Telecom Industry Analysis

Background of Telecom Industry
Telecom landscape in India has changed completely since liberalization and monopoly in Telecom sector has been replaced by competitive regime (Oligopoly). The country's telecom market is growing rapidly and by 2010, telecom is expected to be a US$38 billion sector. Indian telecom sector is directly contributing more than 1.5 per cent GDP of the country. The Indian telecom industry is the second largest wireless market in the world. With a total wireless subscriber base of 435 million at present, it is targeted to reach 771 million by 2013. In addition to this, the country has nearly 37.66 million landline subscribers.
'Connecting rural India' for both voice and data connectivity is the main target of India's telecom industry. The fact that the 74 per cent of new wireless subscribers are now coming from our rural areas as compared to 42 per cent from urban, give positive indication of successful implementation in this direction.
The India’s telecom equipment manufacturing sector is also set to become one of the largest globally by 2010. These manufacturing facilities, apart from making India self reliant, generate a lot of secondary employment. Sustained government efforts in this area have yielded results and have enabled to achieve the objective of making India as a leading manufacturing hub for electronics, IT and telecom.
The Government is working on many more initiatives to further improve the telecom sector. These new initiatives include bringing inclusive connectivity to both rural and urban India; mobile number portability which will not only give more choices to customers but also lead operators to further improve their services to retain their customers and auctioning spectrum for 3G and WiMAX within this financial year.
Comparisons between Private and Public sector players:
Current Financial Statistics of the sector
Total revenues of telecom sector reached Rs. 40445 crores. This includes both private and public... [continues]

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