Mobile subscriber base in India to reach 1,145 million by 2020: Ericsson

09 May 2014

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A new study by Ericsson projects that the mobile subscriber base would grow to 1,145 million by 2020, from 795 million in 2013. The study further points out that smart phone penetration driven by data usage would increase to 520 million devices from 90 million devices in 2013.

The current average data consumption at 155MB could increase to 390MB by 2017 and 620MB by 2020, according to the report. Mobile data usage growth would help existing telecom players reach newer levels, even as some regional players might be expected to emerge. The growth could be triggered by primary uses, including social networking, web browsing and instant messaging via popular apps like WhatsApp and WeChat.

According to Ajay Gupta, head of strategy & marketing, Ericsson India, internet access through mobile was earlier limited to 'some-time' of the day, but times have changed and access has now changed to 'real-time'. Gupta was quoted by www.tech.firstpost.com as saying, today there was a certain level of penetration of 3G services but going forward, by 2020, there would be mobile broadband subscribers, numbering about half a billion, which meant about 400 million would still be 3G and 100 million would be 4G, he added. He said the company expected 3G SIMs to grow from the current 70 million to 400 million by 2020.

Accordingly, operators were taking a four pronged approach to improve quality of 3G networks that had been inconsistent, switching between 3G and 2.5G even four years after the launch of 3G in India in 2010.

DNA newspaper quoted Rajan Matthews, director-general, Cellular Operators Association of India, as saying that by October telcos that had participated in the February 900 MHz and 1800 MHz auction would receive the spectrum won by them from the Department of Telecom. This was because till November, certain telcos had valid spectrum-linked licences, which they needed to surrender to the new winners who could in turn use it for 3G or 4G services. Also, operators had committed to increasing their investment for 3G networks substantially from $2-3 billion last year to $8-10 billion this fiscal, as all holders of 3G and 4G spectrum had to roll out services by mid next year to meet the licence obligations. Moreover, tower rollout for 3G services was expected to increase to 70,000-80,000 in FY15 and telcos have been actively working with network service providers on more efficient solutions for better 3G services.

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