India is the fifth largest telecom services market in the world; $17.8 billion revenues in FY 2005

- Industry grew by about 36% in FY 2005 over FY 2004

- 142 million subscribers - 49 million fixed lines and 93 million wireless - March 2006

Telecom market has grown at about 25% p.a. over the last 5 years

- Wireless segment subscriber base grew at 85% p.a.; fixed line segment at about 10% p.a.

The Indian telecom market has both public and private sector companies participating:

- Public sector has over 43% market share, down from over 90% in 2000

- Private companies have added subscribers at a CAGR of 172% since 2000

Mobile operators have deployed both CDMA (24 million users) and GSM (69 million users) wireless networks

Value added service features constitute 10% of revenue today (2% in 2001)

74% to 100% FDI permitted for various telecom services (for details, please refer to table on page 104)

- FIPB approval required for foreign investment exceeding 49% in all telecom services

100% FDI permitted in telecom equipment manufacturing.

India has a telecom policy that aims to encourage private and foreign investment. Highlights are:

- An independent regulator – the Telecom Regulatory Authority of India (TRAI)

- Revenue-share model for licences issued by the Government for telecom services in India. Unified access licences are available for providing telecom services on a pan-India basis

- Planned opening up of National Long Distance (NLD), International Long Distance (ILD) and other value added services. 

India expected to be among the fastest growing telecom markets in the world

- Projected growth of 40% p.a. to reach 250 million subscribers by December 2007

Over 4 million new users are added every month – mostly in wireless

Favourable demographics and socio economic factors leading to high growth:

- Growth of disposable income combined with changes in lifestyle

- Increasing affordability - low tariffs, easy payment plans and handset financing

- Increased coverage and availability of mobile services

Investment opportunity of $22 billion across many areas:

- Telecom Devices and Software for Internet, Broadband and Direct To Home Services. Set Top boxes, Gateway exchange, Modem, Mobile handsets and consumer premise equipments, Gaming devices, EPABX, Telecom Software

- Telecom Services for voice and data via a range of technologies

- Applications and Content development ranging from gaming to education

Vodafone, Nokia, Elcoteq, Alcatel, LG, Ericsson are all investing in India

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