Term Paper

On

“Telecommunication Industries Performance &

Comparison among Countries”

Submitted To

Assoc. Prof. Dr. Md. Shahidul Islam (Zahid)

Adjunct Faculty
Bangladesh University of Professionals.

Submitted By

Group-3
Ataul Mumin Ev-18018054
Md. Rifat Hasan Alam Anjan Ev-18018056
Saffat Binte Hasan Ev-18018058
Afifatun Jannah Ev-18018064
Ishrat Jahan Moury Ev-18018066
Dil Roushan Ev-18018086

Date of Submission: 10th April, 2020

Telecommunication Industries performance
&
Comparison among countries
 LETTER OF TRANSMITTAL

11th April 2020

To
Assoc. Prof. Dr. Md. Shahidul Islam (Zahid)
Department of Finance
Bangladesh University of Professional (BUP)

Subject: Submission of paper on “Telecommunication Industries performance &

Comparison among countries”

Dear Sir,

We are very pleased to submit you our paper on “Telecommunication Industries

performance & Comparison among countries”. It has been a great pleasure for us to have
the opportunity to work on the paper. We would like to express our sincere gratitude to you for
your kind guidance & suggestions for preparing this paper and also we would like to request
you to accept our paper for further assessment as a part of this course.

We tried our level best to put careful effort for the preparation of this paper. For any
unintentional inadequacy in the report, your sympathetic consideration would be highly
appreciated. We truly appreciate your patience and support.

Sincerely Yours

Ataul Mumin Ev-18018054

Md. Rifat Hasan Alam Anjan Ev-18018056
Saffat Binte Hasan Ev-18018058
Afifatun Jannah Ev-18018064
Ishrat Jahan Moury Ev-18018066
Dil Roushan Ev-18018086

i
 ACKNOWLEDGEMENT

At first, we want to convey our deepest gratitude to the Almighty Allah, the beneficial, the
most merciful for granting us to bring this work into light.

We would like to express our sincere respect and gratitude to our course teacher Assoc Prof.
Dr. Md. Shahidul Islam (Zahid), for his thoughtful suggestions, constant guidance and
encouragement throughout the Semester and dissertation work. Without his co-operation and
support we would not have been able to complete this paper well in time. His guidance and
invaluable feedback also directed us to explore the topic in depth and enhanced our knowledge
in this domain.

We would like to give thanks to our as all the family members and friends for their
unconditional support and encouragement throughout their study period.

ii
 ABSTRACT

The Telecommunications industry today is a key enabler of productivity across economies and
societies. The Telecom industry is not only a significant contributor towards the economic
activities of countries, but also towards the growth of other industries. In recent times,
developing nations have witnessed significant transformation within this sector due to the
impact it has had on their economies. The booming and emerging economies of countries have
been impacted the most by the rapid growth of the Telecom industry in the past decade. The
aim of this paper is to research the most Telecommunication Industries performance &
Comparison among countries. In this report, data gathered from questionnaires, interviews,
literature reviews and analysts’ reports are used to compare and discuss the contribution of
Telecom industry, its growth, performance and comparison among countries. Factors such as
“Number of Subscribers”, “Technology Innovation” and “Government Regulation and
Polices” were found to be the most influential and contributing factors towards the growth of
the Telecom industry. Analysis based on historical statistics revealed that, there is no direct
impact on the industrial revenue from the “number of Subscribers” factor, unlike the
“Technology Innovation” factor. In recent years, there has been a fierce competition in the
telecommunication sector. Technologic competition has made the competition in the sector a
kind of strategic war. The sector of which role increased in terms of economic developments
has entered a reconstruction process at an equal rate in all countries. In fact, countries which
apprehend the future of the sector will also determine the future of economy. In this respect the
aim of this study is to make performance benchmarking by using Data Envelopment Analysis.

KEY WORDS

India, China, Bangladesh, Asia, America, Europe Telecommunications, Telecom Industry,

Competitiveness, Telecom revenues, Telecom Subscribers, Telecom Industry Policies and
Regulations Telecommunication sector; global economic crisis; efficiency; total factor
productivity.

iii
 TABLE OF CONTENT

Chapter Serial Sub Serial Title Page

no
LETTER OF TRANSMITTAL i
ACKNOWLEDGEMENT ii
ABSTRACT iii
KEYWORDS iii
TABLE OF CONTENTS iv-
LIST OF TABLE ix
LIST OF FIGURES x
Executive Summery
1 INTRODUCTION 1-4
1.1 Background of the Study 3

1.2 Objectives of the Study 3

1.2.2 Specific Objectives 3
1.2.1 Overall Objective 3
1.3 Scope of the Study 4
1.5 Limitation of the Study 4
1.4 Significance of the Study 4
2 TELECOM INDUSTRY AT A GLANCE 5-11
2.1 Regulators of the Telecom Industry 7
2.1.1 Dot (Department of Telecommunications) 7
2.1.2 TRAI (Telecommunications Regulatory 7
Authority of India)
2.2 Role of Telecommunication Services in 8
National Growth
2.3 Growth of the Telecom Industry 8
2.4 Factors Affecting the Growth of the 10
Telecom Industry

2.4.1 Performance of Operators 11

2.4.2 Market Liberalization 11

iv
 2.4.3. Policy and Regulation Issues 11
3 METHODOLOGY OF THE STUDY

3.1 Data Collection 12

3.1.1 Primary Data Source 12
3.2 Data Analysis 12
3.2.1 Data Analysis Method 12
3.1.2 Secondary Data Source 12
4 ANALYSIS OF THE STUDY 13-

4.1 Global Telecommunication Market 13

4.1.1 Overview 13
4.1.2 Drivers and Restraints 13
4.1.3 Regional Outlook 15

4.1.4 Factors affects in global 16

telecommunication
4.2 Competition between mobile standards 17

4.3 Key Telecommunications Industry 18

Segments
4.4 Big Players in Telecommunications 20

4.4.1 Verizon (VZ) 20

4.4.2 China Mobile Ltd (CHL) 20
4.4.3 AT&T (T), 21
4.4.4 Vodafone Group (VOD) 22
4.4.5 Japan's Softbank Corp, 22
4.5 Smaller Players in 23

Telecommunications
4.5.1 Alaska Communications Systems 23
Group (ALSK)
4.5.2 Cincinnati Bell (CBB) 23
4.5. 3 Frontier Communications (FTR 23
4.5.4 Vonage (VG) 23
4.6 Indian Telecom Industry 24

4.6.1 Overview 24

v
 4.6.2 The contribution of telecommunications to 25
the growth performance of India’s
economy

4.7 Chinese Telecom Industry 26

LIST OF TABLE

Table No. Title Page

Table 2.2: share and growth of service 8
sector

Table 2.3 Profit of top Global 9

telecom companies in 2019

Table 4.2: 18
Cost of mobile calls
compared to countries

Table 4.7 Growth of China's

telecommunications
industry, 2000-2019

LIST OF FIGURES

Table No. Title Page

Figure 1.0 Telecommunication Industry 2
Figure: 2.0 Telecom sector 5

Figure 2.0 Growth of Telecom subscribers 6

Figure 2.3 profit among telecom 10
industries.

