India is amongst the fastest growing telecommunications markets across the globe. The average monthly mobile subscribergrowth over the past year has been 15-17 million customers. Currently, the mobile subscriber base is approximately 671 million (asof August 2010). The overall teledensity for India has already surpassed 60 percent and the market continues to exhibit unabatedgrowth
.With the successfully concluded auctions of the 3G and BWA spectrum, this growth is set to become even more aggressive.Indian telecom operators have very effectively worked with rest of the telecom ecosystem to enable India emerge as the countrywhich offers the lowest mobile tariffs across the globe
. All these achievements have helped India emerge as one of the mostattractive investment destinations for all international players looking to win a share of the second largest mobile market in theworld
. These players can also look at leveraging on the successful low-cost model that India has pioneered.During the past year, several telecom players in India have made tremendous efforts to establish themselves on the globallevel through cross border mergers and acquisitions. These strategic alliances are a step towards the globalization of the Indiantelecommunication industry.The credit for the growth witnessed by the sector has to be attributed to the well-deﬁned regulatory provisions designed by thegovernment. The government has been instrumental in making key policies to drive the rural growth which is expected to keepthis bullish phase going strong over the next decade. Within the rural area, there is additional focus to enhance the penetration ofbroadband and data usage. The aim is to wirelessly connect villages and remote areas through broadband and provide access tobasic facilities for health, education, banking and others.On the occasion of India Telecom 2010, the 5
International Conference and Exhibition, the Department of Telecommunicationsis pleased to release this report on ‘Indian Telecom Success Story – Broadband for All’. Developed by KPMG in India and FICCI,it provides an overview of the Indian telecommunications sector and will serve as a useful reference manual for all stakeholdersincluding regulators, policy makers, telecom operators and the general public.
SecretaryDepartment of Telecommunications & ITGovernment of IndiaNew Delhi
1 ‘Monthly Telecom Scenario – August 2010’, DoT, October 20102 ‘Mobile tariffs in India to decline by 25 percent’, Silicon India, May 20093 ‘India becomes 2nd largest mobile market in the world’, The Hindu Business Line, April 2008© 2010 KPMG, an Indian Partnership and a member ﬁrm of the KPMG network of independent member ﬁrmsafﬁliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.