India’s mobile market faces challenges with Facebook and WhatsApp, says Gartner

This year, India’s mobile services market is expected to reach INR 1.2 trillion, states the latest research report released by Gartner. It will grow up-to 8 percent from 2012 revenue of Rs. 1.1 trillion, but will account for only two per cent of the worldwide mobile services revenue.

Reports also states that the number of the mobile connections will also to grow to 770 million in 2013, up 11 % of that in 2012.

(Still contrastively, according a report released by Trai, there were 861.66 million wireless subscribers in India, which shows a decrease in the current subscription with a monthly growth rate of -0.11% )

Talking over the challenges faced by the Indian Mobile market, Gartner’s  Principal Research Analyst, Shalini Verma, states that till the time average revenue per unit (ARPU) does not grow significantly, the mobile market in India will continue to face challenges.

According to the report two most significant challenges that Indian telecom operators face, includes:

  • Growing their profit margin in the face of intense competition
  • Successfully competing with over the top service providers, such as Facebook and WhatsApp.

The report also highlighted trends such as:

  • Mobile Broadband is an area of opportunity for the operators: The mobile voice services had continued to get commoditized in India with the increased use of voice over IP (VoIP) and the probable termination of national roaming creating the opportunity for Mobile Broadband.
  • Demand for local mobile apps: Mobile apps that solve everyday problems for consumers is seeing a phenomenal increase.

Report Also Suggests

  • Innovations in the utility apps that help bring efficiencies in a consumer’s life will bring in revenue but will be relatively more difficult to replicate by new entrants.
  • There is need to look beyond social and video apps and deliver apps that can have a sustained business model.
  • To catch up with the the rest of the world in telecom operators need to think of growing the top line through innovative services.
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Iamwire Byte

Surely it looks like we are approaching towards inflexion of social, local and mobile. Telecom operators need to think out of box to capitalize on new revenues streams and invest in innovation to stay ahead.

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