1
Department of Industrial Policy and Promotion
Department of Telecommunications Ministry of Communications
Ministry of Commerce & Industry
Telecommunications Sector Achievements Report 24th November 2016
MAKE IN INDIA
Table of Contents 04 08 Skill Development
Policy Initiatives & Major Investments
06 Fiscal Incentives
07 Innovation and R&D
06 Growth trends in the last two years
Department of Industrial Policy and Promotion Ministry of Commerce and Industry
Department of Telecommunications Ministry of Communications
Telecommunications Sector The Indian telecommunications sector shaped by consumer demand, innovation and competitive forces offers tremendous growth opportunities. With the second largest subscriber base in the world with 1.06 billon connections (including fixed
The volumes and potential growth of the mobile market accompanied by favorable policies makes
India
an
important
investment
destination for domestic as well as foreign investors.
phone lines), the telecom industry is booming. Recently, India with 275 million smart-phone subscribers, outpaced the United States, to become
the
second
largest
smart-phone
Policy Initiatives & Major Investments FDI Policy
subscriber base in the world. 38 new mobile
100% FDI is allowed in telecom sector, of this 49%
manufacturing units have been set up since
is allowed through the automatic route. This is
September 2015, which has ramped up the
applicable in case of Basic, Cellular, Unified License
manufacturing of mobile phone units in 2015-16
(Access
by 90%.1
International Long Distance, Commercial V-Sat,
Services),
Unified
License,
National/
Public Mobile Radio Trunked Services (PMRTS), The
mobile
industry
in
India,
currently
contributing 6.5% (USD 140 billion) to country’s GDP, and employing over 4 million people (direct and indirect), is projected to grow rapidly in the coming years. By 2020, the industry is expected to contribute 8.2% to country’s GDP, and add 800,000 more jobs. In terms of unique mobile phone subscribers, India is expected to cross the 1 billion mark by 2020. India will see an increase in adoption of 4G services with number of 4G connections estimated to grow to 280 million by 2020 from just 3 million in 2015.2
1, 2. The Mobile Economy, India 2016 by GSMA
Global Mobile Personal Communications Services (GMPCS), all types of ISP licenses, Voice Mail/ Audiotex/Unified
Messaging
Services
(UMS),
Resale of International Private Leased Circuits (IPLC), Mobile Number Portability Services, etc.
FDI in Telecom sector is subject to observance of licensing and security conditions by licensee as well as investors as notified by the Department of Telecommunications (DoT) from time to time, except "Other Service Providers", which are allowed 100% FDI on the automatic route.
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Department of Industrial Policy and Promotion Ministry of Commerce and Industry
Department of Telecommunications Ministry of Communications
~70
nd
2
Largest subscriber base1.06 billion Connections, 616 million unique mobile service subscribers
2
nd
largest smart-phone subscriber base with 275 million users
largest smart-phone subscriber base with 275 million users
90% jump in number of mobile phone units manufactured
Rural teledensity reaches
670 million in 2020
USD 30 billion in 2020 SIM connections (excluding M2M)
DO LA M E
1.4 billion in 2020 Mid-2016: 430 million
2015-16: USD 20 billion
~ 1 billion in 2020 (68% penetration rate)
8.2% in 2020 2016: 1.06 billion
3 million in 2020 Mid-2016: 616 million (47% penetration rate)
51.04%
Additional 2 million indirect jobs by 2020 2015: 6.5%
2014: 4 million (direct & indirect) Employment (Mobile Economy)
Department of Industrial Policy and Promotion Ministry of Commerce and Industry
Department of Telecommunications Ministry of Communications
FDI Inflow
including mobile phones, which is around USD
Total FDI in Telecommunications sector from
20 billion currently and is estimated to exceed
April 2014 to March 2016 was around USD
USD 30 billion by 2020.3
4.19 billion.
• The net addition in total connections in rural
List of major foreign investments in the sector
areas during April 2014 to March 2016 was
are provided in Annexure I.
69.99 million. Rural tele-density reached over 51% at the end of September, 2016.
