Trade Analytics
Telecommunication
According to a study by GSMA, India is all set to become the fourth largest smartphone market by 2020.

Indian Telecom Industry Analysis

Latest update: January, 2017

Telecom subscriber base expands substantially

  • India is currently the second-largest telecommunication market and has the third highest number of internet users in the world
  • India’s telephone subscriber base expanded at a CAGR of 19.96 per cent, reaching 1058.86 million during FY07–16
  • In March 2016, total telephone subscription stood at 1,058.86 million, while teledensity was at 83.36 percent
Growth

Wireless segment dominates the market

  • In March 2016, India’s telephone subscriber base reached 1,058.86 million
  • In March 2016, the wireless segment (97.62 per cent of total telephone subscriptions) dominated the market, with the wireline segment accounting for an overall share of 2.4 per cent
  • Urban regions accounted for 57.6 per cent share in the overall telecom subscriptions in the country, while rural areas accounted for the remaining share
Growth

 

Last Updated: January, 2017

India is the world's second-largest telecommunications market, with over 1.0 billion subscribers as of May 2015. The wireless segment (97.36 per cent of total telephone subscriptions) dominates the market. It has also been growing at a brisk pace. During FY07-15, wireless subscriptions witnessed a CAGR of 24.78 per cent to 969.8 million. . It is also the second largest country in terms of internet subscribers. The country is now the world’s second largest smartphone market and will have almost one billion unique mobile subscribers by 2020.

India’s telecommunications market is expected to experience further growth, fuelled by increased non-voice revenues and higher penetration in rural market. Telecom penetration in the nation's rural market is expected to increase to 70 per cent by 2017. The emergence of an affluent middle class is triggering demand for the mobile and internet segments.

Strong policy support from the government has been crucial to the sector’s development. Foreign Direct Investment (FDI) cap in the telecom sector has been increased to 100 per cent from 74 per cent.

Sectoral Presentation (January, 2017)

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