Figure 2.4 Factors affect in growth 10

Picture 4.1.2 smart sensors 14

vi
Chart 4.1.3 Rate of progressing in telecom 15
industries of different region
(Billion)

Figure 4.1.4: Factors affecting in global 16

telecom industry
Figure 4.3 Wireless communications 19

Figure 4.4.1 Verizon (VZ) 20

Figure 4.4.3 comparison between AT&T & 21
Verizon growth
Figure 4.4.3: Future forecast of AT&T (T) 21
Figure 4.4.4 Vodafone Twitter Fan growth 22

Figure4.4.5 Softbank groups performance 22

at a glance

Figure 4.6.1 Indian 3 Companies share 24

Figure 4.6.1 rate of India’s Subscribers 25

Chart 4.6.2: Distribution of total ICT spending 25
in India

vii
 EXECUTIVE SUMMARY

This term paper is prepared over the telecommunication Industry. In this term paper we
discuss about all the companies that are currently running their business in market.
Anyone can easily get the idea about all the companies as well as the current market
situation in telecommunication sector. In this term paper we mainly focus on each of
the company’s product and promotional activities, their operations and also about the
services to customers. By studying this term paper anyone have the clear idea about
different product of different companies that are currently available in this market. The
Telecoms sector in Bangladesh has seen growth in mobile penetration that has exceeded
all expectations with over 65.1 million subscribers as of September 2018 versus only 4
million in 2004. We believe that with a supportive regulatory environment, crossing
100 million subscribers by 2019 is achievable. The rapid growth in mobile telephony
has undoubtedly had a transformative impact on the economy in terms of aggregate
investment, FDI and productivity levels. There have also been substantial benefits from
greater connectivity in terms of social cohesion and poverty alleviation. However the
industry also faces a number of uncertainties, including upcoming Telecom license
renewals and the prospective auction/issuance of 3G licenses where the cost of the
licenses and tax requirements are still unclear. A further key challenge is the slowdown
in revenue growth, as subscriber growth is netted out by falling voice tariff and the
lower spending patterns of new users. A potential constraint on the next phase of
growing subscribers further is the high level of taxation on the sector. The recent
amendments to the Telecoms Act might also increase the risks of arbitrary regulatory
interventions. Greater internet penetration is of particular relevance to Bangladesh
given the priority given to "Digital Bangladesh" by the Government. This initiative
offers a number of potential revenue enhancing opportunities to Telco operators. Fixed
line penetration continues to be low and so the opportunity lies with mobile, for voice
and for data. Most people's first experience of the internet will be mobile. With India's
3G and service delivery under roll out process, we believe there are a number of
valuable lessons for the prospective evolution of 3G markets in Bangladesh. 3G
networks are expected to significantly enhance user experience of existing data services,

viii
with the introduction of video and other high bandwidth services by carriers; to help 3G
really gain adoption among consumers, development of a mobile VAS ecosystem is
critical. One of the key areas where operators, equipment vendors and value added
service providers in the industry are focused is the rising importance of convergence
and its impact on consumer spending patterns. In this report, we provide both an outline
of the sector including the major players, data, VAS, regulatory issues and future
opportunities. We hope it is a useful tool for current and future prospective investors.

ix
 CHAPTER 1

INTRODUCTION

1.0 Introduction

Telecommunication industry is considered to be the most competitive industry in worldwide.

The industry has reached to almost of its mature stage. And the companies in the field are
facing a tough fight while expanding. In the telecommunication sector which is one of the
most important indicators of economic development, many significant developments have
been seen in recent years. Countries compete with each other by strengthening their
telecommunication qualities. International performance evaluation has been significant for
managements in the telecommunication sector that has been affecting the economy of
countries directly because of the rapid increasing competition nowadays. The main
purpose of this study is to compare the Telecommunication industry among countries. The
basic reason behind the use of telecommunication is countries as a decision unit is that
telecommunication is one of the most important sings of the development of countries. The
purpose of this study is to confirm whether the privatization of a state-owned
telecommunications carrier would, in all cases, be beneficial to the economic welfare to the
country covered and whether such deregulation would lead to improvement in developed as
well as in developing countries. Specifically, regardless of what stage economic
development has reached, our concern is whether or not privatization will inevitably
achieve quality results. Gains and/or losses from privatization may differ from country to
country, depending on such factors as the degree of industrialization, penetration, and per
capita GDP. Telecommunications carriers operate essential facilities as key infrastructures
for the utilization of information and communication technology (ICT). And as many
empirical studies show, ICT has been defined as one of the crucial factors for generating
economic growth of many countries after the 1990s and as such the telecommunications
industry has recently been recognized as playing a more significant role in the economic
development of both developed and developing countries 1 . Importantly, as the Asia-
Pacific region is made up of many developing countries, it is expected that the
telecommunications industry will provide a springboard in the pursuit of further economic
development. Telecommunications markets worldwide are undergoing fundamental and
rapid changes, brought about both by technological developments and by competition-
oriented reform policies. The shift toward a multi-operator sector with liberalization and the

1
dismantling of the old monopolistic structures; the transformation of the sector from one
dominated by basic voice telephony to one where product differentiation is the key to
survival; and the convergence that is emerging between telecommunications, broadcasting,
cable television, and the Internet as well as within segments of the telecommunications
market, all indicate the complex and dynamic nature of the industry. More importantly, the
forces of change have recast the role of regulation, blurring conventional regulatory
definitions and boundaries and making the job of balancing the political economy
objectives of regulation much more complex.

Figure 1.0: Telecommunication Industry

2
1.1.Background of the Study
The telecom industry is an interesting industry to study, not only due to its volatile nature in
terms of technological breakthrough and its policies, but also due to the high growth rate of
this industry over the past few decades and the significant contribution of the industry to the
economies of these nations. This paper compares the key factors contributing to the telecom
industry’s revenue for the different countries. The uniqueness of this paper lies in the fact that
the influential factors’ analysis is based on a time series statistics of data collected about the
telecom industry’s performance within the countries over the past years. Reason being
choosing the telecom industry and nations because of the researchers’ we want to find out
comparison among all telecommunication industries performance. In addition, there are
various standards existing in this industry and not all are shared among countries such as the
government policies and regulations related to this industry, which are vital to its growth and
expansion.

1.2 Objectives of the Study

1.2.1. Overall Objective

The overall objective of this study is to establish the comparison of their performance of the
telecom industry and its identical factors among countries, which attempts to supplement the
majority of the previous studies that fulfilling economic needs rather than academic desire.

1.2.2. Specific Objectives

The specific research objectives of this paper are as mentioned below:

 To gather information about the present state of the telecommunication companies

among countries.
 To identify the most influencing factors of competitiveness in countries of telecom
Industries.
 To analyze the correlation between the selected factors and their contribution to the
telecom industry revenue in countries.
 To suggest ways to improve these influencing factors to the benefit of future
researchers and practitioners, in the telecom industry of both the countries

 To have a clear understanding about the importance of marketing strategies

management in the success of an organization.

3
  To learn about different marketing mix used by Telecommunication to sustain in the
competitive market.

1.3 Scope of the Study

The scope of the study is limited to the issues related to the Telecommunication industries
among different countries. The report will focus only on the Telecommunication facility
providers of the country through different networks.

1.4 Significance of the Study

This study will elucidate knowledge about the competitiveness and performance of telecom
industries in different countries. On one hand, this knowledge will help in realizing the
prevailing business environment in this sector in countries, while on the other hand; the study
findings will serve as lessons to be shared by other developing countries in shaping their
telecom industries. Therefore, the findings of this paper will be useful for researchers,
academicians and practitioners.

