Telecom roundup:Fixed line subscribers switch to mobile, Record mobile sales..and more

Table of Contents Hide Telecom delay to cost Rs 800 cr a day: reportFixed Line subscribers switch to MobileIndian Mobile handset market records highest growth everGSM and CDMA dogfight continuesMobile-based…

Telecom delay to cost Rs 800 cr a day: report

The Indian economy stands to lose around Rs 800 crore daily if it continues delaying decisions on telecom recommendations – the current spectrum impasse being one such issue.

The asssumption is based on the fact that an investment of nearly Rs 34,021 crore (slightly over Rs 90 crore a day) has contributed to an increase of Rs 5,71,874 crore (over Rs 1,500 crore a day) to the GDP in fiscal 2006-07, according to a new report by Frost & Sullivan.

The impact of telecom growth is multi-fold – ranging from employment generation to economic benefits in key sectors such as agriculture.

  • For every one per cent increase in tele-density, for instance, it is estimated that the GDP growth rate goes up 0.6 per cent.
  • 1% growth in the number of telephone subscribers will lead to an exponential growth of close to two per cent in its contribution to the service tax revenue collected by the government.

India, currently has tele density of 22% and mobile telephony in urban areas is growing at a very high rate (50%) as compared with mobile telephony in rural areas (around 5 per cent).The International Telecommunications Union (ITU) notes that for every one per cent increase in mobile penetration and broadband penetration in developing nations, the GDP per capita increases by about Rs 9,500 and over Rs 35,000 respectively. [source]

Fixed Line subscribers switch to Mobile

Over half-a-million fixed line subscribers have switched to using cellphones in the past four months, thanks to low cost of mobile handsets, aggressive marketing of tariff plans by cellular operators and declining tariffs.

The total number of both wireless and wireline users is 256.55 million, out of which 217.14 million use cellphones. During this period, the fixed line subscriber base has declined from 40.09 million (June) to 39.41 million (October), according to a report by the Telecom Regulatory Authority of India (Trai).

BSNL) was the worst affected losing about 90 per cent of the 6.8 lakh fixed line subscribers to telecom service providers such as Bharti Airtel, Vodafone-Essar, Tata Teleservices and Reliance. [source]

Indian Mobile handset market records highest growth ever

As per Gartner, the total number of mobile handsets sold in India touched 2.45 crore units in the quarter ended September 2007, about 74 per cent higher than the 1.41 crore units sold in the corresponding quarter a year ago.

Globally, there was a 15 per cent rise in the worldwide sale of mobile phones to 28.9 crore units (India’s contribution – 8.5%). After India, it was the Japanese market that demonstrated maximum rise in mobile sales. [source]

India’s performance was driven by CDMA phones and fierce competition among operators of global system for mobile communications (GSM) networks, which stimulated sales of replacement phones and allowed operators to penetrate rural areas quickly.

GSM and CDMA dogfight continues

CDMA operators — which include Tata Teleservices, Reliance Communications and HFCL — have asserted that all service providers should return any spectrum that they have received in excess of their contractual obligation.

The government is obliged to give GSM operators up to 6.2 MHz per circle and CDMA operators 5 MHz per circle as part of the licence agreement.

Mobile-based security system for BPO employees

Chennai based Webtra tech. has developed a mobile based security system for BPO employees.
The GPS-based systems are not adequate as India have not developed maps for every single nook and corner of our cities. However, Webtra will work everywhere as it is mobile technology based”

As soon as an employee gets into a cab, he/she will log on to the mobile phone and send an SMS to a centralised number and after five minutes, a message automatically goes to the employee.

“If he or she does not respond to the message, a call will follow in after five minutes. If the person fails to respond, then the system will declare a crisis alert. The transport department will then call the family or any close friend of the person and all other employees who are slotted in the cab,” he said.

“It is really foolish to expect that a person in trouble will be able to call any help line or office. For us, it’s not communication but break of communication that is a good alert.” [source]

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