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1.

Introduction
The means of statement not until lately has been only voice and copy. Voice and SMS
services were known top importance by telecom networks. But, the Internet has
providing many other services like electric file sharing, online gaming, e-commerce
and receiving access to any information by just staring which application to people as
these services are cost active and also reduces load on the social part. Making these
services existing on mobile devices has far more profits and exciting positions.
However, todays internet over cables and wireless limits connectivity only to a small
region called Local Area Network (LAN) and Wireless Local Area Network (WLAN)
hot advertisement respectively. Also getting an progressive service support to todays
voice dominated telecom mobile networks is not an easy task both. Globally there is a
view that IP is the protocol that will enable new opportunities for telecom sector in
future.

1.1 Broad Overview


1.1.1 Indian Telecom Market Overview
Telecommunication services are known as one of the key driving forces for the socioeconomic growth of a country. Mobile telephony has seen a incredible growth in the
previous 10 years. However, it has been observing a slowdown in recent years. Driven
by data explosion and rollout of data services (3G and 4G) along with working
prudence, the Indian telecom market is probable to be back on the growth track. With
a total of 11 workers serving an active wireless subscriber base of 842.39 million 1
(88.45% of total registered wireless subscriber base, the Indian telecom market is now
among the most inexpensive markets in the world. Over the past few years, the
revenue market share of more players such as Bharti Airtel and Vodafone has
increased further capturing the revenue share absent by PSUs while that of smaller
private players has continued the same.
With collective market competitiveness, the current focus of the telecom operators in
India has moved from growing the subscriber base to improving the active user base.
Also, telecom operators are laying emphasis on operational prudence more than ever.
There are three key aspects which would continue to fuel growth of tower companies:
Strong focus on operative quality
Data explosion
Possible in rural areas to add subscribers to the active operator bas
1.1.2 Data Usage Landscape in India
India has come a long way after 2001 when there were only about 7 million Internet
users to become the second largest market in the world for Facebook and LinkedIn
and the third nation in the world to have over five internet companies valued at over
$1 billion.
India added 43 million internet operators (20.5% CAGR) from October 2013 to
September 2014 resulting in total internet operators crossing 254 million in
September 2014. Out of these, 235 million users accessed internet over mobile
devices. The development in internet operators was seen both in rural and urban
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parts of India. India is expected to overtake the US and become the 2nd largest
internet operator base in the world in 2015.
The low dispersion of desktop internet users in India and fast growing acceptance of
profitable smart mobile devices has providing positive growth situation for the
mobile internet market. In the mid of 2012, the total mobile internet user base in
India passed the desktop internet user base.
The current smartphone perception in India stands at 13.4% up from 10% in 2014.
2 As per a education conducted by Deloitte across 25 nations, once the smartphone
saturation exceeds 25%, data explosion takes a new measurement. This is mostly
driven by the data hungry requests and on demand services. India is likely to follow
the international trend and will see great data growth at 30% smartphone penetration
with even more approval of data hungry applications / facilities on mobile devices.
1.1.3 Projected Smartphone Penetration and Mobile Data Consumption for India

[Table: 1.1.3]

1.1.4

Technol
ogy

(2G, 3G & 4G)


Landscape

in

India
The 3G subscriber base in India has developed at
a CAGR of 144% from 2009 to 2014. In December 2014, 3G subscribers stood at
9% of all mobile subscribers compared to 0.4% in 2012. 4G services were
launched in India in 2012 and the subscriber base stood at 0.4 million in
December 2014. With growing network coverage, falling data prices and shifting
customer preference for higher connection speed, both 3G and 4G subscription are
normal to develop significantly in future.

