Indian telecom sector to grow to USD 100 bn by 2015 : BCG

Posted By: Pti
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Mumbai, Jan 12 (PTI) The country''s telecom sector willwitness up to Rs 2,50,000 crore investments and the marketwill cross the Rs 4,50,000 crore or USD 100 billion-mark in 5years, Boston Consulting Group (BCG) said today.

"Contrary to the general belief that telecom story isover, we believe that the game is still on. The onlydifference is that voice market is flattening and the growthwill be in services," BCG India''s Partner and Director, ArvindSubramanian told reporters after the release of a report onthe sector.

Subramanian added that BCG has included a wider gamut ofmarkets like digital advertising, handsets, TV distribution,TV sets, mobile data services, wireless, laptops and PCs andwired voice services while arriving at the forecast.

The current size of the market is around Rs 3,00,000crore, he said, adding that a host of factors like intensecompetition and the ensuing decline in ARPUs (average revenueper user) have raised question marks over the sector.

Key factors, which will fuel the growth, will beincreased access to services thanks to launch of newer telecomtechnologies like 3G and BWA, better devices, changingconsumer behaviour and the emergence of cloud technologies, hesaid.

Majority of the investments will go into the capitalexpenditure for setting up newer networks like 3G anddeveloping the backhaul, among other things, Subramanian said.

"The industry will continue to grow at 12-13 per centannually," he added.

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