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The market

  • India is first among the fastest expanding telecom markets in the world, adding more than 15-20(as per TRAI Report, KPMG Analysis, March 31, 2010) million new mobile subscribers per month with an average 161 million customers added every month.
  • India has the third largest telecommunication network in the world and is the second largest in terms of number of wireless connections.(as per Government of India: Economic Survey Energy, Infrastructure and Communications, 2008 – 09)
  • Approximately 20.59(as per TRAI Subscription data, March 31, 2010) million telephone connections, including wire line and wireless, were added during March 2010, taking the total number of telecom subscriber base at the end of March 2010 to 621.28(as per TRAI Subscription data, March 31, 2010) million.
  • The industry is expected to create gainful employment opportunities for about 10 million people during the same period.(as per Indian telecom market to be at Rs 344,921 Crore by 2012, November 22, 2007)
  • Seventy four percent FDI permitted in the sector.

Opportunities(as per 7 IBEF – Telecom Sector Update, February, 2010):

  • The target of the 11th Plan period (2007-12) to have 600 million phone connections has already been accomplished as the current subscriber base stands at 621 million. The plan on the other hand anticipates an investment of about USD 54 billion in the telecom infrastructure sector by 2012, backed by opportunities in rural areas, roll out of 3G technology and adequate government support.(as per Infrastructure in India – Ports, Roads and Telecom, January 2010)
  • According to industry analysis fixed line revenues are expected to touch USD 12.2 billion and mobile revenues are expected to be close to USD 39.8 billion by 2012.
  • Mobile Value Added Services (VAS) in India accounts for 10 percent of the operator’s revenue, which is expected to reach 18 percent by 2010.
  • In order to enhance revenues, India’s top two mobile firms, Bharti Airtel Limited and Reliance Communications have launched their online mobile applications stores as well. Other operators are expected to follow suit.
  • With the roll out of the 3G spectrum, close to 275 million Indian subscribers will subscribe to 3G-enabled services, and the number of 3G-enabled handsets are expected to reach close to 395 million by end of 2013.
  • India’s telecom equipment manufacturing sector is set to become one of the largest globally. Mobile phone production is estimated to grow at a CAGR of 28.3 percent from 2006 to 2011, touching 107 million handsets by 2010. On the other hand revenues are estimated to grow at a CAGR of 26.6 percent from 2006 to 2011, touching USD 13.6 billion.

Industry Snapshot

size USD 30 billion(as per Gartner, June 18, 2009) (Projected for 2013)
Projected CAGR (2009 – 2013) 12.5 percent(as per Gartner, June 18, 2009)
Tele-density 52.74 percent (March, 2010)
Volume-Wise Second Largest cellular market with 584 million subscribers at the end of March 2010
Value-Wise Lowest telecom tariffs in the world at about USD 0.02 per minute
Total projected investment (2007-2012) USD 73 billion(as per Press Release, May 2009)
Regulatory 74 percent FDI permitted in the sector
100 percent FDI permitted through automatic route in telecom equipment manufacturing
Foreign players in India Vodafone, Flextronics, Nokia, Motorola, Samsung, Alcatel-Lucent, Virgin Mobile, Maxis, Telenor, Etisalat,
Batelco, NTT Docomo
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