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FINANCIAL ANALYSIS FOR THE TELECOM SECTOR- A REPORT

BY GROUP-4, SECTION-C
AMAN SAHNI(4C) GAURAV SHARMA(16C) NEHA DEOLIYA(24C) PRATEEK GOEL(28C) SRIVATHSAN S.(43C)

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INDEX 1. INDUSTRY OVERVIEW 2. COMPANY ANALYSIS 3.COMPETITIOR ANALYSIS 4. CONCLUSIONS 3 6 11 15

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1. INDUSTRY OVERVIEW Introduction

The telecommunication industry has been growing at a tremendous rate in India for the last few years. More than 18 million subscribers are added every month. Driven by various policy initiatives, the Indian telecom sector witnessed a complete transformation in the last decade. It has achieved a phenomenal growth during the last few years and is poised to take a big leap in the future. The telecom industry has been divided into two major segments, that is, fixed and wireless cellular services for this report. Besides, internet services, VAS, PMRTS and VSAT also have been discussed in brief in the report. In today’s information age, the telecommunication industry has a vital role to play. Considered as the backbone of industrial and economic development, the industry has been aiding delivery of voice and data services at rapidly increasing speeds, and thus, has been revolutionising human communication. Although the Indian telecom industry is one of the fastest-growing industries in the world, the current teledensity or telecom penetration is extremely low when compared with global standards. India’s teledensity of 36.98% in FY09 is amongst the lowest in the world. India's teledensity has improved from under 4% in March 2001 to around 71% by the end of March 2011. Cellular telephony has emerged as the fastest growing segment in the Indian telecom industry. The mobile subscriber base (GSM and CDMA combined) has grown from under 2 m at the end of FY00 to touch 812 m at the end of March 2011 (average annual growth of nearly 73% during this eleven year period).

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