The high-speed 4G connections are expected to cover 17 percent of the country’s total user base by 2020 with revenues reaching over Rs 79,000-crore mark, a joint study by Assocham and KPMG said.
“By 2020, 4G connections are expected to account for about 17 percent of India’s total user base. This is expected to significantly transform the revenue mix of service providers with estimated Long Term Evolution (LTE) revenues expected to reach Rs 79,580 crore,” PTI report published in TOI qouted the Assocham-KPMG Paper on Powering Digital India.
The demand for high-speed internet services would receive a further push from key governmental initiatives such as ‘Digital India, Smart Cities’.Besides, mobile networks have been identified as key tools for financial inclusion where 4G can facilitate implementation of government’s social sector schemes in a faster and secure way that will fuel data traffic growth in India, the paper said.
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The paper also sounded a word of caution. “While demand growth is expected to remain steady on the back of affordable smart phones, digital inclusion programs and 4G roll outs, high capital requirements and an extremely competitive scenario continue to affect the profitability of key players,” the paper said.
Without naming Reliance Jio and incumbent operators, the paper added that it will be important for different sections of the industry to collaborate and work towards the common objectives. “There would be room for most of the established and a new player. However, the consumers would have more choices at affordable pricing,” Assocham Secretary General D S Rawat said.
Reliance Jio Infocomm recently launched its G service in the country that aims to digitally connect over 10 crore people. Considered to be the cheapest data tariff service, RJio has disrupted the telecom market in India on a data tariff front, compelling its rivals to slash tariff rates. RJio is expected to further intensify the data battle among telecom vendors and the industry is expected to further witness price drop in the data and voice calling services.