The growth in the Indian telecom industry will be fueled by rising foreign direct investment, according to a report from market research and analysis firm RNCOS.
India has lived up to its image of being one of the most attractive destinations for foreign direct investment (FDI), said RNCOS in its report, “Indian Telecom Analysis (2008-2012).”
“In 2005, the government decided to increase the limit in the telecom sector to 74% from 49%. Additionally, the government has permitted 100% FDI in the areas of telecom equipment manufacturing and provision of IT-enabled services. FDI has been one of the main drivers of continuous growth in the Indian telecom sector. The FDI inflow in the telecom sector is increasing continuously over the past few years,” the report said.
Several factors that have been driving the overall telecom market were analyzed in the report, which says the telecom industry has undergone a revolutionary phase over the past few years. With the ongoing investments into infrastructure deployment, the country is projected to see high penetration of Internet, broadband, and mobile subscribers.
“We have also identified India as the fastest growing country in terms of Internet users. Moreover, mobile telephony continues to fuel growth of the Indian telecom sector, with mobile subscribers anticipated to grow at a CAGR of around 11% during 2009-10 to 2013-14,” the report said.
The report also examines factors that are fueling the Internet services market and other segments of India’s telecom market in terms of players and number of subscribers.
“It also presents the future outlook of the Indian telecom sector to help clients identify the growth opportunities in the market. Our study has also analyzed the overall growth drivers of Indian telecom market,” the report said.
The report also identified areas of opportunities in Indian telecom market, such as IPTV and mobile number portability, and examined the various challenges faced by the Indian telecom industry.