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The Telecom industry in India is the second largest in the world with a subscriber base of 1.18 bn as of December 2021 (wireless + wireline subscribers). India has an overall tele-density of 86.89%, of which, the tele-density of the rural market, which is largely untapped, stands at 59.31% while the tele-density of the urban market is 138.79%.
By the end of September 2021, the total number of internet subscribers increased to 834.29 mn (narrowband + broadband subscribers), out of which 37.67% of the internet subscribers belong to the rural areas. The number of broadband subscribers, which was 747.41 mn by the end of December 2020, has increased to 792.08 mn as of December, 2021. The average monthly data consumption per wireless data subscriber has also increased by 22,605% to 14 GB in June 2021 from 61.66 MB in March 2014.
The industry’s exponential growth over the last few years is primarily driven by affordable tariffs, wider availability, roll-out of Mobile Number Portability (MNP), expanding 3G and 4G coverage, evolving consumption patterns of subscribers and a conducive regulatory environment.
The Government has emphasized and undertaken initiatives for bolstering India’s domestic telecom manufacturing capacity. Efforts are also underway to soon develop a foundational network for 5G technology deployment in India.
The Telecom sector is the 3rd largest sector in terms of Foreign Direct Investment (FDI) inflows, contributing 7% of total FDI inflow, and contributes directly to 2.2 mn employment and indirectly to 1.8 mn jobs. Between 2014 and 2021, the FDI inflows in the Telecom sector rose by 150% to $20.72 bn from $8.32 bn during 2002-2014.
100% Foreign Direct Investment (FDI) has now been allowed in the Telecom sector under the automatic route.
For further FDI details, please refer to FDI Policy read with Press Note. 4.
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Internet Connections Growth (2014-2021)
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Total employment
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Unique 4G enabled Smartphones
No. of smart cities
India is expected to have a digital economy of $1 tn by 2025
Active internet users in India are expected to reach 900 mn by 2025
India is aiming to manufacture mobile phones worth $126 bn by 2025-26
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Industry Scenario
India is expected to have a digital economy of $1 tn by 2025
The Telecommunications industry is divided into following subsectors: Infrastructure, Equipment, Mobile Virtual Network Operators (MNVO), White Space Spectrum, 5G, Telephone service providers and Broadband.
Over the last seven years, the Indian Telecom Tower industry has grown significantly by 65%. The number of mobile towers increased from 400,000 in 2014 to 660,000 in 2021. Similarly, the number of Mobile Base Transceiver Stations have grown rapidly by 187% and increased from 800,000 in 2014 to 2.3 mn in 2021.
It is also estimated that 5G technology will contribute approximately $450 bn to the Indian Economy in the period of 2023-2040. Currently, 5G Spectrum Trials are being conducted in India to ensure proliferation of 5G technology across the country.
As per GSMA, India is on its way to becoming the second-largest smartphone market globally by 2025 with around 1 billion installed devices and is expected to have 920 mn unique mobile subscribers by 2025 which will include 88 mn 5G connections.
The DoT is targeting a combination of 100% broadband connectivity in the villages, 55% fiberisation of mobile towers, average broadband speeds of 25 mbps and 30 lakh kms of optic fibre rollouts by December 2022. By December 2024, it is looking at 70% fiberisation of towers, average broadband speeds of 50 Mbps and 50 lakh kms of optic fibre rollouts at a pan-India level.
GROWTH DRIVERS
PLI Schemes under Atmanirbhar Bharat Abhiyan
Production Linked Incentive schemes worth INR 12,195 cr for manufacturing of telecom and networking products
Telecom Sector Reforms
In 2021, large scale structural and procedural reforms have been brought in to enhance liquidity and minimise financial stress within the telecom sector.
Bharatnet project
Bharat Net Project Optical fibre cables laid to 178,247 gram panchayats, out of which 161,870 are service ready. Additionally, 4,218 gram panchayats have been connected over satellite media, taking the total number of service ready gram panchayats to 166,088.
PLI Schemes
New Schemes for Incentivizing manufacturing of Telecom &Networking Products: Production Linked Incentive schemes worth INR 12,195 cr.
India is one of the highest consumers of data per day
India is one of the highest consumers of data per day with approximately 5 hours of daily time spend on smartphones.
Prime Minister Wi-Fi Access Network Interface (PM-WANI)
Provision of public Wi-Fi service through Public Data Offices (PDOs) spread across the country to accelerate the expansion of broadband internet services.
Production Linked Incentive (PLI) Scheme
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Telecom & Networking Products sector for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat. The PLI scheme is expected to attract large investments from global players and help domestic companies seize the emerging opportunities and become big players in the export market. For more information: https://www.investindia.gov.in/pli-scheme-for-telecom Last date for application: 3 July 2021
INR 12,195 cr
Scheme Outlay
Ministry
Industrial Land Bank Portal
GIS - based map displaying available infrastructure for setting up business operations in the state.
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