Telecom service spending to grow at 2% to $29.78 bn in India: Gartner

Telecommunication service spending in India is forecast to grow at 2 percent to $29.788 billion in 2020 from $29.203 billion in 2019, according to Gartner.
Smartphone customers on 4G network
Telecom services spending in India is expected to drop 0.1 percent in 2019, Gartner said today. BSNL, Bharti Airtel, Vodafone Idea and Reliance Jio are the top telecom services providers in India.

Spending on Devices – smartphones, phones, PCs, laptops, etc. — will increase at 6.3 percent to $35.468 billion in 2020. Xiaomi, Samsung, Vivo, Realme and Oppo are the top five smartphone suppliers during the third quarter of 2019.

Research agency IDC earlier said India’s smartphone market will see mid-to-high single digit growth in 2019.

“This can be attributed to a strong consumer sentiment and muted shipments in the last quarter of the year due to a record 3Q19 when channel stock levels went up,” Navkendar Singh, research director, Client Devices & IPDS, IDC India, said.

IT services spending in India will achieve a growth rate of 13.4 percent to $17.897 billion in 2020.

Data Center Systems spending will reach $3.819 billion with expected growth of 2.5 percent in 2020 as compared with $3.726 billion in 2019.

Spending on Software will grow at 15.2 percent to $7.354 billion in 2020 from $6.383 billion in 2019.

“Consumer resistance to investing in devices has impacted overall IT spending in the country. In 2019, private consumption slowed despite five back-to-back rate cuts throughout the year. This scenario is expected to change in 2020,” said John-David Lovelock, research vice president at Gartner.