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Telecommunication: Feb 2011

February, 2011

India is the second-largest telecom market in the world with 706.4 million subscribers as on August 31, 2010, which are estimated to reach approximately 1 billion by 2014. Mobile handsets sales in India are expected to reach 138.6 million units in 2010, an increase of 18.5 per cent over 2009. For more than a decade, the sector has witnessed a steady addition in wireless subscribers. India has been adding 15-20 million subscribers every month, making it the world’s fastest growing wireless market.

The Indian telecom industry can be primarily divided into basic, cellular and internet services. It also has relatively segments such as radio paging services, very small aperture terminals (VSATs), public mobile radio trunked services (PMRTS) and global mobile personal communications by satellite (GMPCS). The subscriber base of wireless services stood at 670.6 million as of August 2010 with tele-density of 56.6 per cent.

Revenues of the Indian telecom industry are projected to reach US$ 45 billion by 2012, compared with US$ 33 billion in 2009. The wireless segment in India is much larger than the wire line segment and is growing steadily due to the convenience and utility it offers.

The telecom sector is one of the highest FDI-attracting sectors in India, and has recorded FDI inflow worth more than US$ 9 billion between 2000 and 2010. Moreover, the rural markets are expected to be the next key growth drivers for the Indian telecom sector, given rural India’s growing population and disposable income.

Sectoral Presentation (November 2010)

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