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Indian Consumer Communications revenue to reach Rs 240 bn

Indian Consumer Communications revenue to reach Rs 240 bn
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First Published: Mon, Jul 27 2009. 05 35 PM IST
Updated: Mon, Jul 27 2009. 05 35 PM IST
Bangalore: Indian Consumer Communications Market Revenue is projected to grow at a compound annual growth rate of 2.6% from Rs211 billion in 2008 to reach Rs240 billion in 2013, according to a report by Gartner, a global research and advisory company.
The communications market includes consumer voice service revenue, consumer broadband access revenue and total consumer internet access revenue.
The consumer fixed line subscriber base will remain at 37 million connections by 2013, while the broadband subscriber base is expected to increase by compound annual growth rate (CAGR) of 26% to reach 16 million subscribers during the same period, the report said.
Neha Gupta, senior research analyst Gartner said, “The Indian fixed-line market will see growth from broadband and internet access sectors, which will together grow at the rate of 22% to reach Rs55 billion by 2013. The broadband sector will see strong growth, as increased focus will be put on building the last-miles access.”
The voice market will contract through 2013 as the number of consumer fixed lines will continue to fall slightly, mostly because pressure from mobile substitution will persist.
Revenue from voice services will continue to dominate overall fixed line services in India.But its contribution will go down from 91% in 2008 to 77% in 2013. The number of fixed lines will continue to decrease slightly until 2012,but will start picking up in 2013 as carriers will focus more on fixed broadband, bundling voice lines free with it.
Migration to voice over broadband will pick up, but will remain low, it said.Broadband will continue to grow strongly from 2008 to 2013. Revenue from broadbands ervices will significantly contribute to overall growth of fixed line servies in India, with a CAGR of 25% from 2008 to 2013.
Broadband will overtake dial-up as the primary access technology by the end of 2012. Gartner predicts a significant drop in broadband average revenue per use as penetration to semi-urban and rural areas increase.
As compared to other Asian countries, broadband household penetration rate will still be low at six percent in 2013.
Digital Subscriber Line is expected to grow at CAGR of 25% by 2013. DSL will continue to dominate through to the end of 2013. As regards other broadband technologies, the operators will start rolling out FTTX-Ethernet aggressively after 2012 as demand for high speed broadband and bandwith-heavy internet applications increase, it said.
Wireless broadband services will also grow significantly from 2010 expanding broadband coverage to areas previously not covered by telephone lines.
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First Published: Mon, Jul 27 2009. 05 35 PM IST