The
Indian mobile subscriber base is likely to sustain the rapid growth recorded in
the past few years. Presence of skilled labour pool, improving telecom
infrastructure, favourable demographics, rising disposable incomes of
consumers, declining tariffs, increasing demand, growing attraction for mobiles
with new features and greater availability of handsets at lower prices, are
expected to continue driving the growth of the telecom sector, going forward.
India’s
growth story lies in the immense potential of its growing domestic consumption,
its ‘demographic dividend’ and its burgeoning middle class, which is an
opportunity for retail products and services.
Reach beyond
cities, to rural areas across India, is
the clear driver of business.
The
government has proposed to achieve a rural tele-density of 25% by deploying 200
mn-connections at the end of the Eleventh Five Year Plan, given that more than
70% of the population lives in villages.
During
the Eleventh Five Year Plan period, Rs 2,670 bn worth of investments are
projected to be made in the telecom industry and the public sector is expected
to have a 33.50% share in the same, while the private sector is expected to
contribute 66.50%. Further, a total of 650 mn connections (including 66 mn
wired and 584 mn wireless connections) are expected to be achieved by the end
of 2012.
The
urban tele-density at 154 per cent is far ahead of the rural tele-density of 34
per cent. While this spells opportunity for the industry.
The
telecom industry will provide about 28 lakh direct jobs and around 70 indirect
jobs by 2012, the study commissioned by the Cellular Operators Association of
India (COAI) and done by PwC .
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