India is the world’s second-largest telecommunications market, with 898.02 million subscribers as of March 2013. The sector's revenue grew by 13.4 per cent to reach US$ 64.1 billion in FY12. Wireless and wireline revenue increased at a compounded annual growth rate (CAGR) of 10.4 per cent to reach US$ 39.1 billion over FY06–13; revenues from the telecom equipment segment in FY12 stood at US$ 23.5 billion as compared to US$ 23.4 billion in FY11.
Availability of affordable smartphones and lower rates are expected to drive growth in the Indian telecom industry. The Government of India plans to cut license fees up to 33 per cent for operators that cover services for over 95 per cent of the residential areas in a calling circle. The issuance of several international and national long-distance licenses has created opportunities and attracted new companies into the market. The government has also allowed foreign direct investment (FDI) of up to 74 per cent 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.
The mobile application (app) market is expected to expand at a CAGR of 70.4 per cent during 2012–15 and reach US$ 100 billion. The segment’s growth is expected to be driven by rising mobile connections and availability of low-range smartphones. Over 100 million apps are downloaded every month across different platforms such as iOS, Blackberry, Nokia, and Android.