The Communication Industry in India is one of
the rapidly emerging sectors in India and is estimated to surface as the second
biggest international telecom market. As per the report carried out by Telecom
Regulatory Authority of India (TRAI), Indian communication industry has
registered a 3.5% increase in its total telecom subscribers in December 2009.
The sector touched 562.21 million in its total number of subscribers within a
month, against 543.20 million in November 2009.
The growth in communication industry was
triggered by an increase in the revenues generated from both landline and
mobile facilities. On December 31, 2009 the sector earned the revenue of USD
8.56 billion. As per the Business Monitor International report, the nation is
all set to include 8 to 10 million cellular phone subscribers on monthly basis.
At this pace the communication industry is expected to encompass more than half
of India's population i.e. 612 million cellular phone subscribers by mid 2012.
In addition, as per a research carried out by Nokia, the communications sector is estimated to surface as the biggest driving component in India's GDP with a contribution of about 15.4% by the FY2014.
India as an emerging Value-Added Services Market
As per a research conducted by Stanford University, Indian mobile value-added services (MVAS) are expected to reach USD 2.74 bn by the FY2010. To benefit from the emerging MVAS market in India, Reliance Communications and Bharti Airtel Limited are all set to introduce online cellular phone applications in Indian retail stores. While Bharti Airtel will offer around 1,250 applications, Reliance Communications' applications will soon be accessible to its GSM customers by Feb 2010.
India as an emerging telecom equipment manufacturing Market
The manufacturing of Cellular phone in India is predicted to expand at an annual rate of 28.3% till the FY 2011 which can be translated as a production of 107 million mobile handsets by 2010. The production would automatically generate profits and is predicted to increase at an annual rate of 26.6% till 2011, reaching the target of USD13.7 billion.
Chief Investments in the Communication Industry in India
Over the past one decade, the flourishing Indian Communication industry has been successful in drawing the attention of conglomerates that have invested and are willing to invest more in the sector. With the influx of new telecom giants in Indian market, the investments are likely to gain immense momentum:
- Investment of
USD 6 bn by Vodafone Essar for the next 3 fiscal years in order to expand
its list of cellular phone subscribers to 100 million against the existing
40 million.
- By 2010,
Reliance Communications (RCom) is expecting to increase the total number
of telecom towers by constructing 56,596 telecom towers and attaining the
preset target of 100,000.
- Telenor, Norway
based telecom giant has purchased 7% of shares in Unitech Wireless and now
possesses 67.25% by bringing in an investment of USD 431.70 million
- Indian
government owned telecom player, BSNL will invest USD1.17 billion in its
WiMax scheme
- A proposal of
foreign direct investment worth USD 660.1 million by Federal Agency for
State Property Management of the Russian Federation has been recently
approved by the Indian government. The Agency would be acquiring 20% stake
in Sistema-Shyam after bringing in the investment.
- A USD 1 billion
investment will be brought in by Tata Teleservices in its newly introduced
GSM facility Tata DoCoMo.
Future of Communication Industry in India
Indian Communication Industry has a flourishing future in its value-added services market. The pre-set target of the 11th plan from FY 2007 - 12 is to provide 600 million cellular phone connectivity aided by an investment of USD 74 billion.
Moreover, it is estimated that by the FY 2012 the profits generated by Indian Communication Industry will touch USD 55 billion against the current USD 31 billion.