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Indian Telecom Sector Has to Learn from US for Better Industry Practices

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Recently India has crossed the 1 billion mark in telecom user base with vast majority of mobile subscribers and almost a quarter with access to the internet. The upcoming 4G services along with the Digital India initiative to connect 250,000 gram panchayats, rise of e-commerce, mobile based financial services and the affordability of smartphones are driving the internet subscriber base. 

Source – ET

SNP Insights:

Although Indian Telecom Industry is moving towards development, there seems to have a huge gap in comparison with the industry in the developed countries like UK and US. Small and fragmented spectrum of 12-15 MHz in India against 45-50 MHz in developed nations paves way for inefficiencies in spectrum usage resulting in poor data services and high call drop rate. Also, with the practice of improved spectrum sharing policies the industry may achieve more efficiency, economy of scale, energy saving etc, which undoubtedly would bring positive growth for the Indian telecom sector.

Source – SNP Infra Research