Monday, March 7, 2016

India Mobile Data Margin Pressure is Growing

Margin pressure in the India mobile data services business already is escalating, even before Reliance Jio has launched full commercial launch of its 4G services.

Analysts at Morgan Stanley therefore have "cut our industry revenue growth forecast by three percent for fiscal years 2016 to 2018, and expect the industry revenue between fiscal 2015 and 2020 to grow at a seven percent compound annual growth rate versus eight percent previously."

As is often the pattern elsewhere, usage is growing faster than revenue . The report by Morgan Stanley said despite double-digit data volume growth, data revenues are now growing in the higher single-digits.

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