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Telecom

Industry Summary

  • With 118 crore subscribers (Jun 2021) India has the second-largest telecom network globally.
  • With 75 Cr users in 2020, India has the 2nd highest number of Internet users globally. This number is expected to grow to over 1.5 billion users by 2040
  • Government has allowed for 100% FDI for satellite-based Narrowband IoT, and the Phased Manufacturing Programme
  • In 2021-22, telecom infrastructure was allocated $1.9 bn in the union budget and the Department of Telecommunications has been allocated $8Bn
  • India’s 5G subscriptions are expected to rise to 350 million by 2026 accounting for 27% of all mobile subscriptions
  • India has the highest data usage/ smartphone with an average usage of 13.46 GB per month

Value Chain

Step 1

Tower Infrastructure

Step 2

Network Equipment

Step 3

Device Manufacturers

Step 4

Network Operator

Step 5

Customers

Cost Drivers

  • Spectrum auctions
  • Network investments
  • Operating expenses

Revenue Drivers

  • Calling & Messaging Services
  • Internet Services
  • Network Connectivity to other telco firms

Growth Drivers

  • Growing mobile penetration in rural India
  • Increase in internet access across the country
  • Relaxed FDI norms by government