2. Literature Survey
2.1 Evolution of The 4g technology and its future impact on telecom industry and
Indian economy.
4G in India is at a very nascent step and normal to take on the market with a
bang. 3G espousal in India remains subdued at 10-12 million users even after
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nearly 2 years of its launch due to many problems like poor network quality as
operators are cash-strapped to devote on 3G expansion, low penetration of 3G
enabled handsets, unavailability of local content, absence of a good
application. Even if 3G picks up in 2 years from now, most of the users will be
mobile users with a less data condition like accessing e-mails and web-portals
exit the space of additional portable mobile devices like tablets, laptops,
gaming etc. demanding high speed broadband for live HD video streaming,
gaming etc. unoccupied, paving the way for 4G which is far more faster than
3G. Global, for 4G, Wi-Max is more widely adopted technology than Long
Term Evolution (LTE) having a user base almost four times that of the final
but the final is growing at a much faster pace than the former. North America,
Japan and China are the major drivers of LTE global. North America accounts
for more than 40% of LTEs global presence. Out of the eight entities in India
who get 4G certificates, only BSNL and MTNL have opted for Wi-Max stage
but private companies chose for LTE. The difference between Wi-Max and
LTE is not as different as GSM and CDMA apart from being promoted by two
different relations Institute of Electrical and Electronics Engineers (IEEE)
and 3rd Generation Partnership Project (3GPP) respectively. Wi-Max has
capacity to accommodate voice which LTE does not but LTE allows well
addition with 2G and 3G as compared to Wi-Max. As per recent statement
given by Telecom Minister of the Country, Operators using LTE stage will also
be able to offer Voice Services, But How and when, it is yet to be cleared. So
now the game is split wide upon in front of our eyes and 4G has a choice to
target customer in the near future in wide variety.
2.2

Present Situation
The Indian telecom market is abuzz with talk about the 4G network. The excitement
has been fueled by the impending launch of Reliance Jio billed as the largest
greenfield investment in Indian history and the aggressive rollout and marketing
of competing 4G networks by incumbent players.
From a subscriber standpoint, they are mainly concerned about the quality and
speed of data connectivity and not the underlying network technology. However,
operators do need to make the right technology choices to determine their spectrum,
network and device roadmaps, strategies and investments.
It is important to note that Indian operators invested significantly in 3G network and
spectrum from 2010 to 2015. Slow uptake of 3G in India means a lot of that
investment has not yet been fully recovered. A pertinent question therefore is
whether the market will support both 3G and 4G networks and what the future holds
for 3G once 4G gains traction.
Telecoms infrastructure remains a challenge for India, and the government is embracing
the possibilities of 4G mobile technology as a potential solution to the inadequacies of
current internet service provision.
4G offers faster data transfer and improved mobile web access unlocking options
for video conferencing and cloud computing. But Indian telecoms companies
havent always delivered on their promises when it comes to data connection
speeds. Many consumers are cynical about 4G and theres a feeling the
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new technology may not make as much of a splash as the government or telecoms
operators expect.
2.3

Indian Scenario.
The deadline to introduce the 4G services in country is approaching and the tension
amongst the telecom operators is also building up. However, some of the Telcos
who have the 4G licenses has rolled out the services in some of their telecom
circles. As 2015 is expected to set the base of the 4G services in the country, we take
a look at the complete picture of the 4G roll out and what the operators are doing,
who won the BWA spectrum in 2010 auction.

3. Contribution to Economy.
India will emerge as a leading player in the virtual world by having 700 million
internet users of the 4.7 billion global users by 2025, as per a Microsoft report. With
the governments favourable regulation policies and 4G services hitting the market,
the Indian telecommunication sector is expected to witness fast growth in the next
few years.
4. Strategies Adopted
4.1 Enterprise adoption.
In addition to general usage, LTE adoption heavily banks on adoption by the
enterprise market. With offices and businesses, especially the SMBs, embracing
the newer and faster network, LTE will see a larger mass adoption.

Moreover, more and more organisations allowing remote working through


BYOD, employees are increasingly dependent on their smartphone Internet
connection to work while out of the office. The better speed of 4G can help them
do more and faster.

5. Government Initiatives
The government has fast-tracked reforms in the telecom sector and continues to be
proactive in providing room for growth for telecom companies. Some of the other
major initiatives taken by the government are as follows:

The Ministry of Communications & Information Technology has launched Twitter


Sewa, an online communications platform for registration and resolution of user
complaints in the telecommunications and postal sectors.

