09-10-2012, 04:21 PM
Mobile Broadband-Outlook 2015
[attachment=35820]
India Growth Story
India is the largest democracy in the world with a population of over 1.2 billion.
In the past 2 decades, India has seen sustained high economic growth.
Currently India is the 4th largest economy behind US, China and Japan in PPP terms.
Between 2007 and 2020, India’s GDP per capita in USD terms will quadruple, and that the Indian economy will surpass the United States (in USD) by 2050
Services, Inbound Investment and Consumption Driving India’s Growth
Services-India’s services sector stands out for the size of its contribution to GDP and its dynamism. Communication and banking are among the fastest growing segments. As per Confederation of Indian Industry, services sector accounted for 59.6 per cent of the overall average growth in GDP in the eight years between 2000-01 and 2007-08.
Foreign Direct Investment- Indian policy on FDI has been liberalised progressively over the last two decades. Initiatives have included opening up of new sectors to FDI, raising the FDI caps in sectors already open to investment and procedural changes to enhance FDI flows. Some of the sectors that have attracted the biggest share of FDI include services, telecommunication, computer software & hardware and housing & real estate and power.
Consumption
India has a burgeoning middle class, which is estimated to be around 300 million.
Two-wheelers and passengers vehicles in India-6.2 million units in FY 2003 to 11.4 million units in FY 2009
20-29 age group there will be over 210 million people by 2015
India’s private domestic consumption as share of
GDP, at 57 per cent in 2008.
Facts of Telecom industry
The telecom market has been growing at a CAGR of approximately 30 percent since 1995.
Mobile services which have grown at a CAGR of more than 117 percent during the period 1995-2009.
Indian telecom service sector contributed approximately 2 percent of the GDP in FY 2008-2009 and expected to grow further.
The telecom subscriber base- 601 million as of April 2010(Second largest telecom market)
The teledensity has grown from a mere 1.3 percent in 1995 to over 50 percent as of April 2010.
Due to presence of 8-9 operators per circle the rates are one of the lowest.
Mobile services driving telecom growth
The mobile services have been growing at CAGR of 65 percent over the last 5 years.
The total number of mobile subscribers surpassed the total wire line subscriber in 2004
Since 2004 wire line service has been experiencing negative growth.
Rural Costumer Segment
Two-thirds of India's consumers in rural areas
Spending power increasing steadily
Mobile utility applications
E-Governance
Information related to farming
Remote access to education and healthcare
Brief Info
Mobile broadband services are set to change the existing telecom market landscape in India following the launch of new services and emergence of new business models.
Broadly from the standpoint of telecom industry, over the short term impact of mobile broadband services would be in form of additional business for engineering firms, network infrastructure firms and equipment vendors for rolling out the network. In addition, venture backed content and technology startups are likely to emerge.
VAS value chain players (content developer, aggregator and technology enabler) are likely to call for investment to the tune of Rs. 12 billion over the period of 5 years ending 2015. Over medium to long term, service innovations and new business models will emerge to deliver advanced services for the media, health, education and other sectors.
High speed access- New revenue potential for content developer and aggregator
In terms of service offerings, currently content is largely restricted to film based entertainment and cricket.
Content owners will diversify content categories and new categories will emerge as the data usage increases, more importantly interactive content will gain in significance.
Music and video services will be a key growth drivers, with a whole range of new music services like full track downloads.
Additionally, Content owners will be focusing on providing relevant content in local languages as well.
Content aggregator will offer rich media service for various customer segments based on their needs. Further, their focus will shift from current services like CRBT/Ring tones etc to rich multimedia, interactive and niche offerings.
There is also large potential for providing wide range of utility and government services especially to the rural masses where the majority of new subscribers are expected to come from.
[attachment=35820]
India Growth Story
India is the largest democracy in the world with a population of over 1.2 billion.
In the past 2 decades, India has seen sustained high economic growth.
Currently India is the 4th largest economy behind US, China and Japan in PPP terms.
Between 2007 and 2020, India’s GDP per capita in USD terms will quadruple, and that the Indian economy will surpass the United States (in USD) by 2050
Services, Inbound Investment and Consumption Driving India’s Growth
Services-India’s services sector stands out for the size of its contribution to GDP and its dynamism. Communication and banking are among the fastest growing segments. As per Confederation of Indian Industry, services sector accounted for 59.6 per cent of the overall average growth in GDP in the eight years between 2000-01 and 2007-08.
Foreign Direct Investment- Indian policy on FDI has been liberalised progressively over the last two decades. Initiatives have included opening up of new sectors to FDI, raising the FDI caps in sectors already open to investment and procedural changes to enhance FDI flows. Some of the sectors that have attracted the biggest share of FDI include services, telecommunication, computer software & hardware and housing & real estate and power.
Consumption
India has a burgeoning middle class, which is estimated to be around 300 million.
Two-wheelers and passengers vehicles in India-6.2 million units in FY 2003 to 11.4 million units in FY 2009
20-29 age group there will be over 210 million people by 2015
India’s private domestic consumption as share of
GDP, at 57 per cent in 2008.
Facts of Telecom industry
The telecom market has been growing at a CAGR of approximately 30 percent since 1995.
Mobile services which have grown at a CAGR of more than 117 percent during the period 1995-2009.
Indian telecom service sector contributed approximately 2 percent of the GDP in FY 2008-2009 and expected to grow further.
The telecom subscriber base- 601 million as of April 2010(Second largest telecom market)
The teledensity has grown from a mere 1.3 percent in 1995 to over 50 percent as of April 2010.
Due to presence of 8-9 operators per circle the rates are one of the lowest.
Mobile services driving telecom growth
The mobile services have been growing at CAGR of 65 percent over the last 5 years.
The total number of mobile subscribers surpassed the total wire line subscriber in 2004
Since 2004 wire line service has been experiencing negative growth.
Rural Costumer Segment
Two-thirds of India's consumers in rural areas
Spending power increasing steadily
Mobile utility applications
E-Governance
Information related to farming
Remote access to education and healthcare
Brief Info
Mobile broadband services are set to change the existing telecom market landscape in India following the launch of new services and emergence of new business models.
Broadly from the standpoint of telecom industry, over the short term impact of mobile broadband services would be in form of additional business for engineering firms, network infrastructure firms and equipment vendors for rolling out the network. In addition, venture backed content and technology startups are likely to emerge.
VAS value chain players (content developer, aggregator and technology enabler) are likely to call for investment to the tune of Rs. 12 billion over the period of 5 years ending 2015. Over medium to long term, service innovations and new business models will emerge to deliver advanced services for the media, health, education and other sectors.
High speed access- New revenue potential for content developer and aggregator
In terms of service offerings, currently content is largely restricted to film based entertainment and cricket.
Content owners will diversify content categories and new categories will emerge as the data usage increases, more importantly interactive content will gain in significance.
Music and video services will be a key growth drivers, with a whole range of new music services like full track downloads.
Additionally, Content owners will be focusing on providing relevant content in local languages as well.
Content aggregator will offer rich media service for various customer segments based on their needs. Further, their focus will shift from current services like CRBT/Ring tones etc to rich multimedia, interactive and niche offerings.
There is also large potential for providing wide range of utility and government services especially to the rural masses where the majority of new subscribers are expected to come from.