MUMBAI: The country’s mobile services market is set to touch Rs1.2 trillion in 2013, an increase of eight percent from 2012 revenue of Rs 1.1 trillion, according to the recent Gartner report.
Mobile connections will grow to 770 million, an 11 percent increase from 712 million connections in 2012.
“The mobile market in India will continue to face challenges if average revenue per unit (ARPU) does not grow significantly. If the prevailing conditions do not change in the Indian telecom market, India will account for 12 percent worldwide mobile connections, but just two percent of worldwide mobile services revenue (in constant USD) in 2013, ” said Gartner principal research analyst Shalini Verma.
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The two major challenges for Indian telecom operators are growing their profit margin in the face of intense competition and successfully competing with over the top service providers, such as Facebook and WhatsApp.
“As mobile voice services continue to get commoditized 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. 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,” Verma said.
While social and video apps are doing extremely well in India, Verma highlighted that 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.
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. 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, the report said.
