The Indian telecommunications industry is one of the fastest growing in the world. The industry has witnessed consistent growth during the last year on the back of rollout of newer circles by operators, successful auction of third-generation (3G) and broadband wireless access (BWA) spectrum, network rollout in semi-rural areas and increased focus on the value added services (VAS) market.
According to the Telecom Regulatory Authority of India (TRAI), the number of telephone subscriber base in the country reached 742.12 million as on October 31, 2010, an increase of 2.61 per cent from 723.28 million in September 2010. With this the overall tele-density (telephones per 100 people) has touched 62.51. The wireless subscriber base has increased to 706.69 million at the end of October 2010 from 687.71 million in September 2010, registering a growth of 2.76 per cent.
The fixed-line telecommunications market is valued as the revenues obtained by operators for voice telephony and other non-voice information transmission using fixed lines (Wireline), rather than wireless systems. The Indian Wireline telecoms market had total revenue of $8,173.1 million in 2009-2010, representing a compound annual growth rate (CAGR) of 5.7% for the period spanning 2005-2009. It is very important for any company entering this market to understand the industry. Since the market has already developed & also has reached the stagnation point. Because of existence of so many players the market entry is very difficult. Also since there are so many other options available to the customer, it is very difficult to set up a hold in Wireline market, as the buyer has got the immense power.