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Guest Article: 3G subscriptions to cross 200 mn in India in 5 yrs

13-February-2012
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Guest Article: 3G subscriptions to cross 200 mn in India in 5 yrs

In 2010, India made a strong move towards the advancement of mobile technology in the country by launching 3G services. The uptake of these services immediately following the launch has been below industry expectations. Licensing delays and network stabilization issues have led to a lukewarm response from Indian consumers.

However, as per an Evalueserve whitepaper, this trend would change in the near future. It estimates that 3G subscriptions in India will witness a CAGR of 30 per cent over the next five years to cross the 200 million mark by 2016.

Aggressive 3G push by operators, based on an improvement in the quality of service and device affordability, as well as decreasing service pricing, is expected to fuel a growth in 3G subscriptions.

Evalueserve expects the active installed base of 3G-enabled devices to register a compounded annual growth rate of 41 per cent over the next five years to reach 680 million by 2016. An increase in the use of Mobile Value Added Services (MVAS) is also expected to be complimentary to 3G growth.

According to Evalueserve’s estimates, MVAS subscribers in India will record a compounded annual growth rate of 28 per cent to reach nearly 430 million by 2016. Evalueserve expects the high MVAS user growth to be propelled by mobile TV and video streaming, mobile banking and payments, and mobile gaming. The estimated robust performance will strengthen the data technology ecosystem in India.

3G will possibly gradually pave the way for more advanced technologies – Evalueserve expects it to be successful as a milestone in India’s data usage growth. 3G will not only transform the telecom ecosystem in India, but also be a key driver for the country’s socioeconomic development.

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