The Indian telecom sector has gone through a period of turbulence over the last 4 years. The number of players in the sector has come down due to consolidation in the sector. Many companies declared bankruptcies as they could not compete against the aggressive low tariffs brought by Reliance Jio. Currently, there are just 3 private players and two PSU players(BSNL, MTNL). India has achieved around 90% teledensity but the mobile teledensity in rural India is just 60%. It is estimated that there are around 300 mn people in India who don't have a mobile subscription.
4G Mobile Internet has already made a huge impact on Indians as they use around 11GB of data per month and this has enabled the digital economy as people use different mobile applications for basic financial transactions. High-speed broadband Internet will lead to the entire world coming together to form a small village.
India is expected to have 3 private and one public player going ahead. It is expected that Vodafone Idea will be able to survive this AGR issue on account of timely aid from the government. The government has announced the merger of BSNL and MTNL and it should lead to the creation of a strong PSU player in the sector.
The way forward looks interesting as the sector will become the main driver of economic growth especially with the introduction of 5G internet, which will lead to the introduction of IoT, Autonomous driving and Connected cars.
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