1.5 Limitation of the Study

 Time Constraints: During the data collection procedure pressure was created for the
limitation in time. Due to unavailability of sufficient time, the interviewee could not
spare time so as when to be interviewed.

 Amateur: Due to lack of practical experience, some errors might have occurred in the
proper implementation of this report, so maximum effort is expended to reduce errors.

 Work Load: The burden of other courses during the preparation of this report might
have deprived the full concentration that the report actually required.

 A macroscopic analysis (aggregate analysis) has been made here for the unavailability
of appropriate data in some cases.

4
 CHAPTER 2

TELECOM INDUSTRY AT A GLANCE

2.0 About Telecom Sector

Traditional telephone calls continue to be the industry's biggest revenue generator, but thanks
to advances in network technology, Telecom today is less about voice and increasingly about
text (messaging, email) and images (e.g. video streaming). High-speed internet access for
computer-based data applications such as broadband information services and interactive
entertainment is pervasive. Digital subscriber line (DSL) is the main broadband telecom
technology. The fastest growth comes from (value-added) services delivered over mobile
networks. In recent years, there have been crucial developments in the electronic
communication sector which is one of the most important impetuses for economic growth.
Significant differences have been observed between countries and regions in the electronic
communication sector in which parameters such as (GNP) Gross National Product, education,
qualified manpower, foreign trade volume, incentives, and national strategies play effective
role. The telecom services have been recognized the world-over as an important tool for
socio- economic development for a nation. It is one of the prime support services needed for
rapid growth and modernization of various sectors of the economy.

Figure: 2.0 Telecom sector

The Indian Telecommunications network with 621 million connections is the third largest in
the world. The sector is growing at a speed of 45% during the recent years. This rapid growth
is possible due to various proactive and positive decisions of the Government and
contribution of both by the public and the private sectors. The rapid strides in the telecom
sector have been facilitated by liberal policies of the Government that provides easy market

5
access for telecom equipment and a fair regulatory framework for offering telecom services
to the Indian consumers at affordable prices. Presently, all the telecom services have been
opened for private participation. The Government has taken following main initiatives for the
growth of the Telecom Sector: Liberalization The process of liberalization in the country
began in the right earnest with the announcement of the New Economic Policy. Telecom
equipment manufacturing was value added services were declared open to the private sector,
following which radio paging, cellular mobile and other value added services were opened
gradually to the private sector. This has resulted in large number of manufacturing units been
set up in the country. As a result most of the equipment used in telecom area is being
manufactured within the country. A major breakthrough was the clear enunciation of the
government’s intention of liberalizing the telecom sector in the National Telecom Policy
resolution. China is now the world’s largest telecom market and according to analysts’
figures, there are more than 1.25 million cellular subscribers signing up every week.
Meanwhile, India has become the most competitive and one of the fastest growing telecom
markets with an expected growth rate of over 26% and generated employment opportunities
for about 10 million people.

Mobile phone users

internet users

telephone lines

Broadband subscriptions

2013 2014 2015 2016 2017 2018

Figure 2.0 – Growth of Telecom subscribers

The number of subscribers was added at a rapid pace as shown in Figure 1, which adds to the
growth and importance of the telecom industry. Though it has made the telecom one of the

6
most lucrative sectors today, it has also had a negative effect on the other hand. For instance,
India recently witnessed a scandal in the telecom ministry that has changed the nature and
environment of foreign investment flowing into the country. The telecommunications
industry within the sector of information and communication technology is made up of all
Telecommunications telephone companies and internet service providers and plays the
crucial role in the evolution of mobile communications and the information society.

2.1 Regulators of the Telecom Industry

2.1.1 Dot (Department of Telecommunications)

The Department of Telecommunications is part of the Ministry of Communications and

Information Technology in the executive branch. Telecom services have been recognized the
world- over as an important tool for socio-economic development for a nation and hence
telecom infrastructure is treated as a crucial factor to realize the socio-economic objectives.
Accordingly, the Department of Telecom has been formulating development policies for the
accelerated growth of the telecommunication services. The Department is also responsible for
grant of licenses for various telecom services like Unified Access Service Internet and VSAT
service. The Department is also responsible for frequency management in the field of radio
communication in close coordination with the international bodies. It also enforces wireless
regulatory measures by monitoring wireless transmission of all users in the country.

2.1.2 TRAI (Telecommunications Regulatory Authority of India)

The Telecommunications Regulatory Authority of India or TRAI (established 1997) is the

independent regulator established by the Government of India to regulate the
telecommunications business in India. The mission of Telecom Regulatory Authority of India
(TRAI) is to ensure that the interests of consumers are protected and the same time to nurture
conditions for the growth of telecommunications, broadcasting and cable services in a
manner and at a pace which will enable India to play a leading role in the emerging global
information society. They also check that telecom regulators work according to the rules and
regulations and maintain favorable competition in the market.

7
2.2 Role of Telecommunication Services in National Growth

Proportion Of telecommunication Services is Increasing at Faster Rate, as it is Evident from

the Following Table.

Share % growth
Construction 5.4 7.3
Hotel 1.1 4.0
Railways 1.1 5.7
Telecommunication 3.5 22.0
Banking & Insurance 6.9 11.6
Trade 14.0 4.5
Transport 4.3 6.0
Table 2.2: share and growth of service sector

From above table it is clear that growth rate (22%) of telecommunication services in GDP is
highest and proportion and importance of telecommunication services is continuously
increasing. It is considered as growth engine for overall economic growth.

2.3 Growth of the Telecom Industry

Telecommunication basically is the transmission of signals over a distance for the purpose of
communication, though the technology involved in communicating has changed significantly
over the years. Like telecommunications itself, the telecommunications industry is broader
than it was in the past. Telecommunication has a significant social, cultural and economic
impact on the modern society. In 2018, estimates placed the telecommunication industry's
revenue at $3.85 trillion or just under 3 percent of the gross world product. The telecom
industry is one of the world’s fastest growing industries regardless of what the indicators
being measured. As a result of being a high profit generator, the telecommunications industry
has historically been an agent of the government and owned by the state in the countries. On
one hand, it has taken the form of privatization of the state owned telecommunications; and
on the other hand, it has opened up the domestic market to provide licenses to new entities for
bringing in competition to the existing monopoly operators.

8
 Top global telecom companies in 2019

Company Country Market value ($ Bn) Revenue Profit

China Mobile China 213.8 88.8 20.5

AT&T USA 200.1 127.3 7.3

Verizon Communications USA 137.3 115.7 0.9

Vodafone UK 135.7 74.4 11.1

América Móvil Mexico 70.7 60.2 7.1

Telefónica Spain 67.1 82.3 5.2

Telstra Australia 58.4 25.8 3.5

Nippon Telegraph & Tel Japan 58.2 127 5.6

Deutsche Telekom Germany 48.8 76.7 7

Softbank Japan 47.2 38.78 3.8

Table 2.3 Profit of top Global telecom companies in 2019

9
 Profit
25

20

15

10

0
Verizon Nippon
China América Deutsche China
Communi AT&T Inc. Vodafone Telegraph Softbank Telefónica
Mobile Móvil Telekom Telecom
cations & Tel
Series 1 20.5 7.3 0.9 11.1 7.1 5.2 3.5 5.6 7 3.8

Figure 2.3 profit among telecom industries.

