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 38.07 million with 120.82 Teledensity in 2017. Percentage of pre-paid and post-paid connections in total subscribers is 94.60 per cent and 5.4 per cent respectively in GSM Services and 86.66 per cent and 13.34 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 1167.44 million and in Punjab these are 38.07 million in December 2017. 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 1970. Mobile telecommunication generations is given below: First Generation (1G) (1970-1980): 1. Advanced 228 The research journal of social sciences September 2018 volume 9 number 9
Mobile Phone Service (AMPS) 2. Total Access Communications System (TACS). Second Generation (2G) (1990-2000): 1. Global System for Mobile Telecommunication (GSM) 2. Personal Digital Mobile (PDC). 2.5 Generation (2.5G) (2001-2004): 1. General Packet Radio Service (GPRS) 2. PDC-P 3. CDMA One. Third Generation (3G) (2004-2005): 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) (2006-2010): 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 2017. 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 1167.44 million subscribers. Out of which 38.07 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
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 E-mails, 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
2009 3.44 (18.68) 2010 4.34 (16.14) 2011 4.73 (14.93) 2012 4.39 (15.14) 2013 4.52 (14.89) 2014 3.19 (10.32) 2015 3.58 (11.85) 2016 4.47 (12.29) 2017 5.14 (13.50) 14.98 (81.32) 22.55 (83.86) 26.95 (85.07) 24.61 (84.86) 25.84 (85.11) 27.73 (89.68) 26.64 (88.15) 31.91 (87.71) 32.93 (86.50) 18.42 26.89 31.68 29.00 30.36 30.92 30.22 36.38 38.07 CAGR 5.15% 10.35% 9.50% Source: Various reports on the Indian telecom services performance indicators, December, TRAI (Telecom Regulatory Authority of India), 2009-2017. Table 1 shows the growth and market share of public sector subscribers and private sector subscribers of mobile telecommunication in Punjab from 2009 to 2017. In 2009 public sector subscribers were 3.44 million which were increased to 4.73 million in 2011. 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 18.68 per cent in 2009 which was decreased to 14.93 per cent in 2011 and then increased to 15.14 per cent in 2012. In 2013 it was decreased to 14.89 per cent. From 2014 to 2017 it was increased to 10.32 per cent to 13.50 per cent. Similarly, Private sector subscribers in 2009 were 14.98 million which were increased to 26.95 million in 2011. But it was decreased in 2012 to 24.61 million, in 2013 it was increased to 25.84 million and in 2014 it was increased to 27.73 million again it was decreased to 26.64 million in 2015. From 2016 to 2017 it was increased to 31.91 million to 32.93 million. Moreover, market share of private sector was 81.32 per cent in 2009 which was increased to 85.07 per cent in 2011 but in 2012 it was decreased to 84.86 per cent. Again it was increased to 89.68 per cent in 2014 But 2015 it was decreased to 88.15 per cent, in 2016 it was decreased to 87.71 per cent and in 2017 it was decreased to 86.50 per cent. Total numbers of subscriber in 2009 were 18.42 which were increased to 31.68 million in 2011. But in 2012 it was decreased to 29.00 million. Again, it was increased to 30.36 million to 30.92 million from 2013 to 2014 but in 2015 it was decreased to 30.22 million. It was increased to 36.38 million to 38.07 million from 2016 to 2017. Figures were fluctuating over the years but overall CAGR of public sector subscribers, private sector subscribers and total subscribers were 5.15 per cent, 10.35 per cent and 9.50 per cent. It has been analyzed that private sector market share is 86.50 per cent and public sector market share is 13.50 per cent in 2017. 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
Table 2: Area-wise Growth of Wireless Teledensity in Punjab Year Punjab s Teledensity Urban % Rural % Total % 2009 105.61-36.11-64.25-2010 153.66 45.4 50.02 38.5 92.55 44.0 2011 173.68 13.0 60.65 21.2 107.64 16.3 2012 145.63-16.1 62.16 2.4 97.32-9.5 2013 145.83 0.1 67.08 7.9 100.68 3.4 2014 143.98-1.2 68.93 2.8 101.36 0.7 2015 141.66-1.7 68.78-0.2 100.66-0.7 2016 172.97 22.1 71.96 4.7 116.69 15.9 2017 171.35-0.9 79.72 10.8 120.81 3.5 CAGR 6.24 % 10.41 % 8.21 % Source: Various reports on the Indian telecom services performance indicators, December, TRAI (Telecom Regulatory Authority of India), 2009-2017. Table 2 exhibits the area-wise growth of wireless teledensity in mobile telecommunication in Punjab from 2009 to 2017. 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 120.81 with 3.5 per cent in 2017. From 2009 to 2011 it showed increased trend from 64.25 to 107.64, but in 2012 it was decreased to 97.32 and from 2013 to 2014 it was increased to 100.68 to 101.36, in 2015 it was decreased to 100.66 and from 2016 to 2017 it was increased to 116.69 to 120.81. This decline is due to large scale disconnection by some of the service providers. Similarly, rural teledensity was increased to 2009 to 2014 from 36.11 to 68.93 but 2015 it was decreased to 68.78 again from 2016 to 2017 it was increased to 71.96 to 79.72. Urban teledensity also increased from 105.61 to 173.68 from 2009 to 2011 but in 2012 it was decreased to 145.63 again it was increased to 145.83 in 2013 then decreased to 143.98 in 2014 and in 2015 it was decreased to 141.66 then it was increased to 172.97 and in 2017 it was decreased to 171.35. Figures are fluctuating over the years but overall CAGR of urban teledensity, rural teledensity and total teledensity were 6.24 per cent, 10.41 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) 14.18 (93.00) Post-paid GSM Subscribers (% of post-paid GSM subscribers) 2009 18.42 15.25 1.07 (7.00) 2010 26.89 24.07 22.86 1.21 232 The research journal of social sciences September 2018 volume 9 number 9
