Effect_technology_disruption_organisational_health_competence_Chapter1_Part3.docx - 1.2.2 Indian telecommunication sector India is the fastest growing

Effect_technology_disruption_organisational_health_competence_Chapter1_Part3.docx

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1.2.2 Indian telecommunication sector India is the fastest growing telecommunications field in the world, with a projected telephone penetration of one billion telephones by 2015 (Deloitte, 2013). Pradhan, Arvin, Bahmani, and Norman (2014) find an existence of unidirectional causality between gross domestic product (GDP) and telecommunication infrastructure growth in G20 countries including India. The Indian Telecommunication Services Performance Indicator Report published by Telecom Regulatory Authority of India (TRAI) in January 2015 shows that the gross revenue from Telecommunication services in 2014 was USD 45.41 billion, as against the GDP of the nation for the same year accounting for USD 2066 billion, recording 2.2% contribution to GDP by the telecommunication sector. The same report suggests that India is ranked second in the world telecommunication market only after China. At the turn of this decade, India had 18 companies holding spectrum and license to operate telecommunication services. Out of this, 16 companies have already launched their services with a significant number of customer acquisitions. Such a long list of telecom operators are unusual in any country compared to the number in other countries. In comparison to a large segment of developed and developing countries, India holds ground for breakneck competition in telecommunications. There are only few countries, which have more than four telecommunication operators (Bank of America Merrill Lynch, April 2011). However, by the end of
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