Data rates in India, it said, are amongst the lowest in the world, having crashed from Rs 200 per GB in June 2016 to a paltry Rs 7.7 per GB in June 2019.
The telecom industry, weighed down by nearly Rs 8 lakh-crore of debt, has been in the throes of brutal price wars since Reliance Jio<\/a> Infocomm’s disruptive entry over three years ago. The Mukesh Ambani-led telco’s pricing aggression forced incumbents to match rates to retain customers, galvanising consumption of voice and data services.
Consumers benefitted but India’s older mobile operators got hurt. Smaller players that couldn’t stand their ground war exited causing the sector to shrink down to just three private players – Vodafone Idea<\/a> (after Vodafone India merged with Idea Cellular), Bharti Airtel<\/a> and Jio.
“The sector is experiencing consolidation…while some operators have filed for bankruptcy, others have merged to improve viability,” the Survey said.
It added that average revenue per user (ARPU) – a key performance metric – for GSM-based mobile services had plunged to Rs 74.30 in June 2019 from Rs 126 in June 2016.
India though, it said, had emerged “a global leader” in monthly data consumption, with “average consumption per subscriber per month increasing 157 times” to 9.8GB in June 2019 from 62MB in 2014.
The Survey is also upbeat on India’s emergence as a true blue global cellphone manufacturing hotspot, noting that the country can churn out a whopping “1.25 billion mobile phones across multiple segments by 2025,” citing an ICEA-McKinsey report.
“India toppled Vietnam to become the second-largest mobile phones manufacturer globally following China in 2018 with a world share of 11 per cent,” the Survey noted.
Between 2013 and 2017, it said, India’s telecom handset imports fell from $4.47 billion to $3.31 billion while that of telecom parts rose from $1.34 billion to $9.41 billion. And given that telecom handset exports have increased significantly in the last three years, the pattern is consistent with India’s emergence as an assembly centre for handsets, it added.
The Survey noted that the quantum of foreign direct investment<\/a> (FDI) inflows in the telecoms space has almost doubled to $4.28 billion during April-September 2019 from $2.17 billion in the previous corresponding period.
India’s gross FDI inflows across all sectors, it said, increased 33% on-year during April-September 2019 to $17.58 billion, and the jump was driven by strong inflows in “telecommunications, information & broadcasting, air transport, consultancy services and hotels & tourism”.
Further, the Survey said total broadband connections had increased nearly 10-times from 610 lakh in June 2014 to 5,946 lakh in June 2019. This, in turn, had accelerated growth in the country’s internet traffic, with data usage touching the highest ever level of 462 lakh terabytes in calender 2018.
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