2.4 Factors Affecting the Growth of the Telecom Industry

Their Current State Innovation was the key factor for the revenues of the telecom industry in
the western countries. Today, however,

New
wireless
applications

Low-cost
manufacturing Innovative
innovations handset
design

Figure 2.4: Factors affect in growth

10
Above criteria’s are some of the areas in which the Asian countries are out-investing the
United States and are seen resulting bottom-line impacts to their economies. In emerging
markets, factors such as customer service, regulations and policies are some of the main
factors that are shaping the industry.

2.4.1 Performance of Operators

This methodology used to benchmark the performances of service providers in order to create
a loyal customer base as well as to retain it, and they claim customer service is one of the
factors that influences the revenue growth of the telecom industry. An Analysis of Factors
Influencing the Telecommunication Industry Growth.

2.4.2 Market Liberalization

Demonstrate the effects of market liberalization and privatization on Chinese

Telecommunications, from which, they give an insight into the current state of the Chinese
Telecom industry. India has also taken the privatization path in the telecommunications
sector and the market is now mainly dominated by private companies with two state-run
operators only.

2.4.3. Policy and Regulation Issues

The telecommunications policy in countries like the United States of America is a framework
of law directed by government and the regulatory commissions, most notably the Federal
Communications Commission (FCC). One of the goals of the FCC is to best utilize this
limited resource, in such a way, it brings the "highest and best use". The Government of India
aims to develop the nation as a global telecommunication hub and provides regulatory
support to the industry to achieve the goal and to propose ‘infrastructure’ status to telecom.
China’s successful reform on the other hand, is now often called another East Asian miracles,
has been attributed to policy changes to take advantage of comparative advantages in labor-
intensive goods.

11
 CHAPTER 3

METHODOLOGY OF THE STUDY

Every research is completed after applying few methods to fulfill the objectives of the
research. Following two methods completes this research work:

3.1 Data Collection

These are described below. Data Collection: This research is done by using both primary and
secondary data.

3.1.1 Primary Data Source

Primary data have been collected through interviewing telecom employees and clients of
telecom services with relevant questions to know the services of telecom industries. Here
both the telecom customers and the employees are interviewed. Among the telecom
industries that provide services, some telecom industries have been taken as sample of the
research. On the other hand, using convenient sampling method sixty customers are selected
from those customers who get telecom service directly or indirectly from the selected
industries.

3.1.2 Secondary Data Source

Data from secondary sources have also been collected to complete the research. Different
journals, books, internet and reports of the telecom industries have been used as the important
sources of secondary data.

3.2 Data Analysis

3.2.1 Data Analysis Method

This research is almost descriptive one as this concept is very new in Bangladesh and still
there is no work available about this. However, different methods have been used for the
analysis of collected data such as percentages, charts, graphs etc. There is an effort always to
get the picture of telecom industries from the viewpoint of employees and customers.

To achieve the specific objective of some hypotheses have been developed:

There is no relation between problem facing during telecom use and satisfaction of
the customers.
There is relation between problem facing during telecom use and satisfaction of the
customers.
There is no relation between adding of new services in telecom industries and
satisfaction of the customers.
There is no relation between quality of telecom industries and satisfaction of the
customers.

12
 CHAPTER 4

ANALYSIS OF THE STUDY

4.1 Global Telecommunication Market

The global telecommunications market is continually transforming on account of the ongoing

innovations and developments taking place consistently and at a fast pace. 5G trials and its
deployment in the market will be a key focus in the years to come. Carriers are expected to
strive for improving their network and offering expanded services to their customers by
network densification and making use of small cells. Installing more fiber infrastructure and
enhancing spectrum efficiency will also be the target for carriers.

4.1.1 Overview

As everyday life appears to be increasingly dependent on the use of telecom products and
services, the global market for telecommunication is slated to grow at a phenomenal rate over
the coming years. Some prominent segments of telecommunication industry are long-distance
carriers, wireless communication, domestic telecom services, communications equipment,
processing systems and products, and foreign telecom services.

4.1.2 Drivers and Restraints

Various telecommunication products and services, increased popularity of the Internet of

Things (IoT), and substantial technological advances are some of the major reasons for the
growth of the global telecommunication market. Smart devices such as

Smart watches Smartphones & tablets Smart meters

13
smart buildings, and smart monitoring devices are being increasingly deployed across the
globe. The smart cities projects worldwide are one instance where smart devices such as
smart sensors and meters are used.

Picture 4.1.2 smart sensors

The growing popularity of IoT that has enabled machine-to-machine communication,

connecting innumerable smart devices such as air conditioners, refrigerators, music systems,
food processors, and the like. All this has stoked the demand in the telecommunication
market. Factors such as cloud computing, increased coverage of satellites, and the
development of 4G and 3G cellular networks are some other prominent growth drivers of the
market for telecommunication products and services, worldwide.

On the other hand, stringent government policies can pose a roadblock to the market’s
growth. However, the increasing deployment of intelligent transportation systems (ITS) is
likely to fuel the demand for these services, nullifying the negative effects of these restraints.

The telecommunication market can be broadly segmented into internet service providers
(ISP), telephones, satellites, and cable communication. On the basis of usage, entertainment,
point-to-point communication, infotainment, news, internet-enabled services, and critical
communication are the major categories.

14
4.1.3 Regional Outlook

Based on geography, the global telecommunication industry can be segmented into Asia
Pacific, North America, Europe, and Rest of the World. The wireless and broadband markets
in North America are showing healthy growth and are poised for further expansion.

The massive population base of Asian countries such as China and India is one of the key
factors responsible for the growth of the telecommunication market in Asia Pacific. China,
being one of the largest mobile operators in the world, is likely to represent a significant
portion of the market shares. Another important reason for China’s growth is its flourishing
international trade. Japan is expected to become a prominent regional market as foreign
investments build up.

From the past two decades or so, the telecommunication market in India has been progressing
by leaps and bounds, thanks to government policies that are focusing on widespread
penetration of telecom services in every nook and corner of the nation. The monumental
growth in the number of smartphone owners and internet users are some of the other
prominent drivers propelling the growth of the telecommunication market in this country.
Besides the aforementioned emerging economies, the countries in Latin America such as
Brazil, Mexico, and Argentina too are slated to present significant opportunities as the degree
of penetration of high speed broadband services, 4G services, and the usage of smartphones
increases.

110

78

60
50 49
42 45
41
36 37
27
19 22
16 14 16 17
11 8 5

Fixed Telephone Line Mobile Subscriber Internet Users Broadband Subscriber

Europe Oceania America Asia World

Chart 4.1.3 Rate of progressing in telecom industries of different region (Billion)

15
4.1.4 Factors affects in global telecommunication

There are various factors fueling the growth of the global telecommunication market
including,

Advanced
technology

Intense market
competition

Warless
High investments in
new
telecommunication
Satellite

Figure 4.1.4: Factors affecting in global telecom industry

Some of the other factors behind the growth of the market worldwide include: affordability of
services, innovative services such as e-agriculture and e-education, and demand for high
speed internet. On the other hand, the high cost of value added services may restrict the
growth of the market. In addition to this, maintaining security will also pose a challenge.

