Page 1 of 3
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 03
April 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 353
Indian Telecom Industry: Blissful Business
Naib Singh
Assistant Professor, Deptt. of Commerce, Rajiv Gandhi Govt. College, Saha-(Haryana)
Abstract
Indian telecom industry is growing at the
rapid rate of 45%. This sector has attracted
significant amount of FDI which is very
urgent for the economic development.
Annual Report-2013-14 of TRAI depicts that
in the country 933 million subscribers are
using telecom services. Indian Government is
promoting the industry by various liberalized
measures. Indian telecom industry has been
generating huge revenue every year. In 2013-
14, the total revenue reported by the public
telecom sector was worth Rs. 30282 crore
and by the private telecom sector was worth
Rs. 179991 crore. Indian telecom industry is
performing very well and it can be said that
in future, the sector will certainly achieve
new scenario of development.
Key Words:
National Telecom Policy (NTP), Foreign
Direct Investment (FDI), Telecom
Regulatory Authority of India (TRAI).
Introductory View
Telecom industry renders the communication
services. Communication services include
voice call, video call, SMS, E-Mail, audio
and video text services, video conferencing
and data service or internet service. We
cannot imagine the existence of modern
ordinary and business life without telecom
services. Modern business is based on
telecom sector completely. Economic
development depends on industrial
development up to large extent. Telecom
industry contributes to the economic
development in two ways as directly and
indirectly. Directly this industry generate
business opportunities like enhancing
infrastructure, providing employment in both
self-employment and services manner and
assisting in the development of network and
technology. Indirectly this sector assists other
industrial sectors for doing their business
because almost all the business activities
involve services provided by this industry.
Thus telecom industry is very important tool
for attaining the economic development.
Indian economy has perceived effective
progress of telecom sector during the last
decade. The sector is progressing at 45%
which is very brilliant view. Annual Report- 2013-14 of TRAI depicts that in the country
933 million subscribers are using telecom
services. Indian Government is promoting
the industry by various liberalized measures.
Objective of the Study
The study aims on the role of the Indian
telecom industry. An effort has been made in
the paper to highlight the performance of the
sector by focusing on revenue generated by
the various telecom organizations and FDI in
the sector.
Methodology
This study is based on various published and
online informations which have been
collected by targeting the central issue of the
problem. Required data have been collected
from the various reports of the Government
and other sources from the websites. At the
Page 2 of 3
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 03
April 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 354
end viz. conclusion includes the overall view
of the study about the Indian telecom
Industry. The main limitation of the study is
that the inferences drawn in the conclusion
cannot be applied on any particular segment
of the industry because the entire discussion
is a general study and is based on secondary
data.
Fiction of the Indian Telecom Industry
Indian telecommunication industry caught
speed after 1994 when the Government
enacted its National Telecom Policy (NTP)
first time. The main objective of this policy
was to make this sector globally competitive
by connecting all the population each other.
This policy made the business more easy by
introducing the various promotional
measures like availability of telephone
connection on demand, encouraging
domestic investment, providing incentive for
attracting foreign direct investment (FDI) and
making the industry capable at international
level. In the budget of 2015-16, the
Government has made the provision of Rs.
12032 crore for the development of this
industry.
Total revenue generated by this industry in
2013-14, by the public sector was worth Rs.
30282 crore and by the private sector was
worth Rs. 179991 crore. Figure 1 is depicting
the total revenue generated by the major
private and public telecom operators.
Figure 1: Revenue of Major Telecom Operators in India in 2013-14 (Rs. In Crore)
Source: Annual Report-2013-14, Telecom Regulatory Authority of India
Bharti Airtel limited is at the top position in
the industry. The operator has generated the
total revenue of Rs. 54908 crore in the year
2013-14. Vodafone is also making better
performance in the sector and has maintained
second position. BSNL, the prominent public
sector organization is at the third position in
the business.
Government has allowed composite FDI up
to 74percent and in terms of automatic route
up to 49 percent in Radio Paging Service and
up to 100 percent in the IP category, E-mail
and Voice-Mail services. Foreign investment
is very important in the domestic economy
particular for the developing economy like
India. FDI means investment by the foreign
nation in domestic nation in the form of
starting a subsidiary, acquiring stake in the
existing organization and joint-venture etc.
During the last thirteen years, Indian telecom
10547
54908
27996 26179
3787
16184 13302
45861
Aircel Bharti BSNL Idea MTNL Reliance Tata Vodafone
Page 3 of 3
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 03
April 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 355
sector has received total direct investment of
US$ 12500 million from foreign investors.
This industry is not providing
communication services only. The sector is
contributing also towards the foreign trade by
export of the telecom equipments to the
various countries. There has been a good
demand of Indian telecom equipments in the
international market. According to the
statistics of Department of Communications,
Ministry of Communications & Information
technology, In 2009-10, the sector made total
export of Rs. 13500 crore of telecom
equipments.
Conclusion
Indian telecom sector has emerged as a
vibrant industry. This sector is doing the
business at significant figure. Public as well
as private service providers are performing
very well by providing various
telecommunication services. This sector has
attained the position of third largest business
in the world in 2010. Foreign Direct
Investment is very important for the
economic development of any country which
has been attracted in considerable amount by
the industry. The export of equipment has an
attractive view which is very good feature of
this sector. No doubt, this industry is doing
its business very well and it can be expected
that in future, the sector will certainly achieve
new scenario of development and will be
helpful in economic growth.
References
[1] Joshi Rosy, Kapoor Sangam (2006):
Business Environment, Kalyani
Publishers, New Delhi.
[2] The Tribune (2015): Central Plan
Outlay by Sectors”, 1 March,
Chandigarh, pp-11.
[3] Annual Report-2013-14, Telecom
Regulatory Authority of India
[4] http://www.dot.gov.in/about- us/telecom-glance
[5] http://www.oifc.in/telecommunicatio
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