The Telecom Regulatory Authority of India (TRAI) has released a consultation paper
which aims to offer consumers free Internet services within the net neutrality
framework and has proposed three models for free data delivery to customers without
violating the regulations.

The Government of India has liberalised the payment terms for spectrum auctions by
allowing two options of payments to telecom companies for acquiring the right to use
spectrum, which include upfront payment and payment in instalments.
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The Department of Telecommunications (DoT) has amended the Unified Licence for
telecom operations which will allow sharing of active telecom infrastructure like
antenna, feeder cable and transmission systems between operators, thereby lowering
the costs of operations and leading to faster rollout of networks.

The Telecom Regulatory Authority of India (TRAI) has recommended a PublicPrivate Partnership (PPP) model for BharatNet, the central governments ambitious
project to set up a broadband network in rural India, and has also envisaged central
and state governments to become the main clients in this project.

The Ministry of Skill Development and Entrepreneurship (MSDE) signed a


Memorandum of Understanding (MoU) with Department of Telecommunication
(DoT) to develop and implement National Action Plan for Skill Development in
Telecom Sector, with an objective of fulfilling skilled manpower requirement and
providing employment and entrepreneurship opportunities in the sector.

The Telecom Regulatory Authority of India (TRAI) has directed the telecom
companies or mobile operators to compensate the consumers in the event of dropped
calls with a view to reduce the increasing number of dropped calls.

6. Policy initiatives of telecom industry in India.


The government has taken many initiatives to facilitate the rapid growth of the Indian
telecom industry. In the area of telecom equipment manufacturing and provision of
IT-enabled services, 100 per cent FDI is permitted According to the Consolidated
Foreign Direct Investment (FDI) Policy document, the FDI limit in telecom services
is 74 per cent subject to the following conditions: This is applicable in case of Basic,
Cellular, Unified Access Services, National/ International Long Distance, V-Sat,
Public Mobile Radio Trunked Services (PMRTS), Global Mobile Personal
Communications Services (GMPCS) and other value added Services. FDI up to 49
per cent is on the automatic route and beyond that on the government route. FDI in
the licensee company/Indian promoters/investment companies including their holding
companies shall require approval of the Foreign Investment Promotion Board (FIPB)
if it has a bearing on the overall ceiling of 74 per cent. While approving the
investment proposals, FIPB shall take note that investment is not coming from
countries of concern and/or unfriendly entities.

7. Implementation Issues.

The future of 4G in India is very bright because of its features and Indian
requirements. Despite that there are numerous factors that can play negative role in
the growth of 4G business in India. These are discussed as follows.
Almost everyone end up upgrading to 2G and 3G services. It was because of a
wireless system which is fearful. These upgrades were incremental which do not
require a complete reworking of the system, and thats why they are cheaper. The
required equipment is in mass production in other places around the globe and is
already developed. If we go by unconfirmed reports from sources, 4G Players are also
likely to adopt cheaper equipment route to get into every household, but in case
adopting a new equipment/handset becomes mandatory for accessing 4G services, it
would certainly become a bottleneck in Growth of 4G Services in india.

