Tuesday, December 28, 2010

Telecom Network Grows by over 40 Percent

Wire line Vs. Wireless

The growth of wireless services has been substantial, with wireless subscribers growing at a compound annual growth rate (CAGR) of 57% per annum since 2004. Today, the wireless subscribers are not only much more than the wireline subscribers in the country, but also increasing at a much faster pace. The share of wireless phones has increased from 5.26 per cent in 1999 to 95.23% in October 2010.

Private vs. Public

The liberalization efforts of the Government are evident in the growing share of the private sector. The private sector is now playing an important role in the expansion of telecom sector. The share of private sector in total telephone connections is now 84.42% as per the latest statistics available for October, 2010 as against a meager 5% in 1999.

Foreign Direct Investment (FDI)

Today, telecom is the third major sector attracting FDI inflows after services and computer software sector. At present 74% to 100% FDI is permitted for various telecom services. This investment has helped telecom sector to grow. The total FDI equity inflows in telecom sector have been US$ 1057 million during 2010-11 (April-September).

3G and BWA Telecom services

The phenomenal growth of the telecom industry in India is being followed by the urge to move towards better technology and the next level of service delivery. While the last 5 years have been transformational for Indian telecom industry, the next few years look even more exciting.3G spectra have already been allotted to successful bidders for commercial use on September 1, 2010 as per the timelines indicated in the Notice Inviting Application (NIA) and in the Letter of Intent issued after the bid amounts were deposited. The 3G spectrum has been allotted to AirTel, Aircel, Vodafone, S Tel, Reliance, Idea Cellular and Tata Cellular Services who won the bids through the electronic auction spread over a period of 34 days in respect of 3G and 16 days in respect of BWA.

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