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Has the Indian telecom industry stagnated?

The Indian telecom industry's gross revenue has stagnated in real terms since 2007, primarily due to excessive spectrum auction costs, which have drained profits and hindered investments, risking increased service prices, reduced competition, and insufficient coverage in sparsely populated areas.

Parag Kar by Parag Kar
11 Jan, 2017 - Updated On 12 Nov, 2024
in Telecom Business Challenges
Reading Time: 4 mins read
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The chart above captures the total gross revenue (GR) of the Indian telecom industry as reported by TRAI (Telecom Regulatory Authority of India) for every quarter. For the purpose of this representation, data has been used starting from the year 2007 till the one reported recently. The line superimposed on top of this chart indicates the real value of the gross revenue calculated using the cost inflation index (CII) provided by the Government. Looking at this chart one can conclude that though the GR has increased steadily, but the rate of increase is not sufficiently high to beat the inflation. So, has the telecom industry stagnated for so many years? If not then why the real value of the total industry’s revenue is almost same as it was in the year 2007. Why has it not increased at least at the rate of the GDP?

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Tags: Broadband ConnectivityConsumer ImpactGross RevenueIndian Telecom IndustryMarket ConsolidationSpectrum AuctionsSpectrum PricingTelecom CompetitionTelecom CostsTRAI
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