Bangalore, April 22, 2013:
India’s mobile services market will reach Rs 1.2 trillion in 2013, up eight per cent from 2012 revenue of Rs 1.1 trillion, according to Gartner, inc.
Mobile connections will grow to 770 million in 2013, an 11 per cent increase from 712 million connections in 2012, the technology researcher said.
“The mobile market in India will continue to face challenges if average revenue per unit (ARPU) does not grow significantly,” said Shalini Verma, principal research analyst at Gartner. “If the prevailing conditions do not change in the Indian telecom market, India will account for 12 per cent worldwide mobile connections, but just two per cent of worldwide mobile services revenue (in constant USD) in 2013.”
Indian telecom operators are faced with two major challenges – growing their profit margin in the face of intense competition and successfully competing with over the top service providers, such as Facebook and WhatsApp, Gartner said.
“As mobile voice services continue to get commoditised in the country with the increased use of voice over IP (VoIP) and the probable termination of national roaming charges, mobile broadband is the area of opportunity for operators,” Verma said.
“India has a phenomenal pent up demand for mobile broadband and local mobile apps that solve everyday problems for consumers. Smaller mobile broadband plans using a sachet-style usage pattern appeal to Indian consumers”, she added.
As India plays catch up with the rest of the world in terms of mobile broadband adoption, telecom operators need to think of growing the top line through innovative services. Further rural expansion of mobile services will come at a cost, Gartner said.
In India, innovation in utility apps that help bring efficiencies in a consumer’s life will bring in sustained revenue and will be relatively more difficult to replicate by new entrants. While social and video apps are doing extremely well in India, Verma said it is time to look beyond these and deliver apps that can have a sustained business model. Operators need to insert themselves into the value chain of these new apps and services.
