The year 2009, saw the Indian telecom sector add 170 million phone connections to take the total subscriber base to 550 million. T R Dua, Deputy Director General of Cellular Operators Association of India (COAI), said, “It is indeed a matter of great satisfaction that the Indian telecom industry continued to grow even when most other sectors grappled with a demand slowdown.” Studies have shown that in India, the telecom sector has been a major enabler of economic growth. An Indian Council for Research on International Economic Relations (ICRIER) study has shown that states with higher mobile penetration are forecast to grow faster. At present, the Indian telecom market is the fastest growing in the world with the lowest tariffs and currently market leaders in the Indian telecom sector are launching plans to compete with new operators. The year 2009 saw telecom players shift from per minute billing to per second billing.
The Indian Telecom Analysis (2008-2012) report by RNCOS Industry Research Solutions shows that mobile telecom segment has surpassed all other segments in the Indian telecom sector. (The mobile telecom market is forecast to grow at a compound annual growth rate of around 15 per cent between 2009-10 and 2013-14.) The report also indicates that the advance of services such as Internet Protocol television (IPTV) and 3G are fuelling the growth of the Indian telecom sector. Additionally, with 3G auctions scheduled for February 13, 2010 is expected to set in motion the quick adoption of 3G-enabled handsets.
Meanwhile, Bangladesh's telecom regulator granted approval to Indian telecom operator, Bharti Airtel’s US$ 300 million proposed investment for a 70 per cent stake in the Abu Dhabi Group's Warid Telecom of Bangladesh. This approval makes the company the first Indian operator from the Indian telecom sector to foray into Bangladesh's mobile market.
Indian telecom companies are following the trend of global telecom companies such as France Telecom, AT&T and Vodafone to capitalise on the excitement in the mobile applications space—mobile service provider Aircel has partnered Infosys Technologies to launch the first mobile application sector in the Indian telecom sector. Also, Airtel is considering partnering software company IBM to launch app stores in 2010. This signals the increasing recognition among operators in the Indian telecom sector that the way ahead for mobile technology lies with independent developers.
In another development in the Indian telecom sector, Tata Teleservices Ltd (TTSL) has partnered Novatium Solutions Ltd to launch what is said to be the country’s first cloud computing service over wireless broadband, ‘Nova Navigator'. The Navigator is being described as a ‘zero maintenance' access device with features such as 3G support and plug and play printer support and multimedia support.
In a development that will provide fundamental benefits to services offered by the Indian telecom sector, Tata Communications and China Telecom Corp are to jointly build a 500-km optical fibre cable network between the two countries in 2010. Along with the investments of Tata Communications in other subsea cable investments, the India-China Terrestrial Cable will provide high-speed connectivity between Asia and Europe.
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