India possesses a diversified communications system that links all parts of the country by Internet, telephone, telegraph, radio, and television. None of the telecommunications forms are as prevalent or as advanced as those in modern Western countries, but the system includes some of the most sophisticated technology in the world and constitutes a foundation for further development of a modern network. India has the world’s second-largest mobile phone users with over 881 million as of October 2011. It has the world’s fourth-largest Internet users with over 100 million as of December 2010. India has come to be regarded as the world’s most competitive and one of the fastest growing telecom market.

The industry is expected to reach a size of 344,921 crore (US$65.53 billion) by 2012 at a growth rate of over 26 per cent, and generate employment opportunities for about 10 million people during the same period. According to analysts, the sector would create direct employment for 2.8 million people and for 7 million indirectly. The total revenue of the Indian telecom sector grew by 7% to 283,207 crore (US$53.81 billion) for 2010-11 financial year, while revenues from telecom equipment segment stood at 117,039 crore (US$22.24 billion).