Size
The past few years have been experiencing a steady growth in the spread and reach of the telecommunication services in India. The Department of Telecommunication (DoT) has been much active in policy formulation, planning, executing, and implementation of in its initiatives. The year 2007-08 has recorded a remarkable growth in the field of telecommunication. The targeted growth of 250 million for the year 2007 was already achieved in the month of October 2007, which in itself is a great achievement. The year recorded the total number of 156.55 millions of telephone connection. The department is eying a total number of 500 million new connections by the end of 2010. Telecom market has grown at about 25% per annum over the last 5 years. Wireless segment subscriber base grew at 85% per annum; fixed line segment at about 10% per annum.
Structure
- The Department of telecommunication (DoT) has been focusing on all areas in the sector, such as basic telecommunication, mobile telephony, Internet service, broadband connections, and many more. The strong vision and active initiatives of the government is bearing fruits and the policy framework for the coming years is going to provide a better telecommunication infrastructure in the country.
- The department has decided to introduce Mobile Number Portability (MNP) in, keeping in view the interest of the consumers at large. These four metros include; Delhi, Mumbai, Chennai, and Kolkota. This will be the initial phase of the programme. This will enable the consumers to retain the same number irrespective the service provider, in the same area.
- A regulation has been implemented with a view to regulating the unsolicited calls from the telemarketers. This has put in force the introduction of "National Do Not Call Registry (NDNC) ". The latest TRAI statistic reports a total number of 7.2 million subscribers being registered on the NDNC so far.
- The latests and the new being offered by the government is the broad guidelines for the third generation (3G) mobile service and broadband Wireless Access.
Policy
- 74% to 100% FDI permitted for various telecom services
- FIPB approval required for foreign investment exceeding 49% in all telecom services.
- 100% FDI permitted in telecom equipment manufacturing.
India has a Telecom policy that aims to encourage private and foreign investment, such as;
- An independent regulator – the Telecom Regulatory Authority of India (TRAI)
- Revenue-share model for licences issued by the Government for telecom services in India. Unified access licenses are available for providing telecom services on a pan-India basis
- Planned opening up of National Long Distance (NLD), International Long Distance (ILD) and other value added services.
Major players and presence
in value chain
Note: 1 National Long Distance, 2 International Long Distance
Source: TRAI, DoT, TSMG Analysis
Opportunity
- Over 150% projected growth in telecom services.
- India will require large investments in network infrastructure.
- A vast FDI in the sector.
- More competitiveness in the industry means more benefits to the end users.
- The process will bring more transparency in the approach.
- More number of foreign players will directly venture into as active participants bring in new technology and equipments.
Over 150% growth in telecom services
is projected in 5 years
India will require large investments
in network infrastructure
Outlook
- India expected to be among the fastest growing telecom markets in the world.
- Projected growth of 40% per annum to reach 250 million subscribers by December 2007.
- Over 4 million new users are added every month – mostly in wireless.
Potential
Favorable demographics and socio economic factors leading to high growth:
- Growth of disposable income combined with changes in lifestyle
- Increasing affordability - low tariffs, easy payment plans and handset financing
- Increased coverage and availability of mobile services
Investment opportunity of $22 billion across many areas:
- Telecom Devices and Software for Internet, Broadband and Direct To Home Services. Set Top boxes, Gateway exchange, Modem, Mobile handsets and consumer premise equipments, Gaming devices, EPABX, Telecom Software.
- Telecom Services for voice and data via a range of technologies.
- Applications and Content development ranging from gaming to education.
For additional information:
"Department of Telecommunications,
Ministry of Information Technology &
Communications (http://www.dotindia.com)",
Telecom Regulatory Authority of India (http://www.trai.gov.in)
Content Source: www.infrastructure.gov.in
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