from 2009 to To achieve the desired objectives of the study the data related to Subscriber base, Teledensity, Percentage of pre-paid and post-paid in total number of subscribers, Market share of public sector and private sector in mobile telecommunication in Punjab has been collected and analyzed. Data has been analyzed with the help of percentage and CAGR (Compound Annual Growth Rate). Components of Mobile Telecommunication in Punjab India is currently the second largest telecommunication market with million subscribers. Out of which million subscribers were in Punjab. Telecommunication sector is mainly divided into two categories i.e. fixed and wireless (Mobiles). These services are provided by public and private sector service providers. After 1990s due to introduction of LPG (Liberalization, Privatisation, Globalisation) private players came into market and contribute to this sector. The fruits of the liberalization efforts of the government are evident in the growing share of private sector. The private sector is now playing an important role in the expansion of telecom services. At present according to TRAI 2017, following players are operated in India i.e. Bharti, Vodafone, BSNL, Aircel, Reliance communication group, Telenor, Tata, Sistema, Reliance JIO, Quadrant and MTNL. From above players BSNL and MTNL are public sector service providers and rest are private sector service providers. From these players Telenor, Sistema and MTNL are not operated in Punjab. It divided into two categories i.e. GSM and CDMA and provides two types of subscription i.e. Pre-paid and Post-paid. GSM and CDMA are both technologies the only difference in terms of calls, security, network coverage etc. Following players operated in Punjab: 229 The research journal of social sciences September 2018 volume 9 number 9
3 Public Service Providers BSNL (Bharat Sanchar Nigam Limited): BSNL was set up in the year 2000 and it s headquarter is situated in New Delhi. As of Telecom Regulatory Authority of India, December 2017, 5.14 million BSNL users in Punjab. It is one of the largest public sector units in India and one and only public sector service provider in Punjab. BSNL offers wide range and most transparent tariff schemes designed to suit every customer. BSNL provides pre-paid and post-paid services. It also provide Voice mail service, Group messaging, SMS (Short Message Service), call forwarding, call conferencing, friend and family talk, unifies messaging services (integrating mobile phones with the internet and accessing s, Faxes, voice mail etc.), call waiting and call holding facilities etc. Private Service Providers: Bharti: Bharti was set up in the year 1995 and it s headquarter is situated in New Delhi. As of Telecom Regulatory Authority of India, December 2017, 9.77 million Bharti users in Punjab. It provides both pre-paid and Post-paid service plans. It also provides one year validity, super lifetime validity, student pack, combo booster pack, talk more advance etc. Bharti has been the leader of change in India s dynamic telecommunication pace with its passion for innovation. Bharti make lucrative strategies and schemes separately for students to make them possessive of its service. Vodafone: It was set up in the year 1994 and it s headquarter is situated in Mumbai. As of Telecom Regulatory Authority of India, December 2017, 4.94 million Vodafone users in Punjab. Idea: It was set up in the year 1996 and it s headquarter is situated in Mumbai. As of Telecom Regulatory Authority of India, December 2017, 7.42 million Idea users in Punjab. Reliance Communication Group: It was set up in the year 2004 and it s headquarter is situated in Mumbai. As of Telecom Regulatory Authority of India, December 2017, 1.14 million Relaince Communication Group users in Punjab. Reliance JIO: It was set up in the year 2015 and it s headquarter is situated in Mumbai. As of Telecom Regulatory Authority of India, December 2017, 7.27 million Reliance Jio users in Punjab. Aircel: It was set up in the year 1999 and it s headquarter is situated in New Delhi. As of Telecom Regulatory Authority of India, December 2017, 0.90 million Aircel users in Punjab. Tata: It was set up in the year 1996 and it s headquarter is situated in Mumbai. As of Telecom Regulatory Authority of India, December 2017, 1.39 million Tata users in Punjab. Table 1: Growth and Market Share of Public and Private Sector Subscribers in Mobile Telecommunication in Punjab Year Public Sector Subscribers (Market Share of Public Sector) (in %) Private Sector Subscribers (Market Share of Private Sector) (in %) Total Subscribers (Total Market Share) (in %) 230 The research journal of social sciences September 2018 volume 9 number 9
