India's Mobile Services Market To Reap 1.2 Trillion


Bangalore: India is currently experiencing a tremendous makeover in terms of mobile services with the introduction of apps like Whatsapp and Facebook. These apps, which offer free services to the customers, are putting the mobile operators in dilemma.

However, mobile operators are planning to offer innovative services amidst this tough competition, which inturn would increase their profit margin, reports Economic Times.

According to Shalini Verma, principal research analyst at the advisory firm, "As mobile voice services continue to get commoditized in the country with the increased use of voice over IP (VoIP) and the probable termination of national roaming charges, mobile broadband is the area of opportunity for operators. While social and video apps are doing extremely well in India, it is time to look beyond these and deliver apps that can have a sustained business model. Operators need to insert themselves into the value chain of these new apps and services."

According to research firm Gartner, the mobile services market in India would see a rise from 1.1 trillion in 2012 to 1.2 trillion in 2013 which is an increase of 8 percent from last year. Even though the country accounts for about 12 percent of world wide mobile users, it holds a very minimal of 2 percent of the global mobile services revenue.

However, mobile voice services still continue to get its regular demand from its customers. Telecom operators are considering terminating the national roaming charges and adding innovative offers on mobile broad band which would help them to stand against stiff competition from free service providers.