India is the second-largest telecom market in the world with 752 million subscribers as of December 2010. India is expected to feature among the top 10 broadband markets by 2013.
In 2010, the telecom sector’s mergers and acquisitions (M&A) deal value stood at US$ 14.6 billion (29.4 per cent of the total M&A deal value). The mobile value added services (MVAS) industry is expected to reach US$ 5.8 billion by 2013 from US$ 2 billion in 2009, representing a CAGR of 30.5 per cent.
Telecommunication Regulatory of India (TRAI) estimates the share of non-voice revenues of telecom operators to rise from 10 per cent in 2010 to over 30 per cent over the next 5-7 years.
Government has released Draft National Telecom Policy – 2011; proposes 'infrastructure' status to telecom. Foreign direct investment (FDI) of up to 74 per cent is allowed in basic and cellular, unified access, national/international long distance, and V-Sat services as well as public mobile radio trucked services. FDI of up to 100 per cent is permitted for infrastructure providers offering dark fibre, electronic mail and voice mail.
FDI inflows into the telecom industry from April 2000 to April 2011 amounted to US$ 10.6 billion.
The Government of India aims to develop the nation as a global telecommunication hub and provides regulatory support to the industry to achieve the goal.
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