India telecom industry to grow at 15.8 percent

The India telecom industry will grow at a compound annual growth rate (CAGR) of
15.8 per cent between 2010 and 2014 and will touch revenues of Rs 377,683 crore
($82 billion), according to CyberMedia Research.

The India telecom services and mobile handsets market
will grow at 16.7 per cent in 2012 (over 2011) and will touch revenues of Rs
288,832 crore ($63 billion) out of which, the telecom services, which includes
mobile and fixed line services will contribute Rs 205,454 crore ($45 billion)
and the India mobile handsets market which includes feature phones and smart
phones will contribute Rs 83,377 crore ($18 billion). The latter will grow at
over 30 per cent during 2012 (over 2011).

The telecoms growth story will be a function of the
enhanced demand for high speed broadband and data services from both
enterprises and consumers, as 3G and BWA/WiMax services are rolled out by
various operators to cover an increasing number of cities and towns,” said
Anirban Banerjee, associate vice president, CyberMedia Research.

The main factors for growth in the telecom services
segments would be the launch and roll-out of 3G and BWA / WiMax / LTE services
and the resulting growth in usage of high speed broadband, VAS and data
services, although the broadband content will still be in the early stages of
development in 2011. Other high growth telecom services areas will include
IP-TV, IP-VPN, VoIP and Mobile VAS. Additionally the India telecom products (mobile
handsets) segment will witness a high growth rate of 26.2 per cent CAGR over
the period 2010-2014 and will touch Rs 128,729 crore in 2014.

The India domestic mobile handsets market will see an
increase of more than 150 percent in terms of the value of feature phones and
smartphones shipped. It will increase from Rs 50,714 crore in 2010 to Rs
128,729 crore in 2014.

The smartphones market in India is expected grow to over
10 million units in 2011 from 6 million units in 2010, a 66.7 per cent
increase. The Android operating system will be the most popular mobile OS and
12 per cent of all smartphones shipped in India during 2011 are expected to be
based on the Android platform. Additionally Due to the increase in popularity
of WiMax / LTE services, content creation and mobile application development
see a rapid increase.

As per the current pricing of tablets from companies like
Samsung, Apple and Olive, over 1,00,000 Tablets will be shipped in 2011 alone,
but if a tablet for the masses is introduced at a price lower than Rs.10,000 by
any company (like Reliance Infotel), then it could become a game changer.

By Team
[email protected]