SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 139

Telecom

SECTOR IN INDIA

Introduction
India is currently the world ’ s second-largest
demand in the rapid growth in the Indian telecom sector .
telecommunications market and has registered strong
The government has enabled easy market access to
growth in the past decade and half . The Indian mobile
telecom equipment and a fair and proactive regulatory
economy is growing rapidly and will contribute
framework that has ensured availability of telecom services
substantially to India ’ s gross domestic product ( GDP ),
to consumer at affordable prices . The deregulation of
according to report prepared by GSM Association ( GSMA )
foreign direct investment ( FDI ) norms has made the sector
in collaboration with the Boston Consulting Group ( BCG ).
one of the fastest growing and a top five employment
The liberal and reformist policies of the Government of
opportunity generator in the country .
India have been instrumental along with strong consumer
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Telecom subscriber base expands substantially
India is currently the second-largest telecommunication market and has the third highest number of internet users in the world
Between FY 07-16 India ’ s telephone subscriber base expanded at a Compound Annual Growth Rate ( CAGR ) of 19.5 per cent to 1,022.61 million and teledensity to 80.98
In September 2015 , total telephone subscription stood at 1,022.61 million , while teledensity was at 80.98 percent
Composition of telephone subscribers ( FY16 *)
41.0 %
20.15 % Urban Wireless
Rural Wireless
Urban
56.5 %
Wireless
Rural Wireless
Source : Telecom Regulatory Authority of India , TechSci Research Note : FY16 * - Data as of September 2015
India is the world ' s second-largest telecommunications
per cent by 2017 . The emergence of an affluent middle
market , with over 1.0 billion subscribers as of May 2015 .
class is triggering demand for the mobile and internet
The wireless segment ( 97.36 per cent of total telephone
segments . Availability of affordable smartphones , along
subscriptions ) dominates the market . It has also been
with a rise in the security level of mobile transactions , is
growing at a brisk pace . During FY07-15 , wireless
expected to boost growth of transactions conducted via
subscriptions witnessed a CAGR of 24.78 per cent to 969.8
phones , with the overall transaction value being tripled in
million . . It is also the second largest country in terms of
2014 from last year .
internet subscribers . India had 267.39 million internet
Strong policy support from the government has been
subscriptions as of December 2014 .
crucial to the sector ’ s development . FDI cap in the telecom
India ’ s telecommunications market is expected to
sector has been increased to 100 per cent from 74 per
experience further growth , fuelled by increased non-voice
cent . In January 2015 , the Government of India
revenues and higher penetration in rural market . Telecom
recommended reduction in license fees of telecom by 6 per
penetration in the nation ' s rural market is expected to
cent for operators ; telecom operators currently pay 8 per
increase from 46.14 per cent as of December 2014 to 70
cent of adjusted gross revenue as licence fee .
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