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India to spend Rs 1.39 lakh crore on mobile services in 2015: Gartner

Spending on data services to increase by 15% to nearly Rs 42.4 crore.

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Gartner Inc, an information technology research and advisory company has said that India is expected to spend 4% more on moble services this year, touching $21.4 billion (Rs 1.39 lakh crore) in the year.

This spending will be led money spent on data services, which is expected to increase by 15% to $6.5 million (nearly Rs 42.4 crore).

Mobile connections in the country will grow by 5% to touch 880 million in 2015, as against 837 million connections in 2014.

This comes on the back of 4G services that are likely to take the country by storm. Airtel became the first telecom operator to roll out 4G services pan India. Reliance and Idea, both in the testing phase, have rolled out 4G services in select cities, and are expected to have them up and running pan-India by year-end.

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.

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 said 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 hike in spending on data will be by the way increased use of tablets and notebooks via modems or USB dongles. “In India, the rise in spending on data-only connections will be driven by two user scenarios – first, to complement their fixed broadband 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.

 

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