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Global Focus: India’s Wireless Communication Business

- November 5, 2018
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India is a big continent and many areas still lack a lot of modern services, which is what a new wireless communication company is helping to solve. Around the world, especially in emerging economies, wireless communication is vital. With wireless communication, some of the remote regions in the world can be reached today. Wireless communication affects many lives and various industries and occasions, such as:

  • Improving the dispersion of medical treatments and information, guidelines for the treatment of diseases in remote areas and the collection of medical and healthcare data
  • Aid in early warning of impending catastrophes and rescue operations in their aftermath. Early warnings allow people in remote places to prepare for impending disasters, providing communication between survivors and rescue workers and contacting family members in affected areas
  • Protection of the environment. Mobile phones enable environmentalists to observe and monitor wildlife in their natural habitat without disturbing them too much
  • Business communication. Wireless communication allows businesses to communicate with partners and customers across the globe
  • Reporting of news. Wireless technology enables broadcast stations and even citizens to bring news as it happens from many parts of the world
  • Wireless technology brings entertainment closer to the people, by facilitating the fast downloading of books, newspapers, games, movies, music and sports
  • Working together for social change. Wireless communication helps people to work together to support various causes
  • With broadband connection, students and teachers can collaborate on projects and assignments outside of traditional classroom learning

The market for wireless communication in India is huge. And communication is vital to the continent’s economy and its people. One global company based in India, is making waves in the wireless technology, smart phones, information technology and other wireless communication-based services.

Telecommunication network in India

According to the press release of the Telecom Regulatory Authority of India (TRAI), the country has the world’s second largest number of fixed and mobile phone users. Did you know that as of July 31, 2018, the number of telephone subscribers in India has reached 1.179 billion? Out of this, 1.157 million are wireless subscribers. Due to the huge competition and the number of telecom operators in India, the call tariffs in India are one of the lowest in the world. In the same press release, India’s broadband Internet subscribers have reached 460.24 million, which is the second largest in the world.

The telecommunication industry in India serves the TV broadcasting, Internet and telephone industries. Their system is currently changing into the next generation network, employing various transmission systems for interconnectivity. Subscriber access to the network is facilitated by wireless technologies, fiber optic and copper-pair. India’s telecommunication services receive huge support from the country’s INSAT system. INSAT is a domestic satellite system, which is one of the world’s largest. Communication in India is made possible by satellite, television, radio, Internet and telephone.

Market liberalization

The growth of the telecom industry in India is largely due to market liberalization starting in the 1990s. Today, India is one of the world’s fastest-growing market for telecommunications and is one of the most competitive in the world.

The socio-economic development in the country is largely supported by telecommunication. Telecommunication helped narrow the digital divide between the rural and urban areas. Educational programs of the government are delivered to the rural areas of the country through the various telecommunication facilities.

Future of wireless communication in India

India is fast becoming wired, with the annual increases in Internet and wireless subscriptions. It is also the second largest in the world in smartphone ownership. The projection is that by 2020, India will have about one billion unique mobile phone subscribers.

Investors looking for investment venues should look at India’s telecommunication market. By 2020, the telecom equipment business in India is expected to generate US$ 26.38 billion and attract investments in 2022 of up to US$ 100 billion, according to the industry analysis of India Brand Equity Foundation (IBEF).

The rural areas will feature greatly in the development of wireless communication and the telecommunication industries in India in the coming years. The industry continues to upgrade their 3G (UMTS) and 4G (LTE/WiMax) coverage. India is already paving the way for the provision of 5G services soon. In 2020 the construction of telecom towers in India will have an expected increase of about 2.9 times due to the expansion of these cellular mobile communication networks.

Moreover, the demand for Internet and mobile communication services is expected to increase, as its middle-class society gets more affluent.

Addressing the issue of the disparity in the telecommunication services between the rural and urban areas is now a major priority in India. Right now, the teledensity is 88.73% for wireless and 1.71% for wired line. This means that wireless communication is fast gaining more ground in India’s telecommunication sector. In urban areas, the teledensity is 154.77%, compared to the rural areas, where the density only reached 58.09%. But in both sectors, wireless communication outweighs wired telephony.

The Indian government’s policy supports the robust growth of the telecom industry in the country. To help investors choose which areas to put their investments in, the industry is divided into different sectors:

  • Mobile Virtual Network Operators (MNVO)
  • Broadband
  • 5G
  • Telephone service providers
  • White space spectrum
  • Equipment
  • Infrastructure

By 2020, the continuous growth of the telecommunication industry in India will generate two million indirect jobs and three million direct jobs.

One of India’s new telecom providers

A new player in the mobile network services field with headquarters in Navi Mumbai, Maharashtra, India is Reliance Jio Infocomm Limited, or simply, Jio. The aggressiveness and forward-thinking policies of the company allowed it to be one of the major players in the industry sector, besting some of the more established competitors. It provides voice over LTE connection nationally, covering all 22 telecom circles across India. The telecom circles indicate the division of the Indian subcontinent into 22 sections. The service all across India was made possible when Jio acquired a 96% stake in IBSL (Infotel Broadband Services Limited), an unlisted company.

Jio made things different during its beta launch, releasing the 4G services only to the company’s partners, 35,000 worldwide employees and their families. They also invited several Bollywood celebrities for the launch. They named actor Shah Rukh Khan as their brand ambassador. Guests included Javed Jaffrey and Ranbir Kapoor (actors), Rajkumar Hirani (filmmaker) and A. R. Rahman (musician).

Commercial success

In the first month after its commercial launch in September 2016, it welcomed 16 million subscribers, which was the fastest in the world. It reached 50 million subscribers after nearly four months’ operation. They surpassed the 100 million mark within five months and within one year of service, about 130 million people enjoy Jio’s wireless communication service.

Jio is allied with global mobile network operators, such as:

  • BT Group (UK)
  • Millicom (Luxembourg)
  • Deutsche Telekom (Germany)
  • Rogers Communications (Canada)
  • Orange S.A. (France)
  • Telia Company (Sweden)
  • MTS (Canada)
  • Telecom Italia (Italy)

The company competes with other global telecommunication companies, offering affordable proprietary 4G phones, 4G broadband service, WiFi services, fiber optics and several multimedia apps available from Google Play. It has formed a partnership with Samsung to develop 5G and LTE-Advanced Pro. It also has a partnership contract with Google to manufacture cheaper 4G mobile phones and develop a smart-TV services software.

And get this! The company has surpassed several older providers such as Bharti Airtel, Idea and Vodafone India. They lost about 9 million subscribers while Jio gained 13.1million new subscribers, with most of them being heavy data users. From being a secondary SIM card, Jio is now fast becoming the first SIM card.

Prime business

Wireless communication is a prime business in India, due to the size of the nation. India’s population in 2018 is about 1.359 billion, with an annual growth rate of 1.19%. Projections for the telecom industry include investments in AI technology for heightened user experience and enhanced business efficiency in their areas of service. Mobile operators will also be focusing on fiber. There will be less focus on fixed broadband services. With strategic partnerships, India’s wireless communication and telecommunication sectors are going to be major players in the world market.

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