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The Indian telecom industry is the fifth largest and fastest growing in the world, with over 110 million connections. The subscriber base has grown 40% in 2005 and is projected to reach 250 million by 2007. Wireless now accounts for over half of telephone subscriptions, up from 40% in 2003, and wireless growth is expected to be 2.5 million new subscribers per month in 2007. The industry provides mobile services through GSM and CDMA networks across 19 circles and 4 metro cities in India. While the industry has seen tremendous growth, challenges remain around slow reforms, low penetration raising operator costs, high initial investments, and limited spectrum availability.

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42 views1 page

Report 1

The Indian telecom industry is the fifth largest and fastest growing in the world, with over 110 million connections. The subscriber base has grown 40% in 2005 and is projected to reach 250 million by 2007. Wireless now accounts for over half of telephone subscriptions, up from 40% in 2003, and wireless growth is expected to be 2.5 million new subscribers per month in 2007. The industry provides mobile services through GSM and CDMA networks across 19 circles and 4 metro cities in India. While the industry has seen tremendous growth, challenges remain around slow reforms, low penetration raising operator costs, high initial investments, and limited spectrum availability.

Uploaded by

jain_annya
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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At 110.

01 million connections ' Indian Telecom Industry' is the fifth largest and fastest
growing in the world. The subscriber base has grown by 40% in 2005 and is expected to
reach 250 million in 2007.

Over the last 3 years, two out of every three new telephone connections were
wireless. Consequently, wireless now accounts for 54.6% of the total telephone
subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is
expected to grow at 2.5 million new subscribers every month in 2007. The wireless
subscriber base skyrocketed from 33.69 million in 2004 to 62.57 million in FY 2004
-2005. The wireless technologies currently in use ' Indian Telecom Industry ' 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 telecommunication circles and 4 metro cities, covering more than 2000 towns
across the country. And the numbers are still growing for ' Indian Telecom Industry '. '
Telecom Industry in India ' is regulated by 'Telecom Regulatory Authority of India'
(TRAI). It has earned good reputation for transparency and competence. Three types of
players exists in ' Telecom Industry India ' community -

• State owned companies like - BSNL and MTNL.


• Private Indian owned companies like - Reliance Infocomm and Tata Teleservices.
• Foreign invested companies like - Hutchison-Essar, Bharti Tele-Ventures,
Escotel, Idea Cellular, BPL Mobile, Spice Communications etc.

The ' Indian Telecom Industry ' services is not confined to basic telephone but it also
extends to internet, broadband (both wireless and fixed), cable TV, SMS, IPTV, soft
switches etc. The bottlenecks for ' Indian Telecom Industry ' are:

• Slow reform process.


• Low penetration. Service providers bears huge initial cost to make inroads and
achieving break-even is difficult.
• Huge initial investments.
• Limited spectrum availability and interconnection charges between the private
and state operators.

The Government Broadband Policy 2004, aims at 9 million broadband connections and
18 million internet connections in 2007. ' Indian Telecom Industry ' is currently
expected to contribute nearly 1% to India's GDP which is heartening and estimated to
grow further and brighten the ' Scenario of Indian Telecom Industry '.

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