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INNOVATIONS IN TELECOM INDUSTRY

Other Topics - By: - Mr. M. GOVINDARAJAN - Dated:- 8-11-2016 - Joseph Schumpeter defines the term Innovation as the process and outcome of creating something new which is also having value. It involves the whole process from opportunity identification, ideation or invention to development, prototyping, production marketing and sales, while entrepreneurship only needs to involve commercialization. Traditionally the focus has been on new products or processes. Recently new business models have com .....

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mbinations made by an entrepreneur, resulting in a new product, a new process, opening of new market, new way of organizing the business new sources of supply Drivers for innovation Innovation is inevitable in all times in all areas. The drivers for innovation, according to Schumpeter, are as follows: Financial pressures to reduce costs, increase efficiency, do more with less, etc; Increased competition; Shorter product life cycles; Value migration; Stricter regulation; Industry and community ne .....

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call these attributes as ACCTO criteria. Relative advantage may be economic or non-economic. It is the degree to which an innovation is seen as superior to prior innovations fulfilling the same needs. It is positively related to acceptance. The higher the relative advantage, the higher the adoption level, and vice versa. is the degree to which an innovation appears consistent with existing values, past experiences, habits and needs to the potential adopter; a low level of compatibility will slow .....

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ation The Government declared 2010-2020 as the decade of innovation. The purpose of such declaration is for inclusive growth in all areas. Under the guidance of Shri Sam Pitroda, National Innovation Council, State Innovation Councils and Sectoral Invention Councils have been formed. The Department of Telecom constituted Telecom Sector Innovation Council to deliberate various aspects of innovation in telecom industry and to submit a report. The Telecom Sector Innovation Council also submitted a r .....

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ther. Next smoke signals and drums were used to pass messages and stay in touch. Then came written mail, the Morse code, the telegraphs, the telex and telephone enabling man to communicate faster and farther afield. Today, we have the radio, television, the fax, e-mail and internet. What distinguishes today s development in communication from those in the past is the invention themselves. It is that the invention will themselves accelerate the pace of innovation. This will require us to always a .....

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address these challenges, they need to look at four areas - operational efficiencies, network optimization, revenue streams and customer experience. Telecommunication industry has been the flagship of the business model innovation in India. Business model innovation is the transformation of an organization through the use of strategic partnerships and/or the realignment of an existing business model to reposition the business or extend its reach into new markets. The Telecommunication products .....

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growth of the country. National Telecom Policy - 2012 The National Telecom Policy, 2012 has the following objectives in respect of innovation- To promote innovation, indigenous R&D and manufacturing to serve domestic and global markets, by increasing skills and competencies; To put in place an appropriate regulatory framework for delivery of VAS at affordable price so as to fuel growth in entrepreneurship, innovation and provision of region specific content in regional languages. To strength .....

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coordination with different international bodies. Major innovations in Telecom The three major technological innovations that have been taken place in communication are- Innovations in digitalization, computerization, and miniaturization Innovations in the Internet, Mobile communications, Packet based Next Generation Networks (NGN) leading to convergence of services Innovations related to ICT as a generic technology to redesign and rationalize production, administration and transaction processe .....

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by 2021, while the total smart phone traffic is expected to grow 15-fold to 4.5 exabytes (EB) per month by 2021; According to a study by GSMA, smart phones are expected to account for two out of every three mobile connections globally by 2020 making India the fourth largest smart phone market; The broadband services user-base in India is expected to grow to 250 million connections by 2017, according to GSMA; The Indian telecom sector is expected to generate four million direct and indirect jobs .....

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tion Councils have also been mandated for the said purpose. The Telecom industry is witnessing a tremendous growth which further requires higher penetration in the rural areas in mobile phone connections as well as broadband connections. This is the challenge to the industry for which innovations are highly required in products, services and solutions. The Department of Telecom constituted Telecom Sector Innovation Council. For this purpose the industry is divided into the following domains- Tel .....

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M systems; Telecom business domain; Broadband network s expansion; IPTV & triple play services. Disruptive innovation in Telecom A disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market leading firms, products and alliances. The term was defined and phenomenon analyzed by Clayton M. Christensen beginning in 1995. Not all innovations are disruptive, even if they are revoluti .....

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really sustain the disruption will surely arrive. Some disruptive innovations in Telecom Here some disruptive innovations in Telecom, which change the Industry is discussed. Internet - The emergence of internet in the early 2000 challenged the Telecom sector, which held an unopposed position in the communication sector having features of voice mail, text messages etc.,; VoIP - it is IP based application which provides convenient communication between users. It is used for real time transfer of v .....

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change in telecommunications by 2020 are: Integration with content service providers: Being connected continues to become cheaper. Connectivity is capturing a smaller proportion of the information value chain while content, service, and product deliverers capture more. By 2020, it is likely that one or more major telecom companies will be acquired by a content company. Internet of the Things: The next major trend that will impact is the explosion of connected devices. This will add billions of .....

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is an option. Market Saturation: Elder population as they retire will enter retirement communities and assisted living facilities which are fully digitized in order to be as efficient as possible. Older population will be forced into using these technologies by the world around them and will likely consume vastly more bandwidth than they, or their carriers, ever imagined. As this occurs, the last remaining percentages of market penetration will be achieved, and the market will be thoroughly sat .....

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ness innovative offer to the consumers. The operator from 5th September 2016 onwards will launch a new plan the highlights of which are as follows- Post paid mode available on tariff plans above ₹ 499/-; All subscribers will get free voice and data till 31.12.2016; Roaming charges waived on all plans; Free access to apps worth ₹ 15,000/- till December 2017; Extra 25% discount for students. The tariff plans are as indicated in the table below- MRP (Rs.) 19 129 299 999 4999 Local and S .....

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B. The consumption patterns will not only change but also move to altogether new levels. This will definitely disrupt consumer behavior and give the masses a true feel of Digital India. This will give pressure to other operators that will lead further consolidation in the Industry. Global Innovation Index The Global Innovation Index has been created and reported every year by the Paris based business school Instead, Comell University and WIPO, a United Nations agency. The Global Innovative index .....

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