: Growth in a CMSP's subscriber base is dependent on several factors,the key amongst them being:
: With growth in the economy, and the consequent increasein activity, it requires people to be in constant touch. Thus, with thetremendous growth in economic activity in India there are more and more people subscribing to telecom services, thus leading to growth in subscriber base for CMSPs.
Rising income level
: As the real income levels in a society rise, more andmore people are able to afford usage of cellular phone and so the consumer does not feel the pinch of rising telephone bill, thus having the propensity totalk more, thus leading to higher MOUs for telecom services providers.
: The affordability is interplay of lower tariff charges andavailability of cheaper handsets. While lower handset costs make mobile moreaffordable at the entry level thus allowing more people to be a part of themobile community, lower tariffs allow for an increased usage of telecomservices, while not having such an overbearing impact on telephone bills.II
. Fixed line services
The fixed (wire line) services are dominantly provided for BSNL and MTNL. Although thishad been a dominant mode of telecommunication in the past, it is fast being replaced withmobile telephony, which has the advantage of connectivity on the move. The fundamental business of a fixed line operator is almost similar to that of a CMSP, in terms of ARPU andSubscriber base.III.
The Internet services are provided either by telecom service providers or independent Internetservice providers (ISP) who deal exclusively in providing this service. There are two forms of Internet that are currently popular - the dial-up connections and the broadband connections.Apart from the usual - economic growth and rising income levels - the growth of the Internet business is dependent upon:
: Internet penetration in India is currently at very low levels, ascompared to its developing peers. This is set to take off with the rise in PC penetration, which will again be a consequence of affordability in terms of lower PCcosts and reduced cost of data transfer..