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Gartner Says India’s Mobile Services Market to Reach $21.4 Billion In 2015

India’s Mobile Connections to Reach 880 Million This Year

Mumbai, India, August 19, 2015 — Mobile connections in India will grow to 880 million in 2015, an increase of 5 percent from 837 million connections in 2014, according to Gartner, Inc. Spending (in constant USD) on mobile services will grow 4 percent to reach $21.4 billion in 2015.

Spending on mobile services will be driven by data services, which is expected to grow 15 percent to reach $6.5 million in 2015. A large chunk of this growth will be driven by the increasing use of cellular services on data-centric devices, such as tablets and notebooks, through either embedded cellular modems or USB sticks.

“In India, the rise in spending on data-only connections will be driven by two user scenarios – first, to complement their fixedbroadband connectivity, so they can use their larger-screen data-centric devices on the go. In other use cases, data-only connections will be the way for consumers to access broadband connectivity because of a lack of fixed networks,” said Neha Gupta, senior research analyst at Gartner.

Newer and faster networks, a rise in the number of users of these networks, and more affordable smartphones will help to increase spending on data services. Spending on data services will also be heavily driven by mobile apps, particularly mobile video apps. Apps and content are driving traffic volume as people increasingly chat to friends and family, watch videos on the move, and listen to streamed music.

“Mobile data provides a substantial revenue opportunity in India. Communication service providers (CSPs) will need to focus on creating new pricing, with a focus on data access, such as shared plans. They will also need to refine the services they already provide, with a focus on creating richer, more immersive and more personalized experiences, to increase their customer numbers,” said Ms. Gupta.

As the mobile app market matures, app developers will have to sharpen their focus on the marketing and transparency of their apps, in order to retain customers. Gartner’s research indicates that although affluent people and traditional early adopters are the leading users of new technologies and devices, younger, less wealthy people make greater use of mobile apps. Young people’s greater acceptance of apps and mobile content will require app developers to adjust their techniques to address the differences between user groups.

The future will be tough for CSPs and mobile app developers who decide not to upgrade the user experiences they deliver on their services and products. The winners will be those providers best able to satisfy consumers’ demand for high data use, while maintaining their margins.

Additional information is available in the Gartner reports, “Forecast: Communication Services, Worldwide, 2Q15 Update” and “Forecast Analysis: Communication Services, Worldwide, 2Q15 Update” –

Emerging technologies and trends will be discussed at Gartner Symposium/ITxpo 2015, November 2-5 in Goa, India.Members of the media can register for the event by contacting Sony Shetty at sony.shetty@gartner.com.

About Gartner Symposium/ITxpo

Gartner Symposium/ITxpo is the world’s most important gathering of CIOs and other senior IT executives. This event delivers independent and objective content with the authority of the world’s leading IT research and advisory organization, and provides access to the latest solutions from key technology providers. Gartner’s annual Symposium/ITxpo events are key components of attendees’ annual planning efforts. IT executives rely on these events to gain insight into how their organizations can use IT to overcome business challenges and improve operational efficiency.

Additional information from the event will be shared on Twitter at http://twitter.com/Gartner_inc and using #GartnerSYM.

Upcoming dates and locations for Gartner Symposium/ITxpo 2015 include:

September 28-30, Cape Town, South Africa

October 4-8, Orlando, Florida

October 19-22, Sao Paulo, Brazil

October 26-29, Gold Coast, Australia

October 28-30, Tokyo, Japan

November 2-5, Goa, India

November 8-12, Barcelona, Spain

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Brian Pereira

Brian Pereira has over two decades of journalism experience. He is the former Editor of CHIP and InformationWeek magazines in India. You can write to Brian at: brian9p@gmail.com Twitter: @brian9p Linkedin: https://in.linkedin.com/in/pereirabrian

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