The increase in service tax means you pay more now. It adds up to a lot for entry-level users. Any escalation like this affects the end-user directly.
The mobile phone market will see a growth of over 50 percent year-on-year in the next two years. The industry will have 125 million subscribers by the current year end.
There will be an influx of funds as global investment communities and carriers look toward increasing their shareholder value by investing in India's growth.
Major overseas telecom players are increasingly looking beyond their home markets in the face of flat growth.
Further not getting threshold revenue (Cost of servicing + margins) from their home subscribers may affect business sustainability in the mid to long term.
Normally when such (foreign investment) agreements are spelt out, there are some fundamental control factors or check mechanisms that are implemented. So, while directly a foreign investor may not get management control, the conditions within the agreement and check mechanism ensure that a foreign investor has sufficient control on operations and finance.
Affordable services, increased penetration, and a willing Indian government would ensure and drive this kind of growth.
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