Initial fears of Internet access charges rising by 6-12 per cent following the Telecom Regulatory Authority of India recommendations to impose an annual licence fee for Internet Service Providers appear to be unfounded.
The telecom dream that India is living is not without blemish.
The domestic market for business process outsourcing - which is growing at a compound annual growth rate of 50 per cent - is catching the attention of BPO companies that have traditionally catered to the international market.
A start-up by three friends with Angel investment of Rs 1.5 crore, NautankiTV has close to 40 per cent of its users from the US and UK.
At a session with analysts last Monday, RComm chairman Anil Ambani said the Rs 10,000 crore (Rs 100 billion) investments would be used for network expansion.
IBM chairman, president & chief executive officer Samuel J Palmisano is scheduled to meet Reliance Communications chairman Anil Ambani
The domestic business intelligence sector is fast outgrowing its infancy, thanks to an increase in mergers and acquisitions.
GTL has placed non-binding offers on five companies in the US and Europe and lined up acquisitions worth Rs 1,100 crore (Rs 11 billion) in the next two quarters.
Wipro is close to setting up an IT park in Nagpur and is believed to have acquired 117 acres of land at the new special economic zone in the city.
However, projections made over the last few years indicate a compound annual growth rate (CAGR) of 80-90 per cent. Research firm TPI believes this is "not easily achievable".
Reliance Communications will be investing around Rs 15,000 crore (Rs 150 billion) to set up and install an additional 15,000 base transceiver stations in the country.
In one of the biggest broadband projects in the country, the state-owned telecom behemoth Bharat Sanchar Nigam Ltd is planning to provide broadband connections to 110,000 schools in the country
Paris-based IT major Capgemini is scouting for three more acquisitions amounting to over $1 billion (around Rs 4,300 crore or Rs 43 billion). It is looking at the business process outsourcing (BPO), product engineering and local consulting space.
The move by Reliance Communications to outsource its IT requirements would result in an upfront cost savings of around $200 million (Rs 900 crore), with the company seeking a guarantee to this effect from the vendors.
The Department of Telecommunications has mooted a proposal to set up seven telecom centres of excellence to nurture the sector and reduce the rural-urban digital divide.
The salaries of hardware engineers in the Indian information technology industry have nearly doubled over the last two years and yet the exodus to software continues, according to an Elixir Web Solutions survey.
Telephony major Reliance Communications is believed to have short-listed three global IT companies - IBM, EDS and T-Systems - for its $1.5 billion outsourcing contract.
but wouldn't subscribers simply prefer to talk instead?
Real estate and hotels major Royal Palms will invest around Rs 600 crore (Rs 6 billion) to set up an IT/ITeS special economic zone in Mumbai that would be ready for occupation by end of next year.
Both Indian and MNC IT majors are hiring big time, expressing their confidence in the Indian economy and outsourcing/offshoring growth story.
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