New Delhi: The Economic Survey 2006-07, which was tabled in Parliament on Tuesday, billed the telecom sector as the biggest success stories of market oriented reforms, which is now one of the fastest growing sectors in the world.
The survey said that the telecom tariffs, which were among the highest in the world less than four years ago, have now dipped to being among the lowest and telecom density has also increased from 12.7 per cent in March 2006 to 16.8 per cent in December 2006.
The total number of telephones has increased from 54.63 million on March 31, 2003 to 142.09 million on March 31, 2006 and 189.92 million as on December 31, 2006.
During 2007, about five million subscribers are being added every month. The number of telephones lead by mobile phones is expected to reach 250 million by end of 2007. The wireless segment grew at a phenomenal 90 per cent per annum CAGR.
While Foreign Direct Investment (FDI), one of the important funding mechanisms fueling huge investments in the sector, increased to Rs 38,923.38 crore in 2006.
The production of telecom equipment increased from Rs 16,090 crore in 2004-05 to Rs 17,833 crore in 2005-06.
The survey also said that the rising demand for a wide range of telecom equipment, particularly mobile telecom has provided excellent opportunities to domestic and foreign investors in the manufacturing sector.
With agency inputs
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