Indian mobile data services market to grow USD 10 billion by 2022-23: HSBC

mobile-dataThe Indian mobile data services market may grow to USD 10 Bn by 2022-23 as estimated by the equities arm of HSBC, reports TOI. The report referred to the performance expectations of the leading telcos like Bharti airtel, Idea Cellular and Reliance Communications, in the Indian equity market.

With India on the edge of over 150 million internet users and being one of the most sought mobile data usage market, the carriers of this data service plays an important role in leading a way ahead, competing with the global players like China. Thus, understanding where these players are heading into the market becomes an important concern, both for the existing and upcoming startups in the mobile landscape of the country.

As Indian telcos continue to fight the price war, and call rates getting more and more competitive, the companies need to shift towards different area to grow further and get profits. While the call rates seem stable, data service gives an extended edge to telcos for earning and mVas riding on data services is probably the way forward for revenue growth of telcos in Indian market. The same can be related with recent push on data led free call services like Whatsapp, Line etc. With these services the primary call volume is certainly getting affected however consumers are paying off through data services.

One of the primary reason for slow growth in data services in India is low spectrum issues, lesser investment in fiber infrastructure, low regional 3G footprints.

In spite of that mobile services in India are quite cheap in comparison to that of the Western countries, India accounts for nearly 12% of worldwide mobile connections which offers a significantly promising market for mobile networks to function. Moreover, according to Gartner, Indian telecom operators are facing two major challenges – growing their profit margin in the face of intense competition and successfully competing with over the top service providers, such as Facebook and WhatsApp.

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To contact author, email at meha@wirefootindia.com

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