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Indian Telecom

Indian Telecom

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Published by: api-26465547 on Dec 02, 2009
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Manisha Maheshwari (roll no 26, A1)
Indian Telecommunication Industry
Last Updated: July-September 2008

The Indian telecommunications has been zooming up the growth curve at a
feverish pace, emerging as one of the key sectors responsible for India's
resurgent economic growth.

India is has surpassed US to become the second largest wireless network
in the world with a subscriber base of over 300 million in April, according to
the the Telecom Regulatory Authority of India (Trai).
The year 2007 saw India achieving significant distinctions:
having the world's lowest call rates
2-3 US cents
the fastest growth in the number of
15.31 million in 4
the fastest sale of million mobile phones
in a week
the world's cheapest mobile handset
US$ 17.2
the world's most affordable color phone
US$ 27.42
largest sale of mobile handsets
in the third quarter
Segment-wise growth

Wireless segment has emerged as the preferred mode of telephone service by the consumers, reflected in the rising share of mobile phone connections to total connections.

1. The share of mobile phones has increased from 71.69 per cent at the
end of March 2006 to 87.68 per cent at the end of May 2008.
2. While total mobile subscriber base was 277.92 million, wire line
subscriber base was 39.05 million.
3. Consequently, overall tele-density has increased to 27.59 per cent at
the end of May 2008.

India is likely to be second largest mobile market in the BRIC nations, with
560 million mobile users representing the next great growth curve for both
mobile and interactive marketing industries, according to a report by


The booming domestic telecom market has been attracting accelerating
amount of investment. During April 2000 to March 2008, cumulative FDI
inflows into the Indian telecommunications sector amounted to US$ 3.84
billion, accounting for 6.81 per cent of the total FDI inflows into the country.

In fact, the surge in mobile services market is likely to see huge amount of
investment implying a mobile in the hands of every second person in the

Buoyed by the rapid surge in the subscriber base, huge investments are
being made into this industry by companies like
Maxis Communications-owned mobile service provider Aircel
Srei Group's Quippo Telecom Infrastructure Ltd (QTIL)

The Central public sector enterprises(CPSEs) have lined up
investments for infrastructure sectors like telecom energy and power for


Vodafone Essar will invest US$ 6 billion over the next three years in a bid to increase its mobile subscriber base from 40 million at present to over 100 million.


India is emerging as a handset super-power as more manufacturers set up
base in the country, it is not only the world's fastest-growing telecom market
but it is also making remarkable progress in the telecom manufacturing
space. The Indian telecom equipment manufacturing sector is set to become
one of the largest globally by 2010.

Simultaneously, India's surging domestic market is also providing excellent
investment opportunities in other segments of telecom equipment industry.
Nokia Siemens Networks (NSN) is shifting its global services business
unit headquarters from Munich to India.
Nokia set up its manufacturing plant in Chennai.
Samsung has set up its GSM mobile manufacturing base in Manesar.
Motorola has established a manufacturing plant in Sriperumbedur.
Sony Ericsson has set up GSM Radio Base Station Manufacturing
facility in Jaipur and R&D centre in Chennai.
LG Electronics set up plant of manufacturing GSM mobile phones near
Elcoteq has set up handset manufacturing facilities in Bangalore
Elextronics has set up an SEZ in Chennai.
Value Added Services Market

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