Country Industry Forecast

Report Service

The Indian Telecom Industry

1996 - 2006
The Indian Telecom Industry
Structural Reforms to Accelerate Economic Growth
The Indian economy is on the path of resurgence. The gradual opening up of the economy
ensured steady growth even at a time when other countries were in the grip of a massive
slowdown. Progressive reforms such as the removal of restrictions on foreign investment
and industrial delicensing are responsible for this growth. Tailoring the EXIM policy to
promote exports and aligning the import duties to meet WTO commitments further
contributed to this development. This trend is expected to continue in the next five years,
driven by a favorable business policy environment in terms of tax cuts, broadening tax base,
and reduced interest rates on borrowings.

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Such structural changes have had a positive impact on the telecommunications sector and a
compound annual growth rate (CAGR) of 13.42 per cent is estimated for 2002-2006. The
future of the industry lies in the mainline and cellular segments and constant technological
innovations such as Internet Protocol (IP)-based services. Revenues from voice services
will experience sustained growth even as those from data services are expected to increase
sharply due to a surge in usage. The telecommunications industry in India is likely to see
consolidation among major operators and privatization of many Government companies.

Country Industry Forecast (CIF) – The Country Industry Forecast for the Indian telecom industry studies the country-specific
your tool to gauge how a country’s factors such as politics, business policy, and macroeconomic indicators that have an impact
economic, political, and regulatory on this sector and its main segments. This report provides incisive analysis of the industry
environment impacts the industry. for 1996-2001 as well as forecasts for 2002-2006.
In a dynamic global business
environment, knowledge of Proactive Policies: Key to Future Growth
country-specific factors is vital India’s move toward globalization, especially in the telecom sector, has to be driven by
for effective decision-making - transparent policies and better market conditions to attract foreign investments. According
specifically information about to this report, “The recent policy stance of opening of the international long distance (ILD)
political situations, policy segment and legalization of Internet telephony should result in huge investment in the
decisions, and prevailing industry. However, the Government, on its part, should ensure an environment conducive
economic conditions. CIF’s to foreign participation by increasing the FDI limit and following transparent policies.”
integrated approach links all
components of the economy Cellular Subscribers and Revenues for Robust Growth
to give you industry insights The entry of new operators and the introduction of novel services coupled with the
without missing out on increasing importance of wireless communication are factors that are likely to contribute
the ‘big picture’. to the growth in the number of subscribers in the cellular segment. As the report says, “In
the last quarter of 2001, the number of subscribers had reached the 5 million mark due to
Created and supported by Frost & the continuous fall in airtime rates, achieving 0.5 percent mobile penetration in India. Revenues
Sullivan’s team of analysts and from cellular phones are expected to grow at a CAGR of 37.29 percent during the forecast
experts around the globe, the period with higher data usage and multimedia services.”
Country Industry Forecast reports
provide a unique service, which is a
must for senior-level decision-
makers, analysts, industry observers,
and marketing professionals.
 Table of Contents D. Summary of Political Implica- 6.4. Trends and Forecasts for the
tions on the Economy and the Economic Indicators : Prices and
1. Executive Summary
Industry GDP
1.1. Introduction and Segment
Analysis A. Prices

A. Introduction B. GDP
5. Business Policy Analysis and its 6.5. Summary of the Implications
B. Segment Analysis
Implications for the Telecommunica- on the Telecommunications
1.2. Summary of Major Findings
tions Industry Industry
A. Country Trends and Forecasts
5.1. Domestic and External A. Telecommunication Prices
B. Industry Trends and Forecasts
Policies B. Investment
A. Domestic Policies
B. External Policies
2. Overview of the Telecommunica-
5.2. Industry Acts and Multilateral 7.Trends and Forecasts for the
tions Industry
Agreements Telecommunications Industry
2.1. Industry Definition and
A. Industry Acts and Multilateral 7.1. Trends and Forecasts for
Global Overview
Agreements Telecommunication Services
A. Industry Definition
B. Summary of Implications of A. Mainline Subscribers
B. Global Overview
the Business Policy on the B. Domestic Mainline Segment
2.2. Regional and Country
Economy and the Industry C. International Mainline
Overviews
A. Regional Overview Segment

