Trade Articles - India's increasing Mobile Sector

With a figure of around 110.01 million connections, Indian telecom industry is characterized as the 5th largest and fastest growing sector of the world. The Indian mobile sector has witnessed the increase of 10 million subscribers in 2002 to reach out at 150 million in 2007. It showed an average growth rate of above 90%. The factors which can be held responsible for sudden shoot up are low tariffs along with the falling headset cost. The telecom reforms introduced by government has opened pathways for many foreign companies to enter into Indian market sector. International telecom companies like Vodafone have made its foray into the Indian marketplace into a big way. At present Indian telecom industry cost around $100 billion (Rs.400,000 crore). The Indian telecom sector is not only limited to the basic telephone but it covers internet broadband, cable TV, SMS, IPTV, soft switches etc. Currently there are nearly 42 million Internet subscribers in India. At an estimate there are primarily 9 GSM with 5 CDMA operators imparting mobile services in 19 telecommunication circles and across 4 metro cities. It covers around 2000 towns throughout the nation. Indian telecom industry is regulated and administrated by the 'Telecom Regulatory Authority of India' (TRAI). The TRAI has announced the Indian telecom and broadband subscription numbers, which shows increase in the subscription base.

The details issued by TRAI in respect of the indian wireless and wireline subscribers:

Wireless subscribers have crossed the mark of 200 million.
Tele density has reached to the mark of 21.20 per cent.
Wireless subscribers are recorded five times more than that of wireline subscribers.
Number of telephone subscribers is recorded above to 241.02 million.

The Indian telecom sector has witnessed a massive increase in its progress rate in last few years, during which time period it registered above 90% growth rate. However, broadband subscribers have not resulted the expected increase. Wireless is recorded to be nearly 54.6% of the total telephone subscription base. The technology used in respect of it is mainly are global system for mobile communications (GSM) and code division multiple access (CDMA).

Going by the 13th annual survey of Voice&Data, a cyber media publication, Indian telecom industry is growing at a steady growth rate, where revenues of said industry has increased by 24% and has touched the milestone of Rs 95,407 crore in 2007-08. The survey was conducted to cover more than 500 telecom companies of India encompassing carrier equipment, handset manufacturers and communication equipment. Results of survey outlines that carrier equipment manufacturers are the major contributor, as it contributes more than half in telecom equipment revenue. It has been reported that there is an increase of around 27%, which has recorded Rs 13,210 crore revenue. The telecom industry has registered about one-fourth contribution from the phone segment. It has earned revenue around Rs 25,203 crore marking 7% growth rate. The stalwarts of telecom industry is seeing it as a positive sign for the growth of the Indian telecom industry. Increasing demand of mobile headsets is considering as a de facto in robust growth of the indian telecom equipment market. Number of people holding mobile headsets have increased, especially in the metro cities. Nokia, mobile handset manufacturer is recorded as the higher revenue earner followed by the network equipment major like Ericsson, Nokia Siemens Networks, Alcatel-Lucent and Wipro.

Growth of Indian Telecom Industry

Number of mobile phones have crossed the milestone of 83 million mark.
Total number of phones connection has crossed the label of 130.8 million.
As per the performance graph of the TRAI, there has been 15% increase in Internet users.
Total mobile and landline phone connection stood around 113.07 million.
Government under its Bharat Nirman Yojana is planning to introduce public telephones across the 66822 villages.
ECI Telecom, Israeli company has come up with their R&D center in India.