A Study of Behavioral Intention For 3G Mobile Internet Technology Preliminary Research On Willingness To Subscribe

A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on
willingness to subscribe
Welingakar Institute of Management development & research
MMM 2008 - 2011
MARKET RESEARCH REPORT
FOR
” A STUDY OF BEHAVIORAL INTENTION FOR 3G MOBILE INTERNET

TECHNOLOGY: PRELIMINARY RESEARCH ON WILLINGNESS TO
SUBSCRIBE ”
By
Croyden Pereira - 81
Rajeev Solanki - 106
Garima Lodha - 58
1
Table Of Content –
Acknowledgement……………………………………………………………………3
Declaration……………………………………………………………………………..3
Project Brief……………………………………………………………………………4
Research Model and Hypotheses……………………………………………….5
Methodology……………………………………………………………………………5
Introduction to Topic………………………………………………………………..6
Executive Summary…………………………………………………………………8
Detailed Findings of Secondary Research……………………………………9
The Advantages of 3G Technology…………………………………………………….11
Issues of 3G…………………………………………………………………………………..13
Current Status and Impact of 3G in India…………………………………………..13
Major Players…………………………………………………………………………………15
Technology Acceptance Model………………………………………………………….16
Detailed Findings of Primary Research……………………………………..17
Solutions & Recommendations…………………………………………………23
Other Findings……………………………………………………………………….23
Blank Questionnaire……………………………………………………………….24
Bibliography and Web Reverences………………………………………………28

