250 million by end of 2007

Posted on | November 22, 2006 |

The number of telecom subscribers in India will reach a staggering 250 million by end of 2007, according to Fitch Ratings in its latest report on ‘Indian Telecoms Sector - Sustainable Growth Ahead’.

• Over the medium term, Fitch anticipates the emergence of six operators BSNL, Bharti Airtel, Reliance Communications Limited, Hutchison Essar, Idea Cellular and Tata Teleservices Limited, it said.
• The sustained high growth has demanded heavy network investments over the last two to three years, resulting in most Indian telcos generating negative free cash-flows (FCF) over this period, which is likely to increase over the next year.
• The industry has now vaulted into a second capital spending cycle of unprecedented proportions, with aggregate industry capital expenditure expected to double over outlays in FY06.
• The report said there is a moderate incremental demand for local access services but the growth is expected to come from CDMA-based fixed wireless services rather than traditional wireline.

Source: ET

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