Communication Industry in India

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The Communication Industry in India is one of the fastest developing sectors in the country and is estimated to become the second-biggest international telecom market in the next few years. The telecommunication industry showed a growth rate of 3.24%. The Indian mobile value-added service market is expected to grow at a CAGR of 7.22% during 2017-2023. 1,151.81 million units Wireless phone subscriptions recorded and 720.7 million Wireless internet subscriptions in 2020-2021. India currently has a subscriber base of 1.16 billion. The growth in the communication industry was triggered by an increase in the revenues generated from both landline and mobile facilities. Gross revenue of the telecom sector stood at Rs. 68,228 crore (US$ 9.35 billion) in the third quarter of FY21.

Key Players in Indian Communication Industry

With the coming in of several new players the level of competition has increased, tremendously in the telecom industry in India. Currently, the industry is witnessing as many as 15 players. According to the latest data by the Telecom Regulatory Authority of India of 2020, it is Reliance Communication is leading the communication sector in India followed by Bharti Airtel. Reliance holds 35.06% of the industry’s share, Bharti Airtel 29.24%, Vodafone 24.26%, BSNL 10.27% while others hold 0.71%.

Revenue and Profit of Top Company for year 2010

Bharti Airtel107.64 billion
Reliance159.15 billion
BSNL21.85 billion
Tata Communications5.83 billion

India as an emerging telecom equipment manufacturing Market

The Teledensity of rural subscribers reached 59.48% in February 2021. India is one of the biggest consumers of data worldwide. The average wireless data usage per user for FY 2020 was 11 GB. India’s 5G subscriptions to have 350 million users by 2026

Chief Investments in the Communication Industry in India

Over the past decade, the flourishing Indian Communication industry has been successful in drawing the attention of conglomerates that have invested and are willing to invest more in the sector. With the influx of new telecom giants in the Indian market, the investments are likely to gain immense momentum:
  • Elon Musk’s SpaceX will be accepting pre-orders for its Starlink satellite internet service beta version from April 2021 in India.

  • Jio platforms have the largest continuous fundraiser for any company in the world in 2020 when they sold stakes worth Rs. 104 trillion to global investors such as Facebook, Vista, General Atlantic among others.

  • BSNL launched a partnership with Skylotec India which will be a major progressive move for Indian farmers and the agricultural industry.

  • Global companies such as Samsung, Cisco have shown interest in setting up manufacturing bases in India for networking products. This will be a big investment in India and will strengthen the economy.

  • Future of Communication Industry in India

    Indian Communication Industry has a flourishing future in its value-added services market. Revenue is supposed to grow up to US$ 26.8 billion by 2021. India is all set to become the fastest-growing telecommunication by 2023.