Services provided by key players in the telecommunication market include providing storage
area networks, storage products, storage networking services, entry level servers, enterprise
networking services, 3G services, calling cards, broadband networks, and application
networking services. The growing number of internet users worldwide has been increasing
exponentially by the day and thus, within the telecommunications market, the market for
internet-based services is currently thriving and is at its peak.

16
4.2 Competition between mobile standards

One of the more direct effects of this competition is lower prices. Before the deregulation of
the telecom services industry and indeed the entry of mobile service providers, the telecom
consumers were periodically subjected in increases in the tariff. This has now been
effectively checked. Although it is not easy talk about the price of telecom services, basically
it follows a two part tariff both in the case of fixed and mobile services, first an activation
charge followed by a charge for each type of calls. For mobile communication consumers
then there is the additional cost of calls according to whether it is post or prepaid. I have
obtained the minimum effective charge derived out of an outgoing usage of 250 minutes per
month per quarter during 2018 through 2019. This is plotted for both fixed and mobile
services as well. Although charges for both the calls have come down, a higher reduction is
noticed in the case of mobile services. In fact, India now has one of the cheapest mobile
tariffs in the world and this can give an additional fillip to the growth of the Information and
Communications Technology (ICT) industry in the country. If one were to plot the price of
telecom services and the number of subscribers, one can see an inverse relationship in the
case of mobile services although in the case of fixed services such an inverse relationship is
not visible. This is because of the relative advantages which mobile technology can bestow
on its user.The two state-owned service providers; BSNL and MTNL have launched "One
India Plan" with effect. Under this a three minute local call and a one minute national long
distance call (referred to as STD calls) will cost only Re. 1. The "One India" plan, also, for
the first time, takes away the distinction between the fixed line tariff and the cellular tariff
and thus, makes the tariff "technology independent". A similar plan has also been introduced
for the customers of post-paid and pre-paid mobile services of BSNL and MTNL.

17
Country Call charges Minutes of usage Average Termination rates
per minute per subscriber Revenue per minute Mobile
(US $) per month Per User (US (US $)
$)
Australia 0.24 159 43 0.152(.016)**
Brazil 0.11 92 11 0.080(0.020)
China 0.04 261 10 0.025(0.010)
Switzerland 0.45 119 59 0.163(0.017)
Japan 0.33 156 63 0.130(0.022)
India 0.03* 309 11 0.007(0.007)

Table 4.2: Cost of mobile calls compared to countries

4.3 Key Telecommunications Industry Segments

The telecommunications sector consists of three basic sub-sectors: telecom equipment (the
largest), telecom services (next largest) and wireless communication.

The major segments within these sub-sectors include the following:

Wireless communications

Communications equipment

Processing systems and products

Long-distance carriers

Domestic telecom services

Foreign telecom services

Diversified communication services

18
The smallest, but fastest-growing, area within the sector is wireless communications, as more
and more communications and computing methods shift to mobile devices and cloud-based
technology. This piece of the industry is the anticipated keystone for the continued global
expansion of the telecommunications sector. There is still ample room for growth, even in
developed countries: As of 2018, the Federal Communications Commission (FCC) reported
that approximately one-fifth of the rural American population still does not have access to
broadband networks.

Figure 4.3 Wireless communications

19
4.4 Big Players in Telecommunications

Current industry leaders worldwide can change from year to year. Determining which are the
largest depends on whether one looks in terms of total sales numbers or in terms of market
capitalization value as well. As of 2018, the top five telecom companies ranked by
market capitalization are as follows:

4.4.1 Verizon (VZ), which provides wireless and wire line services, in addition to broadband
and information services, has a current market capitalization value of approximately $200
billion. It remains attractive as a dividend provider because of its rock-solid financial
condition:

Figure 4.4.1 Verizon (VZ)

It is the largest telecom company in the U.S. and operates in 150 countries.

4.4.2 China Mobile Ltd (CHL), which has only been in business since 1997, has a market
cap value of approximately $185 billion due to the growth in the use of cell phones and
Internet services in China within the past 15 years.

20
4.4.3 AT&T (T), the oldest company in the telecommunications business, has a market
value estimated at approximately $182 billion. China Mobile has eclipsed AT&T in just a
little more than a decade of being in business. Still, the former Ma Bell has one-third of the
U.S. wireless market share and an impressive 30-year history of increasing dividends.

Figure 4.4.3: Future forecast of AT&T (T)

Over the next five years, the analysts that follow this company are expecting it to grow
earnings at an average annual rate of 4.48%. This year, analysts are forecasting earnings
increase of 1.83% over last year. Analysts expect earnings growth next year of 2.31% over
this year's forecasted earnings.

Figure 4.4.3 comparison between AT&T & Verizon growth

Mostly the iPhone, we think -- AT&T is still able to sign up millions of new subscribers and
thousands more than Verizon, despite its supposed inferiority (whether real or perceived).

21
4.4.4 Vodafone Group (VOD), the largest telecom company in the United Kingdom,
provides voice, broadband, and data services and equipment, and it has a market cap value of
approximately $97 billion.

Figure 4.4.4 Vodafone Twitter Fan growth

4.4.5 Japan's Softbank Corp, providing IT software as well as wireless and Internet
services, has a current market capitalization value just over $90 billion.

Figure4.4.5 Softbank groups performance at a glance

The rankings shift noticeably if you judge in terms of total sales revenue. While Verizon,
China Mobile, and AT&T all remain in the top five, Verizon drops to #2 behind Nippon
Telegraph & Telephone Corporation (NTT) of Japan, which is a major manufacturer of
telecommunications equipment in addition to providing extensive landline, cellphone and
Internet services. Spain's Telefonica (TEF) rounds out the top five rankings based on revenue.

22
4.5 Smaller Players in Telecommunications

Some telecom stocks are stuck in penny stock territory, trading at less than $5 a share for
numerous reasons. Current ones at that level that show promise include the following:

4.5.1 Alaska Communications Systems Group (ALSK). With its long distance to the
contiguous United States, Alaska makes infrastructure complicated. Alaska Communications
is the largest broadband provider in the state.

4.5.2 Cincinnati Bell (CBB) reports more than 220,000 residential voice lines, 307,000
business lines, and 281,000 Internet subscribers. Cincinnati Bell continues to increase
revenue and power its future with growth in fiber-optic communications (fioptics for short)
and IT services. This is helping to set up the company for long-term success and also helps
connect enterprise customers throughout Ohio.

4.5.3 Frontier Communications (FTR). Frontier offers telecommunications service to 28

states and has been around since 1927. It has more than 3.1 million residential customers and
nearly 300,000 business customers. Revenue is likely to rise soon as the company continues
to integrate large acquisitions from the likes of Verizon and AT&T. Frontier is betting big on
being the leader in wire line communications across the country and is also expanding its
broadband base in new territories to increase revenue.

4.5.4 Vonage (VG) connects customers with its cloud communications business. Both
consumers and businesses use the company’s technology to connect to mobile numbers and
landlines all over the world. The company has 98 patents and 245 pending applications, and
Vonage is continually working on monetizing them. Vonage is also aggressively buying back
shares of its own stock. The company has bought $148 million worth of its shares since 2012.
Vonage shares trade close to the border of penny stock range: between $4.17 and $7.42 over
the last 52 weeks.

