Telecommunication

India is the world's second-largest telecommunications market, with 898 million subscribers.

Indian Telecom Industry

Latest update: March, 2014

Revenues

Wireless and wireline revenue increased at a compound annual growth rate (CAGR) of 11.9 per cent to US$ 40.8 billion over FY07-12.

Revenues

Market Share

BSNL is the market leader with a 67.7 per cent share followed by MTNL with 11.5 per cent market share.

Market Share

Penetration

During 2006–12, wireless subscriptions increased at a CAGR of 34 per cent to 864.7 million.

Penetration

Market Segment

The wireless segment (96.6 per cent of total telephone subscriptions) dominates the market.

Market Segment

Updated: March, 2014

SECTORAL REPORT | March, 2014

Introduction

India is the world’s second-largest telecommunications market. The mobile phone industry in India is likely to contribute US$ 400 billion to the country’s gross domestic product (GDP) and has the potential to generate about 4.1 million additional jobs by 2020, as per Ms Anne Bouverot, Director General, Groupe Speciale Mobile Association (GSMA).

“India’s data story is very promising. Vodafone is investing nearly US$ 3 billion over the next two years in India in expanding its network infrastructure and distribution channel in the country,” as per Mr Vittorio Colao, CEO, Vodafone Plc.

Key Statistics

The telecommunications industry attracted foreign direct investments (FDI) worth US$ 59,796 million between April 2000 to January 2014, an increase of 6 per cent to the total FDI inflows in terms of US$, according to data published by Department of Industrial Policy and Promotion (DIPP).

Online platforms that support user-generated content can become an important part of India’s internet economy and contribute around Rs 2,490 billion (US$ 41.5 billion) by 2015, according to Global Network Initiative (GNI) report titled ‘Closing the Gap: Indian Online Intermediaries and a Liability System Not Yet Fit for Purpose’.

BlackBerry has chosen India as the third country to set up enterprise solutions centres to educate corporate customers about various BlackBerry Enterprise Service (BES) 10 solutions. "India is one of the fastest growing markets in terms of smartphone and mobile data adoption,” said Mr Sunil Lalvani, Managing Director (MD), BlackBerry India.

Market Dynamics

India’s global system for mobile (GSM) operators added 4.14 million rural subscribers in January 2014, taking the total to 285.35 million.

India's GSM cellular subscriber base increased marginally in November to 688.02 million with an addition of 4.87 million new subscribers during the month, said industry body Cellular Operators Association of India (COAI).

Data traffic powered by third generation (3G) services grew at 146 per cent in India during 2013, higher than the global average that saw use double, according to an MBit Index study by Nokia Siemens Networks (NSN). The data consumed per subscriber for 3G is 532 megabytes (MB), against 146 MB for second generation (2G).

Tata Teleservices plans to set up nearly 4,000 wi-fi hotspots in nine cities across the country in the next two years. India's smartphone market grew by 171 per cent last year to 44 million devices from 16.2 million in 2012, as per research firm IDC India.

The 20 km free Wi-Fi zone the longest across the globe was unveiled by Mr Nitish Kumar, the Chief Minister of Bihar, Government of India.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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