The Hindu Business Line : India has 3rd largest telecom market: PwC

New Delhi, Dec. 12 Notwithstanding the war over spectrum and differences amongst operators, the Indian telecom market has grown to become the third largest communications market in the world.

According to a newly released report from PricewaterhouseCoopers, India’s telecom market has grown rapidly in the last few years with revenues of over $22 billion and an average annual subscriber growth of about 45 per cent and revenue growth of about 25 per cent.

The PwC report expects Indian telecom sector to scale new frontiers, building on its strong foundations of fulfilling the demand for a connected economy, fast paced rollouts and coverage, and realistic pricing.

Tele density

“The tele-density of India at about 23 per cent coupled with its billion-plus population offers immense growth potential for the telecom services sector in the coming years when compared with growth expectations from most developed markets with tele-densities of over 70-80.

“The attraction of the Indian growth potential seems higher when it is compared even with its Asian neighbours such as Indonesia, Thailand, Philippines etc, that have higher tele-densities but much smaller population base,” said the PwC report.

The strong growth expectations in the Indian telecom sector compared to near matured markets in developed countries is attracting foreign direct investments as well as institutional investments including significant private equity (PE) inflow in the country.

FDI inflow

Cumulative FDI inflow has reached nearly $5 billion dollars in the sector, majority of which has been targeted toward the mobile sector. It is estimated that in 2006, PE funds flow directed at the telecom sector was more than $3 billion and accounted for over 40 per cent of all private equity deals in India.

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