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Tele data & VoIP service rev may expand at 3% CAGR by '21

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MUMBAI: "India: Intense Competition in Mobile Services Segment to Result in Market Consolidation", a new Country Intelligence Report by GlobalData, is providing an executive-level overview of the telecommunications market in India today, with detailed forecasts of key indicators up to 2021.

Published annually, the report provides detailed analysis of the near-term opportunities, competitive dynamics and evolution of demand by service type and technology/platform across the fixed telephony, broadband, and mobile, as well as a review of key regulatory trends.

The telecom service revenue in India is estimated to grow at a CAGR of 3.0% during 2016-2021, due to growth in mobile data and fixed VoIP. Robust growth in adoption of 4G services, fixed operator efforts to provide 1Gbps FTTH services, and government efforts to expand fiber-optic networks under the BharatNet Project are key drivers for telecom growth in the market. The pay-TV market going forward will be led by robust growth in DTH and IPTV services. IPTV will witness the fastest growth in the pay-TV market in India. Competition in the mobile market intensified with the entry of Reliance Jio.

The overall telecom service revenue in India will grow at a CAGR of 3.0 per cent during 2016-2021, mainly driven by growth in mobile data, fixed broadband and fixed VoIP segments.

Mobile revenue will account for 82.4% of the total telecom revenue in 2021; mobile data will witness a CAGR of 16.5 per cent during 2016-2021.

The top two operators, Airtel and Vodafone, accounted for 37.3 per cent  share of overall service revenue in 2016. We expect competition to intensify with the entry of Reliance Jio in early 2017.

National Telecom policy - 2012 aims to boost broadband subscriptions to 175m by 2017 and to 600m by 2020 and increase rural teledensity to 100 per cent by then.

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