india telecom sector - the growth continues

8/8/2019 India Telecom Sector - The Growth Continues

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TELECOM ERA December 2008 Issue 6

No doubt, India telecom sector has been

remarkable in terms of growth during last few

years largely driven by the unprecedented

growth of the mobile telephony. During the

recent years, India telecom rapid growth is possible due to

various proactive and positive decisions of the Government

and contribution of both by the public and the private

sec tors. The key to the g rowth of telecom in India has been

liberalization, reforms and com petition. The rap id strides in

the telecom sector have been facilitated by liberal policiesof the Government that provides easy market access for

telecom equipment and a fair regulatory framework for

offering telecom services to the Indian consumers at

affordab le prices.

While the tele-density in the urban areas is over 50 percent,

in rural areas it is around eight percent only. Clearly, the

future lies in the rural a reas. Telec om munica tion ac cess to

rural India is going to be the most important development

since the Green Revolution.

This year not only India has becom e second largest wirelessnetwork in the world after China but also witnessed massive

growth in tele- d ensity. The Indian Telec ommunica tions

India Telecom Sector

IN D

I A

2

sector is growing at a rate of 46-50% during the

recent years. It is one of the prime support

services needed for rap id growth and

modernization of various sectors of the

ec onom y. The telecomm unication sec tor

is the m ajor c ontributory in India 's GDP

growth which is presently over 7% and

thus plays a crucial role in India's

economy at both micro and macro

levels.

The Year 2008 has been going

phenomenal for the Indian telecom

sec tor in terms of growth and techno-

logical advancement. Despite the

financial slowdown, the industry

continued its high g rowth rate .The

subscribers addition in January 2008

was 8.74 million which reaches 10.42

million during Oc tober 2008. The tota l

number of telephone connections

which were 281.62 million in January2008 reaches 363.95 million mark at the

end of October 2008. The overall tele-

The gr owth continues. . .

Inside

Story

This year not only India has become second largest wireless netw ork in

the world after China but also witnessed massive grow th in tele-density.

The Indian Telecommunications sector is growing at a rate of 46-50%

during the recent years.”

“



www.telecomera.net 7

EL E C O

M S E C T

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008

density was at 24.63% in January 2008 and reached to

31.50% at the end of October 2008.

The government initiatives like announc em ent of 3G

po licy, WiMax roll out as well as addition of new

telecom operators are bold steps in serving mass

communica tions needs along with sharing o f

basic telec om infrastructure am ong the

telec om players. With 3G and WiMax services a

major data revolution is in the offing driven

primarily by a rise in communications de-

mand from semi urban and rural India.

Mobile entertainment and mobile banking

are touted to be the biggest drivers for data

services.

Telec ommunica tion Sec tor Opportunities in

India assures a transparent, safe, and

secured ambience for the telecom market.

An attractive trade and investment policy and

lucrative incentives for foreign collaborations

have m ade India one o f the world's most

attractive markets for the telecom equipmentsuppliers and service p roviders. The oppo rtunities

in the Indian telecom sector is increasing at a

massive p ac e with the introduction of newer and

innovative schemes in various sec tors.

The telec om sec tor has been sucessful in attrac ting

significant dom estic and global investment. Going back,

during 2006-07 alone the telecom industry also saw an

estimated $8.5 bn investment flow in of which $550 million

was in the form of foreign direct investment.



TELECOM ERA December 2008 Issue 8

0

2

4

6

8

10

12

Jan Feb Mar Apr May Jun Jul Aug Sept O ct

GROWTH IN SUBSCRIBERS ADDITION(January - October 2008)

8 .

7 4

8 .

4 9

1 0

. 4

8 . 0

8 .

4 6

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1

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SUBSCRIBERS GROWTH

(January - October 2008)

2 8 1

. 6 2

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. 1 1

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. 5 1

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. 5 1

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. 9 7

3 2 5

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3 3 4

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3 6 3

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50

100

150

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250

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Jan Feb Mar Apr May Jun Jul Aug Sept Oct

GROWTH IN OVERALL TELEDENSITY

(January - October 2008)

2 4

. 6 3

2 5

. 3 1

2 6

. 2 2

2 6

. 8 9

2 7

. 5 9

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3 0

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. 5

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Jan Feb Mar Apr May Jun Jul Aug Sept Oct

Today, a ll the leading telecom handsets manufac turers

including Motorola, Nokia, Sam sung, and LG have their

presence in India, so do leading global service companies

and infrastructure m ajors, such as Vodafone, Singapore

Telecom , AT&T, Ericsson, Alcatel and Siem ens.

There is still huge potential for growth lying pend ing in rural

areas. The te le-density in rural areas is much lower than

urban aeras. Clearly, the future lies in the rural areas.Therefore, telecom munic ation access in rural India is go ing

to be the most important development. The need of the

hour for telcos is to search for new c ost-effec tive ways to roll

out telecom services in rural areas.

Also, with a tele-density of just eight percent in rural India, as

opposed to 50 p ercent in urban centres, the hinterland

offers good scope for expansion. With this continued growth

in India telecom sec tor, the target of 500 m illion telephone

connec tions by the year 2010 is seen very much ac hiev-

able.

india telecom sector - the growth continues

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