Booming Telecom Sector in India

The Indian telecom sector witnessed a total telephone subscriber base of 621.28 million and a wireless subscription of 584.32 million, according to Telecom Subscription Data released by TRAI as on 31st March 2010. The overall tele-density and Broadband subscription base in the telecom sector touched 52.74 and 8.75 million respectively, as on 31st March 2010.The Indian telecom sector saw number of telephone subscribers in India increase to 621.28 million at the end of March-2010 from 600.98 million in February-2010, thereby registering a growth rate of 3.38 per cent. With this, the overall Tele-density in India reaches 52.74.

Wireless subscriber base in the telecom sector increased from 564.02 million in February 2010 to 584.32 million at the end of March 2010, registering a growth of 3.60 per cent while the wireless tele-density stands at 49.60. Wireline subscriber base at the end of March 2010 remains at 36.96 million, same as in February 2010. The Indian telecom sector includes the presence of BSNL/MTNL, two PSU operators, which hold 84.77 per cent of the Wireline market share. Overall Wireline teledensity in the Indian telecom sector stands at 3.14.Total Broadband subscriber base in the telecom sector has increased from 8.59 million in February 2010 to 8.75 million in March 2010, there by showing a growth of 1.90 per cent.

According to the Union Finance Secretary, Mr Ashok Chawla, the fiscal situation is positive and encouraging, following the Government getting more than expected revenue from the auction of the spectrum for launching 3G mobile services in India’s telecom sector.The auction for the third generation (3G) spectrum in the telecom sector ended with the government garnering Rs 67,718 crore (US$ 14.53 billion). According to management consulting firm Zinnov, the service providers should be able to absorb the high costs and roll out cost-effective 3G services for the end consumer considering the market opportunity with the total mobile phone subscriber base of about 585 million and the expected increase in revenue per user in the Indian telecom sector.

As per analysts, the 3G technology is likely to have a positive impact on the stocks of winning bidders in the long-term. Meanwhile as per a recent release by the rating agency CRISIL, the availability of 3G spectrum will positively impact the business profiles of players in the telecom sector, enabling them to protect their current market positions, and offer value-added services.

Jajati Patro is a well-known Journalist, who collects and interprets data on the web for the global E-seva. These days he is working on Global Information Technology, Science and Technology and Indian Telecom Sector

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