This may also adversely impact the value added

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: mand for new mobile connections in India is expected to be robust, backed by the strong monthly net additions. As India is largely a price-sensitive market, there is likely to be a reduction in discretionary spending on the replacement of handsets at the consumer level. This may also adversely impact the value-added services offered by content providers as demand for such services may decline. 52 “Unitech: Telenor to acquire 60% stake in Unitech Wireless; will revisit valuations post quarterly results”, Kotak Institutional Equities Research, 31 October 2008 54 “Swan Telecom: Stake sale to Etisalat for USD 900 mn”, Edelweiss Securities Research, October 2008 55 30 Tata Teleservices press release, 12 November 2008 or http://www.tataindicom.com/pressroom.aspx 53 “India to allocate 3G spectrum by end-Jan–govt”, Thomson Reuters 2008, 4 November 2008 India 2012: Telecom growth continues In conclusion • Wireless subscriber growth is estimated to continue till 2012 as India is projected to garner about 640 million to 650 million mobile subscribers. Fixed line subscriber base is expected to reach 45 million to 50 million, largely driven by broadband growth. • Nearly half of the projected mobile subscriber additions are likely to emerge from rural areas. • The lack of availability of adequate spectrum could become a hurdle for future wireless growth. • Mergers and acquisitions are expected to reduce the number of operators to five to seven key players by 2012. • 3G and WiMAX services are expected to gain popularity, initially in the top 20 cities and gradually in the rest of the country. Mobile entertainment and mobile banking are likely to emerge as key data services. By 2012, India is likely to have 25 million to 30 million 3G subscribers and 8 million to 10 million WiMax subscribers. • The entry of MVNOs will help achieve growth faster by targeting niche customer segments. For MVNOs to grow in the Indian Telecom market, a strong brand and well spread...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online