23
4.6 Indian Telecom Industry

4.6.1 Overview

This was the phase of pre-reforms in Indian telecom sector, which plays a vital role in setting
the scene for growth post the 1991 reforms, and the Chinese telecom industry underwent a
similar phase before the markets were opened for reforms. This report tracks the changes in
terms of technological advancements, business dynamics and socioeconomic environment
over the years. It also identifies and evaluates the critical success factors that are applicable
across all telecom segments such as spectrum, USOF, licensing framework, FDI, security,
consumer affordability and the role of the regulator Though the state owned telecom
company Bharat Sanchar Nigam Limited (BSNL) remains as the pioneer in the telecom
market of India, private operators obtained a high market share (Arun, 2011), among which,
India's largest mobile operator Bharti leads the pack with over one-fifth of the telecom
market, followed by

18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Reliance Vodafone TATA Group

Figure 4.6.1 Indian 3 Companies share

An Analysis of Factors Influencing the Telecommunication Industry Growth. The latest

report released by Telecom Regulatory Authority of India indicated that India has 771.18
Million Mobile user’s 350 million fixed-line subscribers and nearly 180 million Internet
subscribers.

24
 771.18 350 180
Million million million
Figure 4.6.1 rate of India’s Subscribers

4.6.2 The contribution of telecommunications to the growth performance of India’s

economy

Communications is the fastest growing sector within India’s economy. The average
compound rate of growth of the sector works out to 24.02 per cent per annum since the turn
of this millennium. No other sector of the economy has clocked such a high rate of growth.
The sector accounts for about 4 per cent of GDP and therefore with this rather high rate of
growth contributes about 11 per cent of the growth in overall GDP of the country. Of the
Information and Communications Technology (ICT) sector of the economy, it is again the
communications sector that is more important. This is evident from a dataset on ICT
spending developed by World Information Technology and Services Alliance, of the total
spending on ICT by India, about 63 per cent was in communications.

Chart 4.6.2: Distribution of total ICT spending in India

25
4.7 Chinese Telecom Industry

During the past decade, as the largest developing country in the world, China has experienced
remarkable transformation and growth in its telecommunications industry. On the one hand,
after several rounds of reform, China's telecommunications market has become more and
more competitive, which benefits consumers with its lower prices and higher quality of
service. On the other hand, the number of telecommunications service subscribers has
drastically increased. The total number of fixed-line and mobile telephone subscribers rose
from 7 million in 1990 to 200 million in 2002, and the number of Internet users also soared
from 0.62 million in 1997 to 79.5 million in 2003.

Average annual growth

2000-2007 2007-2019
Telephone switching lines 6.0% 23.1%
Long distance calls 11.0 26.2
Revenue (RMB) 6.6 14.6
Investment (RMB) 6.8 40.5
Phone subscribers 6.6 18.4
Mobile phone subscribers – 205.0*
Pager subscribers –

Table 4.7 Growth of China's telecommunications industry, 2000-2019

4.8 Telecom Infrastructure in Bangladesh

The country’s march towards materializing its vision ‘Digital Bangladesh’ has brought
impressive growth in the telecommunication and information technology sector. The
country’s active mobile subscriber penetration reached to 93.4% from meager 30.6% in 2008.
Bangladesh is now the eighth largest mobile market in the world in terms of unique
subscribers and the sector now contributes almost 1.8% of total GDP. Two major telecom
service offerings are “Voice Calls” and “Internet Data” services. Revenue from voice calls
still dominates the industry while contribution from data revenue is growing exponentially
since the launching of 3G in Bangladesh.

26
4.8.1 Fifth largest market in Asia Pacific region

The telecom industry in Bangladesh has scaled up rapidly over past decade having a total of
157 million active subscription and more than 85 million unique subscribers. Unique
subscriber penetration in Bangladesh rose to almost 55% in 2018 from only 1% in 2003 due
to rapid adoption of telecommunication services. The industry has turned out to be fifth
largest market in Asia Pacific Region, according to GSMA. However, about half of the entire
population is yet to be connected with the mobile telecommunication network, also indicating
that there is enormous room to grow. The real market penetration remained steady in the last
three years as mandatory bio-metric SIM reregistration has slowed down the pace of new
customer acquisition.

Many foreign investors are now interested to do business in telecom sector in Bangladesh
which reveals that Bangladesh has become a significant hub for telecoms. It has been
forecasted that the average revenue from telecoms sector will be Tk 1500crore 2 a year.
Bangladesh is a country which is densely populated and also is a flat and easily extends able
coverage. The infrastructure and Tele-density is low which on the other hand made the
market a perfect place for telecom business. The demand is very high and the consumer base
is very large but the investment is low because of the topographic layout. The government
has a receptive foreign investment policy with no restrictions on repatriation of profit. Even
though the current infrastructure is not much developed but it is suitable for foreign
investment.

4.8.2 Multi-SIM market with growing subscriber

The Bangladesh telecom market is mainly dominated by pre-paid customers and almost 98%
of total subscriptions are prepaid, according to Grameenphone. Though industry penetration
based on number of subscription is huge, a large portion of customer holds more than one
subscription at the same time.

27
4.8.3 4g. 3g & 4g

Even after launching 4G technology in Bangladesh, 3G coverage still dominates while 2G

still poses handsome market share. The internet users in the country grew considerably in
2013 when the 3G internet service was launched. However, the number of internet
subscribers grew slowly in 2018 despite the launch of faster internet service, 4G. High prices
of 4G enabled devices, lower network coverage, and poor service quality are the reason for
slow growth in 4G.

the number of 4G and 3G subscribers reached 11.7 million and 63.5 million respectively at
the end of December, 2018 meaning only 13.7% of the country’s mobile internet users are
using the fourth generation (4G) mobile phone service even after ten months of the launch of
the service while 74.2% mobile data users using 3G internet and rest 12.1% using 2G
internet. However, according to the leading mobile operator GP, the 3G data volume
consumption witnessing significant growth after launching 4G by the operator even though
3G subscriber count witnessed a de-growth due to up gradation to 4G.

12.1%
users

74.2%
users

13.7%
users
Figure 4.8.3: 2g, 3g & 4g user’s rate

Under the 4G rollout obligation, the operators will have to take 4G networks to all divisional
headquarters within the first nine months of getting the license and to district headquarters
within 18 months. They will get a total of three years to complete their rollout of 4G service
across the country. If the operators comply with the obligations, they will get a refund of
BDT 250 million in each segment. As per BTRC guidelines, mobile operators are supposed
to provide 160 kilobits per second download speed in 2G service and 2Mbps in 3G service. In
the case of 4G, mobile phone operators are supposed to maintain 7Mbps download speed and

28
1Mbps upload speed. Currently Robi is leading the 4G/LTE in terms of capacity and
coverage with spectrum band flexibility while GP is leading in terms of subscriber count.
Robi has 4.2 million unique 4G subscribers and 3.4 million active 4G users as on October
2018. The 4G subscriber base of Grameenphone hit 5 million active subscribers in November
2018 (3.8 million in September 2018).

29
4.8.4 Internet subscriber

Figure: 4.8.4 No of internet users in Bangladesh

Bangladesh has a huge potential in WiMax and submarine cable which is a new technology
in the country and has attracted the foreign telecom operators. Many foreign telecom
operators are coming to Bangladesh to explore the potentiality of the technology. Some
interested international telecom operators who want to start a business in Bangladesh are UK-
based Orange Telecom, South Korean SK Telecom and UAE’s Etisalat.

