Indian telecom sector on rise
by Jo BlackA recent study conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), which is highest body of the Chambers of Commerce of India, has revealed that the Indian states of Bihar and Madhya Pradesh have registered growth in telecom subscription.
According to ASSOCHAM Eco Pulse (AEP), the state of Bihar registered the maximum increase in annual telecom subscribers, registering a growth of 88.2 per cent in the previous fiscal as compared to the 51.1 per cent in FY 2006-07.
The AEP study further says that keeping aside big metro cities of Delhi, Mumbai, Kolkata and Chennai, the states like Bihar, Madhya Pradesh, West Bengal, North East region and Orissa have registered an upsurge, in mobile phone subscription.
Fast growth in such states can be attributed to a growing middle class, low tariffs and economic handsets, which have fuelled rapid growth in mobile phone use in India.
The telecom story continues to hit the roof with an increase in the subscribers base from 165,093,655 in FY 2006-07 to 261,081,713 in FY 2007-08.
The wireless boom has completely altered the mobile subscription of the country.
A state-wise breakup of wireless penetration reveals the remarkable increase in mobile penetration.
The total number of mobile phones in the state of Bihar increased from 57,73,370 in 2006-07 to 108,69,459 in 2007-08.
While the metropolitan cities have reached their saturation point, the next phase of telecom growth in India is being driven by sub-urban places of Bihar, Madhya Pradesh, Orissa, said Mr. Sajjan Jindal, President ASSOCHAM.
The launch of various lifetime plans has also led to a spurt in the number of mobile users.
The mobile subscription in the state of Madhya Pradesh increased from 66,82,326 in 2005-06 to 124,91,306 in 2007-08.
Excluding the mobile connections in metropolitan city Kolkata, the state of West Bengal registered an increase of 86.1 per cent in the subscriber volumes from 84.4 per cent in FY 2006-07.
In volume terms, it increased from 5040111 in FY 2006-07 to 9381095 in the previous fiscal.
Falling tariffs rates and aggressive marketing by the major telecom players also contributed to the rise in the subscriber’s base.
Orissa registered an increase of 74.8 per cent in the previous fiscal as compared to 36.4 per cent in FY 2006-07.
The AEP study has claimed that the robust telecom growth in the recent past is a clear indicator of the immense potential in the Indian market.
A region wise analysis showed that Central India registered maximum growth of 84.5 per cent in mobile subscription followed by Eastern part of the country at 75.3 per cent, North East at 70.7 per cent, South 56.4 per cent, West 55.9 per cent and finally North at 52.7 per cent.
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