Telecom players are betting on the roll out of 3G and Broadband Wireless Access services to bolster their profit margins, which are being hurt by stiff competition and increased tariff war, says a study.

The report prepared by KPMG which was released during the India Telecom 2010 summit, pointed out that the broadband sector is expected to log tremendous growth in the future as over 650 million potential customers are waiting to be tapped.

Rural India, the report stated, is the key target market likely to drive the next round of growth for telcos, particularly for voice based services.

"Strong government support coupled with key initiatives from the private operators will help ensure connectivity for the remotest parts of the country and will further the government's agenda of providing basic healthcare, banking and e-governance facilities to all," KPMG India Head (Telecom) Romal Shetty said.

The report highlighted the primary reasons for the nascent growth of broadband in India. It also tracked all the government efforts that are being made to achieve the unparalleled growth of broadband and gives an overview of how the growth of broadband will actually contribute to the overall development of the economy.

The primary aim of the 'Broadband for All' movement is to ensure that all Indians are able to connect with the world and are able to remotely access basic facilities like health, education, banking, commerce, entertainment, utility and e-governance services to enhance their quality of life.