TELECOMMUNICATION SECTOR
1.1 Introduction
India's telecommunication network is the second largest in the world by number of telephone
users (both fixed and mobile phone) with 1.183 billion subscribers as on 31 May 2019.[2] It has
one of the lowest call tariffs in the world enabled by mega telecom operators and hyper-
competition among them. As on 31 July 2018, India has the world's second-largest Internet user-
base with 460.24 million broadband internet subscribers in the country
The wireless segment (97 per cent of total telephone subscriptions) dominates the market, while
the wire line segment accounts for the rest. During FY07-14, wireless subscriptions increased at
a CAGR of 27.5 per cent to 904.51 million. Telecom penetration in the nation's rural market is
expected to increase from 41 per cent as of March 2013 to 70 per cent by 2017.
Availability of affordable Smartphone’s, along with a rise in the security level of mobile
transactions, is expected to boost growth of transactions conducted via phones, with the overall
transaction value being tripled in 2014 from last year. In addition, the mobile value added
services (MVAS) industry forecast to expand at a CAGR of 30.9 per cent to US$ 9.5 billion by
2015 from US$ 1.1 billion in 2007.
To boost local research and manufacturing of telecom products, the government has proposed an
investment of US$ 32.2 billion in three phases during the 12th Five Year Plan. The government
has been proactive in its efforts to transform India into a global telecommunication hub; prudent
regulatory support has also helped. The National Telecom Policy 2012 proposes unified
licensing, full mobile number portability (MNP) and free roaming.
Telecom services have been acknowledged globally as an essential tool for the socio-economic
development of a nation. India is currently the world’s second-largest telecommunications
market and has registered exceptional growth in the past few years.
The Indian mobile economy is growing rapidly and will contribute approximately US$ 400
billion to India’s gross domestic product (GDP), according to report prepared by GSMA in
collaboration with BCG.