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Indian Telecom Industry Analysis

April, 2019

India is the world's second-largest telecommunications market, with around 1.20 billion subscribers as of December 2018. The telecom market can be split into three segments – wireless, wireline and internet services. The wireless market segment comprises of 98.19 per cent of the total subscriber base, as of January 2019. Wireless subscriptions witnessed a CAGR of 19.61 per cent to reach 1,183.41 million at the end of FY18.

India is also the second largest country in terms of internet subscribers with 604.21 million internet subscribers, as of December 2018. India became the world’s fastest-growing market for mobile applications in the first quarter of 2018 and remained as the world’s fastest growing market for Google Play downloads in the second and third quarter of 2018.

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. FDI inflows into the telecom sector during April 2000 – December 2018 totalled to US$ 32.45 billion.

To propel the sector on a growth path, the Government of India has launched the National Digital Communications Policy, 2018, which envisages attracting investments worth US$ 100 billion in the telecommunications sector by 2022.

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