In India, 3G mobile subscribers are expected to rise to 90 Million by 2013 as a result of better and faster services offered by 3G devices.
According to the Federation of Indian Chambers of Commerce and Industry (FICCI), in India, subscriber base of Third Generation (3G) mobile is expected to strike 90 Million by 2013, accounting for 12% of the total wireless base, as reported by The Economics Times.
By 2013, 3G service revenues are expected to generate $15.8 Billion, accounting for a share of 46% in overall wireless service revenue. Due to the 52% contribution made by replacement market, annual sales of 3G devices are projected to reach 81.3 Million by 2013. Correspondingly, the annual 3G device revenues are expected to increase to $11.2 Billion, with about 59% contribution coming from high-end handsets.
Further, there will be an increase in the share of non-voice services, including data card access, and short messaging service; Average Revenue Per User (ARPU) from these services will rise from present 9% to nearly 23%.
The growth in the 3G subscriber base will be driven by the enhanced features offered by 3G services. 3G systems have advanced from low data transmission rate to medium and high rate for video transmission as well as Internet searching. These systems are likely to transmit data 200 times faster than the traditional versions.
Moreover, 3G handsets have enhanced data transfer quality, bringing a revolution in the telephone usage in India - from explicitly voice-based services to data-based services. As a result, demand for 3G services will accelerate, thereby boosting the number of 3G subscribers. This will also lure big investments in the country’s telecom infrastructure.
In the urban regions, telecom carriers are witnessing declining service quality and decreasing margins per minute. With 9% subscribers contributing 45% of carriers’ margins and 29% of revenues, 3G will certainly enable the carriers to transfer high-revenue customers to the congestion-free new 3G network as well as to put the additional subscribers on 2G networks.
According to a Research Analyst at RNCOS, “The launch 3G services in India will boost the revenues of 3G device makers. The annual sale of these devices is expected to elevate remarkably in future due to the soaring demand in replacement market.”
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