In the past 10 years, the Indian telecom industry is considered as one of the most dynamic sectors and is the second- largest subscriber base globally. And this industry is highlighted for both positive and negative events, as per the latest updates given by DNA.
In 2012, the number of wireless subscribers had increased to 919 million as compared to 165 million in 2007. Urban teledensity had increased 163 in 2012 as compared to 48 in 2007, whereas rural teledensity also saw modest growth to 38 currently as compared to 6 in 2007, which is considered as a massive growth in the Indian telecom industry. But, because of the other scams, regulatory uncertainty and policy delays, investors are not investing in India.
Because of certain policies made by the government in order to reduce economic shortfall, telecom operators will be compelled to invest more in the form of regulatory charges due to which investments in the future high quality data services such as 3G, 4G and optic fibre networks will be hampered.
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In 2013, 2G will be highly priced, compulsory in one-time fees for excess spectrum and spectrum re-farming will further spoil the situation in the industry. Rationalisation of tariffs for both voice and data services is expected from the operators, since the operators would find it tough to raise additional finances and servicing of the debt.
India must still improve in providing infrastructure and connectivity in rural areas, even though the country has seen an evident growth in its telecom industry in the last two decades.
10% increase in mobile penetration will result in 0.81% of additional GDP growth for low and middle income economies. By the increase of telecom penetration, the services provided by telecom, as a carrier of information, can determine the growth level in the rural society. Hence, telecom sector is considered as a strategic industry, since this industry has increased the growth and has also encouraged financial & rural inclusion via efficient delivery of healthcare, banking, education etc, as per the data given by World Bank.