Fiscal Incentives Basic customs duty (BCD) and special additional duty have been withdrawn and importers of mobile handset components such as chargers, adaptors, batteries and wired headsets need to pay only the countervailing
• As per the Index of Industrial Production (IIP), production of telephone instruments including mobile phones & accessories rose by 7.1% in 2015-16. During the quarterended June 2016, its output rose by 22.4%. • The National Optical Fibre Network (NOFN)
duty of 12.5%. A duty advantage of 10.5% exists for local
programme to provide broadband to 2.5 lakh
manufacturers
gram panchayats was rebranded in April
of
mobile
speakers
and
2015 as Bharat Net. Under Bharat Net
batteries.
project, optical fibre has reached 59,945
Growth trends in the last two years The country’s telecom sector is witnessing rapid growth and competition among key players and is currently the world’s second
Gram Panchayats and optical fiber cable has been laid for 137,513 kms. • In order to enable citizens to access internet,
largest market in terms of subscribers, with
BSNL
more
hotspots in over 1227 locations such as
than
(Telephone
1.06
billion
subscribers
connectivity
(wireless
and
has
2504
Wi-Fi
Tourist Places, Heritage Sites, Airports,
wireline), 616 million unique subscribers,
Parks,
166 million broadband subscribers, 430
Colleges, etc.
million mobile broadband connections, and
commissioned
University
Campuses,
Schools,
• Spectrum sharing and trading have been
350 million plus internet users.
approved and guidelines were issued on
This phenomenal growth of the sector is
September 24, 2015 and October 12, 2015
driving the demand for telecom equipment
respectively.
3. Press Information Bureau, October 3, 2016
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Department of Industrial Policy and Promotion Ministry of Commerce and Industry
Department of Telecommunications Ministry of Communications
Growth in Mobile economy
handsets and component manufacturing
In 2015, the mobile industry contributed 6.5%
ecosystem in India. It is expected to promote
to India’s GDP (USD 140 billion) and provided
large
direct and indirect employment to 4 million
activity to achieve production of 500 million
people in India. The mobile economy, with a
mobile handsets by 2019.
scale
manufacturing/assembling
current subscription penetration rate of 40%, is
• The Task Force is also looking at the
expected to grow at a faster rate than the
establishment of a sizable components
economy as a whole, and contribute 8.2% to
industry worth USD 8 billion and creating 1.5
India’s GDP by 2020 and create 800,000 new
million jobs.
jobs in this sector.4
Innovation and R&D
• The smartphone market in India grew from 149 million users in 2014 to 275 million users in 2016, outpacing U.S to occupy the number two spot in the global smartphone market.
Artificial Intelligence would be the catalyst driving future innovation in global mobile technology according to GSMA, the global mobile industry association
and
standards
body
(personal
assistants like Amazon Alexa, Apple Siri – voice
• 38 new Mobile manufacturing units, with
interface that controls and coordinates devices
over 20 million units per month capacity,
and data across wide range of applications
have been set up since September 2015.
would be in higher demand).
These
units
employment
have
generated
38,300
opportunities.5 List
of the
Telecom Centre of Excellence (TCoE)
mobile manufacturing units are in Annexure
Centres of Excellences (CoE) at 8 premier
II.
technical institutes such as Indian Institute of
• Number
of
mobile
phone
units
manufactured in FY 2015-16 grew by 90% to 110 million in FY 2015-16 from 60 million in FY 2014-15.6 • The department has constituted a Fast Track Task Force (FTTF) to ‘catalyze and reestablish’ significant growth in mobile 4,5. The Mobile Economy, India 2016 by GSMA 6. Indian Cellular Association
Technology
in
Delhi,
Chennai,
Kanpur,
Kharagpur, Mumbai and Roorkee and one each at Indian Institute of Science, Bangalore and Indian Institute of Management, Ahmadabad in PPP mode. A CoE for Internet of Things (IoT) launched in Bengaluru in PPP mode in August 2016.
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Department of Industrial Policy and Promotion Ministry of Commerce and Industry
Bringing
together
Academic
Department of Telecommunications Ministry of Communications
Institutions,
Telecom Industry and Government will create an
ecosystem
for
sustainable
growth
of
Telecom Sector in the country. Two of the major technologies in areas of Advanced Communication, Convergence and Broadband
Technologies
that
have
been
recently developed and transferred to industry to enable manufacturing are: • Software
Defined
Radio
for
Naval
Trunked
Radio
Communication (SDR-NC), and • TETRA
-
Terrestrial
technology for usage by Police and Army Skill Development Telecom Sector Skill Council (TSSC) has empanelled 650 training partners across the country and trained 3.5 lakh persons so far in telecom
training
courses,
which
include
60,000 enrolled under the scheme of skill
development in Electronic System Design & Manufacturing (ESDM).
