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Advantages And Disadvantages Of Telecommunication In India

Decent Essays

Introduction
The telecom sector has been recognized as an important factor for the socio- economic development for a country. It is one of the very important factors needed for the overall growth in the country. It is evident from so many launches almost every month we see some or the other company come up with their latest phone. Important study conducted by Nielsen states that 27 million people use smart phones in urban India. This is huge number. There are so many competitors as shown below- Also, From, the above data it is clear that mobile phone plays a very important role in our day to day life and also, can be a very important medium to gain profit. It is very important and most useful invention; which is a source of generating …show more content…

It has achieved a significant growth during few years. It is expected to show more growth in future as well. The prevailing scenario of the Telecommunication Sector in India
• Indian telecommunication network is among the second largest in the world after China.
• India has 895.51 million connections of telephone, including 864.72 million wireless connections of telephone.
• Overall teledensity in India is 73.34%.
• Urban teledensity in India is 149.55%, whereas rural teledensity in India is 39.90%.
• The share of telephones which are wireless in the total telephones is 96.56%.
• The share of private sector in the total telephones is 85.51%.
• The Broadband connections number in India is 14.98 million
Teledensity
Teledensity shows the number of telephone per 100 populations. It is a significant indicator of telecommunication penetration in the country. We can see that the mobile penetration per 100 populations is increasing with years. Also, it is expected to increase to an almost 100% by 2015.
Considering the state scenario …show more content…

The studies are conducted by some company as well like” Deloitte”.
Deloitte tried to find the relationship between mobile data usage and GDP per capita growth. The study studied the endogeneity of teledensity and mobile data usage by using their own lags. The study used 14 countries data – Brazil, China, Germany, Italy, Korea, Russia, UK, Canada, France, India, Japan, Mexico, South Africa and USA. The results was if countries doubled their consumption of mobile data per 3G connection between the year 2005 and 2010, they would experience a growth rate of 0.5 percentage points higher GDP each year.
Graphically if we see the Deloitte results we get- Another work is done by Prof. Rajat Kathuria who is a professor of Economics at ICRIER and also a professor at IMI, by Dr. Mahesh Uppal who is a director at Com First (India) Private Ltd and by Miss Mamta who is a researcher at ICRIER. They did econometric analysis of the system of equation using 3SLS. In this procedure their exogenous variables were used like population, state domestic product in the service and manufacturing sector. It can be used as an instrument variable to remove the endogeneity in teledensity. They used three model equations which was done to do further analysis. They conducted their study on Indian states. They took 20 states and try to analyze how teledensity affects the state GDP. They at the end found that

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