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‘Indian Telecom Market Likely To Cross Rs 6.6 Trillion Revenue Mark 2020’

By the end of 2016 the number of internet subscribers in India was 391.50 million making India globally the 2nd highest in terms of internet users

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The Minister of Communications Manoj Sinha on Wednesday (2 August) said that the Indian telecom industry has seen a paradigm shift from a voice centric market to a data-centric market. While voice business still contributes a large chunk towards operator revenues, data revenues have shown an exponential growth trajectory over the last few years.

Speaking at a Workshop on Telecom India, the Minister said that by the end of 2016 the number of internet subscribers in India was 391.50 million making India globally the 2nd highest in terms of internet users.

He said that mobile data traffic also grew by 76 per cent in India in 2016 primarily attributed to increased smart phone penetration.

This growing usage of smart phones, especially in urban areas, has increased the usage of internet on hand-held devices – in 2016, 559 megabytes of mobile data was generated per month by an average smart phone, up from 430 megabytes per month in 2015. Consumption of video content is also forecasted to be 75 percent of India’s mobile data traffic by 2021, compared to 49 per cent in 2016.

Sinha said that advancements in innovative IoT technologies, like health monitors, smart transport, smart meters among others, is projected to result in 21 per cent increase in M2M services.

These advances will result in a significant growth of mobile data, and as the telecom sector moves to newer technologies, TSPs will need to identify innovative avenues to monetise this data opportunity. He said that Indian telecom market is expected to cross the Rs 6.6 trillion revenue mark by the year 2020.

Secretary, Telecom, Aruna Sundararajan said that in tune with the vision of the Prime Minister Narendra Modi, India is attempting to do nothing short of charting a new digital strategy for growth.

She said that new Telecom Policy will be a key building block for achieving the growth target of 10 percent from the current 7.6 per cent as Telecom and IT are the two sectors contributing to 16.5 per cent to the GDP, and there are immense possibilities for it to go up to 25 per cent.