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Department of Industrial Policy and Promotion Ministry of Commerce and Industry
Department of Telecommunications Ministry of Communications
Annexure Annexure I Major foreign investments in the sector during April 2014 to March 2016
FDI (USD million)
Foreign Collaborator
Country
Indian Company
Prime Metals Limited Videocon Mauritius Energy Limited Federal Agency For State Property Manage
Mauritius
Telenor Asia Pte Limited
Singapore
Telenor South Asia Investment Singapore Pte Limited
Vodafone India Videocon International Electronics Limited Sistema Shyam Teleservices Limited Unitech Wireless Tamilnadu Private Limited Telewings Communication Services Private Limited
QIB Class
Mauritius
Bharti Infratel Limited
240.37
Mauritius
Idea Cellular Limited
123.22
Japan
Netmagic Solutions Private Limited
85.79
Singapore
Tata Sky Limited
53.89
Tiger Global Eight Holdings
Mauritius
Hike Private Limited
50.80
Essel International Limited International Finance Corporation Anchor Investors(Total 6 Investors) Essar Telecom Limited Network Digital Distribution Services FZ
Mauritius
Siti Cable Network Limited Tikona Digital Networks Private Limited
48.17
Mauritius
Bharti Infratel Limited
32.59
Mauritius
Agc Networks Limited
29.13
UAE
Tata Sky Limited
23.77
Tower Vision Mauritius Limited Mauritius
Tower Vision India Private Limited
23.71
EGN B.V
Netherlands
Orange Business Services India Network P, Global One (India) Private Limited
19.39
Mauritius
Tikona Digital Networks Private Limited
16.17
Mauritius
Sun Direct TV Private Limited
16.17
AGC Holdings Limited
Mauritius
Aegis Aspire Consultancy Services Limited
15.56
Bharti Softbank Holdings Pte Limited
Singapore
Hike Private Limited
12.26
Droom Pte Limited
Singapore
Droom Technology Private Limited
10.81
Axiata Investments 2(India) Limited NTT Communications Corporation Omega FII Investment Pte Limited
GS Investment Partners (Mauritius) I Lim South Asia Entertainment Holdings Limite
Mauritius Russia
U.S.A
1,500.79 719.76 451.83 298.75 274.40
46.39
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Department of Industrial Policy and Promotion Ministry of Commerce and Industry
Department of Telecommunications Ministry of Communications
Annexure II New mobile handset manufacturing units established in India during September 2015 to October 2016.
Name Of The Brand / Company / Ems Company
No. of Units
Location of Units
Foxconn (Rising Star Mobiles India (P) Ltd.)
5
Micromax (Bhagwati Products Ltd.) MCM (Million Club Manufacturing) Lava International
1 1 2
Intex Technologies
4
Celkon Mobiles Dixon Technologies (India) Private Limited GDN Vivo Mobile Videocon
1 1
1. Sri City 2. Sri City 3. Sri City 4. Sri City 5. Maharashtra Hyderabad, Telangana Noida, UP 1. Noida, UP 2. Noida, UP 1. Noida, UP 2. Noida, UP 3. Jammu 4. Baddi, HP Medchal, Telangana Noida, UP
Flextronics SEPL TMB Electronics Innovative Industries Labanyo Electronics KMC Electronics Champion Computers BGM Electronics SST Electronics Hyve Mobiles Bingo Mobiles Tech. Delhi Phone Battery ADCOM VSUN Hi-Tech Higher Industries (India) Pvt. Ltd. Runsheng Technologies Pvt. Ltd. Compal (Mnfc. for LeEco) Penguine Electronics Total
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 38
1 1 2
Greater Noida, UP Greater Noida, UP Aurangabad, Maharashtra Kasipur, Uttarakhand Sriperumbudur, TN Haridwar, Uttarakhand Kundli, Haryana Delhi Noida, UP Kotdwar, UP Delhi Shahibabad, UP Kundli, Haryana Delhi Noida, UP Haridwar, Uttarakhand Delhi (Kirti Nagar) Bawal, Haryana Kolkata, WB Mundka, Delhi Faridabad, UP Greater Noida, UP Daman
Mfg. Capacity (Mn Units / month) 2.5
Employment (In Nos.)
0.3 1.0 2.0
600 1500 5000
3.0
5000
0.5 1.0
1200 900
1.0 0.3 1.0
1200 500 2000
1.3 0.5 0.4 0.4 0.2 0.7 0.3 0.4 0.4 0.3 0.2 0.5 0.1 1.7 0.2 0.5
2500 1000 800 700 500 1000 500 500 500 300 300 800 300 1800 600 300
20.7
38300
8000
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Contact Us Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Udyog Bhawan, Rafi Ahmed Kidwai Marg, Rajpath Road Area, Central Secretariat, New Delhi, Delhi 110011 http://www.dipp.nic.in Department of Telecommunications Ministry of Communications Sanchar Bhawan, Asoka Road, Sansad Marg Area, New Delhi, Delhi 110001 www.dot.gov.in Knowledge Partner : KPMG Building No. 10, 8th Floor, Tower B & C, DLF Cyber City, Phase II, Gurgaon, Haryana 122 002 https://home.kpmg.com/in/en/home.html