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Telecommunication: Nov 2012

November, 2012

India is the second-largest telecom market in the world with 951.3 million subscribers as of March 2012. 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$ 3.3 billion in 2011. The Indian cloud computing market is expected to grow at a compound annual growth rate (CAGR) of 76 per cent over the period till 2012 (to US$15-18 billion).

The share of non-voice revenues, which currently stand at around 10 per cent of telecom operators' revenues, is estimated to rise to over 30 per cent in the next five to seven years.

National Telecom Policy 2012 proposes unified licensing, full MNP and free roaming. 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 February 2012 amounted to US$ 12.6 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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