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Unlike 2G and 3G where spectrum bands are fairly uniform across various countries
resulting into mass production of handsets bringing down the handset prices, 4G is
offered in different frequency bands in different countries. Around 1/3 rd of
subscribers of 4G today, majorly in the US, served by Verizon and AT&T, are on 700
MHz band whereas Europe uses 2.6 GHz band. Japan & China are using 2.5 GHz and
2.1 GHz respectively. In India, every private company has received 4G spectrum in
2.3 GHz whereas BSNL and MTNL have it in 2.5 GHz. This puts limitations on
interoperability of 4G devices across regions with different spectrum bands. This also
leads to fragmented production of the devices (handsets, USB modems, tablets etc)
leading to higher costs, at least at the beginning, until the OEMs come out with
devices compatible with more 4G frequencies.
4G, unlike 3G, does not offer Voice-based services through mobile networks but as
Voice-over-InternetProtocol (VoIP). The main difference between normal telephony
and internet telephony is that in normal telephony, circuit switching technology is
used, whereas Internet Telephony is based on packet switching technology. In the
developed markets like US and Sweden where 4G has been rolled out, it is offered as
a data only package, integrated with 3G packages for voice. A user who is logged on
to a 4G network will be seamlessly transferred to a 3G network the moment he
receives a voice call.
Voice-over- LTE (VoLTE) is a new form of VoIP and is under trial phase in some of
the countries. In India, not all the 4G service providers have the option to provide
seamless 4G, 3G and 2G service offering both data and voice services on the same
handset as only Bharti, Aircel, BSNL and MTNL among 4G licensees have 2G/3G
licenses. This can be a possibility in future if government accepts TRAIs
recommendation to make the spectrum technology neutral allowing the operator to
provide 2G, 3G or 4G services using the same spectrum.
As there is a lack of clarity whether VoIP will be mellowed fully in India, currently
4G services are limited only for data related usage.
One of the biggest barrier to the growth of this sector is prevailing system of
portability and file clearing process which is lengthy that if one has adopted, it will
lead to the loss of money and time.

8. Expected future trends.


The telecommunication growth has gone through multiple generations in a short span
of a few decades. With more subscribers using faster access technologies, data
consumption has consequently grown faster. By 2020, data technologies (3G and 4G)
are expected to be equally dominant. India is currently gearing up for the 4G
revolution with 4G services currently available only in selected cities in India. Speedy
adoption of the 4G technology is expected to be critical for the success for the Indian
governments Digital India initiative. Below chart provides most probable scenarios
for the projected connections on various mobile technologies viz. 2G, 3G & 4G.

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9. Future Opportunities.
According to a recent survey conducted by Vuclip, about 62% of Indian respondents
prefer to view movies or TV serials instead of short movie clips on their phones. At
79%, this preference for long form content is extremely high among the age group of
18 years and under. Additionally, 89% of all respondents say they would watch their
favorite movie on their mobile phones if it was made available. If divided further by
gender, 90% of male respondents and 84% of female respondents from India say that
they would view their favorite film via mobile.

With 4G, consumption of online videos is likely to grow. Moreover, streaming


of HD videos is going to put a huge stress on the LTE network for which
Telcos need to be prepared.

Ericsson India in its outlook for India's broadband segment points out that
every app has its own requirements depending on the network performance.
Operators can customize or prioritize the consumers experience for certain
apps.

Through techniques such as deep packet inspection and policy control, the
network is able to identify which app is demanding more data throughput.
Coupled with data plans that are ideal for certain apps say for instance you
care more about video streaming than IM apps the network could in theory,
customize the experience for you. In other words App Coverage aims at
delivering sufficient performance to run an application at acceptable quality.

10. Conclusions
In conclusion, it is evident that 4G technologies will expand on web-based

communications around the world. 4G technology will allow for improved


applications such as telemedicine that may save lives. It is a fully IP-based network
and will improve data transfer dramatically. Signal disruptions will be minimal and
downloads will be done in a matter of seconds, faster than ever before. In the near
future, a 5G cell phone will be created along with a 5G network based on 4G
technologies allowing for the world to connect limitlessly.
The 4G LTE technology is nothing less than ground breaking. The advancements that
have been made from 3G to 4G LTE alone are mind blowing. With the data
processing speed being increased to at least 100 Mbit/sec the possibilities are limitless
in the wireless communication world. Everything with this new technology has been
brought to a new standard. The security, with the complete IP-based solutions allows
the user to use the full capability of the phone as well as feel completely secure at the
same time, this is one of the most vital aspects that has been upgraded from the
previous wireless communication technologies. Even though the hardware and
coverage areas arent up to par yet though, isnt that big of a setback. The technology
is still considered brand new and will only be improved in the coming years. As I said
previously, this technology is truly ground breaking and makes the average person
really think about what is possible with wireless communication? If there ever is a 5G
network, how powerful will it be and what will it possibly be able to do that the 4G
doesnt already do?
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