India’s mobile services market will touch Rs 1.2 lakh crore (Rs 1.2 trillion) in 2013, an 8 per cent rise from Rs 1.1 lakh crore posted in 2012.
Mobile connections will grow to 770 million this year, an 11 per cent increase from 712 million connections last year, according to a report by research and analysis firm Gartner.
“The mobile market in India will continue to face challenges if the average revenue per user (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 2 per cent of worldwide mobile services revenue (in constant dollar) in 2013,” she added.
Major challenges
Indian telecom operators are faced with two major challenges — growing their profit margin in the face of intense competition and successfully competing with top service providers such as Facebook and WhatsApp.
Mobile voice services
“As mobile voice services continue to get commoditised in the country with the increased use of voice over Internet Protocol (VoIP) and the probable termination of national roaming charges, mobile broadband is the area of opportunity for operators,” said Verma.
“India has a phenomenal pent up demand for mobile broadband and local mobile applications that solve the everyday problems for consumers. Smaller mobile broadband plans using a sachet-style usage pattern appeal to Indian consumers.”