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Telecom services industry grew 15 percent in 2010-11
25 July, 2011
In the midst of scams
involving award of 2G spectrum coming to light last year, the
Indian telecom services industry grew almost 15 percent to
post revenues of Rs.166,168 crore in 2010-11, up from the
previous fiscal's Rs.144,600 crore, according to a survey
Telecom services revenue includes revenue from cellular, fixed
line, broadband and VSAT services.
The cellular or mobile services market, the largest among all
the communication services offered in the country, saw
revenues rise 16.6 percent to cross the Rs.100,000 crore
revenue milestone, according to a survey conducted by leading
telecom industry journal Voice&Data.
At end of the financial year 2010-11, revenues from this
segment had grown to Rs,102,230 crore from Rs.87,680 crore a
Fixed lines and revenues, the only
significant means of telecommunications until the mid 1990s,
continued to decline both in terms of number of connections
and revenues. It grossed earnings of Rs.11,602 crore, a
decline of 15.6 percent year-on-year.
During the year under review, the number of active subscribers
crossed 501 million even as the number of SIM cards swelled to
"Even though the telecom regulator reported India's mobile
subscription base at 812 million, that number includes a large
base of inactive subscriptions. This includes those who are in
the grace period after their SIM validity has lapsed, with
them having not charged their SIM cards for months or even
years," said the survey.
Commenting on the way ahead for the telecom industry as it
struggles to deliver in an ever evolving policy environment,
Ibrahim Ahmad, group editor of Voice&Data said, "the recent
tariff hike will help the industry invest in telecom
infrastructure that delivers better customer experience
through improved quality of service".
Three mobile operators -- Bharti, Reliance and Vodafone -- now
boast of a subscriber base of over 100 million each.
Broadband services saw revenues grow 22.4 percent to Rs.6,846
crore, but the industry as a whole failed to achieve the
government's target of 20 million broadband connections by
2010, ending with just 11.87 million subscribers for the
fiscal ended March 31.