Trends in 2010: India telecoms market
The Indian telecoms industry has experienced impressive growth over the last few years. We expect this growth to continue in 2010. In this report, we outline key trends and issues which will shape the industry during the year.
Executive summary
In a nutshell
Ovum view
‘Bottom of pyramid’ customers will drive mobile subscriber additions
Price competition will remain intense
Accelerated take-up of mobile banking and m-commerce
Drive for rural value-added services (VASs) focused on occupation, education and healthcare
3G focus on expanding capacity and broadband access
Focus on driving broadband in lucrative markets
DTH and IPTV will drive a gradual shift to better TV
Wholesale services will start to come of age
International M&A and partnerships will stay on the agenda
High profitability potential will fuel growth for enterprise services
Key trends
Mobile connections growth
Low penetration in Circle C and rural areas
Launch of services by new licensees
Continued trend of multiple SIM ownership in developed service areas
Price war among mobile operators
Intensifying competition and the battle for market share
Customers’ price sensitivity
Lack of differentiation in services offered
Introduction of mobile number portability (MNP)
Mobile banking and m-commerce
Favourable changes in regulation
A large number of unbanked people
A much higher penetration of mobile services, compared to Internet
Focus on no-frills narrowband applications
Value-added services for rural customers
Mobile as a suitable means to fill the information gap
Focus on occupational needs, education and healthcare
Solutions designed to overcome literacy and affordability challenges
3G services and applications
Much of the spectrum is expected to be used to fulfil capacity needs
Broadband access will be the key application
A ‘killer app’ is unlikely
Increasing broadband availability in lucrative markets
Fixed broadband access
Fixed wireless broadband access
Mobile broadband access
Gradual transition from cable TV to DTH and IPTV
Unorganised and fragmented cable industry
Telco support for DTH
Installed base and declining prices of high-definition TVs
Increasing investment in improving IPTV coverage and quality
Acceleration of wholesale services
Conducive regulatory environment
New operators’ imperative to reduce time-to-market and capex
Changing attitudes towards wholesale opportunities
International mergers, acquisitions and partnerships
Focus on Africa and the Indian sub-continent
Political hurdles may derail efforts
Profitable growth through enterprise services
Focus on fixed voice and data services
Integrated service operators better positioned to succeed
Bharti Airtel: a formidable challenger to Reliance and Tata
Increased focus on the small to medium-sized enterprise segment
In a nutshell
Ovum view
‘Bottom of pyramid’ customers will drive mobile subscriber additions
Price competition will remain intense
Accelerated take-up of mobile banking and m-commerce
Drive for rural value-added services (VASs) focused on occupation, education and healthcare
3G focus on expanding capacity and broadband access
Focus on driving broadband in lucrative markets
DTH and IPTV will drive a gradual shift to better TV
Wholesale services will start to come of age
International M&A and partnerships will stay on the agenda
High profitability potential will fuel growth for enterprise services
Key trends
Mobile connections growth
Low penetration in Circle C and rural areas
Launch of services by new licensees
Continued trend of multiple SIM ownership in developed service areas
Price war among mobile operators
Intensifying competition and the battle for market share
Customers’ price sensitivity
Lack of differentiation in services offered
Introduction of mobile number portability (MNP)
Mobile banking and m-commerce
Favourable changes in regulation
A large number of unbanked people
A much higher penetration of mobile services, compared to Internet
Focus on no-frills narrowband applications
Value-added services for rural customers
Mobile as a suitable means to fill the information gap
Focus on occupational needs, education and healthcare
Solutions designed to overcome literacy and affordability challenges
3G services and applications
Much of the spectrum is expected to be used to fulfil capacity needs
Broadband access will be the key application
A ‘killer app’ is unlikely
Increasing broadband availability in lucrative markets
Fixed broadband access
Fixed wireless broadband access
Mobile broadband access
Gradual transition from cable TV to DTH and IPTV
Unorganised and fragmented cable industry
Telco support for DTH
Installed base and declining prices of high-definition TVs
Increasing investment in improving IPTV coverage and quality
Acceleration of wholesale services
Conducive regulatory environment
New operators’ imperative to reduce time-to-market and capex
Changing attitudes towards wholesale opportunities
International mergers, acquisitions and partnerships
Focus on Africa and the Indian sub-continent
Political hurdles may derail efforts
Profitable growth through enterprise services
Focus on fixed voice and data services
Integrated service operators better positioned to succeed
Bharti Airtel: a formidable challenger to Reliance and Tata
Increased focus on the small to medium-sized enterprise segment