(94.99) (5.01) 2011 31.68 29.18 27.87 (95.51) 1.31 (4.49) 2012 29.00 27.53 26.04 (94.58) 1.49 (5.42) 2013 30.36 29.06 2014 30.92 29.90 2015 30.22 28.92 2016 36.38 36.02 2017 38.07 37.99 27.33 (94.05) 27.94 (93.43) 26.83 (92.78) 33.66 (93.45) 35.94 (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% 12.09 % 12.33 % 8.47 % Source: Various reports on the Indian telecom services performance indicators, December, TRAI (Telecom Regulatory Authority of India), 2009-2017. Table 3 shows the share of Pre-paid and Post-paid subscribers in GSM services in mobile telecommunication in Punjab from 2009 to 2017. It has been analyzed that in 2009 total subscribers were 18.42 million out of which 15.25 million were GSM subscribers, 14.18 million and 1.07 million were pre-paid and post-paid subscribers respectively. Total numbers of subscriber in 2009 were 18.42 which were increased to 31.68 million in 2011. But in 2012 it was decreased to 29.00 million. Again it was increased to 30.36 million to 30.92 million from 2013 to 2014 but in 2015 it was decreased to 30.22 million in 2015. It was increased to 36.38 million to 38.07 million from 2016 to 2017. Similarly, GSM subscribers were 15.25 million in 2009 which was increased to 29.18 million in 2011 but in 2012 it was decreased to 27.53 again it was increased to 29.06 million to 29.90 million from 2013 to 2014 but in 2015 it was decreased to 28.92 million. After it was increased to 36.02 million to 37.99 million from 2016 to 2017. Moreover, pre-paid GSM subscribers were 14.18 million in 2009 which was increased to 27.87 million in 2011 but in 2012 it was decreased to 26.04 million. Again it was increased to 27.33 million to 27.94 million from 2013 to 2014 but in 2015 it was decreased to 26.83 million and then increased to 33.36 million to 35.94 million from 2016 to 2017. 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, 12.09 per cent, 12.33 per cent and 8.47 per cent respectively. It shows that GSM subscribers were 37.99 out of 38.07 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 94.60 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
Year Total Subscribers CDMA Subscribers in total (in million) 2009 18.42 3.17 2010 26.89 2.82 2011 31.68 2.50 2012 29.00 1.47 2013 30.36 1.30 2014 30.92 1.02 2015 30.22 1.30 2016 36.38 0.36 2017 38.07 0.08 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 % -36.87 % -37.08 % -35.16 % Source: Various reports on the Indian telecom services performance indicators, December, TRAI (Telecom Regulatory Authority of India), 2009-2017. Table 4 shows the share of Pre-paid and Post-paid subscribers in CDMA services in mobile telecommunication in Punjab from 2009 to 2017. It has been analyzed that in 2009 total subscribers were 18.42 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 18.42 which were increased to 31.68 million in 2011. But in 2012 it was decreased to 29.00 million. Again it was increased to 30.36 million to 30.92 million from 2013 to 2014 but in 2015 it was decreased to 30.22 million in 2015. It was increased to 36.38 million to 38.07 million from 2016 to 2017. Similarly, CDMA subscribers were 3.17 million in 2009 which was decreased to 0.08 million in 2017. 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 2017. 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 2017. Over the years CAGR of total subscribers, CDMA subscribers, Pre-paid CDMA subscribers and Post-paid CDMA subscribers were 9.50 per cent, -36.87 per cent, -37.08 per cent and -35.16 per cent respectively. It shows that CDMA subscribers were 0.08 out of 38.07 in 2017. 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
86.66 per cent and post-paid were 13.34 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 18.42 million to 38.07 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 10.35 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 32.93 million. Market share of public sector is 13.50 per cent and private sector is 86.50 per cent in 2017. Private sector play major role and contribute to GDP, increasing employment as compare to public sector. 4. It has been found that out of 38.07 million total subscribers 37.99 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 94.60 per cent and 5.40 per cent in GSM services and 86.66 per cent and 13.34 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-11-09. 2. 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-184-195. 3. Gopika, G.G (2014), Growth and Development of Telecom Sector in India- An overview, IOSR Journal of Business and Management, vol. 16, pp. 25-36. 4. 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
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