India Telecom Industry To Touch Revenues Of Rs.3,77,683 Crore Between 2010 And 2014

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.3,77,683 Crore ($ 82 billion) according to a research done by 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.2,88,832 Crore ($ 63 billion) out of which, the telecom services, which includes mobile and fixed line services will contribute Rs.2,05,454 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).

Anirban Banerjee, Associate Vice President, CyberMedia Research, said "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"

Here is a table of the India telecom services and products sector, 2010-2014

The key factors behind the 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 1,28,729 Crore in 2014.

The India domestic mobile handsets market will see an increase of more than 150 per cent in terms of the value of featurephones and smartphones shipped. It will increase from Rs.50,714 Crore in 2010 to Rs.1,28,729 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.

"Going forward these devices (smartphones) will become as powerful as present day laptops", said Naveen Mishra, Lead Analyst, Telecoms Practice, CyberMedia Research.

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.