The government is encouraging private sector to invest more in the industry as they think that
the industry is playing a vital role in developing the socioeconomic structure of the country.
And to ensure that, the government has taken several attempt. Giving private sector the
license for fixed line telephone is one of those attempts. Due to the environmental facts, the
foreign entrants should adjust their equipment’s according to demand of the environment

30
4.8.5 Overview of Mobile Telecom Market in Bangladesh

Currently there are 6 mobile operators in Bangladesh. They are namely-

 Grameenphone – Joint venture ownership 62%Telenor and 38% Grameen Telecom.

 Banglalink – Joint venture with Orascom Telecom Co. originated from Egypt.

 Robi – Joint venture between Telecom Malaysia Berhad TM and A. K. Khan&

company limited

 Waried Telecom – An investment of Dubai and Abu Dhabi Group UAE.

 TeleTalk – Public limited company but 100% share have been owned by
the government of Bangladesh.

 Citycell – Joint venture with SingTel Asia pacific investment Pvt. limited.

Banglalink was in the second leading position before the merger of Robi with Airtel.
However, 8.2 million subscribers from Airtel have been added to Robi’s subscriber base
through merger that uplifted the operator (Robi) into the second-leading position. As on
September 2018, total mobile internet subscriber of GP stood at 36.3 million, Robi 28.3
million, Banglalink 20.0 million, according to the respective company disclosures.

36.3

28.3

20

8.2

GP Robi Banglalink Robi with Airtel

Chart 4.8.5 rate of subscribers in different telecom market (million)

31
4.9 The World's Top 10 Telecommunications Companies

While several company attributes can distinguish the Big Ten, market value serves as the
determining factor for this list. The value and performance of these companies will likely
change over time.

4.9.1 China Mobile Ltd.

China Mobile Ltd. (CHL), the leading provider (by the number of subscribers) of
telecommunications services in China – with more than 925 million customers at the start of
2019 – is the top telecommunications company in the world. The firm's market value was
$217.5 billion in February 2019, and between 2016 and 2017 its customer base grew by
4.5%.

4.9.2 Verizon Communications Inc.

Verizon Communications, Inc. (VZ) is the largest telecommunications company in the United
States. Its market value was estimated at $221.39 billion as of February 2019. Its sales
weighed in at $131.8 billion in 2017. Formed in 2000 with headquarters in New York City,
Verizon resulted from a merger between Bell Atlantic Corp. and GTE Corp. In 2015, Verizon
completed its acquisition of AOL. The sale came after a 2014 purchase by Verizon of
Vodafone’s 45% interest stake in Verizon stock. Verizon currently operates in more than 150
countries.

4.9.3 AT&T Inc.

AT&T Inc. (T) is the second-largest telecommunications company in the United States, with
a market value of $211.688 billion in February 2019. AT&T provides voice services in more
than 200 countries and operates more than 34,000 Wi-Fi hotspots. According to its website,
AT&T covers more than 355 million people. In 2017, the company expanded AT&T
GigaPower, an ultra-fast Internet service, to 56 metropolitan locations in the United States,
with plans for further expansion. In 2006, AT&T acquired BellSouth. It purchased DirecTV
in July 2015 for $48.5 billion, which allowed the company to offer customers the option to
bundle more services into the same package.

32
4.9.4 Vodafone Group Plc

Vodafone Group Plc’s (VOD) headquarters are in the United Kingdom, and the company was
servicing more than 500 million mobile customers in 2018. Vodafone’s market value was
$48.39 billion as of February 2019. From 2012 to 2014, Vodafone acquired three companies:
Cable & Wireless Worldwide, Kabel Deutschland, and Ono. The company’s Standard &
Poor's long-term credit rating is A-. Mobile in-bundle sales account for 42% of Vodafone’s
group service revenue, while 27% of revenue comes from mobile out-of-bundle sales. As of
the start of 2019, Vodafone was the most valuable brand in the United Kingdom and hosted
mobile operations in 26 countries.

4.9.5 Nippon Telegraph & Telephone Corp.

Founded in Japan where fast Internet connections are plentiful, Nippon Telegraph &
Telephone Corporation (NTT) had a market value of $81.564 billion as of February 2019.
Japan highly values fiber connections, and Japanese companies are known to spend heavily to
attain the newest Internet technology. This environment has helped boost Nippon Telegraph
& Telephone Corporation’s prevalence. Unlike other telecommunications companies, Nippon
derives much of its business from fiber Internet connections rather than bundle packages.
Increasingly, the company is looking to sales of its cloud computing services to expand its
customer base.

4.9.6 Softbank Group Corp.

Softbank Group Corp. started in 1981 as a packaged software distributor and has since
created a domestic telecommunications segment that services Japan’s mobile communication,
device, and broadband needs. The company’s market value was $98.785 billion in February
2019. In early 2019, Softbank further expanded its holdings in U.S. phone services provider
Sprint, to an 84.7% share, in addition to managing Yahoo! Japan. In 2015, Softbank
purchased IBM’s licensing for its robot "Watson" to create a Japanese Android called
"Pepper," with plans to sell the robot to retail customers. Softbank announced the robot could
read human emotions. The first 1,000 units of Pepper robots sold out in November 2015. In
2018, Softbank announced a plan for a merging of Sprint and T-Mobile, Inc. (TMUS), but it
ceded its majority stake in the joined company.

33
4.9.7 Deutsche Telekom AG

Deutsche Telekom AG services more than 160 million mobile customers with a presence in
over 50 countries and 216,000 employees. The German company had a market value of
$67.334 billion in early 2019, with two-thirds of its revenue generated outside of Germany.
Telekom seeks to build efficient networks that meet future broadband needs. In 2013,
Telekom became the first telecommunications company to present a smartphone with the
Firefox OS. In 2015, the company launched a standardized European network, implementing
a cross-border infrastructure development in three of 10 countries.

4.9.8 Telephonic S.A.

Telephonic S.A. (TEF) originates from Spain. It had a presence in 24 countries in 2018 with
its customer base mostly concentrated in Latin America. Telefonica’s market value was
$43.01 billion in early 2019, and its products and services include cloud computing, mobility
services, data centers, enterprise voice, and security services.

Telefonica markets its three primary brands with different target audiences: Movistar serves
Spain and Latin America; O2 serves the United Kingdom, Germany, and Spain; and VIVO
serves Brazil. Over the past two years, Telefonica has focused on investment as a means of
expanding the business. The company also runs several smaller specialist brands,
including Wayra, a startup accelerator.

4.9.9 America Movil

Mexican company América Móvil (AMOV) served 363.5 million access lines, including
280.6 million mobile subscribers worldwide in 2017. Total coverage of América Móvil’s
mobile, fixed lines, broadband and television services is expansive. It had a market value of
$52.505 billion in early 2019; however, this is a much lower value than in previous years, as
the company battles a series of anti-conglomerate rules aimed at dismantling its
telecommunications monopoly.

In 2018, Mexican regulators approved America Movil's plan to legally separate its Telmex
fixed-line infrastructures division from its cellular division.

