Telecom services up 20%

BANGALORE: The Indian communications industry has grown by a whopping 20 percent in 2003—04 according to the latest V&D 100 (2003—04), the ninth Indian Telecom Industry Report. In comparison, the growth rate in FY 2002—03 was a more moderate 5 percent over the previous year.

In FY 2003—04, India's communications industry was pegged at Rs 56,367 crore ($12.25 billion) in comparison to 47,121 crore ($10.24) in FY 2002-03. "The massive expansion in the cellular segment, both in terms of the subscriber base and revenues, was the prime reason for this 20 percent growth," said Ibrahim Ahmad, project head.

"The race for numbers will continue, the coming years will also be about things like prices, quality of service, flexibility in service, personalized services, customer support. In other words the future will be about value proposition," he added.

According to the report, the tele-density of India inched towards 7.12 as on March 31, 2004, in comparison to 5.35 as on March 31, 2003, an increase of 1.77 units. The key for such an excellent growth was low pricing and CPP (calling party pays regime). If low tariffs continue, India will overtake other giants on the number front, but still has a long way to go on the QoS (quality of service) front, which is far below the TRAI benchmark. It looks like the service providers should focus more on quality than on quantity.

Fixed Services