Monday, Nov 24, 2014

Telcos’ turnover to get $8-bn boost from data: Google

ENS Economic Bureau | Mumbai | Posted: August 22, 2014 1:10 am

Indian mobile telephony firms can generate an additional aggregate turnover of $8 billion and operating profit of $3 billion over the next three years by offering data-based internet services across mobile devices, a joint study by Google and consulting firm AT Kearney states.

The study, which was released on Thursday and titled ‘Creating the Next Multibillion Dollar Online Opportunities in Telecoms’, states that India’s mobile internet user base stands at 155 million people at present and will more than double to 480 million by 2017. “It is estimated that in three years, smartphone penetration will grow six times to reach 385 million people and the number of users who transact online will grow to 160 million,” the report said.

Data consumption on mobile phones will triple, and consumers will be buying five times the content they do at present by 2017, it added. “By FY17, the Indian telecom industry is expected to reach $35 billion in revenues, with data revenues growing at over 70 per cent per year till then and new digital value-added services (VAS) streams emerging and growing exponentially,” Nikolai Dobberstein, a partner at AT Kearney, said.

Going by the Google-AT Kearney report, revenues from data services should account for 21.6 per cent of the overall turnover for telcos in India by FY17. If this were to be achieved, it would be a significant jump in the proportion of turnover contributed by data services. FE

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