Telecom Industry in India

Introduction to Telecommunication Industry

Indian Telecom Industry

The Indian Telecommunications has more than with 225 million telecom subscribers.
Today, it is the fastest growing market in the world and represents unique
opportunities for U.S. companies in the stagnant global scenario. Every month, 6-7 million new subscribers are added.

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. 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.

• Total telecom subscribers: 225.21 million (June 2007)
• Teledensity : 19.86 per cent (June 2007)
• Addition of new mobile subscribers per month (June 2007) : 7.34 million
• Annual growth rate of telecom subscribers (2006-07) :46.82 per cent
• One of the fastest growing cellular telephony markets in the world
• Average Revenue Per User (ARPU) for GSM :~ US$ 6.6 per month
• More GSM subscribers than fixed line subscribers
• Telecom equipment market (2006-07) :US$ 17,100 million
• Handset market (2006-07) : US$ 4,750 million
• Expected to reach a mobile subscriber base of about 500 million by 2010 (i.e., more than one phone for every household)

The Indian telecom market generated revenues of approximately US$ 20 billion in 2006-07. The market witnessed a growth rate of 33 per cent over the last year and recorded a CAGR of 22 per cent for the period 2002-03 to 2006-07. This growth has resulted in doubling the revenues of the telecom segment in the past three years. Further, it is expected that the industry will generate revenues worth US$ 43 billion by 2009-10.

History of Telecom in India

While telecom... [continues]

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