Saturday, March 14, 2009

“3G will change the structure of the industry”

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

The exponential growth of telecom in India can be attributed to the strong regulatory framework. But what about its future? The man at the helm speaks...

How has mobile changed the communication scenario in India?

The success story of Indian telecom sector is based on liberalisation, promotion of competition, progressive policies of government and the positive regulatory measures put in place by TRAI. These initiatives paved the way for competition through private participation in the telecom sector, particularly in mobile services. Initially, mobile services were thought of as a premium service for the high-end of the society. But now all strata are using mobile phones and it’s a tool for communication for the common man. Moreover, developments in telecom sector have a multiplier effect on the country’s economy and its contribution to national GDP is about 3%.

What growth can we expect?
There are numbers that show India added 10 million wireless subscribers in October and we have been recording 7-10 million additions per month for the past two months. We would continue to see this kind of growth further for quite some time and the reason for this would be that the tele-density in India has still not reached a significant level. In fact, we till now have reached only 30-31% of penetration and as such there is lot of scope. Moreover, in future, the maximum growth in the sector would come from the rural areas.

For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


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