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Mobile Telephony Getting Dynamic
Techtree News Staff, Jul 18, 2007 1333 hrs ISTGartner projects revenues from cellular services to multiply at a compound annual growth rate (CAGR) of 18.4 percent to reach nearly $25.617 billion in 2011.
India will continue to be the fastest growing country in the Asia Pacific region after China in terms of mobile telephony, predicts research firm, Gartner. And the scenario will only get more dynamic with the entry of Vodafone...
Pegging revenues from cellular services at approximately $8.95 billion in 2006, Gartner projects these will multiply at a compound annual growth rate (CAGR) of 18.4 percent to reach nearly $25.617 billion in 2011.
Commenting on the research, Madhusudan Gupta, senior research analyst at Gartner, said, "With more marginal users forming the bulk of the addressable market, low service costs and inexpensive handsets will help to unlock the inertia, and facilitate adoption of mobile services. The reduction in call rates will continue to happen till they become more competitive with fixed-line rates. This, coupled with emerging initiatives by vendors and operators will boost adoption of mobile services in India's semi-urban and rural provinces."
While mobile penetration in rural markets is low, Gartner sees this as a huge opportunity for handset makers and cellular service providers. The firm expects cellular market penetration to increase from about 12.7 percent in 2006 to nearly 38.6 percent in 2011. Further, the increase will largely be driven by an increased focus on the rural market, as also handset bundle offers and aggressive promotions by players.
With India typically a market driven by prepaid connections, Gartner expects these to grow from over 84 percent of the connection base in 2006 to over 93 percent by 2011.
Besides, data revenues from the prepaid segment are expected to grow faster than those from the post-paid segment. While the bulk of revenues will continue to come from voice services.
Apart from this, Gartner predicts that operators will have to start looking beyond growth in revenues to thwart the erosion of their bottom lines.
And, spectrum, which remains a scarce and tightly controlled resource, could continue to impact future expansion plans and quality of services.
Pegging revenues from cellular services at approximately $8.95 billion in 2006, Gartner projects these will multiply at a compound annual growth rate (CAGR) of 18.4 percent to reach nearly $25.617 billion in 2011.
Commenting on the research, Madhusudan Gupta, senior research analyst at Gartner, said, "With more marginal users forming the bulk of the addressable market, low service costs and inexpensive handsets will help to unlock the inertia, and facilitate adoption of mobile services. The reduction in call rates will continue to happen till they become more competitive with fixed-line rates. This, coupled with emerging initiatives by vendors and operators will boost adoption of mobile services in India's semi-urban and rural provinces."
While mobile penetration in rural markets is low, Gartner sees this as a huge opportunity for handset makers and cellular service providers. The firm expects cellular market penetration to increase from about 12.7 percent in 2006 to nearly 38.6 percent in 2011. Further, the increase will largely be driven by an increased focus on the rural market, as also handset bundle offers and aggressive promotions by players.
With India typically a market driven by prepaid connections, Gartner expects these to grow from over 84 percent of the connection base in 2006 to over 93 percent by 2011.
Besides, data revenues from the prepaid segment are expected to grow faster than those from the post-paid segment. While the bulk of revenues will continue to come from voice services.
Apart from this, Gartner predicts that operators will have to start looking beyond growth in revenues to thwart the erosion of their bottom lines.
And, spectrum, which remains a scarce and tightly controlled resource, could continue to impact future expansion plans and quality of services.
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