4 (18.68) (16.14) (14.93) (15.14) (14.89) (10.32) (11.85) (12.29) (13.50) (81.32) (83.86) (85.07) (84.86) (85.11) (89.68) (88.15) (87.71) (86.50) CAGR 5.15% 10.35% 9.50% Source: Various reports on the Indian telecom services performance indicators, December, TRAI (Telecom Regulatory Authority of India), Table 1 shows the growth and market share of public sector subscribers and private sector subscribers of mobile telecommunication in Punjab from 2009 to In 2009 public sector subscribers were 3.44 million which were increased to 4.73 million in In 2012 it was decreased to 4.39 million, in 2013 it was increased to 4.52 million and in 2014 again it was decreased to 3.19 million. From 2015 to 2017 again, it was increased to 3.58 million to 5.14 million. Similarly, market share of public sector was per cent in 2009 which was decreased to per cent in 2011 and then increased to per cent in In 2013 it was decreased to per cent. From 2014 to 2017 it was increased to per cent to per cent. Similarly, Private sector subscribers in 2009 were million which were increased to million in But it was decreased in 2012 to million, in 2013 it was increased to million and in 2014 it was increased to million again it was decreased to million in From 2016 to 2017 it was increased to million to million. Moreover, market share of private sector was per cent in 2009 which was increased to per cent in 2011 but in 2012 it was decreased to per cent. Again it was increased to per cent in 2014 But 2015 it was decreased to per cent, in 2016 it was decreased to per cent and in 2017 it was decreased to per cent. Total numbers of subscriber in 2009 were which were increased to million in But in 2012 it was decreased to million. Again, it was increased to million to million from 2013 to 2014 but in 2015 it was decreased to million. It was increased to million to million from 2016 to Figures were fluctuating over the years but overall CAGR of public sector subscribers, private sector subscribers and total subscribers were 5.15 per cent, per cent and 9.50 per cent. It has been analyzed that private sector market share is per cent and public sector market share is per cent in Private sector contributes more to the GDP and providing more employment as compare to public sector. The reason for this increase is due to high level of mobile phone usage among customers and also importance has been made known to all. 231 The research journal of social sciences September 2018 volume 9 number 9
5 Table 2: Area-wise Growth of Wireless Teledensity in Punjab Year Punjab s Teledensity Urban % Rural % Total % CAGR 6.24 % % 8.21 % Source: Various reports on the Indian telecom services performance indicators, December, TRAI (Telecom Regulatory Authority of India), Table 2 exhibits the area-wise growth of wireless teledensity in mobile telecommunication in Punjab from 2009 to Teledensity, which denotes the number of telephones connections for every hundred individuals living within an area, is an important indicator of telecom penetration in any country. It varies widely across the nation and also between urban and rural areas within a country. A teledensity greater than hundred means there are more telephone than people. For social and economic development of rural area, rapid increase in rural teledensity is one of important parameter. Teledensity in Punjab was with 3.5 per cent in From 2009 to 2011 it showed increased trend from to , but in 2012 it was decreased to and from 2013 to 2014 it was increased to to , in 2015 it was decreased to and from 2016 to 2017 it was increased to to This decline is due to large scale disconnection by some of the service providers. Similarly, rural teledensity was increased to 2009 to 2014 from to but 2015 it was decreased to again from 2016 to 2017 it was increased to to Urban teledensity also increased from to from 2009 to 2011 but in 2012 it was decreased to again it was increased to in 2013 then decreased to in 2014 and in 2015 it was decreased to then it was increased to and in 2017 it was decreased to Figures are fluctuating over the years but overall CAGR of urban teledensity, rural teledensity and total teledensity were 6.24 per cent, per cent and 8.21 respectively. Table 3: Share of Pre-paid and Post-paid subscribers in GSM services in Mobile Telecommunication in Punjab Year Total Subscriber s GSM Subscriber s in total Pre-paid GSM Subscribers (in million) (% of pre-paid GSM subscribers) (93.00) Post-paid GSM Subscribers (% of post-paid GSM subscribers) (7.00) The research journal of social sciences September 2018 volume 9 number 9
