Mobile Broadband Already Emerging as Key in India Market

India’s mobile services market will reach Rs.1.2 trillion in 2013, up eight percent from 2012 revenue of Rs. 1.1 trillion, according to Gartner analysts. As you might expect in a market where retail is quite important, the growth could prove challenging.

“The mobile market in India will continue to face challenges if average revenue per unit does not grow significantly,” said Shalini Verma, principal research analyst at Gartner. And there is no doubt competition and over the top apps are key challenges. Both are putting pressure on profit margins. 

Ironically, mobile broadband revenue already appears to be more important than voice revenue, as a driver of future growth. 

“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,” said Ms. Verma. 

“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.”

Mobile connections will grow to 770 million in 2013, an 11 percent increase from 712 million connections in 2012.