2
Acknowledgement
We thank all our respondents for their participation and valuable feedback.
Declaration
We hereby declare that the research conducted is done to the best of our knowledge and ability
and under ethical terms. If any information in this report is different from our finding then
please email us at
croyden.pereira@gmail.com
raj4981@gmail.com
garimalodha@gmail.com
3
Project Brief
Abundant information has indicated that the proliferation of 3G technology or
Mobile
Internet allows consumers and businesses to build connectivity by transcending
time and place, increasing accessibility, and expanding their social and business
networks. While there has been an increasing amount of wireless mobile activity,
little attention has been given to user acceptance of 3G technology (Mobile
Internet) in India. Research on 3G technology acceptance, therefore, will be
extremely worthy in providing useful information, especially at this early stage of
3G Mobile Internet development and implementation. Therefore, this study will be
primarily beneficial to the mobile service providers since they can understand the
innovators’ and non-innovators’ perception of the service. Furthermore, the results
of this study may allow them to better segment and target the market.
4
Research Model and Hypotheses
The purpose of this analytical study is to understand the acceptability of 3G
services in the Indian market and its impact on the subscribers’ demand. In this
research, the impact of the 3G services will be defined generally as the possible
change in the demand of mobile services as reflection to the introduction of the 3G
services that will also create new revenue channels for the operators and that will
eventually effect their profitability. The survey will test the willingness of the
potential 3G users, either corporate or individuals, in order to evaluate the
expected demand on the 3G services.
Methodology
The study is both qualitative and quantitative in nature with a set of interviews
conducted and a questionnaire that was uploaded on the internet and was targeted
to a sample of 32 working professionals based on a convenience sampling.
Questionnaire was used to measure the research variables related to the consumer
response towards usage of 3G services.
The research methodology that is used for this study also includes secondary data.
The secondary data in this study covers the theoretical part, readings from internet
international & Indian, articles published.
5
Introduction To Topic
Second generation mobile WAP devices have rapidly gained mainstream status in
most of the developed markets and value – added services are appearing to exploit
2G’s data capabilities. The latest wave of change is imminent in the shape of “Next
Generation Mobile Technology” or referred to as 3G services. Enabling technologies
like HSDPA, EVDO or WCDMA will arrive in India at the turn of this year,
transforming the speed and volume of data flowing across wireless networks and
opening the way for operators to offer true IP based data services. 3G will offer the
kind of bandwidth that was, until recently undreamed of in a mobile environment
and will allow operators to compete realistically in the mainstream internet
marketplace.
Adding to the above that the telecommunication world is changing as trends of
media convergence, industry consolidation, Internet and IP technologies and
mobile communication collide into one. Significant changes will be brought about
by this rapid evolution in technology, with 3G a radical departure from that came
before in the first and even the second generations of mobile technology in a way
that:
• The people will look at their mobile phone as much as they hold it to the
ear.
• Data (non – voice) uses of 3G will be as important as and very different
from the traditional voice business.
6
• The mobile phone will be used as an integral part of the majority of people’s
lives – it will not be an added accessory but a core part of how they conduct
their daily lives.
• Many media and internet companies have shown strong interest in using 3G
technologies as a new channel to distribute their content, opening the
opportunity for new entrants and new partnerships and value chains.
The explosion of new competition, liberalization of markets, the globalization of
many leading players and the steady downward pressure of the price of basic
telecom, all these factors contribute to the highly volatile telecommunication
environment where strategic would seem to have more value than long – term
planning. But, in spite of all uncertainties Operators have really have no option but
to make long term commitments and massive long – term investment decisions,
driven by inexorable emergence of new mobile technologies.
7
Executive Summary
The mobile phone is the most widely-used electronic device on the planet, with
about a third of the world’s population having at least one. Globally, there are
approximately 3.5 times as many mobile devices in use as there are PCs. Mobile
phones are not just devices for occasional use. For example, the average U.S.
subscriber spends a half an hour a day on the mobile phone. The usage of this
nearly ubiquitous device is rapidly changing away from purely voice
communications. The mobile handset is becoming a platform for a wide variety of
data applications, from taking and sending pictures—virtually all new handsets will
have cameras by the end of the decade—to playing games, listening to music,
watching video, and getting information from the Internet.
To support the demands of data applications, handset capabilities are growing
rapidly. Some 45% of all new handsets have slots for flash memory cards, up from
only 2% in 2003; penetration will rise to almost three quarters by 2011.
Data network capability is also increasing. Download speeds of up to 1 Mbps are
possible on some of the latest commercial networks, with even higher data rates
being tested. By 2011, data services and content will make up 16% of total mobile
revenues in North America, and 26% in Western Europe. Text messaging continues
to be the largest single component of mobile data usage, but infotainment, which
includes games, audio and video (both streaming and downloaded) and information
services, is the fastest growing segment.
8
Detailed Findings of Secondary Research
The Indian telecommunications industry is one of the fastest growing in the world
and India is projected to become the second largest telecom market globally by
2010.India added 113.263 million new customers in 2008, the largest globally. In
fact, in April 2008, India had already overtaken the US as the second largest
wireless market. To put this growth into perspective, the country’s cellular base
witnessed close to 50 per cent growth in 2008, with an average 9.5 million
customers added every month.
According to the Telecom Regulatory Authority of India (TRAI), the total number of
telephone connections (mobile as well as fixed) had touched 385 million as of
December 2008, taking the telecom penetration to over 33 per cent. This means
that one out of every three Indians has a telephone connection, and telecom
companies expect this pace of growth to continue in 2009 as well.
The overall cellular services revenue in India is projected to grow at a CAGR of 18
per cent from 2008-2012 to exceed US$ 37 billion. Cellular market penetration will
rise to 60.7 per cent from 19.8 per cent in 2007.
The Indian telecommunications industry is on a growth trajectory with the GSM
operators adding a record 9.3 million new subscribers in January 2009, taking the
total user base to 267.5 million, according to the data released by COAI.
India is the fourth largest telecom market in Asia after China, Japan and South
Korea. The Indian telecom network is the eighth largest in the world and the
second largest among emerging economies. At current levels, telecom
intensiveness of Indian economy measured as the ratio of telecom revenues to
GDP is 2.1 percent as compared with over 2.8 percent in developed economies.
9
Indian telecom sector has undergone a major process of transformation through
significant policy reforms. The reforms began in 1980s with telecom equipment
manufacturing being opened for private sector and were later followed by National
Telecom Policy (NTP) in 1994 and NTP'1999.
Policy reforms can be broadly classified in three distinct phases-
"The Decade of 1980's saw private sector being allowed in telecommunications
equipment manufacturing. Mahanagar Telephone Nigam Limited (MTNL) and
Videsh Sanchar Nigam Limited (VSNL) were formed and a Telecom Commission
was set up to give focus to telecommunications policy formation.
"In 1990s, telecommunications sector also benefited from the general opening up
of the economy. NTP 1994 was the first attempt to give a comprehensive roadmap
for the Indian telecommunications sector.
• Availability of telephones on demand (targeted by 1997)
• Universal service covering all villages and one PCO per 500 persons in urban
areas at the earliest (targeted to be achieved by 1997)
• Telecom services at affordable and reasonable prices
• World standard quality of services
"NTP 1999 brought in the third generations of reforms in the Indian
telecommunications sector.
India is one of the fastest growing telecom markets in the world with an addition of
more than 6 million connections per month. FDI inflow in Indian Telecom sector is
the highest among all sectors. It is emerging as telecom manufacturing hub. Year
2007 was declared as "Year of Broadband" in India.
It is projected that the industry will generate revenues worth US$ 43 billion in
2009-10. Rural India had 76.65 million fixed and Wireless in Local Loop (WLL)
connections and 551,064 Village Public Telephones (VPT) as on September 2008.