6 (94.99) (5.01) (95.51) 1.31 (4.49) (94.58) 1.49 (5.42) (94.05) (93.43) (92.78) (93.45) (94.60) 1.73 (5.95) 1.96 (6.57) 2.09 (7.22) 2.36 (6.55) 2.05 (5.40) CAGR 9.50% % % 8.47 % Source: Various reports on the Indian telecom services performance indicators, December, TRAI (Telecom Regulatory Authority of India), Table 3 shows the share of Pre-paid and Post-paid subscribers in GSM services in mobile telecommunication in Punjab from 2009 to It has been analyzed that in 2009 total subscribers were million out of which million were GSM subscribers, million and 1.07 million were pre-paid and post-paid subscribers respectively. Total numbers of subscriber in 2009 were which were increased to million in But in 2012 it was decreased to million. Again it was increased to million to million from 2013 to 2014 but in 2015 it was decreased to million in It was increased to million to million from 2016 to Similarly, GSM subscribers were million in 2009 which was increased to million in 2011 but in 2012 it was decreased to again it was increased to million to million from 2013 to 2014 but in 2015 it was decreased to million. After it was increased to million to million from 2016 to Moreover, pre-paid GSM subscribers were million in 2009 which was increased to million in 2011 but in 2012 it was decreased to million. Again it was increased to million to million from 2013 to 2014 but in 2015 it was decreased to million and then increased to million to million from 2016 to Further, post-paid GSM subscribers were 1.07 million in 2009 which was increased to 2.36 million in 2016 but in 2017 it was decreased to 2.05 million. Over the years CAGR of total subscribers, GSM subscribers, Pre-paid GSM subscribers and Post-paid GSM subscribers were 9.50 per cent, per cent, per cent and 8.47 per cent respectively. It shows that GSM subscribers were out of in 2017 it means people aware about technology. They shifted from CDMA (2G) to GSM (2G, 3G, 4G) due to technology change. Service providers ensure superior delivery of core services like voice clarity, geographical network coverage etc. to growth of this sector. It also showed that pre-paid subscribers is per cent and post-paid is 5.40 per cent it means people prefer pre-paid as compare to post-paid connection as they don t pay fix amount per month. Table 4: Share of Pre-paid and Post-paid subscribers in CDMA services in mobile telecommunication in Punjab 233 The research journal of social sciences September 2018 volume 9 number 9
7 Year Total Subscribers CDMA Subscribers in total (in million) Pre-paid CDMA Subscribers (in million) (% of pre-paid CDMA subscribers) 2.85 (90) 2.51 (89) 2.22 (89) 1.18 (80) 1.05 (81) 0.81 (79) 0.95 (73) 0.25 (68.54) 0.07 (86.66) Post-paid CDMA Subscribers (in million) ( % of Post-paid CDMA subscribers) 0.32 (10) 0.31 (11) 0.28 (11) 0.29 (20) 0.25 (19) 0.21 (21) 0.35 (27) 0.11 (31.46) 0.01 (13.34) CAGR 9.50 % % % % Source: Various reports on the Indian telecom services performance indicators, December, TRAI (Telecom Regulatory Authority of India), Table 4 shows the share of Pre-paid and Post-paid subscribers in CDMA services in mobile telecommunication in Punjab from 2009 to It has been analyzed that in 2009 total subscribers were million out of which 3.17 million were CDMA subscribers and 2.85 million and 0.32 million were pre-paid CDMA and post-paid CDMA subscribers respectively. Total numbers of subscriber in 2009 were which were increased to million in But in 2012 it was decreased to million. Again it was increased to million to million from 2013 to 2014 but in 2015 it was decreased to million in It was increased to million to million from 2016 to Similarly, CDMA subscribers were 3.17 million in 2009 which was decreased to 0.08 million in Moreover, pre-paid CDMA subscribers were 2.85 million in 2009 which was decreased to 0.81 million in 2014 then increased to 0.95 million in 2015 again it was decreased to 0.25 million to 0.07 million from 2016 to Further, it has been seen that post-paid CDMA subscribers were 0.32 million in 2009 which was decreased to 0.28 million in 2011 but in 2012 it was increased to 0.29 million then it was decreased to 0.25 million to 0.21 million from 2013 to 2014 and in 2015 it was increased to 0.35 million. Then it was again decreased to 0.11 million to 0.01 million from 2016 to Over the years CAGR of total subscribers, CDMA subscribers, Pre-paid CDMA subscribers and Post-paid CDMA subscribers were 9.50 per cent, per cent, per cent and per cent respectively. It shows that CDMA subscribers were 0.08 out of in Customers shifted from CDMA (2G) to GSM (2G, 3G, 4G) due to technology change. Similarly, pre-paid subscribers were 234 The research journal of social sciences September 2018 volume 9 number 9
