New telecom players line up to tap growing Indian market

India is soon going to emerge as the second biggest mobile market only after China with broadband being another area that will witness massive growth due to increase in Internet usage

The fact that more than two dozen companies have submitted over 500 applications for telecom licences across India clearly underlines the inherent growth potential of this crucial sector. Apart from leading global telecom giants that are in the fray in tie-ups with various Indian companies, those having presence in real estate, information technology, automobile, finance and infrastructure sectors want to be a part of this splendid growth story.

Despite having the third largest telecom subscriber base in the world (24-crore) after China and the US, its tele-density at 21 per cent is among the lowest. Even countries like Russia, Brazil and Thailand are far ahead of India. It is the projections that India would have over 50-crore subscribers and a tele-density of 36 per cent by 2010 is attracting new players to tap this huge market.

The key drivers of this growth would be the mobile and broadband services. While India is soon going to emerge as the second biggest mobile market only after China, broadband will be another area that will witness massive growth due to increase in Internet usage and introduction of new services like IPTV and m-commerce.

In fact, m-commerce that will facilitate business transactions through mobile devices like mobile phones and smartphones has immense potential.

Notwithstanding the complex spectrum issue, companies are hopeful that the Government would provide them enough radio frequency to deliver advanced telecom services.

The telecom sector is also seen as a key driver behind consistent economic growth, and the Government cannot afford to scuttle this momentum. As the competition gets more fierce in the telecom sector, it will be the consumers who would be benefited the most. Already India has the cheapest tariffs in the world, and with more players joining the race, they can expect to get more sops like attractive tariffs, additional value-added services, cheaper handsets and much more.

Some leading telecom companies like Reliance Communications are already providing mobile handsets at sub-Rs.1,000 and free talktime on certain plans, entry of more companies will see rollout of various innovative packages and plans to attract subscribers, particularly in small towns and rural areas. And as the recent entrant – Vodafone – unfolds its strategy for the Indian market, a mobile handset at Rs. 500 with free lifetime connection might soon become a reality for Indian customers.

Source: The Hindu