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One of the fastest growing sectors in the country, telecommunications has been growing at a feverish pace in the past few years. The speed of growth can be gauged by the fact that in 2004, ten years after private telephony was introduced in India, the mobile subscriber base had crossed the number of fixed line connections.

The non-voice market (message and data services) for mobile operators has also registered tremendous growth in 2004. According to a study by IDC, it had a growth of 139 per cent year on year in 2004. At present non-voice revenue contributes around 4.7 per cent to the total mobile services revenue, which is around Rs. 14,560 crore (US$ 3.3 billion).

Analysts believe that if the current rate of growth is maintained, it could add up to amazing figures in the next few years. A study released by Ernst and Young says revenues from the sector could touch US$ 25 billion by 2007.

Among other tidings in the telecom sector are the technology upgradations being effected in Delhi and Mumbai. India will soon join the elite club of countries that have 3G mobile services. The Mahanagar Telephone Nigam Limited (MTNL), the state-run telecom services provider, is setting up India's first 3G network in Delhi and Mumbai. The network, which will have a capacity of 4m lines, will require a total investment of Rs 4,000 crore (US$ 914.9 million).

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