India’s Economic Survey for 2010-11 termed the introduction of third generation (3G) and broadband wireless access (BWA) technologies as the “key frontiers” of the growth of the telecom industry, according to news reports.
The annual report stated that the last five years have been transformational for the Indian telecom industry and the next few years look even more exciting. One of the key new frontiers was 3G technology. It added that the auction of 3G and BWA spectrum has been successfully conducted, which will encourage further expansion of wireless services.
Considering the growth of wireless telecom, the survey also said there are excellent opportunities for domestic and foreign investors in the manufacturing sector as well.
The production of telecom equipments in value terms increased from Rs 488 billion during 2008-09 to Rs 510 billion during 2009-10.
The worth of telecom equipment, including customer premises equipment produced during 2010-11, is expected to be about Rs 535 billion.
Exports of telecom equipment have also increased from Rs 110 billion in 2008-09 to Rs 135 billion during 2009-10 and are expected to increase to Rs 140 billion in 2010-11.
The survey also said there are still about 62,443 uncovered villages which would also be provided with village public telephone facility with subsidy support from universal service obligation fund.
The survey stated that the sector has not only led to rapid growth but also helped a great deal towards maximisation of consumer benefits as tariffs have been falling across the board.
In addition, the report said that over 62,443 villages are still to get a taste of telecom revolution that started since 1995-96.
These villages are yet to be provided with village public telephones (VPTs) facility with subsidy support from the Universal Service Obligation Fund (USOF). India’s teledensity (phones per 100 people) stood at 64.34 per cent in November, 2010, it added.
Support is provided by the USOF for operations and maintenance of VPTs in the rural areas. Agreements were signed with Bharat Sanchar nigam Limited (BSNL), thereby 40,101 villages have been covered under VPTs. As on December 31, 2010, 61,985 VPTs have been provided by BSNL, the report said.
In order to provide broadband connectivity to rural areas under the purview of USOF, out of a total of 0.88 million wireline broadband connections, 0.23 million have been provided till November 30, 2010, the Survey added.
