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.

Overview of Telecom Sector

Total Telephone Subscribers

The number of telephone subscribers in India increased to 917.33 million at the end of November, 2011 from 914.59 million at the end of October 2011, thereby registering a growth rate of 0.30 per cent.

The share of urban subscribers has marginally declined from 66.23 per cent to 66.11 per cent whereas share of rural subscribers has marginally increased from 33.77 per cent to 33.89 per cent in the month of November, 2011. With this, the overall tele-density in India reaches to 76.18 at the end of November, 2011 from 76.03 of the previous month.

Subscription in urban areas grew from 605.78 million in October, 2011 to 606.47 million at the end of November, 2011. Subscription in rural areas increased from 308.81 million to 310.86 million during the same period. The growth of urban and rural Subscription is 0.11 per cent and 0.66 per cent respectively. The overall urban teledensity has marginally decreased from 166.93 to 166.84 and rural teledensity increased from 36.76 to 36.98.

Wireless Segment (GSM, CDMA & FWP)

Total wireless subscriber base increased from 881.40 million in October 2011 to 884.37 million at the end of November 2011, registering a growth of 0.34 per cent.

The share of urban subscriber has marginally decreased from 65.86 per cent to 65.73 per cent where as share of rural subscribers has marginally increased from 34.14 per cent to 34.27 per cent. The overall wireless tele density in India reaches 73.44.

Wireless subscription in urban areas increased from 580.49 million in October 2011 to 581.33 million at the end of November 2011. The subscription in rural areas increased from 300.91 million to 303.04 million during the same period. This shows higher growth in rural subscription (0.71 per cent) than urban subscription (0.14 per cent). The urban teledensity has marginally decreased from 159.96 to 159.92 and rural teledensity has increased from 35.82 to 36.05 in wireless sector.

Private operators hold 88.51 per cent of the wireless market share whereas Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Ltd. (MTNL), two PSU operators hold only 11.49 per cent market share.

Wireline Segment

Wireline subscriber base declined from 33.19 million at the end of October 2011 to 32.96 million at the end of November 2011. The share of urban subscriber has marginally increased from 76.18 per cent to 76.27 per cent where as share of rural subscribers has marginally declined from 23.82 per cent to 23.73 per cent. The overall wireline Tele-density in India marginally declined to 2.74 with urban and rural teledensity being 6.92 and 0.93 respectively. Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Ltd. (MTNL), two Public Sector Undertakings (PSUs) operators hold 81.18 per cent of the wireline market share.

Broadband

Total Broadband subscriber base has increased from 12.98 million at the end of October 2011 to 13.13 million at the end of November 2011, there by showing a monthly growth of 1.21 per cent.

During the last one year i.e. November, 2010 to November, 2011, yearly growth in broadband subscribers was recorded at 22.58 per cent.

Telecom Subscription Data

Telecom Subscription Data as on 30th November 2011

Source:Telephone Regulatory Authority of India (Trai)