Snapshot

Connecting the world

The Telecom industry in India is the second largest in the world with a subscriber base of over 1.2 bn. 

The industry has witnessed exponential growth over the last few years 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 number of smartphone users in India crossed the 300 mn mark in 2016, making it the largest smartphone market in the world.

  • Total number of Subscriber Identity Module (SIM) connections is expected to reach 1.4 bn by 2020 from 1.1 bn in 2017
  • Telecom industry contribution to GDP is expected to reach 8.2% by 2020 from 6.5% in 2017

100% FDI is allowed in the Telecom, wherein upto 49% is allowed through the automatic route and beyond 49% under government route.

For further details, please refer FDI Policy

  • 6.5%

    Contribution to India’s GDP

  • 4 mn

    Total employment - (2017)

  • 51.5%

    Rate of market penetration

  • 90

    No. of smart cities (2017)

A

Indian Mobile industry contributed over $ 140 bn to India's GDP in 2015

B

Digital India is expected to create $ 1 tn business opportunity by 2020

C

Number of internet users in India is expected to reach 829 mn by 2021

Industry Scenario

The Indian Mobile industry is expected to create a total economic value of $ 217.4 bn by 2020.

The Telecommunications industry is divided into following subsectors: Infrastructure, Equipment, Mobile Virtual Network Operators (MNVO), White Space Spectrum, 5G, Telephone service providers and Broadband.

According to a study by GSMA, smartphones are expected to account for two out of every three mobile connections globally, making India the fourth largest smartphone market by 2020. India is expected to lead in the growth of smartphone adoption globally with an estimated net addition of 350 mn by 2020.

Telecom tower in India is set to boom as its tenancy ration will increase from 1.95 times in 2016 to 2.9 times by 2020 due to the expansion of 3G and 4G and the onset of 5G technologies.

More than 60 companies have received approval from the Department of Telecommunications (DoT) in May 2017 to provide MVNO services; the majority of these companies are focused on Tier 2 and Tier 3 cities.

Growth Drivers

  • Growing demand

    Nominal per capita income recorded a CAGR of 10.4% during 2012-17

  • Increasing internet revenues

    Mobile value-added service industry expanded at a CAGR of 29.3% to reach $ 11.08 bn in 2016

  • Increased equipment manufacturing

    38 new mobile manufacturing units have been set up in India since September 2015

  • Make in India

    The government announced Phased Manufacturing Program (PMP) to promote domestic production of mobile handsets

  • Bharatnet project

    Optical fiber cables laid over 100,000 gram panchayats

  • Open

    BharatNet

    For the deeper digital penetration in rural areas, the Gover…

  • Open

    Digital India India Programme

    The mobile sector plays a key role in meeting the goals of D…

  • Open

    National Digital Communications Policy -…

    To create robust digital communications infrastructure.

  • Open

    Relaxation of FDI Norms

    The volumes and potential growth of India's mobile market ma…

  • Open

    Spectrum Reforms

    Achievement report for Telecomm Sector 

Investible Projects

Investment Opportunities in Telecom

  • Projects

    28

  • Opportunity

    $155.4 mn

  • Promoters

    21

  • District

    21

  • Private Projects

    0

  • Govt. Projects

    28

open

$32.6 mn

OFC Cabling Project [Pimpri-Chinchwad]

State (s) Maharashtra
open

$23.4 mn

Wi-Fi using Fiber Optic Cable Project [Imphal]

State (s) Manipur
open

$11.2 mn

Multi-utility ducting and shifting of utilities

State (s) Madhya Pradesh
open

$8.4 mn

OFC Cabling Project [Rourkela]

State (s) Odisha

Major Investors

Data on Map

FAQ

Frequently
Asked Questions

  • What are the documents required for verification of deductions by the CCA offices?

    The required documents are as follows-
    1) Covering letter with check list for submission of documents in prescribed proforma.
    2) Quarterly Statements of Revenue and Licence Fee (AGR).
    3) Photocopies of invoices duly signed by the Authorised Signatory.
    4) Payment proof duly signed by the Authorised Signatory.
    5) Certified copy of the ledger in case of Intra-Company settlement along with Annexure-AG.
    6) Certified copy of the statement of net settlement in Annexure-AO in case of Inter-Company settlement.
    7) Certified copy of Statement of part payments made in annexure – PP in case of part payments made due to billing disputes.
    8) Power of attorney by Authorised Signatory declaring that information and documents so provided are authentic and verified by the licensee.
    9) Power of attorney should be submitted with the concerned CCA offices.
    10) Complete Bank statements (with running page numbers) showing relevant payments of which 1st & last page (should not be blank) shall be signed by the Bank Authorities.
    11) At the end of the Financial Year, Audited quarterly statements of Revenue and Licence Fee (AGR).

  • What are Inter- Company/Group Company and Intra-Company/Group Company transactions?

    Inter-Company/Group Company transactions are those which occur between two separate legal entities e.g. transactions occurred between RCOM and RTL or transactions occurred between Vodafone Ltd and Vodafone South Ltd. are example of Inter-Company/Group Company transactions. Pass through charges between two legal entities may be routed through the bank only and not through mere ledger adjustment.

    Whereas, Intra-Company/Group Company transactions are those which occur within same legal entity e.g. transactions occurred between RCOM, Delhi and RCOM UP (East) or transactions occurred between Vodafone South Ltd, AP and Vodafone South Ltd., Karnataka are example of intra-Company/Group Company transactions.

    Please Note: Names of Companies used are for reference/illustration only.

  • What are the admissible deductions?

    Deductions claimed on account of PSTN related call charges and roaming charges (Pass through charges/Interconnect Usage Charges) actually paid to eligible Telecom Service Providers and Sales Tax & Service Tax (if included in the Gross Revenue) actually paid to Government are admissible.

  • How much FDI is allowed under telecom sector?

    100% FDI is allowed in telecom sector (of this upto 49% is allowed through the automatic route and beyond 49% under government route).

  • What are fiscal incentives in the telecom sector?

    Some incentives are: 
    a) Basic customs duty (BCD) and special additional duty have been withdrawn.
    b) Importers of mobile handset components such as chargers, adaptors, batteries and wired handsets need to pay only the countervailing duty of 12.5%.
    c) A duty advantage of 10.5% exists for local manufacturers of mobile speakers and batteries.

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