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Indian Telecom Sector 2010


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The Indian telecom industry has grown more than 12 times in five years, from just 33 million subscribers in 2004 to 386 million in 2009. Even at its current size, it proved to be fairly immune to the current economic slowdown with 11% of total base being added in the last quarter of 2009.
The total telecom subscriber base rose by 11.45 million in May 2009, with the wireless segment adding 11.6 million subscribers. The wireless subscriber base touched 415.2 million from 403.7 million at the end of April. On the other hand, the number of wireline subscribers decreased by 0.15 million in May 2009, taking the total wireline subscriber base to 37.66 million.
In recent years, the Indian telecom industry has witnessed phenomenal growth. A conducive business environment, favourable demographic outlook and the political stability enjoyed by the country have contributed to the growth of the industry. India achieved the distinction of having the world's lowest call rates (2–3 US cents), the fastest sale of million mobile phones (1 week), the world's cheapest mobile handset (USD 19) and the world's most affordable colour phone (USD 31).

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Indian Telecom Sector 2010

  1. 1. 2010
  2. 2. One of the fastest growing cellular markets in the world in terms of number of subscriber additions – 120.00 million (in FY 2009) Expected to reach total subscriber base of about 500 million by 2010 (i.e., more than one phone for every household) More GSM subscribers than fixed-line subscribers.
  3. 3. Jammu & Kashmir Himachal Pradesh Punjab Haryana • 4 metros & 19 circles Rajasthan DELHI Uttar Pradesh W Uttar • Further divided into A, B and C Madhya Pradesh E Bihar KOLKATA Gujarat category based on economic Pradesh West Orissa parameters and revenue potential MUMBAI Maharashtra Bengal Andhra Pradesh Karnataka METRO Circles CHENNAI A Circles Tamil B Circles Kerala Nadu C Circles • Twelve operators per circle are allowed
  4. 4. USA 838 India 461 China 303 Russia 88 Minutes of Usage per Month
  5. 5. Value in Crores 36961 22235 10144 2065 15188 8581 2830 624 41.10% 38.50% 27.90% 30.21% 8490 5908 901 174 305 224 254 159002 55243 23591.72 6564.3
  6. 6. Untapped market Profitability is 7 to 10 % lower than urban. Churn rate is lower. ARPU is low in rural areas – Service provider is net High operating Cost. recipient of termination charge. (Rs 0.20 pm) Inadequate grid power and Customers are relatively less quality of power supply prone to travel - operator to increases the fuel cost. save on roaming charges.
  7. 7. Large and More impact Positive for established service in Urban providers will Saturated new witness an increase in their churn rate. Markets. players