With rapid growth in teledensity in almost every region of the country, Indian telecom industry seems to emerge as a booming industry in 2007.
The telecom sector in India, after witnessing a tremendous 50% growth in the year 2006, is ready to grow further in the next year (i.e. year 2007). With the govt. aiming 250 Million telephones by December 2007, teledensity of India will rise to 22%, which is currently 16.28%, as per DoT (Department of Telecommunications).
Total number of phones grew from 125.79 Million as on December 31, 2005 and reached to 183.46 Million by November 30, 2006 and wireless phones' share grew to 78% in November 2006, whereas it was 68% in December 2005. During the year 2006, India exceeded 100 Million GSM mobile subscribers' target and became the fifth nation achieving this benchmark subsequent to China, Japan, USA, and Russia.
The high growth in this sector was made possible by the various proactive & positive decisions govt. had taken in the recent past as well as the support that this sector has received from both public & private sectors. Continuous reduction in tariffs and improved affordability of handsets and service has also contributed to the rapid growth in the number of mobile subscribers.
Growing demand for an array of telecom equipments has offered excellent opportunities for both domestic & foreign investors in manufacturing sector. The country has been able to attract strategic investments from Singaporean and Malaysian operators such as Smart Digital, SingTel, Ascent Media Group, Astro, etc., who're looking forward to offset the decline in their own markets. The outlook of growth remains robust throughout market segments, underlined by low teledensity & supported by the strong economic fundamentals.
As per DoT, more than 14 thousand villages would be covered with telephony by means of DSPT (Digital Satellite Phone Terminals) technology using Indian satellite band frequency, for which the procurement is underway.
"In India, there's tremendous appetite of absorbing new technology. At the higher-end of the market, the country will imitate the most sophisticated telecommunication technology in the world & will face all sorts of uncertainties associated with any novel technology across the world. It'll take some time for new technologies market to consolidate", an analyst at RNCOS said.
Related Market Research Reports:
Indian Telecom Analysis (2008-2012)
Indian Telecom Sector Analysis (2006-2007)
Europe Mobile Handset Market Analysis (2007)
