As ADI Media participates in CommunicAsia 2016, Singapore, with the June2016 edition of Communications Today, it becomes imperative to tell theIndia story and chart the road ahead.
The Indian telecom sector has undergone significant transformation over the last two decades to become the second largest telecommunication market in the world. Contributing 6.1 percent to the Indian GDP, it is expected to make it to 8.2 percent, amounting to Rs. 14 trillion by 2020.
Telecom service providers, infrastructure providers, telecom equipment manufacturers, and handset manufacturers are its four pillars.
Telecom service providers together grossed an estimated Rs. 1924 billion revenue in 2015-16, up from Rs. 1775 billion in 2014-15, and Rs. 1467 billion in 2012-13.
The tower infrastructure segment has gradually emerged as a trendsetter. With industry revenue estimated at Rs. 325 billion in 2015-16, it is poised at a 12 percent CAGR for the next three years.
Rising demand for a wide range of telecom equipment has provided excellent opportunities to domestic investors in the manufacturing sector as well as global players setting up their manufacturing base in India.
At a CAGR of nearly 14 percent in the last four years from 2011 to 2015, India is the fastest-growing market for mobile handsets globally. Out of a 235.6-million handsets market in 2015, 40 percent were smartphones, projected to constitute 60 percent by 2020.
Apple CEO Tim Cook's recent visit to India and a commitment to doing business for the next thousand years, making immediate investments in the Maps facility and accelerator in cellphones apps, and firming up plans to tap on the huge talent pool available is encouraging.
The solar power plants, national rollout of 4G, Digital India including Bharat Net and Smart Cities initiatives, have generated a lot of international investor interest.
Banking on the general upward trend in the economy, improving industry fundamentals being an extension of the government's reformist agenda, and armed with a constructive regulatory environment, this industry is riding high on growth trajectory, at least till 2020.