India telecom revenue increased at a CAGR of 18.1% during 2006-10, says Research and Markets

By Telecom Lead Team:
India’s telecom revenue increased at a CAGR of 18.1 percent during 2006-10,
according to Research and Markets.

The dynamic growth the country witnessed over the past
several years is mainly attributed to the robust telecom infrastructure,
various proactive initiatives taken by the industry and the Government, along
with liberal policies and a fair regulatory framework that helps offer telecom
services at affordable prices, the agency said.

The research, Dynamaics
of the Indian Telecom Industry, also finds mobile subscriptions are
currently driving the growth of the telecom industry in India. Internet subscribers
are expected to contribute to a major share of the market growth in the coming
years, mainly driven by the increasing adoption of 3G services.

The biggest challenge facing Indian telecom industry is the low
penetration in rural areas. With tremendous potential lying in the rural
telecom markets in India, Research and Markets touts this as the next key
driver of the telecom industry in India.

While the penetration of mobile phones in rural India is
increasing steadily, there still exists a large gap in this segment,
representing a potential market for the key players, the agency said in the

The industry which is rattled by the recent 2G spectrum scam
is waiting for a revival. Government should act more proactively to ensure that
key stakeholders of the industry are not affected by the changes in government
policies and adverse political scenarios created by unstable governments.

However, Indian telecom industry remains optimistic despite
the confusion surrounding the recent Supreme Court order that cancelled
licenses of some of the leading carriers in India.

spectrum: How Indian telecom industry can expect opportunities after Supreme
Court order.

The telecom market in India is coming back strongly from the
rude shock of February 2 Supreme Court order. Indications are that most of the
mobile service providers will stay back in India as the government is likely to
ask apex court to review its order that affected more than 10,000 jobs and $6
billion investment in telecom infrastructure.

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