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INDUSTRY & SERVICES : INFRASTRUCTURE

TELECOMMUNICATIONS

Indian Telecom industry has emerged as the fastest growing telecom market in the world. The opening of the telecom sector to the foreign investors has not only led to rapid growth in subscriber base but also helped a great deal towards maximization of consumer benefits, particularly in terms of price discovery following the moderate approach in tariffs. The success of the Indian telecommunications sector has become the cynosure of the world and has made the country a truly attractive investment destination.Presently India has one of the lowest tariffs and one of the fastest growing teIecom markets in the world.

The penetration of internet and broadband has also improved. The Government of India approved a project for creation of National Optical Fibre Network for connecting 2.5 lakh Gram Panchayats with support from Univeral Service Obligation Fund (USOF). The proposed National Telecom Policy, under finalization in consultation with various stakeholders is a step forward for bringing rapid and equitable growth of this
sector.

Overview of Telecom Sector

Total Telephone Subscribers

The number of telephone subscribers in India increased to 965.52 million at the end of June, 2012 from 960.90 million at the end of May 2012, thereby registering a growth rate of 0.48 per cent. The share of urban subscribers has declined to 64.40 per cent from 64.65 per cent whereas share of rural subscribers has increased to 35.60 per cent in the month of June 2012. With this, the overall teledensity in India reaches to 79.58 at the end of June, 2012 from 79.28 of the previous month.

Subscription in urban areas increased from 621.21 million in May, 2012 to 621.76 million at the end of June, 2012. Subscription in rural areas increased from 339.69 million to 343.76 million during the same period. The monthly growth rate of urban and rural subscription is 0.09 per cent and 1.20 per cent respectively. The overall urban teledensity has decreased from 169.17 to 169.03 and rural teledensity increased from 40.21 to 40.66.

Wireless Segment

Total wireless subscriber base increased from 929.37 million in May 2012 to 934.09 million at the end of June 2012, registering a growth of 0.51 per cent. The share of urban wireless subscribers has decreased from 64.24 per cent to 63.98 per cent where as share of rural wireless subscribers has increased from 35.76 per cent to 36.02 per cent. The overall wireless teledensity in India reaches 76.99.

Wireless subscription in urban areas increased from 596.98 million in May 2012 to 597.59 million at the end of June 2012. The wireless subscription in rural areas increased from 332.38 million to 336.51 million during the same period. This shows higher growth in rural wireless subscription (1.24 per cent) than urban wireless subscription (0.51 per cent). The urban wireless teledensity has decreased from 162.57 to 162.46 and rural teledensity has increased from 39.35 to 39.80.

Private operators hold 88.88 per cent of the wireless market share (based on subscriber base) where as BSNL and MTNL, the two PSU operators hold only 11.12 per cent market share.

Wireline Segment

Wireline subscriber base declined from 31.53 million at the end of May 2012 to 31.43 million at the end of June 2012. Net reduction in wireline subscriber base was 1.05 lakhs. The share of urban subscribers has increased from 76.82 per cent to 76.92 per cent where as share of rural subscribers has declined from 23.18 per cent to 23.08 per cent. The overall wireline teledensity has marginally decreased from 2.60 in May 2012 to 2.59 in June 2012, with urban and rural teledensity being 6.57 and 0.86 respectively. BSNL and MTNL, the two PSU operators hold 80.07 per cent of the wireline market share.

Broadband (≥ 256 Kbps download)

Total broadband subscriber base has increased from 14.31 million at the end of May 2012 to 14.50 million at the end of June 2012, there by showing a monthly growth of 1.36 per cent. Yearly growth in broadband subscribers is 17.70 per cent during July 2011 to June 2012.

As on 30th June 2012, there are 155 Internet Service Providers (ISPs) which are providing broadband services in the country. Out of this only 121 ISPs have provided data for the month of June 2012, for the rest of the ISPs data from previous month has been retained. Top five ISPs in terms of market share (based on subscriber base) are: BSNL (9.24 million), Bharti Airtel (1.37 million), MTNL (1.06 million), You Broadband (0.63 million) and Hathway (0.36 million).

Telecom Subscription Data

Telecom Subscription Data as on 30th June 2012

Particulars
Wireless
Wireline
Total Wireless + Wireline
Total subscribers (millions)
934.09
31.43
965.52
Total net addition (millions)
4.73
-0.10
4.62
Monthly growth ( per cent )
0.51
-0.33
0.48
Urban subscribers (millions)
597.59
24.17
621.76
Urban subscribers net monthly addition (millions)
0.60
-0.05
0.55
Monthly growth ( per cent)
0.10
-0.21
0.09
Rural subscribers (millions)
336.51
7.25
343.76
Rural subscribers net monthly addition (millions)
4.12
-0.05
4.07
Monthly growth ( per cent )
1.24
-0.74
1.20
Overall teledensity*
76.99
2.59
79.58
Urban teledensity*
162.46
6.57
169.03
Rural teledensity*
39.80
0.86
40.66
Share of urban subscriber ( per cent)
63.98
76.92
64.40
Share of rural subscriber ( per cent)
36.02
23.08
35.60

*Based on the population projections from Census data published by the Office of Registrar
General & Census Commissioner of India.

Source:Telephone Regulatory Authority of India (Trai)


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