34
4.9.10 China Telecom

China Telecom is a state-owned company that provides fixed-line telephone services to 194
million customers. According to it its website, as of December 2018, its mobile services
reached 303 million customers, and broadband reached more than 145 million. The
company’s market value was $42.558 billion in 2019. The company headquarters are located
in Beijing. Holding company China Telecom Corporation Limited (CHA) experienced a
public offering in 2002 in Hong Kong and New York City. China Telecom’s second holding
company, China Communications Services Corporation Limited, launched its Hong Kong
IPO in 2006. China Telecom’s commercial brands include E-surfing, E-surfing Navigator,
My e Home, and E-surfing Flying Young.

China Mobile Ltd.

Verizon Communications, Inc.
AT&T Inc
Vodafone Group Plc’s
Nippon Telegraph & Telephone Corp.
Softbank Group Corp.
Deutsche Telekom AG
Telephonic S.A.
America Movil
China Telecom

Chart 4.9 Market value of top 10 telecom industry.

4.10 Future of the Telecommunication Industry

Telecommunications has been and will continue to be an important foundation for innovative
new industries that use telecommunications as a primary technological enabler and
foundation (National Research Council, 2006). That being said, one should know that “not
everything that glitters is gold”. For example, the emerging markets face lacking of talented
resources and intense competition in order to sustain the growth that has been observed over
the past few years (Ken, 2007). The importance of regulatory and policy changes are stressed
upon in order to adapt to the future and maintain the growth rate of the telecom industry in
both the countries (Manas, 2011 and USCC, 2011).

35
 CHAPTER 5

FINDINGS OF THE STUDY

Depending on the above information and data and discussion we may say that current
telecommunication sector of Bangladesh is very promising and very competitive. It has a
bright future. As it’s a competitive market, each company try to provide their service to their
customer in low price of which customers are benefited. Because of the competition there is
no chance of gaining supplier powerful over customers. In Bangladesh telecommunication
market customer have full freedom to choose and switch one operator to another in no time.

36
 CHAPTER 6

CONCLUSION & RECCOMMENDATION

6.1 Conclusion

Today’s telecommunications industry is one of the biggest contributors to the growth of the
economy, more so in the developing countries. Apart from contributing in terms of revenue,
it also influences the growth and progress of many other sectors such as Health, Education,
E-Governance, Rural development, etc. Governments of all countries have recognized the
influence and the importance of this industry, which is evolving at a rapid pace. Though all
countries have been, and are, continuously trying to help the industry by bringing in reforms
and adapting their policies and regulations, there is still a long road ahead before the nations
benefit to the fullest extent from the telecom industry. This thesis, while understanding and
analyzing the contributing factors towards the growth (revenue) of the telecom industry in all
countries, also compares the competitiveness of these factors in nations. Some of the findings
such as the contribution of Government policies and regulations to the revenue generated by
telecom companies were not only interesting observations but also thought provoking. In the
end, there is no “one best solution” that exists to improve the growth and revenues of telecom
industry. Telecom industries in their own terms have different combinations and flavors of
influencing their industries. In general, it can be observed that, while the Chinese government
is concentrating on developing their domestic telecom firms and helping them expand
globally, the government is focusing on the reach of this industry to rural and remote areas
within the country to help improve the connectivity and basic infrastructure. The future of the
telecom industry is one filled with excitement and constant evolution. With all the new
technologies and their applications that are coming in, “this is just the beginning”. Gadgets
such as smart phones are today taking over PCs and entering the daily lives of people around
the globe. It will be interesting to watch and observe the industry’s contribution to developing
countries such as China and India.

37
6.2 Recommendation

Telecom industry should implements Artificial Intelligence (AI) because AI is quickly

becoming viewed by the telecoms industry as a way to gain a competitive advantage.
The emerging 5G technology has attracted intense interest from the ICT industry and
wider community due to its potential to increase opportunities for developments
related to M2M communications.
Developments relating to the Internet of Things (IoT) and M2M are going to continue
to gather pace in 2019
technologies
Telecom industry should Underpinning current IoT developments such as Wide Area
Networks (WAN) and Low Power Wide Area (LPWA).
Govt should be friendlier at the time of making regulations for telecom industries.

Figure 6.2 Future of telecom Industry

38
 CHAPTER 7

REFERENCE & APPENDIX

7.1 Reference

 https://pdfs.semanticscholar.org/f35f/4852171ff85da0a2275113cd1314a637b644.pdf
 https://www.assignmentpoint.com/science/assignment-on-telecommunication-
industry-in-bangladesh.html
 https://www.slideshare.net/azasshahrier/mobile-phone-industries-of-bangladesh
 https://pdfs.semanticscholar.org/9f61/9654a3bc72d0f55f0236c0f23dbf3e3579eb.pdf
 https://www.researchgate.net/publication/322918842_A_Study_of_Mobile_Applicati
on_Usage_in_Bangladesh
 https://www.slideshare.net/PujanSaha/term-paper-on-grameen-phone-telecom
 https://www.academia.edu/6884015/STUDY_ON_BRAND_PREFERENCE_OF_M
OBILE_PHONES_IN_KATHMANDU
 https://www.researchgate.net/publication/261028288_An_Empirical_Study_of_Brand
_Preference_for_Mobile_Phones
 https://www.researchgate.net/publication/235908134_Measuring_the_Technical_Effi
ciency_of_Telecommunication_Sector_within_Global_Crisis_Comparison_of_G8_C
ountries_and_Turkey
 https://www.slideshare.net/royalnirankar/comparative-study-of-telecom-sector
 https://www.slideshare.net/ishakalra14/comparative-analysis-of-various-companies-
of-telecom-industry
 http://www.soumu.go.jp/iicp/chousakenkyu/seika/pdf/DP2009-02.pdf
 https://pdfs.semanticscholar.org/fc6f/e7aada1afdc2906926426615abacd4486ef9.pdf
 https://www.transparencymarketresearch.com/telecommunication-industry-
market.html
 https://www.investopedia.com/ask/answers/070815/what-telecommunications-
sector.asp
 http://www.eblsecurities.com/AM_Resources/AM_ResearchReports/SectorReport/Ba
ngladesh%20Telecommunication%20Industry-
A%20Comprehensive%20Review%202019.pdf
 https://www.nasdaq.com/symbol/t/earnings-growth

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7.2 Appendix

7.2.1 Abbreviations

Name Abbreviations

2G Second Generation (wireless telephone technology)

3G Third Generation (wireless telephone technology)

AMPU Average Margin Per User

CCI BRICS Brazil, Russia, India, China and South Africa

CNNIC China Internet Network Information Center

CCI Communications Commission of India

SG Second Generation (wireless telephone technology)

CAGR Compound Annual Growth Rate

FCC Federal Communications Commission

FDI Foreign Direct Investment

FICCI The Federation of Indian Chamber of Commerce and Industry

GDI Gross Domestic Income

GDP Gross Domestic Product

GPRS General Packet Radio Service

GSM Global System for Mobile Communications

ILD International Long Distance

MII Ministry of Industry and Information

MNC Multi National Company

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NLD National Long Distance

R&D Research and Development

TD- Time Division Synchronous Code Division Multiple Access

SCDMA
TRAI Telecom Regulatory Authority of India

UAS Unified Access Service

USCC China Economic and Security Review Commission

U.S.-
USOF Universal Service Obligation Fund

VAS Value Added Service

WCDMA Wideband Code Division Multiple Access

WTO World Trade Organization

41