BMI View: The short- and medium-term outlook for the Indian telecommunications market remains steady, with plenty of room for organic mobile subscriber growth. Advanced mobile and data services uptake, including 3G/4G, have been relatively slow and will provide significant opportunities for upselling out to 2021. Nevertheless, the disconnect between the Indian government, regulators and operators is more apparent than ever following the latest spectrum auction. Extremely high reserve prices deterred bidders already being undermined by price competition, a situation exacerbated by Reliance Jio's launch of ultra low-cost 4G services. Meanwhile, sluggish expansion of wireline broadband is linked to the stalled momentum of state-owned players. The best investment opportunities, therefore, lie in the towers market as operators increasingly turn to specialised providers for support.