India’s mobile service revenues set to reach $39.8 billion in 2024
Indian mobile service revenues are forecasted to double from $19.6 billion in 2018 to $39.8 billion by 2024 due to consolidation, competitive pricing, increasing smartphone penetration and favorable regulatory landscape, says GlobalData.
The Indian mobile telecommunication market stands second worldwide after China with over 1.2 billion mobile subscribers in 2018.
An analysis of GlobalData’s Mobile Broadband Forecast Pack reveals that India will account for 1.4 billion mobile subscribers by 2024, growing at a compound annual growth rate (CAGR) of 2.0% between 2019 and 2024.
The entry of Reliance Jio has turned voice-centric Indian consumers into data-centric consumers. As a result, the average mobile monthly data usage witnessed jump from 733MB per month in 2017 to 4.1GB per month in 2018, which is one of the highest recorded year-on-year growth of 461% in the mobile telecommunication industry worldwide.
GlobalData estimates the mobile data revenues in India to grow at a CAGR of 13% from $7 billion in 2019 to $13 billion by 2024.
Indian telecom operators are also working on building 5G infrastructure in collaboration with infrastructure and equipment vendors such as Nokia and Ericsson. With 5G spectrum auctions to be held by the end of this year or early next year and India all set to make commercial 5G launch in 2020, GlobalData estimates India to account for around 138 million 5G subscribers by 2024.
The Government had increased foreign direct investment (FDI) cap in the telecom sector from 74% to 100%. FDI inflows into the telecom sector from April 2000 to March 2019 totaled $32.82 billion.
To set the sector on a growth path, the Indian government has launched the National Digital Communications Policy-2018 to attract $100 billion investment by 2022.