Telecom Lead India: Mobile services revenue in India is
likely to reach $30 billion in 2016. The ARPU began to stabilize in 2011 from
the double-digit decline of ARPU between 2008-2010.
Gartner said the India mobile subscriber base will reach
696 million connections in 2012, up 9 percent from 638 million in 2011.
Govt targets Rs 40,000 through auction
Recently, the India Government said that it is targeting
Rs 40,000 crore from the next round of auction in 2012-13.
The staggering growth of mobile connections has been
driven by the expansion of mobile services in semi-urban and rural markets and
the availability of cheap mobile devices,” said Shalini Verma, principal
analyst, Consumer Technology and Markets, Gartner.
At $40, the ARPU in India is among the lowest in the
world and about one-third of that of China. The mobile service penetration in
India is currently at 51 percent and is expected to grow to 72 percent by 2016.
China already achieved 71 percent mobile penetration in 2011 and is forecast to
grow to 119 percent in 2016.
Indian telecom operators profit to decline 85% in 2011-12
3G is set to take toll on the financial health of Indian
mobile industry. Profit after tax of Indian telecom services segment is
expected to decline 85 percent in 2011-12, according to India Government’s
Economic Survey.
According to Gartner, India is lagging behind emerging
telecom markets in fixed broadband penetration. India’s fixed broadband
household penetration was 6 percent in 2011, which is lower than the
penetration in emerging markets that stood at 16 percent in 2011.
Through 3G and Broadband Wireless Access (BWA) auctions
in 2010, the Indian government had pocketed Rs 106,000 crore against a revenue
target of Rs 25,000-35,000 crore.
Gartner said mobile operators globally are reaping their
investments in infrastructure through an increase in mobile data revenue. In
India, mobile operators have significant challenges, given the nature of the
emerging middle class with regards to their IT products and services spending.
Gartner said that India could become the testing ground
for innovative delivery and pricing models that could be replicated in other
emerging markets. Mobile operators will need to focus on sound fundamentals
such as improving the quality of service of mobile broadband.
The industry is pegging its hope on market
consolidation, which appears imminent in the aftermath of 2G license cancellations.
Department of Telecom and Telecom Regulatory Authority of India have a pivotal
role to play in removing uncertainties in policy-making, and license and
spectrum management, so that the mobile operators can focus their energies on
driving growth,” Verma added.