10
Therefore, 92 per cent of the villages in India have been covered by the VPTs. The
target of 80 million rural connections by 2010 is likely to be met during 2008 itself.
Universal Service Obligation (USO) subsidy support scheme is also being used for
sharing wireless infrastructure in rural areas with around 18,000 towers by 2010.
The Indian rural market is going to be the next big thing for wireless telecom
providers. With the tele-density in rural areas being still about 10 per cent against
the national average of about 21 per cent, there seems to be huge untapped
potential for mobile phone penetration in rural India.
The government also plans an investment of US$ 2 billion, during 2008 to 2009,
for the development of around 100,000 community service centers in rural India to
provide broadband connectivity.
Additionally, by 2010, the government targets:
· 80 million rural connections
· Mobile coverage of 90 per cent geographical area
· Internet Protocol Television (IPTV) in 600 towns
· Quadrupling manufacture
· Two-fold increase in telecom equipment R&D from the current level of 15 per cent
The Advantages of 3G Technology
· Perform all those functions that they perform at present with their mobile devices
but at much higher speed than before.
· Provides them with faster connectivity, faster internet access, and music
entertainment with improved quality.
· Can avail the benefits of video calling.
· Clarity is better and the facility can be enjoyed as long as both of are using the
3G technology.
11
· Access any site on the Internet by using your phone as a modem for computer or
laptop and mail the important documents.
· Downloading games and songs is much faster with this technology
· Can be also used for favorite search engines to find information on news
headlines, get information about the evening weather.
· Provide with the data transmission speed of up to 2Mbps when the users are
using the phone on stationary mode.
· Provides significantly faster data transfer rates of connectivity and increased
networking and most importantly the resistance to noise.
· Increased the bit rate thus enabling the service providers to provide high speed
internet facilities, increased call volumes and host of the multimedia applications to
their customers.
· All these services can be provided to the customers on the basis of the amount of
data they transmit and not on the time for which they use the service thus making
the services cheaper.
· Beneficiary to the service providers as well as the intermediaries like the content
providers and the media houses who are looking for an additional platform market
their products. Basically it holds three way benefits to all the parties involved.
· Improved performance over 2G, including:
Will ease spectrum constraints on the 2G networks and accommodate subscriber
growth
Will improve data opportunities as spectrum constraints are a major barrier to
adoption and usage; Indian consumers already own c2m 3G devices
3G spectrum will allow incumbents to differentiate services from new entrants
and regional players

