India Telecom clocks R429,087 cr, grows 10.8%

In FY 2013-14, Telecom Industry in India clocked Rs 429,087 crore in revenues recording a growth of 10.8% over previous fiscal. Telecom Services sector accounted for 54% of the industry revenues contributing Rs 233,793 crore to the total of Rs 429,087 crore. Rest came from Telecom Infra sector. Both Infra and Services recorded double digit, overall growth of over 10 percent, over the previous year. For every rupee spent on telecom infrastructure, the industry in India earned Rs 1.19, during FY 2013-14.

Top 10 Telecom Infra companies accounted for 50% of the Infra revenue of Rs19,5249 and Top 10 Telecom Services companies contributed 42% in the total services revenue of Rs 42,9087. Telecos – BSNL, MTNL and Tata Tele Services recorded a decline ranging from 3 to one percent. Among Telecom Infra companies Nokia registered an 18% decline, Ericsson contended with pretty much flat growth in FY 2013-14.

User Devices, literally led the growth curve with a 17% YoY increase contributing a large chunk (Rs 93,675 crore) to the overall Telecom revenue. This growth largely came from smartphones in the mobile phone sub segment which recorded 18.5% YoY growth in FY 2013-14. Core & access equipment in carrier infra sub segment recorded the lowest overall growth of 2.5 percent which itself is the result of RJio mega rollout in the telecom industry. It shored up the topline of a number of telecom infra vendors.

The challenges in the Telecom Services sector continue but the dynamic market is rapidly revolving to accommodate increased data focus being driven by mobile devices primarily. Mobile data services grew at a healthy clip of 30% and fixed line data services also had a double digit 13% YoY growth. Fixed line voice recorded a double digit decline of11% while mobile voice grew at 10%. Read on for comprehensive analysis.