Nationwide 3G deployment across India likely within next two years

Details: James Barton; Category: Trends & Forecasts; 16 June 2011; 10827 views

The Indian telecom industry has undergone a revolutionary change during the past few years to become one of the leading telecom markets on the global map...

The Indian telecom industry has undergone a revolutionary change during the past few years to become one of the leading telecom markets on the global map. Easy availability of low-priced devices, rampant network coverage, and affordable services are some of the major factors that have boosted its growth and will continue to do the same in future, according to new reports from Research & Markets.

Further, wireless teledensity has also risen to the level of around 68% at the end of FY 2011, but still there is a vast scope for further improvement due to a wide gap in teledensity between urban and rural areas. For instance, the wireless teledensity in urban areas rose to around 150%, while it stood at around 33% in rural areas during FY 2011 .

The deployment of 3G services on a national scale is anticipated to play a crucial role for development of data based Value Added Services in the Indian market. Simultaneously, it will prove revolutionary for the increasing broadband penetration in the country, which is restricted due to the inadequate infrastructure. The number of 3G mobile subscribers is expected to grow at a CAGR of around 88% during 2011 -2014 due to the rising need for high speed data services with mobility.

3G services in India are set for a fast growth stage marked by pent up demand for high speed data access services and a large number of early adopters. A spike in the uptake of 3G enabled handsets and 3G modems during the last year has already created a huge potential market, and a substantial amount of investment in 3G deployments of infrastructure will likely see 3G networks permeating the country within two years.