IDC says Indian mobile broadband market to reach US$7 Billion by 2017

As per IDC report, the Indian mobile services market in 2014 will grow at a higher pace than any other markets. Many mobile operators have been struggling for quite some time to maintain growth in revenue, especially on voice services. From 2012 to 2017, IDC projects that the growth rate for voice services revenue in APeJ will slow down and achieve a compound annual growth rate (CAGR) of 2.5%. However, data connectivity or mobile broadband revenue will grow at a CAGR of 19.3% from 2012 to 2017.

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“For India, mobile broadband market in 2014 will continue to have strong growth compared to other mobile services market. This service is expected to reach US$7 billion by 2017 with a CAGR of 32%. 3G subs will hold the highest five-year CAGR of 68% compared to other mobile technology. This is mainly due to more 3G services coverage across the country, especially in the big cities. With this trend, operators should focus more on their mobile broadband strategy,” says Ashadi Cahyadi, Senior Research Manager at IDC Asia/Pacific Telecommunication Group.

"Among mobile services, only mobile broadband services show strong growth, meanwhile SMS and MMS are on a decline trend. Voice services tend to have a flat growth rate. With recent operators’ initiatives to introduce more content/applications and improve consumer awareness for data services, mobile data revenue is expected to grow in India," adds Cahyadi.

According to IDC’s Asia/Pacific Semiannual Telecom Services Tracker 1H2013, the total mobile services market revenue in India will reach US$29.8 billion by 2014 and is expected to reach US$37 billion in 2017 with a CAGR of 5.2%.