The mobile subscriber base in India is projected to cross the 1 billion mark by 2014, driven by additions in rural areas, global consultancy firm PricewaterhouseCoopers said on Wednesday.
According to a PwC report titled, 'Indian 3G broadband subscribers', "The mobile subscriber base is projected to cross one billion in 2014."
In addition, the report said the boom in the telecom sector is expected to continue for the next three to five years, driven by high subscriber additions, mostly in non-urban areas.
With the addition of more than 14 million subscribers every month in the year 2009, the telecom subscriber base in the country had grown to 601 million in April, 2010, second only to China, the report said.
The report also said the 3G broadband subscriber base will cross 107 million by 2015, with total revenues expected to reach Rs 26,400 crore by 2015.
Following the completion of the auction, operators are expected to launch 3G and BWA services soon after receiving spectrum from the government.
"BSNL and MTNL, who have already received 3G spectrum, have launched 3G services in select cities. This will help address the supply side constraint," the report noted.
PwC said since the roll-out is expected to be more focused in urban areas in the initial stages, the uptake of 3G services, therefore, will be concentrated among urban subscribers.
But gradually, with increasing coverage in rural areas, the uptake among rural subscriber will also pick up, it added.
By 2015, rural subscribers are likely to comprise up to 24 per cent of the overall 3G subscriber base. Overall, 3G subscriber penetration in India is expected to rise from 0.1
per cent in 2011 to 8 per cent in 2015.
The recently concluded 3G spectrum and BWA auction saw intense competition between bidders, resulting in a revenue inflow of Rs 1.06 lakh crore for the government, surpassing most estimates.
Despite all the positives, for India to realise its full potential, it needs to invest in infrastructure, which at present is not sufficient to meet the growing demands of the
economy, the PwC report said, noting that mobile telephony is the only exception in the infrastructure space.
Only 21 per cent of Indians in rural areas have phone connections. There are still more than 500 million people that do not have phone connections in the country, who are located
mainly in rural areas.