4. ๏ The Indian telecom industry has witnessed
phenomenal growth.
๏ The Indian telecom services can be
divided predominantly into
โข Basic
โข Mobile
โข Internet services
5. ๏ Fifthlargest telecom network in the world;
second largest among the emerging
economies after China
๏ On an average, about 6โ7 million new users
added per month, making India the worldโs
fastest growing wireless services market
๏ The government promoting telecom
manufacturing by providing tax benefits and
establishing telecom specific Special
Economic Zones
6. ๏ The telecom companies are booming with
the effect of the growing telecom industry
๏ Large number of mobile handsets are
been sold every year providing a growth
for the handset industry
10. Estimates of Mobile Operatorsโ Revenue
No. of Mobile Revenues GDP Mobile
mobile ARPU per from (Rs. in billion at revenue as a
subscribers year mobile factor cost at percentage of
(in million) (Rs.) services current prices) GDP
(Rs. in
billion)
2005-06 90 4500 405 32000 1.3
2010-11 433 3600 1559 57600 2.7
2015-16 899 3600 3236 103680 3.1
Rapid increase in mobile subscriber base and mobile
spending
will have equally important implications for the government
revenue
particularly in the form of regulatory charges (license fee
including universal service obligation and spectrum charges)
and service tax.
12. โข Huge Customer potential
โข High Growth Rate
โข Allowed FDI limit ranging from 74% to
100%
โข High return on Investment
โข Liberalization efforts by Govt.
โข Lower capital expenditure
13. WEAKNESS
โข Poor Telecommunication Infrastructure
โข Late adopters of New Technology
โข Most competitive market
โข A market strongly regulated by
Government.
โข Difficult to enter because of requirement of
huge financial resources.
14. โข 3G Telecom services and 4G services
โข More Quality Service
โข Value added Services (VAS)
โข Boost to Telecom Manufacturing
Companies
โข Telecom Equipment Exports
15. โข Telecommunication Policies
โข Declining ARPU (average Revenue per
user)
โข Partiality on the part of the Govt.
โข Content Piracy
16. Future Mobile Subscriber Base in India
It is projected that almost 350 million new mobile subscribers
will
be added between 2005-06 and 2010-11 and more than 450
million
will be added between 2010-11 and 2015-16.
1000
899
900
808
No. of mobile subscribers (in million)
800
715
700
620
600 526
500 433
400
300
200
90
100
4
0
2000-01 2005-06 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Note: Future population of India is taken from the United Nations
Population Division publication.