SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 140

HIGH PRIORITY MARKET - TELECOM
Market Size
Driven by strong adoption of data consumption on
of 2015 . International Data Corporation ( IDC ) predicts
handheld devices , the total mobile services market
India to overtake US as the second-largest smartphone
revenue in India is expected to touch US $ 37 billion in
market globally by 2017 and to maintain high growth rate
2017 , registering a Compound Annual Growth Rate ( CAGR )
over the next few years as people switch to smartphones
of 5.2 per cent between 2014 and 2017 , according to
and gradually upgrade to 4G . In spite of only 5 per cent
research firm IDC . India ' s mobile subscriber base is
increase in mobile connections in 2015 , overall expenditure
expected to cross 500 million ! subscribers by the end of
on mobile services in India is expected to increase to US $
FY2015 from 453 million subscribers at the end of FY2014 .
21.4 billion in 2015 , led by 15 per cent growth in data
According to a study by GSMA , smartphones are expected
services expenditure , as per research firm Gartner . The
to account for two out of every three mobile connections
Indian telecom sector is expected to generate four million
globally by 2020 making India the fourth largest
direct and indirect jobs over the next five years according
smartphone market .
to estimates by Randstad India . The employment
The broadband services user-base in India is expected to
opportunities are expected to be created due to
grow to 250 million connections by 2017 , according to
combination of government ’ s efforts to increase
GSMA . India added the highest number of net mobile
penetration in rural areas and the rapid increase in
phone subscriptions of 13 million during the third quarter
smartphone sales and rising internet usage .
Investment
FDI equity inflow in telecom sector from April 2014 to
the total number of telephone and wireless connections
February 2016 , has reached $ 4,091 million which is more
have crossed the 1-billion mark in the current financal
than double that came in the corresponding period of
year . Today , with more than 1 billion connections , India is
previous two years ie . April 2012 to March 2014 ($ 1,611
the country second in number only after China . The
million ). At current exchange rate , $ 4.09 billion translates
number of telephone connections in rural India has
to more than Rs 26,000 crore . The Telecom Minister said
increased much more rapidly compared to urban India .
Some of the major developments in the recent past are :
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Walmart India Private Limited ' s president has shown
its partnership with Foxconn , a Taiwanese company ,
interest in opening its chain of stores in Haryana , while
for assembling its phones in Foxconn ' s factory in
Micromax has also offered to set up a mobile handset
Andhra Pradesh .
manufacturing unit in the National Capital Region
Ü
Swedish telecom equipment maker Ericsson has
( NCR ).
announced the introduction of a new radio system in
Ü
Vodacom SA , a subsidiary of Vodafone Plc , has
the Indian market , which will provide the necessary
entered into an agreement with Tata Communications
infrastructure required by mobile companies in order
Ltd to buy the fixed-line assets of TataComm ' s South
to provide fifth-generation ( 5G ) services in future .
African telecom subsidiary Neotel Pty Ltd .
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Out of the total number of smartphones shipped in
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Bharti Airtel has planned to invest Rs 60,000 crore
India during the June 2015 quarter , 24.8 per cent
( US $ 9.02 billion ) over a period of three years with a
were made locally - a significant rise as compared to
view to boost its telecom network capacity thereby
19.9 per cent in the previous quarter - as per
improving the quality of voice and data services to its
CyberMedia Research firm .
customers .
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Global telecom equipment makers like Ericsson , Nokia
Ü
Reliance Communications Ltd , India ’ s fourth largest
Networks and Huawei are looking forward to over US $
mobile services provider , has agreed to acquire
1 billion revenue opportunity as mobile phone
Sistema Shyam TeleServices Ltd ( SSTL ), the local unit
operators in India roll out high-speed broadband
of Russian company Sistema JSFC , in a deal valued at
services on the 4G LTE technology across the country .
Rs 4,500 crore ( US $ 687 million ), which includes
Ü
Lenovo Group of China has commenced
payments to the government for spectrum allotted to
manufacturing its smartphones in India , through its
Sistema .
contract manufacturer Flex ’ s facility near Chennai ,
Ü
Videocon Industries Ltd plans to set up a mobile
thus becoming the largest Chinese company to follow
handset assembly plant along with manufacturing set
‘ Make in India ’ strategy .
top boxes in Punjab for an investment of Rs 500 crore
Ü
Foxconn , the world ’ s largest contract-manufacturing
( US $ 76.7 million ) over three years .
firm for consumer electronics and manufacturer for
Ü
American Tower Corporation , a New York Stock
Apple products , has signed a Memorandum of
Exchange-listed mobile infrastructure firm , has
Understanding ( MoU ) with Maharashtra state
acquired 51 per cent stake in telecom tower company
government to invest US $ 5 billion over the next three
Viom Networks in a deal worth Rs 7,635 crore ( US $
years for setting up a manufacturing unit between
1.17 billion ).
Mumbai and Pune .
Ü
Chinese smartphone maker OnePlus has announced
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