This report provides a comprehensive overview of the trends and developments in telecommunications, broadcasting and pay TV markets in India. Subjects covered include:
Key Statistics
Market and Industry Overviews
Regulatory Environment
Major Players (fixed and mobile)
Infrastructure
Mobile Voice and Data Markets
Internet, VoIP, IPTV
Broadband (FttH, DSL, cable TV, wireless)
Convergence and Digital Media

In a manner that exudes a sense of the dramatic, India continues to be one of the fastest growing major telecom markets in the world. Sweeping reforms introduced by successive Indian governments over the last decade have dramatically changed the nature of telecommunications in the country. The mobile sector has grown from around 10 million subscribers in 2002 to 80 million (including both GSM and CDMA services) by early 2006, aided by a mix of higher subscriber volumes, lower tariffs and falling handset prices. Whilst GSM technology still dominates the market, CDMA has quickly grabbed a 23% market share. The mobile industry should continue its strong growth. The country’s telecom regulator, the TRAI, says that the rate of market expansion would increase with further regulatory and structural reform. The adoption of Unified Licensing, a change in the Access Deficit Charge regime, increased sharing of infrastructure and coverage of new areas by operators will contribute to ongoing growth. Fixed-line services, although not as spectacular as mobiles, are growing solidly. By early 2006, the country has passed the 50 million fixed line milestone.

The nature of the country’s telecommunications industry has certainly been changed by the sweeping reforms introduced by successive Indian governments over the last decade or so. In the early stages of change, the structure of the market was frequently criticised, but there has been an evolution through a series of mergers and takeovers among the mobile operators that has produced a welcome consolidation. The ‘licensing by circles’ policy is generally credited with having established a highly competitive and healthy telecoms market. This is certainly benefiting the country. With what is now seen as a well regulated commercial environment and with plenty of growth potential, India has become an attractive market for foreign investment. Of course, regulatory reform is very much regarded as a ‘work in progress’. The government has been pushing hard to further restructure the telecommunications regulatory regime.

In a country where the IT industry is booming, there is something ironic about its somewhat ambivalent approach to Internet. Whilst there appears to be considerable enthusiasm amongst the population for the Internet, this is not reflected in subscriptions. There were around 7 million subscribers to Internet access services in early 2006, the vast majority being dial-up subscriptions. But most significantly, an estimated 60% of users regularly access the Internet via the country’s more than 10,000 cybercafes. When it comes to high-speed broadband access, the slow take up rate has been especially obvious. The country’s corporate sector has been surprising lacking in interest to date. Only about 10% of Internet subscribers in the country have broadband access, representing a depressingly low national broadband penetration of less 0.1%. There were early signs that the broadband sector was about to gain some momentum.

This report provides a comprehensive overview of the trends and developments in telecommunications, broadcasting and pay TV markets in India. Subjects covered include:
Key Statistics
Market and Industry Overviews
Regulatory Environment
Major Players (fixed and mobile)
Infrastructure
Mobile Voice and Data Markets
Internet, VoIP, IPTV
Broadband (FttH, DSL, cable TV, wireless)
Convergence and Digital Media

In a manner that exudes a sense of the dramatic, India continues to be one of the fastest growing major telecom markets in the world. Sweeping reforms introduced by successive Indian governments over the last decade have dramatically changed the nature of telecommunications in the country. The mobile sector has grown from around 10 million subscribers in 2002 to 80 million (including both GSM and CDMA services) by early 2006, aided by a mix of higher subscriber volumes, lower tariffs and falling handset prices. Whilst GSM technology still dominates the market, CDMA has quickly grabbed a 23% market share. The mobile industry should continue its strong growth. The country’s telecom regulator, the TRAI, says that the rate of market expansion would increase with further regulatory and structural reform. The adoption of Unified Licensing, a change in the Access Deficit Charge regime, increased sharing of infrastructure and coverage of new areas by operators will contribute to ongoing growth. Fixed-line services, although not as spectacular as mobiles, are growing solidly. By early 2006, the country has passed the 50 million fixed line milestone.

The nature of the country’s telecommunications industry has certainly been changed by the sweeping reforms introduced by successive Indian governments over the last decade or so. In the early stages of change, the structure of the market was frequently criticised, but there has been an evolution through a series of mergers and takeovers among the mobile operators that has produced a welcome consolidation. The ‘licensing by circles’ policy is generally credited with having established a highly competitive and healthy telecoms market. This is certainly benefiting the country. With what is now seen as a well regulated commercial environment and with plenty of growth potential, India has become an attractive market for foreign investment. Of course, regulatory reform is very much regarded as a ‘work in progress’. The government has been pushing hard to further restructure the telecommunications regulatory regime.

In a country where the IT industry is booming, there is something ironic about its somewhat ambivalent approach to Internet. Whilst there appears to be considerable enthusiasm amongst the population for the Internet, this is not reflected in subscriptions. There were around 7 million subscribers to Internet access services in early 2006, the vast majority being dial-up subscriptions. But most significantly, an estimated 60% of users regularly access the Internet via the country’s more than 10,000 cybercafes. When it comes to high-speed broadband access, the slow take up rate has been especially obvious. The country’s corporate sector has been surprising lacking in interest to date. Only about 10% of Internet subscribers in the country have broadband access, representing a depressingly low national broadband penetration of less 0.1%. There were early signs that the broadband sector was about to gain some momentum.