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Expert for Investment in Telecom Sector in India

Telecom Industry

As of May 2020, India holds the world’s highest data usage per smartphone at an average of 12 GB per month (excerpts of interview by Mr. Sunil Mittal, chairman of Bharti Enterprises). Given current trend, it’s going to double to 24 GB per month by 2025.

 

As per study from various available data checked by India entry services for telecom industry, India is currently the second-largest telecommunications market with subscriber base of 1.20 billion and has been registering strong month-on-month growth. The Indian mobile business plays a major role in India’s Global Domestic Product (GDP) as per report prepared by the GSM Association (GSMA) in partnership with Boston Consulting Group (BCG). Since the first month of 2019, India has seen impressive growth of 165 percent in app downloads over the last two years.

 

The liberal policies of the Government of India coupled with strong consumer demand have being instrumental in the rapid growth of the Indian telecom sector. Government has provided easy access to the market for telecom equipment and an effective and efficient regulatory framework that ensures the availability of telecom services to consumers at affordable prices. The deregulation of Foreign Direct Investment (FDI) norms has made the telecom industry sector with top five-employment opportunity and one of the fastest growing sector in the country.

 

As per Mr. Rajan S Mathews Director General, COAI (Cellular Operators Association of India), the Telecom sector in India, has transformed the communication landscape and continues to play a pivotal role in building the infrastructure for Digital India, as envisioned by Hon’ble Prime Minister, Shri Narendra Modi. For the past 25 years, the industry has designed, launched and operated regularly in India, which is one of the largest and most sophisticated voice and data networks seen anywhere in the world. It supports a customer base of close to 1.2 billion (globally second only to China), with over 5,96,000 active mobile towers, and more than 22 lakh BTSs. The network provides broadband connectivity to nearly 650 million subscribers to the country’s 1.2 billion subscribers.

 

While , the country is preparing for the next big leap in telecom with 5G and emerging technologies the global pandemic COVID-19 engulfed. At this critical time of closure, the telecom sector has proven to be the centerpiece of the world to ensure that people stay connected to the public, information is processed and disseminated. Telecom networks also enable different sectors to stay connected and efficient, moving to Work-from-Home is not supported, and areas such as online classes, online payments, continue to be available to citizens. As a result, networks have seen a significant increase in data usage.

 

100% FDI is approved in telecom sector (of this upto 49% is allowed through the automated route and balance under government channel).

For regular updates, you can visit our Twitter page:  India Entry Services

Advantages of investing in telecom sector?

Some key advantages for investors in the telecom sector are:

  • Duties relax – Basic customs duty (BCD) & special additional duty have been relaxed & totally withdrawn.
  • Mobile handset components and accessories such as chargers, adaptors, batteries and wired handsets are required to pay only the duty of 12.5%. The duty is known as countervailing duty.
  • A duty benefit of 10.5% will remain same as it is for local manufacturers of mobile speakers and batteries.

Road Ahead

Revenues from the telecom equipment sector are expected to grow six-fold by 2023. The internet subscribers in the country is estimated to double by 2025 & overall IP traffic is expected to grow 4-fold by 2023. Indian Government is developing 100 smart city projects, where IoT is slatted to play a vital role. The National Digital Communications Policy 2018 has visualize investments worth US$ 100 billion in the telecommunications sector by the year 2022.

SM Management Telecommunication Services

Our team of telecom consultants in India helps clients in increasing customer value and focusing on profitable growth both at strategic and operational levels. Setup plants or service operations.

 

Our Services For The Telecom Sector Include:

  • Providing strategic planning.
  • Identifying trends, opportunities and competition for current products.
  • Expanding by identifying new growth avenues and markets.
  • Growing through Joint Ventures/ Acquisitions.
  • Establishing and monitoring performance of dealer networks.
  • Identifying the right customer segments and deciphering their needs and preferences.
  • Tying-up with the right partner.
  • Setting up a production facility.
  • Assessing technology and market trends.

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