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India’s Mobile Market Challenges

Details Published on Tuesday, 30 April 2013 05:42 India’s mobile services market will reach Rs.1.2 trillion in 2013, up 8 percent from 2012 revenue of Rs. 1.1 trillion, according to Gartner. Mobile connections will grow to 770 million in 2013, an 11 percent increase from 712 million connections in 2012. “The mobile market in India will continue to face challenges if average revenue per unit (ARPU) does not grow significantly,” says Shalini Verma, principal research analyst at Gartner. “If the prevailing conditions do not change in the Indian telecom market, India will account for 12 percent worldwide mobile connections, but just 2 percent of worldwide mobile services revenue (in constant USD) in 2013.” Indian telecom operators are faced with 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. “As mobile voice services continue to get commoditized i