B. Country Overview D. Cellular Segment

6. Economic Analysis and its Implica- E. Radio Paging Segment
tions on the Telecommunications 7.2. Trends and Forecasts for the
Industry Telecommunication Equipment
3. Industry Structure and Key
6.1. Trends and Forecasts for the Segment
Parameters
Economic Indicators : Consump- A. Introduction
3.1. Segments and Parameters
tion and Investment B. Production Exports and
A. Industry Segments
A. Consumption Imports
B. Parameters
B. Investment 7.3. Total Telecommunications
3.2. Growth Determinants and
6.2. Trends and Forecasts for the Services and Equipment
Country-Industry Linkage
Economic Indicators : External Segments
A. Growth Determinants
Markets and Foreign Investment A. Telecommunications Services
B. Country-Industry Linkage
A. Exports and Imports Segment
B. Current Account Deficit and B. Telecommunications Equip-
Foreign Exchange Reserve ment Segment
4. Political Analysis and its Implication
C. Foreign Investment
for the Telecommunications Industry
D. Exchange Rate Interest Rate
4.1. India Political System
and Capital Market 8. Industry Progression Index
A. Political System
6.3. Trends and Forecasts for the 8.1. Methodology for the
B. Political Parties
Economic Indicators : Labor Industry Progression Index
4.2. Government Policies and
Markets A. Index Methodology
Agendas
A. Population Employment and B. Weights Assigned to the Key
A. Government Agenda
Earnings Parameters of the Industry
B. Foreign Policies and Interna-
B. Labor Laws and Regulations
tional Relations
C. Telecommunication Policies
 8.2. Progression Index for the
Telecommunications Industry in
India
A. Progression Index for the
Segments of the Industry
B. Industry Progression Index
Fact Sheet
1. Country Fact Sheet
A. Geography Demography and
Infrastructure
B. Economic Indicators
2. Regional and Industry Fact Sheets
A. Asia Pacific: Regional Fact
Sheet
B. India: Telecom Industry
Fact Sheet
List of Figures
Appendix
Trends and Forecasts for the Key Economic
Indicators (India), 1996-2006
Trends and Forecasts for the Telecommuni-
cations Industry (India), 1996-2006
Trends for the Telecommunications Markets
(World), 1996-2000
Trends for the Telecommunications Market
(Asia Pacific), 2000
Contribution of the Telecommunications
Industry to the GDP (India), 1996-2000
Share of the Telecommunications Industry in
Total Exports and Imports (India), 1996-2000
Trends for the Telecommunications Industry
as a Percentage of its Segments (India),
1996-2000
Summary of the Key Features of the
Parliament (India)
Position of the Political Parties in the
Parliament (India), 2002
Chronology of Governments (India),
1990-2001
Total Revenues and Expenditure for the
Government (India), Fiscal Year 1996-97–
2001-02
Central Plan Expenditure for Various
Sectors by the Government (India), Fiscal
Year 1996-97 -2001-02
General Peak Tariff Rate (India), August 1,
1998
Status of Foreign Direct Investment Policy
in Selected Sectors (India), 2001
Sector-Wise Share of Foreign Direct
Investment Approved (India), 1991-2001
Trends and Forecasts for Consumption
Expenditure and its Components (India),
1996-2006
Trends and Forecasts for Gross Savings and
its Components and Household Savings
Rates (India), 1996-2001
Trends and Forecasts for Gross Domestic
Investment and its Components (India),
1996-2006
Trend and Forecasts for Exports and Imports
(India), 1996-2006
Trends and Forecasts for Current Account
Deficit and Foreign Exchange Reserves
(India), 1996-2006
Trends and Forecasts for Foreign Direct
Investment and Foreign Portfolio Investment
(India), 1996-2006
Indian Rupee Against the Dollar, 1996-2001.
Bank Rate of the Reserve Bank (India),
1996-2001
