Indian telecom services, handset mkt will be $82 bn by 2014

Indian telecom services, handset mkt will be $82 bn by 2014

New Delhi: The advent of high speed wireless services, namely 3G and BWA, will take the total of size of the Indian telecom services and mobile handset market to $82 billion or 3,77,685 crore, approximately by 2014, said market research firm CyberMedia Research.

CyberMedia Research estimates that the Indian telecom services and mobile handset market will grow at compound annual growth rate of 15.8%.

“The telecom growth story will be a function of the enhanced demand for high speed broadband and data services from both enterprises and consumers, as 3G and broadband wireless access (BWA) services are rolled out by various operators," CyberMedia Research associate vice-president Anirban Banerjee said in a statement.

The firm estimates that the telecom services market will grow to 2,48,956 crore in 2014 from 1,84,207 crore in 2011.

CyberMedia Research has included all the services being offered to individuals and business entities over mobile and fixed line phones like voice telephony services, data services, value-added services and leased line connections.

The company expects that tablet PCs priced below 10,000 will be a game changer in the mobile handset segment.

“A ‘game changer´ in this space could happen in late 2011 or early 2012 if players such as Reliance Infotel introduce a ‘mass market´ tablet priced lower than 10,000 per unit," the report said.

CyberMedia Research expects over 1,00,000 tablets to ship in 2011 alone, based on the current portfolio of players like Samsung, Apple, Olive and others. However, media tablets in their present form and currently prevailing price points are unlikely to excite the large majority of consumers.

The mobile handset market, both feature-packed phones and smartphones, will account for 1,28,129 crore in 2014, up from 64,077 crore in 2011.

In 2012, the research report says the telecom services market will reach 2,05,454 crore and the mobile handset segment will touch 83,377 crore.

The research report estimates that year 2011 will see the advent of a large number of smartphones with dual processors.

“Till the end of 2010, a top-end smartphone used to be equipped with a 1-GHz processor. Starting 2011, with the use of dual core processors in smartphones, these devices have become more powerful as compared to their predecessors," the report said.

The market is expected to witness more excitement on the CPU front, with the launch of multi-core processor based smartphones by a number of mobile phone vendors by end 2011, the report added.