The Indian telecommunication sector has registered a phenomenal growth during the past few years and has emerged as the second largest network in the world. On back of ongoing investments into infrastructure, the country is projected to witness high penetration of Internet, broadband, and mobile subscribers in the near future, as per an RNCOS report.
India's mobile services market will touch Rs 1,200 billion (US$ 20.24 billion) in 2013, registering a growth of 8 per cent from Rs 1,100 billion (US$ 18.55 billion) in 2012, according to a report by Gartner Inc. Mobile connections are expected to grow to 770 million in 2013, an 11 percent increase from 712 million connections in 2012.
Internet traffic in India is expected to reach from 393 petabytes per month in 2012 to 2.5 exabytes per month in 2017, highlighted a Cisco study. "Internet traffic growth in India is the fastest globally," said Mr Robert Pepper, VP (Global Technology Policy), Cisco.
India is expected to have 130.6 million mobile internet users by March 2014, as per a joint study by the Internet and Mobile Association of India (IAMAI) and Indian Market Research Bureau (IMRB).
The mobile value-added services (MVAS) market is expected to reach US$ 9.5 billion in 2015, from US$ 4.9 billion in 2012, stated a joint research report by Wipro Technologies and the Internet and Mobile Association of India (IAMAI).
The telecommunications industry attracted foreign direct investments (FDI) worth US$ 12,856 million between April 2000 to March 2013, an increase of 7 per cent to the total FDI inflows in terms of US$, according to data published by Department of Industrial Policy and Promotion (DIPP).
The Indian mobile phone market is highly competitive with more than 150 device manufacturers trying to woo the consumers with their offerings. Most of these producers focus their efforts on the low-cost feature phone market, which constitutes over 91 per cent of overall mobile phone sales, offering a huge scope for growth.
"India will add more Internet users than any country in the world over the next three years, as average penetration rises from 10 per cent to 28 per cent," as per McKinsey and Co report. Besides, with increased Internet penetration, 22 million jobs would be created by 2015.
The number of mobile banking transactions in India doubled to 5.6 million worth US$ 114.72 million in January 2013 from 2.8 million transactions worth US$ 35.06 million in January 2012.