An analysis of Factors Influencing the Telecommunication Industry Growth : A case study of China and India

Abstract: The Telecommunications industry today is a key enabler of productivity across economies and societies. The Telecom industry is not only a significant contributor towards the economic activities of countries, but also towards the growth of other industries. In recent times, developing nations have witnessed significant transformation within this sector due to the impact it has had on their economies. The booming and emerging economies of China and India have been impacted the most by the rapid growth of the Telecom industry in the past decade. The aim of this thesis is to research the most influencing factors affecting the Telecommunication industry growth, by analyzing data for both Chinese and Indian Telecom industries. In this report, data gathered from questionnaires, interviews, literature reviews and analysts’ reports are used to compare and discuss the contribution of different factors influencing the Telecom industry. Data analysis methods such as Weighted Mean Calculations, for analyzing the questionnaire data, and Granger Causality Test, for further co-relating data from the questionnaire with the Telecom industry revenue figures, are used. Factors such as “Number of Subscribers”, “Technology Innovation” and “Government Regulation and Polices” were found to be the most influential and contributing factors towards the growth of the Telecom industry in China and India. Analysis based on historical statistics revealed that, there is no direct impact on the industrial revenue from the “number of Subscribers” factor, unlike the “Technology Innovation” factor. Also, the contribution of “Government Regulation and Polices” as a factor, seems to be more obvious for the Chinese Telecom industry compared to that of India.