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3G Growth in India: Positive forecast by PwC

According to a latest report by PricewaterhouseCoopers (PwC). The number of 3G subscriber is projected to cross 107 million by 2015, growing at a CAGR of 190% between 2011 and 2015.

The wireless subscriber base has grown to 635.51 million in June 2010, second only to China. The Indian telecom market has been growing at a CAGR of approximately 30% in the past decade. PwC, in its latest report titled ‘Mobile Broadband Outlook 2015’ states:

  1. The mobile subscriber base is projected to cross 1 billion in 2014 driven by high subscriber additions, mostly in rural areas.
  2. Over one hundred million 3G broadband subscribers by 2015. Initially, the spread of mobile broadband services will be limited almost exclusively to urban India. However, by 2015 rural subscribers are likely to comprise 24% of overall 3G subscriber base. 
  3. Mobile broadband will be a catalyst for changing business dynamics: In terms of service offerings, currently content is largely restricted to film-based entertainment and cricket. High speed access will enable content developers and aggregators to generate additional revenue by offering diverse interactive content, including local language content. 
  4. Mobile broadband services will generate incremental revenue of 940 billion in 2015 Bn for telecom industry as a whole. 
  5. The financial services sector could effectively leverage the platform to reach out to a large base of unbanked customers across India. 
  6. With a price-war among telecom service providers and rapid adoption and usage of mobile broadband and 3G services, total revenue from 3G subscribers is expected to reach `26,400 crore by 2015 growing at a CAGR of 150%, of which 10,200 crore will be from data services. 

I have mentioned in my previous articles on telecom, & I continue to believe that in the short term, revenues from 3G services are expected to be minimal and that high operational expenses and falling ARPU (average revenue per user) is likely to hit profit. Therefore, the possibility of consolidation in the telecom sector cannot be ruled out.

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Categories: Telecom
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