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Telecommunications: Jul 2010

July, 2010

India is one of the biggest telecom markets in the world with 581.81 million subscribers as on January 31, 2010, which are estimated to reach approximately 700 million by 2012. At the end of January 2010, the overall tele-density was recorded at 49.5 per cent with a total telephone subscriber base of 581.81 million.

The telecom sector is one of the highest FDI attracting sectors in India, and has recorded FDI inflows worth over US$ 8.8 billion between 2000 and 2010. Multiple factors including low tariffs, low handset prices, effective government regulations, higher incomes and changes in customer behaviour are the key drivers for growth. Broadband subscribers are expected to grow to 30 million, while Internet subscribers are expected to grow to 45 million by 2012.

The launch of 3G services is expected to drive data revenues. India’s data revolution is expected to be fuelled by 3G and WiMax.

By 2012, total telecom penetration in the largely untapped potential rural markets of India is expected to reach to about 40 per cent as compared to the current tele-density of about 16.61 per cent as of June 2009.

Sectoral Presentation (April 2010)

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