Population and Unemployment Rate (India),
1996-2006
Wholesale Price Index, Consumer Price
Index, and Inflation (India), 1996-2006
Summary of Impact of Important Macroeco-
nomic Indicators on the Future Course of
the Economy (India), 2002-2006
Trends and Forecasts for GDP (India),
1996-2006
Call Rates for the Subscribers in the Rural
and Urban Areas (India)
Composition of Subscribers and Revenue
Generated by Various Categories (India),
2000
Segment-Wise Cumulative Foreign Direct
Investment Inflow in the Telecommunications
Industry (India), 1991-2001
Trends and Forecasts for Foreign Direct
Investment in the Telecommunications Indus-
try (India), 1996-2006
Waiting List for Mainline Connections
(India), 1996-2000
Trends and Forecasts for the Number of
Subscribers in the Mainline Segment (India),
1996-2006
Trends for the Number of Internet Subscrib-
ers of the Internet (India), 1996-2001
Trends and Forecasts for Capital Expendi-
ture in the Domestic Mainline Segment
(India), 1996-2006
Trends and Forecasts for Revenues from the
Domestic Mainline Segment (India),
1996-2006
Trends and Forecasts for Paid Minutes in the
International Mainline Segment (India),
1996-2006
Trends and Forecasts for Capital Expendi-
ture in the International Mainline Segment
(India), 1996-2006
Trends and Forecasts for Revenues in the
International Mainline Segment (India),
1996-2006
Trends and Forecasts for Average Revenue
per User in the International Mainline
Segment (India), 1996-2006
Trends and Forecasts for the Number of
Subscribers and Revenues of the Cellular
Segment (India), 1996-2006
Trends and Forecasts for the Number of
Subscribers and Revenues of the Radio
Paging Segment (India), 1996-2006
Trends and Forecasts for Revenues of the
Telecommunications Services Segment
(India), 1996-2006
Trends and Forecasts for Production in the
Telecommunications Equipment Segment
(India), 1996-2006
Trends and Forecasts for Exports and
Imports of the Telecommunications
Equipment Segment (India), 1996-2006
Trends and Forecasts for the Telecommuni-
cations Equipment Segment (India),
1996-2006
Weights Assigned to the Key Parameters and
Segments of the Telecommunications
Industry (India)
Progression Index for the Telecommunica-
tions Industry and its Segments (India),
1996-2006
C a t e g o r y o f u s e r- g ro u p s
Telecom Equipment Manufacturers
Senior Executives
COO s and CEOs
Presidents and Vice Presidents
Trade and Business Associations
Industry and Manufacturers Associations
Banks and Multi-National Corporations
Trans-National Corporations
Financial Institutions
Asset Management Companies
Venture Capitalists
Analysts
Industry Observers
Planning Boards
Business Development Managers
Country Managers
Forecasters and Economic Trackers
Merchant Bankers
The CIF Advantage
CIF is an indispensable tool for the following
groups:
• Senior level decision-makers and
planners who formulate company
strategies for various industries.
• Industry analysts and industry
observers who look for country-
specific industry intelligence.
• Marketing professionals who want
to know the ‘lay of the land’ and
the ‘pulse of the market’.
CIF is beneficial for companies:
• Entering a new geographical
market
• Making strategic decisions on
alliances, mergers, and acquisitions.
• Learning how the non-market
forces affect your company’s
present performance in a country.
• Judging the extent of competition
faced by various industries in a
country.
• Shaping and fine-tuning future
strategies based on new market
opportunities.
• Preparing contingency plans based
on the likely scenarios.
• Making in-depth micro research on
various industries.
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