The drastic drop in handset prices and the proliferation of smartphones in the country is bound to impact the data consumption of the country. A recent research by IDC said, “Smartphone sales in India are expected to reach 80.57 million units by the end of this year.” Also the sales would continue to grow at a CAGR of about 40 percent over the next five years.
Now according to a report by Morgan Stanley on India’s telecom sector states that with the growing penetration of smartphones in India, data subscribers are likely to grow an average 25% every year to reach 519 million by 2018 fiscal.
Further in the report Morgan Stanley believes that internet users will rise to 330 million in 2016 financial year, driven by falling handset costs, higher smartphone penetration, faster bandwidth and higher internet content or online services.
The report highlights some other noteworthy data points:
1. The report said over the last two years, smartphone prices in India have come down from $200 to $50.
2. Data growth will be driven by operator strategy of lower average revenue per mega byte (ARMB) for higher MB pack and operators having a strong data ecosystem, including strengthening spectrum portfolio.
Last year Mumbai-based financial advisory firm Avendus Capital had stated that India has 50% or more mobile-only internet users. It further stated that India could possibly be the highest worldwide compared to 20-25% across developed countries.
While it is being said that India will be driven by a mobile economy, data consumption rates and infrastructure will have to be improved too.