12
Improved capacity
Improved coverage, enabling migration from a 2G deployment.
A high degree of service flexibility, including:
Issues of 3G
Although 3G was successfully introduced to users across the world, some issues
are debated by 3G providers and users:
· Expensive input fees for the 3G service licenses in some jurisdictions
· Differences in licensing terms between states
· Level of debt incurred by some telecommunication companies, which makes
investment in 3G difficult
· Lack of state support for financially troubled operators
· Cost of 3G phones
· Lack of coverage in some areas
· High prices for 3G in some countries
· Demand for high speed services in a hand-held device
· Battery life of 3G phones
Current status and Impact of 3G in India
The success of 3G is going to depend on demand for superior quality voice services
and data heavy, media rich content. The initial pricing has been on the higher side
and it will have to drop if mass adoption is to ensue.
Spectrum policy in India has been the victim of slow decision-making, which has
left the country lagging behind many others.
The delay in auction over three years has deprived Indian subscribers of the
benefits of high speed mobile data services available to over 300 million
13
subscribers residing in over 125 countries with significant concentration around the
Americas, Europe, and South East Asian countries.
This is also an opportunity for Indian software companies to join hands with service
providers to develop applications that will meet the needs of the Indian mobile
user. At a later stage, these could be rolled out into other emerging markets..
3G in India is initially expected to provide additional spectrum for voice services.
This would pave the way for data usage on mobile phones. This is vital as
operators are focusing on customer acquisition as well as ‘sticky offerings’ to
prevent churn. 3G enables better VAS services due to the higher levels of
bandwidth that it can accommodate. The technology is expected to drive data card
adoption. Currently, Tata Indicom and Reliance are the only players in the data
card segment. With more players coming into the market, sales are expected to
boom with competitive prices and attractive schemes.
Poor broadband penetration, a large untapped rural market, and the challenge of
providing high bandwidth in rural areas using landlines are all factors favoring a 3G
rollout. With 3G, network operators can offer wireless broadband services.
Moreover, many operators are starved of spectrum and as 3G offers four to five
times the voice capacity of 2G spectrum, it is a cost effective tool to deliver voice.
Services beyond voice and text can be offered; 3G offers a platform which can offer
true multimedia services.
The technology will be critical for operators in enabling the differentiation of their
service portfolio, by providing a far richer service experience than is currently
available—particularly in the deployment of audio-visual services.
The fundamental driver for 3G in India is to serve the country’s demand for
broadband services.
14
From a technological point of view, in areas where no fixed-line infrastructure
exists, deploying a mobile network is much cheaper and it can be rolled out a lot
faster than wired infrastructure.
Major Players
There are three types of players in telecom services:
• -State owned companies (BSNL and MTNL)
• -Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)
• -Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel,
Idea Cellular, BPL Mobile, Spice Communications)
15
Technology Acceptance Model
The technology acceptance model is an influential extension of Ajzen and

Fishbein’s theory of reasoned action (TRA). It was introduced and developed by
Fred Davis in 1986 (Davis et al., 1989). TAM is a model derived from a theory that
addresses the issue of how users come to accept and use a technology. The model
suggests that when users are presented with, for instance, a new software
package, a number of variables influence their decisions about how and when they
will use it. There are two specific variables, perceived usefulness and perceived
ease of use, which are hypothesized to be fundamental determinants of user
acceptance. (Davis and Arbor, 1989).
Perceived
Usefulness
External
Variables Attitude Behavioral
Toward Use Intention
to Use
Perceived
Ease of Use
Figure 1 Technology Acceptance Model (Davis et al., 1989)
16
Detailed Findings of Primary Research

Following are the graphs and charts for the questionnaire conducted in our project.
1. Disclosure of name was kept as compulsory.
2. Gender
Male 29 91%
Female 3 9%
3. Age
It was found that 26-35 age bar of respondents was maximum.
17
4. Occupation
Student 1 3%
Service 2991%
Self employed / Business 2 6%
Home maker 0 0%
Deductions: Of the total sample survey,

• 91% were male, of which 60% were between the age group of 26 – 35.
• 75% are between the age group of 26 – 35 yrs of which, 60% is male & 40% is
female.
• 91% are in service, there are 81% male & 19% female.
5. Price range of the mobile which you currently use

Rs 1000 – Rs 5000 2 6%
Rs 5000 – Rs 10000 413%
Rs10000 – Rs 20000 1959%
Option Above Rs 25000 619%
Deduction: 59% of total respondents are using a mobile between the

price range of Rs.10000/- & Rs.20000/- of which 53% are male & 47%
are female.
18
6. What are the current features on your mobile phone

Internet 31 97%
Google Map 18 56%
Flash 13 41%
None 1 3%
People may select more
than one checkbox, so
percentages may add up
to more than 100%.
7. Do you use internet on your mobile phone

Yes 29 91%
No 3 9%
Deduction: 91% of the total respondents use internet of which, 97% use the purely the
net, & 56% use it for google maps.
8. You use Internet on your mobile phone for

Social networking 1547%
Online Game 2 6%
Email (Personal/ Official) 2681%
Documents PDF / DOC/ Excel/PPT 1341%
Browsing 2166%
None 3 9%
People may select more than one checkbox,
so percentages may add up to more than
100%.
Deduction: Of the 91% respondents that use internet on the mobile, 81%
use it for emails alone.
19
9.How often do use the above features

Multiple times in a 1 59
day 9 %
Once in a day 3 9%
Once a week 4 13
%
Once in fifteen days 3 9%
None 3 9%
10. Are you happy with the current internet speed on your phone?
Yes 6 19%
No 23 72%
None 3 9%
Deduction: Though 72% of the respondents are unhappy about the

current internet speed, 59% of them still check their mobile for various
net based applications multiple times a day.
11. How much do you spend on your mobile internet per month?
200 1134%
200-500 825%
500 and above 619%
None 722%
20
12. Connectivity of Internet on Mobile handset is through

Mobile network Provider 2784%
Wireless Wi- Fi network 2 6%
None 3 9%
Deductions: Though 84% of the respondents access internet applications

via their Mobile Network Provider, 34% spend less than Rs.200/- per
month.
13. Are you aware of 3G technology?

