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Indian Telecom Sector to Grow Further and Beyond by 2020
The telecom sector of India has gained immense momentum over the past few
years to set new benchmarks and touch new heights. Even when we are
sitting in our room, we are a click away from the rest of the world. As a result
of the increasing consumer base, the telecom industry has been thriving.
Introduction of new technology in handsets and connection providers have
taken the user experience to new heights.
According to a latest analysis, India is one of the largest markets for mobile
phones, internet users as well as mobile subscribers, and experts are of
opinion that it’s just the beginning of even bigger era for the telecom sector.
According to the latest projection by mobile trade association GSMA, the
country will have one billion unique mobile subscribers by the year 2020, up
from 616 million unique users as of June 2016.
What changed between 2000 and 2016?
Remember those early days of the millennium? Heavy handsets, expensive
connections, barely audible connection, very high outgoing as well as
incoming expenses, limited the use of mobile phones to a very small fragment
of population.
Once considered a luxury, Indian telecom operators now offer new
subscription for new connections at no charge (or at very nominal cost). The
network coverage has also improved massively over the past two decades
with many of the remote places offering LTE connectivity now.
These new and improved factors, coupled with the affordable pricing of
devices, have played a very important role in acquiring new users. These
features will also play an instrumental role in on-boarding nearly 330 million
people in the next four years, GSMA added.
The GSMA data added that many of these new mobile subscribers will have
access to 4G LTE network capability. It further stated that the number of 4G
connections in India is projected to grow from 3 million as of the end of 2015
to 280 million in next four years. The report also added that India will have
670 million registered connection base who will have access to 3G or 4G
connectivity.
India crossed one billion mobile subscriber base last year (2015), according to
TRAI (Telecom Regulatory Authority of India). The regulator of the telecom
sector in India had noted at the time of the one billion million subscriptions
that 902 million were active in the month of October last year. But not all were
unique mobile subscribers. GSMA forecasts that the country will have 1.4
billion registered mobile subscribers by 2020.
To add further sweetness to the deal, all the telecom giants of the country
such as Bharti Airtel, Idea Cellular, Vodafone, RCOM, Reliance Jio etc have been
trying to grab the market. This race between the giants is expected to be
beneficial for the masses.
Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of
the research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making
investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022
Disclosure
Dynamic Equities Pvt. Ltd. is a member of NSE, BSE, MCX SX and a DP with NSDL & CDSL. It is also engaged in Investment
Advisory Services and Portfolio Management Services. Dynamic Commodities Pvt. Ltd., associate company, is a member of
MCX & NCDEX. We declare that our activities were neither suspended nor we have defaulted with any stock exchange authority
with whom we are registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their
observations have issued advise letters or levied minor penalty on for certain operational deviations.
Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/
Research Analyst/ his Relative:
Do not have any financial interest / any actual/beneficial ownership in the subject company.
Do not have any other material conflict of interest at the time of publication of the research report
Have not received any compensation from the subject company in the past twelve months
Have not managed or co-managed public offering of securities for the subject company.
Have not received any compensation for brokerage services or any products / services or any compensation or other
benefits from the subject company, nor engaged in market making activity for the subject company
Have not served as an officer, director or employee of the subject company
Article Written by
Nabarupa Kanjilal

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Indian Telecom Sector to Grow Further and Beyond by 2020

  • 1. Indian Telecom Sector to Grow Further and Beyond by 2020 The telecom sector of India has gained immense momentum over the past few years to set new benchmarks and touch new heights. Even when we are sitting in our room, we are a click away from the rest of the world. As a result of the increasing consumer base, the telecom industry has been thriving. Introduction of new technology in handsets and connection providers have taken the user experience to new heights. According to a latest analysis, India is one of the largest markets for mobile phones, internet users as well as mobile subscribers, and experts are of opinion that it’s just the beginning of even bigger era for the telecom sector. According to the latest projection by mobile trade association GSMA, the country will have one billion unique mobile subscribers by the year 2020, up from 616 million unique users as of June 2016. What changed between 2000 and 2016? Remember those early days of the millennium? Heavy handsets, expensive connections, barely audible connection, very high outgoing as well as incoming expenses, limited the use of mobile phones to a very small fragment of population. Once considered a luxury, Indian telecom operators now offer new subscription for new connections at no charge (or at very nominal cost). The network coverage has also improved massively over the past two decades with many of the remote places offering LTE connectivity now. These new and improved factors, coupled with the affordable pricing of devices, have played a very important role in acquiring new users. These
  • 2. features will also play an instrumental role in on-boarding nearly 330 million people in the next four years, GSMA added. The GSMA data added that many of these new mobile subscribers will have access to 4G LTE network capability. It further stated that the number of 4G connections in India is projected to grow from 3 million as of the end of 2015 to 280 million in next four years. The report also added that India will have 670 million registered connection base who will have access to 3G or 4G connectivity. India crossed one billion mobile subscriber base last year (2015), according to TRAI (Telecom Regulatory Authority of India). The regulator of the telecom sector in India had noted at the time of the one billion million subscriptions that 902 million were active in the month of October last year. But not all were unique mobile subscribers. GSMA forecasts that the country will have 1.4 billion registered mobile subscribers by 2020. To add further sweetness to the deal, all the telecom giants of the country such as Bharti Airtel, Idea Cellular, Vodafone, RCOM, Reliance Jio etc have been trying to grab the market. This race between the giants is expected to be beneficial for the masses.
  • 3. Disclaimer The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision. Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022 Disclosure Dynamic Equities Pvt. Ltd. is a member of NSE, BSE, MCX SX and a DP with NSDL & CDSL. It is also engaged in Investment Advisory Services and Portfolio Management Services. Dynamic Commodities Pvt. Ltd., associate company, is a member of MCX & NCDEX. We declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor penalty on for certain operational deviations. Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research Analyst/ his Relative: Do not have any financial interest / any actual/beneficial ownership in the subject company. Do not have any other material conflict of interest at the time of publication of the research report Have not received any compensation from the subject company in the past twelve months Have not managed or co-managed public offering of securities for the subject company. Have not received any compensation for brokerage services or any products / services or any compensation or other benefits from the subject company, nor engaged in market making activity for the subject company Have not served as an officer, director or employee of the subject company Article Written by Nabarupa Kanjilal