Communications Industry Analysis

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The Communications Industry Analysis of India suggests that the industry has registered phenomenal growth since, the 1990s. The Government of India came out of its old monopoly-market concept to open-market policy regime. This resulted economic renaissance in India and different Indian industries grew to record heights in record time. The success of India telecommunication industry is also mention worthy and its contribution towards the overall health of Indian economy is substantially high.

The Indian Communications Industry Analysis indicates that although, this industry has matured tremendously over the last fifteen years but huge scope of growth still waits to be explored. The urban India is more or less well connected with basic telephone services but the semi-rural area needs immediate attention.

The most important and unexplored area is the rural- India and huge scope of growth is lying still untapped. The Government of India is now more focused on faster development of rural-telephony in rural parts of India. The latest telecommunication policy offers host of fiscal incentives and tax rebates to attract investors, both domestic and foreign investors.

Telecom Regulatory Authority of India or the TRAI regulates the telecommunication industry of India. It has earned good reputation for transparency and competence. Three types of operators function in this industry. With 110.01 million connections, the Indian telecommunication industry is the fifth largest and fastest growing telecommunication industry in the world. The subscriber base of the Indian telecommunication industry has grown by 40% in the year 2005 and is projected to touch 250 million by the end of the financial year 2007. In the last 3 years, two out of every three new telephone connections were wireless and today it accounts for about 55% of the total telephone subscription in India, as compared to only 40% in 2003. The wireless subscriber growth in India is expected to add 2.5 million new subscribers in every month of the financial year 2007-2008. The wireless subscriber base in India, rose from 33.69 million subscription in 2004 to 62.57 million subscription in the financial year 2004 -2005. The wireless technologies those are currently operating in the Indian telecommunication industry are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The Indian telecommunication industry now has 9 GSM and 5 CDMA service providers serving in 19 circles and 4 metro cities and connecting more than 2000 towns across the length and breadth of India.

The main service providers in the Indian telecommunication service are as follows -
  • State owned companies like - VSNL, BSNL and MTNL.
  • Private Indian companies like - Reliance Infocomm and Tata Teleservices.
  • Foreign companies like - Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, and Spice Communications.
Further, the Indian Communications Industry Analysis suggests that the products and services offered by this industry is not confined to basic land line connections but it also includes facilities like Internet, broadband (both wireless and fixed), cable TV, SMS, Internet Protocol TV (IPTV), soft switches etc.

The analysis of the tenth plan of the Indian communication industry is as follows -
  • Creating world class telecommunication infrastructure to meet the requirements of IT, ITES, media and other IT based industry.
  • Easy and affordable access to basic telecommunication services across India.
  • Affordable and effective basic telecommunication facilities to each and every Indians.
  • Facilitation of world class service to all uncovered and rural areas of India
  • Establishing a modern and efficient telecommunication infrastructure to meet the requirements of modern industrial nation
  • Continual modernization of the Indian telecommunication industry and provide an equal opportunity for all the telecommunication
  • service providers operating in India
  • Strengthening R&D in telecommunication
  • Efficient and transparent spectrum management
  • Enabling efficient protection of the defense and security systems of the country
  • Facilitating the Indian telecommunication companies to be at par with other global players
  • Facilitate world class services at affordable prices
  • Institutionalize the Department Of Telecommunication, Government of India and help it function as a corporate body
  • To make telephone available on demand
  • To reach tele-density of 9.91 by 31st March 2007
  • Facilitate reliable media to all telephone exchanges
  • Facilitate high-speed data and multimedia connections using technologies like ISDN to all towns with population strength of two lakh or more.

Last Updated on 27 June 2011