Yes 28 88%
No 4 13%
14. What do you understand by 3G technology?
Deductions: Although 88% of the respondents gave an affirmative on

being aware of 3G technology, there was only 66% who could describe
exactly what some of the features of 3G technology were.
15. Is your handset 3G enabled

Yes 18 56%
No 11 34%
Dont Know 3 9%
21
16. If you’re current handset is not 3G compatible are you willing to buy
a 3G handset?
Yes 20 63%
No 6 19%
May be 6 19%
Deductions: 9% of total respondents did not know if their handset was

3G enabled, but 63% would change their handset for a 3G handset.
17. Will a speedy and efficient net service motivate you to spend more on
mobile internet?
Yes 22 69%
No 2 6%
May be 8 25%
22
Solutions & Recommendations
From the total respondents, 63% of the total respondents, would change their
mobile instrument to avail of the 3G technology when launched.
69% of the respondents would be motivated to spend more on their internet
budget if they had a faster connection.
In regard to gender, though the male population showed a higher inclination
towards the willingness to adopt 3G, but the female respondents were not adverse
to the launch of 3G.
Corporate and Enterprise user segment is possibly the first target of 3G service.
Enterprise application which is data rich (video conf, CRM, intra enterprise web
applications, e-mail etc.) would be launched by the operators at corporate price
rates assuring revenue volumes would be marketed as most of the respondents in
service availed the email service.
Other Findings
Majority of respondents knew the basic functionality of 3 G technology. However in

depth understanding of the technology was still lacking.
Below are some of the respondent’s replies to the Question - what do you
understand by 3G technology?
- The next generation of wireless technology.
- Multimedia 3G networks transmit wireless data up to 2 megabits per second,
making possible the integration of voice, data and video.
- A faster technology for cell phones where internet is faster & video conference is
possible.
- Faster speed better technology like video conferencing etc.
- It enables hi speed data transfers on mobile through dedicated frequencies and
thereby will enable a lot of multimedia and live streaming on mobile. 3rd
generation wireless technology...its a higher & better version of 2G(as per my
knowledge of it) - - Fast net connectivity. it helps you to manage your home
gadgets
23
Blank Questionnaire
A Study of Behavioral Intention for 3G Mobile Internet

Technology: Preliminary Research on willingness to subscribe.
Dear Sir/ Madam,
We are students with Welingkar College and are inviting you to participate in
research in the form of a questionnaire
Your opinion will represent the opinions of thousands of people much like yourself
and will be of great help to our research.
Your responses will be strictly confidential and data from this research will be
reported only in the aggregate. Your participation is voluntary, regardless of
whether you choose to participate, please let us know if you would like a summary
of our findings.
Please advise us if you have questions at any time about the survey or the
procedures, you can write to us on garimalodha@gmail.com
Thanking you
Yours Sincerely
Garima Lodha
1. Name
2. Gender
- Female
- Male
24
3. Age
- 15- 25
- 26 -35
- 36- 45
- 45 +
4. Occupation
- Student
- Service
- Self Employed / Business
- Home Maker
5. Price range
- Rs.1000 – Rs. 5000
- Rs.5000 – Rs. 10000
- Rs.10000 – Rs. 20000
- Above Rs.25000
6. What are the current features on your mobile phone

- Internet
- Google Map
- Flash
- None
7. Do you use internet on your mobile phone

- Yes
- No
8. You use internet on your mobile phone

- Social Networking
- Online Game
- Email (Personal/ Official)
- Documents PDF / DOC/ Excel/PPT
- Browsing
- None
25
9. How often do use the above features

- Multiple times in a day
- Once in a day
- Once a week
- Once in fifteen days
10. Are you happy with the current internet speed on your phone?
- Yes
- No
- None
11. How much do you spend on your mobile internet per month?
- 200
- 200- 500
- 500 and above
- None
12. Connectivity of Internet on Mobile handset is through

- Mobile network Provider
- Wireless Wi- Fi network
- None
13. Are you aware of 3G technology?

