3. 3
Indian Telecom Industry – A Lucrative Option
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).
One of the fastest growing cellular
markets in the world in terms of number
of subscriber additions – 19.35 million in 3
months (April to June 2009)
Expected to reach total subscriber base of
about 500 million by 2011 (i.e., more than
one phone for every household)
Annual growth rate of the telecom
subscribers – 47 percent (2008–09)
More GSM subscribers than fixed-line
subscribers
Indian Telecom Industry – Facts
Total telecom subscribers – 225.21 million
(June 2009)
Tele density – 19.86 percent (June 2009)
Number of new mobile subscribers added
every month – 7.34 million (June 2009)
ARPU for GSM – USD 6.6 per month
Telecom equipment market – USD 17,100
million (2008–09)
Handset market – USD 4,750 million
(2008–09)
4. 4
GSM surpasses CDMA in number of additions to subscriber base
Market Share* of Wireless
Operators (as of quarter
ending March 2007)
CDMA, 27%
GSM, 73%
* In terms of
Subscriber Base
GSM surpasses CDMA
segment by a large
margin in terms of
subscriber numbers.
8. 8
World’s largest democracy
Independent judiciary
Skilled and competitive labour force
Fifth largest telecom network in the world; second largest among the
emerging economies after China
On an average, about 6–7 million new users added per month, making India
the world’s fastest growing wireless services market
Liberal Foreign Investment Regime–FDI limit increased from 49 percent to 74
percent; the rural telecom equipment market is also open to large investments
Among the countries offering the highest rates of return on investment
The large untapped potential in India’s rural markets–1.9 percent teledensity
in rural markets as compared to the national level of 18 percent
Expected to become the second largest telecom market by 2011
The government promoting telecom manufacturing by providing tax sops and
establishing telecom specific Special Economic Zones
Fully repatriable dividend income and capital invested in telecom equipment
manufacturing
India: An Ideal Destination for Investments in Telecom Sector