But there are some focus areas that will need

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Unformatted text preview: t or are seeking entry through a partnership with an existing or start up Telecom operator. They have been attracted to the strong growth potential of the sector. But there are some focus areas that will need attention in order to maintain a positive outlook for 2012: • Rural Telecom will be the new growth constituency: Rural market will be the next growth driver for operators with the near saturation of urban markets. To capitalize on the growing population and disposable income of rural India, Telecom operators will have to explore and expand into hitherto “uncovered” geographies. By 2012, we see the rural base accounting for nearly half the total subscribers who will have access to communications services. The Government can capitalize on rural Telecom growth to boost economic development across rural India which could also help the growth of the country’s gross domestic product. The next engine of Telecom growth is clearly rural India and there will need to be strong partnership between the Government and the private operators as well as an effective and optimum utilization of investments from of the USO fund to ensure that India surpasses 55% to 60% penetration by 2012. • Emphasis on data revenues to provide additional “buffer”: The launch of 3G services will drive data revenues. India’s data revolution is 10 India 2012: Telecom growth continues going to be fuelled by 3G and WiMax. However, for the expansion of data services and for it to gain scale and momentum, customized and vernacular content catering to the diverse masses needs to be developed coupled with low device costs. Better upload/ download speed for data services backed by customized content and lower voice prices should augur well for subscribers. The growth of 3G and WiMax would be the key for telecom companies to maintain growth and/ or enhance profitability in the low tariff regime especially when significant part of subscriber additions would emerge from rural areas in India. • Focus on strategy to lower operators’ capital expenditur...
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This document was uploaded on 03/03/2014.

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