Telecommunications. Sector MAKE IN INDIA. Department of Industrial Policy and Promotion. Achievements Report. Telecommunications

1 Department of Industrial Policy and Promotion Department of Telecommunications Ministry of Communications Ministry of Commerce & Industry Teleco...
3 downloads 0 Views 999KB Size
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.

3

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

5

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.

6

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).

7 8

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

8

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

9

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

Suggest Documents