India fastest growing mobile market in APAC

Posted on | September 1, 2005 |

According to research firm Gartner, India is the fastest growing mobile market in the Asia-Pacific region with a compounded annual growth rate (CAGR) of 40-42%.

In 2004, the industry recorded a 69% year-on-year growth to 48 million subscribers and posted revenue of $ 4.8 billion. For 2005, the firm has forecasted a 75 million subscriber base and $ 6.96 billion revenues.

But surging sales will come at the cost of thinner margins due to intense competition, and value added services such as ringtones and picture messages will increase their contribution to total revenue.

Operators should prepare themselves to work in business environments where ARPU levels are expected to be as low as $5 a month in the next 18-24 months

Estimates for 2009 put out by Kobita Desai, Gartner principal analyst in Asia Pacific for telecom:

India’s cellular industry will post a revenue of $24 billion in 2009, accounting for 11 percent of the overall Asia-Pacific and Japan region sales.

The mobile penetration could reach 30 percent by 2009 from about 6 percent and the market could have more than 300 million connections.

Mobile data, which is still at around 7% of the revenues, will go up to 20% of the revenues in 2009.

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