The Indian Telecom Industry
Telecom
Telecommunication is one of the prime-support services needed for rapid growth and modernisation of various sectors of the economy. Telecom services have been recognised as an important tool for socio-economic development of a nation. In recent years, it has become more important because of the enormous growth of information technology and its significant potential for impact on the rest of the economy. The sector is experiencing rapid development due to FDI inflows in the form of international players entering the market.
Today, telecom is the fifth-largest sector attracting FDI inflows after the chemicals, services sector, drugs & pharmaceuticals, and construction activities. In FY12, the Indian telecom sector received FDI equity inflows of Rs 90.12 bn amounting to around 5.2% of the total FDI equity inflows into the country. The sector saw cumulative FDI equity inflow of Rs 457.2 bn over FY08-FY12 registering a five-year CAGR of around 15.3%. The industry has seen consistent growth during the last year on the back of rollout of newer circles by operators, successful auction of third-generation (3G) and broadband wireless access (BWA) spectrum, network rollout in semi-rural areas, launch of mobile number portability, and increased focus on value added services (VAS).
The future progress of the telecom industry in our country is also very encouraging, as rolling out the wireless broadband networks in the country has been started.
India is the second-largest wireless network in the world after China with 952.91 mn strong telephone network
(including 921.02 mn wireless telephony network) as on Apr 30, 2012. This rapid growth in telecom network resulted in overall tele-density of 78.71% as at Apr 30, 2012. The target of 600 million connections by end of the Eleventh Five Year Plan has already been achieved by Feb 2010. This growth in the telecom sector is attributable to proactive and positive policy initiatives of the government and to the
Telecommunication is one of the prime-support services needed for rapid growth and modernisation of various sectors of the economy. Telecom services have been recognised as an important tool for socio-economic development of a nation. In recent years, it has become more important because of the enormous growth of information technology and its significant potential for impact on the rest of the economy. The sector is experiencing rapid development due to FDI inflows in the form of international players entering the market.
Today, telecom is the fifth-largest sector attracting FDI inflows after the chemicals, services sector, drugs & pharmaceuticals, and construction activities. In FY12, the Indian telecom sector received FDI equity inflows of Rs 90.12 bn amounting to around 5.2% of the total FDI equity inflows into the country. The sector saw cumulative FDI equity inflow of Rs 457.2 bn over FY08-FY12 registering a five-year CAGR of around 15.3%. The industry has seen consistent growth during the last year on the back of rollout of newer circles by operators, successful auction of third-generation (3G) and broadband wireless access (BWA) spectrum, network rollout in semi-rural areas, launch of mobile number portability, and increased focus on value added services (VAS).
The future progress of the telecom industry in our country is also very encouraging, as rolling out the wireless broadband networks in the country has been started.
India is the second-largest wireless network in the world after China with 952.91 mn strong telephone network
(including 921.02 mn wireless telephony network) as on Apr 30, 2012. This rapid growth in telecom network resulted in overall tele-density of 78.71% as at Apr 30, 2012. The target of 600 million connections by end of the Eleventh Five Year Plan has already been achieved by Feb 2010. This growth in the telecom sector is attributable to proactive and positive policy initiatives of the government and to the