India targets 200 m phone users by 2007

NEW DELHI: India has set a target of signing on at least 200 million phone users by 2007 on the back of growing demand in Asia's fourth-largest economy, the telecom minister said.

Dayanidhi Maran told an industry seminar the expansion from the current user base of about 85 million customers would also spur the telecom equipment business.

Carriers will spend about $21.6 billion to $27 billion on such gear to expand networks, he said.

"It would mean an additional 120 million lines in the next three years," he said.

India, one of the world's fastest growing telecom markets, already has some of the lowest call rates that are attracting about two million new customers into the nascent sector each month.

There are about one dozen telecom services providers such as state-run Bharat Sanchar Nigam Ltd., Bharti Tele-Ventures Ltd. and the powerful Reliance and Tata groups who are fighting for market share.

(C) Reuters