Mobile Broadband Services Become Key Driver For Mobile Operators In India: Expected To Reach Us$7 Billion By 2017, Says IDC
24 Jun 2014
Mobile services market in Asia/Pacific excluding Japan (APeJ) region is considered as a very dynamic market compared to other emerging and mature markets. Many mobile operators have been struggling for quite some time to maintain growth in revenue, especially on voice services. From 2012 to 2017, International Data Corporation (IDC) projects that the growth rate for voice services revenue in APeJ will slow down and achieve a compound annual growth rate (CAGR) of 2.5%. However, data connectivity or mobile broadband revenue will grow at a CAGR of 19.3% from 2012 to 2017.
IDC attributes the growth of data revenue in APeJ to three key areas:
- Smartphones penetration with affordable prices
- Rollout of 3G and LTE licenses; and
- Mobile user behavior towards ‘Over-The-Top-Players' (OTTP) services.
OTTP refers to delivery of instant messaging, video, audio and other media over an open Internet/broadband connection directly to user, without the need for carriage negotiations and without any infrastructure investment on the part of the provider. The provider may be aware of the contents of the Internet Protocol packets but is not responsible for, nor able to control, the viewing abilities, copyrights, and/or other redistribution of the content.
“For India, mobile broadband market in 2014 will continue to have strong growth compared to other mobile services market. This service is expected to reach US$7 billion by 2017 with a CAGR of 32%. 3G subs will hold the highest five-year CAGR of 68% compared to other mobile technology. This is mainly due to more 3G services coverage across the country, especially in the big cities. With this trend, operators should focus more on their mobile broadband strategy,” says Ashadi Cahyadi, Senior Research Manager at IDC Asia/Pacific Telecommunication Group.
According to IDC’s Asia/Pacific Semiannual Telecom Services Tracker 1H2013, the total mobile services market revenue in India will reach US$29.8 billion by 2014 and is expected to reach US$37 billion in 2017 with a CAGR of 5.2%.
"Among mobile services, only mobile broadband services show strong growth, meanwhile SMS and MMS are on a decline trend. Voice services tend to have a flat growth rate. With recent operators’ initiatives to introduce more content/applications and improve consumer awareness for data services, mobile data revenue is expected to grow in India," adds Cahyadi.
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