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Telecom Sector Is One Of The Fastest Growing Sectors In India And The Fastest Growing Telecom Market In The World

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1. INTRODUCTION India is one of the fastest growing economies of the world and is currently the focus of a great deal of international attention. It is the seventh…
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  • 1. INTRODUCTION India is one of the fastest growing economies of the world and is currently the focus of a great deal of international attention. It is the seventh largest country in the world in terms of its geographical size. Today it has a population of nearly 1.1 billion which makes it the second most populous nation in the world. With current growth by 2025 India may even have caught up with developed countries according to UN. TELECOM MARKET Telecom sector is one of the fastest growing sectors in India and the fastest growing telecom market in the world, with a compound annual growth of 34% over the last decade. This impressive rate is a result of India’s economic growth and liberalization policy since 1991 and the fundamental, structural and institutional reforms during the period. Today, India has nearly 490 million subscribers and with an annual addition of more than 125 million over the last couple of years, India will reach 500 million subscriber-bases in 2010. Among the 1
  • 2. various segments, wireless or mobile segment has been the key contributor, especially the prepaid services, offering a wide range of opportunities to provider and services to customers. Greater demand for better services and speed has made the market more competitive; as a result tariffs have been falling continuously across the board, making Indian tariffs one of the lowest in the world. Going forward, the sector is likely to achieve greater growth rates with a whole range of new services expected over next few years with the coming of 3G. The telephone coverage in India rose to 34.50% in Jan, 2009 from 33.23% in Dec, 2008, indicating huge market potential, especially in rural areas. The cell phone subscribers increased 10.81 million in Dec, 2008 and 15.40 million in Jan, 2009. Up to the end of Jan, 2009, the total number of cell phone subscribers in India had reached 362.3 million, the fixed phone subscribers dropped to 37.75 million from 37.9 million in Dec, 2008, and the broadband subscribers 2
  • 3. increased to 5.65 million from 5.45 million. India has been divided into 19 business regions and four large city service regions in the mobile market, and it had issued 78 licenses to 22 companies. According to the national unified license system, the basic telephone operators also can apply for mobile business. Currently, there are over 140 GSM and CDMA operators in India, and the fierce competition makes the cell phone expense of subscribers shrink to just one third of the figure in 2003. According to the statistics in the fourth quarter of 2008, the average monthly mobile phone expense per GSM subscriber was about INR220 and INR111 for each CDMA subscriber. In 1998, Indian government issued the open- door policy in the field of Internet, and now more than 400 operators have gotten ISP license. The report focuses on India telecom market, India telecom industry development strategy and investment, India telecom business and key operators, involving fixed phone, mobile 3
  • 4. communication and broadband & internet. KEY PLAYERS ANALYZED This section provides the overview, key facts, financial information, future plans and business strategies of prominent players in the Indian Telecom market like Reliance Communications, Bharti Airtel, Hutchison Essar, Idea Cellular, Aircel Ltd, MTNL, BSNL VSNL and Tata Indicom CONCLUSION: India is huge market and none of service providers can dare to ignore its potential. That’s why Indian mobile service provider industry is growing leap and bounce for the last decade. This journey of 1 million to 50 million will keep it pace until each citizen in India will have his own mobile. Industry has many phases in its growth. Now mobile doesn’t mean a only a medium of communication. Services providers 4
  • 5. are now willing to provide varies facilities like entertainment (music, video etc.) and even banking also. We can say that business is transforming in e-commerce to m-commerce (mobile-commerce). In short we can say drastic change has came in the industry along with expanding its base in subscribers, they are keeping eye not only to offer new facilities but also to be the first to provide it. 5
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