The telecom network in India is the fifth largest network in the world meeting up
with global standards. Presently, the Indian telecom industry is currently slated to an estimated contribution of nearly 1% to India’s GDP. The Indian Telecommunications network with 110.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario.
with global standards. Presently, the Indian telecom industry is currently slated to an estimated contribution of nearly 1% to India’s GDP. The Indian Telecommunications network with 110.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario.
The total subscriber base, which has grown by 40% in 2005, is expected to reach
250 million in 2007. According to Broadband Policy 2004, Government of India aims at 9 million broadband connections and 18 million internet connections by 2007. The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY2004-2005. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected to bypass 2.5 million new subscribers per month by 2007. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country.
250 million in 2007. According to Broadband Policy 2004, Government of India aims at 9 million broadband connections and 18 million internet connections by 2007. The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY2004-2005. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected to bypass 2.5 million new subscribers per month by 2007. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country.
Fixed Service Providers (FSP's):These include the basic service providers that are the state operators like MTNL India and BSNL India who collectively account to over 90% of the total basic telecom services and private sector telecom service providers in India who mainly focus on leased lines, ISDN, videoconferencing and other high-end services.
Cellular Service Providers (CSP's)
The cellular services in India are also categorized as GSM (Global Mobile Communications System) and CDMA (Code Division Multiple access) system. The leading GSM services providers in the Indian telecom industry 2009 were Hutchison (Now Vodafone and known as Orange in Maharashtra), Airtel, Idea Telecom, Tata, and Reliance. These include both pre-paid and post paid mobile phone cards and services providers. The leading CDMA providers are still Reliance communications and Tata Indicom with Airtel and Touchtel just entering the market. Public and Private Players-MTNL, BSNL, VSNL are the major Public Players, whereas Airtel, Idea, Vodafone, Tata, Reliance, BPL are the leading Private Players in the country. Some of them are entering foreign markets as well. The Bharti Telecom will be launching its services for the NRIs in the US with the help of Airtel CALLHOME service. Rate of growth this industry -Customer rate of growth is still very high. It has been around 20 million in the last few months.. It’s not necessarily all new customers because there are lot of people who have multi SIMs, who carry more than one SIM or change SIMs quickly. The revenue growth has actually been disappointing in the last six quarters. Although there was a lot of growth in customers, which does not necessarily translate into more minutes or use or into more money. There was quite some effects of competition last year. The tariffs dropped to much lower levels than we were used to. Now, the tariff is around 1 paisa per second or 50 paise per minute and that used to be a lot high before that. This has had an effect on the overall revenues. A lot of customers are apparently a little bit tired of all the promotions. This is in a way good news, but the tariffs are already so cheap, so they don’t bother so much anymore. It is projected that the telecom industry will be enjoying over 150% growth in the next 4-6 years. Liberalization policy and some socio-economic factors are mainly responsible for the immense growth in the sales volumes. The lifestyle of the people has changed. They need to be connected to the other people all the time. With the lowering down of the tariffs the affordability of the mobile phones has increased. The finance sector has also come up with loans for handsets on 0% interest. Mobile services providers are also expanding their
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