- Yes
- No
14. What do you understand by 3G technology?
15. Is your handset 3G enabled

- Yes
- No
- Don’t Know
26
16. If you’re current handset is not 3G compatible are you willing to buy a
3G handset?
- Yes
- No
- May be
17. Will a speedy and efficient net service motivate you to spend more on
mobile internet?
- Yes
- No
- May be
27
Bibliography and Web References
- Future of 3G in Indian Telecom sector – IBS Pune PDF
- An investigation of consumer behaviour in mobile phone markets in Finland

Submission to 32nd EMAC conference, Track: New Technologies and E-Marketin
- Role of Future – India 3G in India’s Mobile Should Skip 3G and go to LTE?

Article contributed by Bill Rojas and Alex Chau, Senior Research Manager – IDC
- Times of India – India Business - Bharti, Vodafone, RCom, Tatas bid for 3G - PTI,
Mar 18, 2010, 07.16pm IST
28

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A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on

Welingakar Institute of Management development & research

MMM 2008 - 2011

MARKET RESEARCH REPORT

” A STUDY OF BEHAVIORAL INTENTION FOR 3G MOBILE INTERNET

Rajeev Solanki - 106

Research Model and Hypotheses……………………………………………….5

Detailed Findings of Secondary Research……………………………………9

The Advantages of 3G Technology…………………………………………………….11

Current Status and Impact of 3G in India…………………………………………..13

Technology Acceptance Model………………………………………………………….16

Detailed Findings of Primary Research……………………………………..17

Solutions & Recommendations…………………………………………………23

Bibliography and Web Reverences………………………………………………28

Abundant information has indicated that the proliferation of 3G technology or

Internet allows consumers and businesses to build connectivity by transcending

little attention has been given to user acceptance of 3G technology (Mobile

Internet) in India. Research on 3G technology acceptance, therefore, will be

extremely worthy in providing useful information, especially at this early stage of

3G Mobile Internet development and implementation. Therefore, this study will be

innovators’ and non-innovators’ perception of the service. Furthermore, the results

Research Model and Hypotheses

The purpose of this analytical study is to understand the acceptability of 3G

change in the demand of mobile services as reflection to the introduction of the 3G

potential 3G users, either corporate or individuals, in order to evaluate the

expected demand on the 3G services.

to a sample of 32 working professionals based on a convenience sampling.

response towards usage of 3G services.

international & Indian, articles published.

Generation Mobile Technology” or referred to as 3G services. Enabling technologies

kind of bandwidth that was, until recently undreamed of in a mobile environment

and will allow operators to compete realistically in the mainstream internet

Adding to the above that the telecommunication world is changing as trends of

media convergence, industry consolidation, Internet and IP technologies and

• Data (non – voice) uses of 3G will be as important as and very different

from the traditional voice business.

their daily lives.

technologies as a new channel to distribute their content, opening the

The explosion of new competition, liberalization of markets, the globalization of

telecom, all these factors contribute to the highly volatile telecommunication

driven by inexorable emergence of new mobile technologies.

nearly ubiquitous device is rapidly changing away from purely voice

communications. The mobile handset is becoming a platform for a wide variety of

watching video, and getting information from the Internet.

To support the demands of data applications, handset capabilities are growing

only 2% in 2003; penetration will rise to almost three quarters by 2011.

Data network capability is also increasing. Download speeds of up to 1 Mbps are

services, is the fastest growing segment.

Detailed Findings of Secondary Research

customers added every month.

telephone connections (mobile as well as fixed) had touched 385 million as of

companies expect this pace of growth to continue in 2009 as well.

The overall cellular services revenue in India is projected to grow at a CAGR of 18

rise to 60.7 per cent from 19.8 per cent in 2007.

The Indian telecommunications industry is on a growth trajectory with the GSM

second largest among emerging economies. At current levels, telecom

intensiveness of Indian economy measured as the ratio of telecom revenues to

Indian telecom sector has undergone a major process of transformation through

Telecom Policy (NTP) in 1994 and NTP'1999.

Policy reforms can be broadly classified in three distinct phases-

"The Decade of 1980's saw private sector being allowed in telecommunications

equipment manufacturing. Mahanagar Telephone Nigam Limited (MTNL) and