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Indian telecom on high growth path

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CIOL Bureau
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NEW DELHI: The Indian telecommunication sector, which was growing in the range of 20 percent to 25 percent during the year 2002-2003 has moved to a higher growth path of 35 percent to 40 percent during the last two years.



This rapid growth has been possible due to various proactive and positive decisions of the government as well as support given to the sector both by the public and the private sector.





According to the press release, during the year the composition of telephones has undergone a significant change. The mobile phones including WLL (460.5 lakh) have already overtaken the fixed line phones (445.1 lakh) as on November 30, 2004.



The number of telephones has increased from 71 million in January 2004 to over 90 millions in November 2004, thereby registering a growth rate of 32 percent per annum and teledensity touched at 8.37 percent from 6.63 percent in the beginning of the year.



Correspondingly, the share of the private sector also increased to 45 percent from 35 percent in January 2004. During the year, 200.31 lakh phones have been provided, of which about 79 percent (157.74 lakh phones) have been added by the private sector.



To provide a fillip to the rural telephony, Universal Service Obligation Fund dispersed a sum of Rs 200 crore has been dispersed during the year 2003-2004 and 2004-2005. Agreements have been signed for providing 46,253 rural community phones in villages with a population of more than 2000. An agreement has also been signed for providing 66822 village public telephones in the remaining eligible revenue villages. With this all revenue villages will now be covered with village public telephones except thinly populated villages and those located in insurgency prone areas.

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