General Indian economy is a laggard, whereas telecom continues to evolve into something outstanding. Telecoms has seen many positives. In future, BharatNet (or National Optical Fibre Network) will be an additional, useful infra for digital-savvy India. Likewise, Govt is applying a turbo boost to the general economy via its dynamic engagement, and problem-solving for various sectors. GST is one component for removing the backwardness.
For comparisons, consider the following:
1. Explosive growth of demand for data transmission vs pent up demand for goods and services. Both are very price sensitive.
2. Shift of demand from urban to rural India vs expected move from west to east, along with the spread of resources, enabling infra and prosperity.
3. Rationalization of bottlenecks in policy to create a seamless, unified marketplace.
4. Ease of doing business due to the lesser burden of compliance, and lesser legal disputes for contentious matters.
5. Competition across many geographies. Intense competition between PSUs, domestic private and foreign entities.
6. Encouragement for sharing of towers and spectrum vs consolidation of industries and rationalization of logistics.
7. Savings in Capital, and higher efficiencies, due to smaller stock holding, investment by specialist third parties and access to better technologies.
8. Highways to Information-ways emphasizes the importance of still higher and dedicated Govt efforts in building high quality (core) infrastructure.
9. Change from chronic deficiency to oversupply. Continuous efforts to create a surfeit of spectrum vs those to create an excess of: power; coal and minerals; steel, metals and cement; oil and piped gas; agricultural products incl leather, natural fibre, ethanol, starch, organic fertilizer; chemicals, plastics, synthetic fibre; synthetic fertilizer; skilled manpower.
10. Trend to indigenous manufacture due to consolidated market-size and make-in-India.
Lower data rates will drive up volumes for telecom operators
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