8 86.66 per cent and post-paid were it means people prefer pre-paid as compare to post-paid connection due to flexible recharge method of pre-paid connection. Findings and suggestion: 1. The study found that the total numbers of subscribers were increased from million to million from 2009 and 2017 respectively. CAGR showed increasing trend with 9.50 per cent, is which public sector subscribers were holds 5.15 per cent share and private sector holds per cent share. It has been analyzed that all the figures were decreased in 2012 due to large scale disconnection of non-active subscribers by some operators. Moreover, operators are doing some much needed cleaning up of their subscriber base, the government introduce new norms for subscriber verification such as name and address must be verified before give a connection. 2. The telecommunication sector should ensure superior delivery of basic core service benefit of mobile telecom service such as voice clarity, geographical network coverage. 3. Study found that public sector subscribers are 5.14 million and private sector subscribers are million. Market share of public sector is per cent and private sector is per cent in Private sector play major role and contribute to GDP, increasing employment as compare to public sector. 4. It has been found that out of million total subscribers million is GSM subscribers and 0.08 million are CDMA subscribers in 2017, people prefer GSM due to technology, global coverage, security factors and data transfer speed etc. it is suggested that company should provide various plans and schemes to customer for optimum growth of this sector. 5. It has been found that percentage of pre-paid subscribers and post-paid subscribers in total customers is per cent and 5.40 per cent in GSM services and per cent and per cent in CDMA services. People prefer pre-paid connection as compare to post-paid connections. As pre-paid is mostly preferred by students, labours etc. and post-paid is mostly preferred by celebrities, businessperson etc. Some people prefer prepaid may be they don t pay some fix amount per month and pre-paid vendors are offering flexible recharge method. Moreover, person under eighteen years of age can not apply for post-paid connections. So the service providers should provide call rate at reasonable rates, provide wide network and the new mobile connection and recharge facility of mobiles should easily available at customer s convenient location. Bibliography: 1. Birudavolu, Sriram and Nag, Biswajit (2011), A Study of open innovation in Telecommunication Services: A Review of literature and Trends, Indian Institute of Foreign Trade, W.P. No. EC Gao, Ping and Damsgaard, Jan (2007), A framework for understanding Mobile Telecommunication Market Innovations: A case study of China, Journal of Electronic Commerce Research, vol. 8, pp Gopika, G.G (2014), Growth and Development of Telecom Sector in India- An overview, IOSR Journal of Business and Management, vol. 16, pp Govindaran, M (2013), Telecom Industry development in India, Ph.d Thesis, Department of Corporate Secretaryship, Alagappa University, Karaikudi. 235 The research journal of social sciences September 2018 volume 9 number 9
9 5. Kumar, M. Prasanna (2014), Telecom Services: Emerging Trends, Opportunities and Risk, International Journal of Business and Administration Research Review, vol.1, pp Mir, Mohammad Meraj ud in and Kumar, Sumit (2015), Evolution of Mobile wireless technology from 0G to 5G, International Journal of Computer Science and Information Technologies, vol. 6, pp Pritish and Saxena, Taruna (2015), An Analysis of the Indian Telecom Industry, IOSR Journal of Business and Management, vol. 17, pp Rego, Shailaja (2014), Prospects of Telecom Industry in India and its impact on Economic Growth, Ph.D Thesis, Department of Management, SNDT Women University. 9. Sahoo, Akshaya Kumar (2016), Assessment of service quality and customer satisfaction in mobile telecommunication industry a comparative study between BSNL and private service providers, Ph.d Thesis, submitted to Institute of business and computer studies, Siksha O Anusandhan University, Bhubaneshwar, Odisha. 10. Zhu, Xue and Venkatam Rahul (2012), An Analysis of factors influencing the Telecommunication Industry growth, Master Thesis, School of Management, Blekinge Institute of Technology. 11. Zahoor, Zaraq (2015), An overview of Indian Telecom Sector, Abhinav National Monthly Referred Journal of Research in Commerce and Management, vol.4, pp The research journal of social sciences September 2018 volume 9 number 9
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