Telecom Sector: 5 Key Trends To Watch Out in 2015

India’s telecom industry is a huge one! India’s one of the flagship sectors has stunned the world with its phenomenal growth over the past few years. The sector plays a pivotal role in the growth of the economy of India as a whole.

If projections are anything to go by, then the sector will see strong growth in the demand of data services which is also triggered by the governments focus to make a ‘Digital India’. The sector is optimistic from the governments Union Budget 2015 with respect to tax reforms and acknowledgement of tax issues. In the past quarters, the telecom operators have been showing an improved EBITA (Earnings before interest, taxes and authorization) due to significant growth in data services.

The most striking trend which the industry has noted is the rising number of data users in value and volume. The prime reason behind this surge is the availability of smartphones at lower prices and also cut down in the prices of data pack. Let us take a quick look what major trends are likely to gain prominence in the year 2015.

Five Trends in Telecom Industry 2015

LTE To Become Mainstream In India As Well-2015 will see more number of Indian players initiating 4G on a bigger 1800 MHz spectrum. Indian subscribers will embrace 4G with wide open arms to gratify themselves for their need of data. It is speculated that 4G LTE will reach 10 million to 15 million by December 2015 driven by competitive pricing, high grade network experience and low priced smartphones.

Public Wi-Fi To Gain More Prominence And Wired Broadband To Remain A Low Affair- India will witness considerable rise in the Wi-fi hotspots driven by both the government initiatives- ‘smart cities’ and ‘digital India’ along with private sector initiatives. Also, wired broadband for retail consumers to still remain under progress.

Emergence Of Unconventional Data Monetization Options- The constantly increasing divergence between data revenues and cost, a trend that is likely to gain momentum in 2015, mobile companies will start seeking unconventional monetization options. These will further bolster internal capabilities to provide superior network experience as well as exploit external ecosystem.

Security Applications To Rock Among The Smartphone Users And Wearables Get Thumbs Up In Healthy Lifestyles- In the wearables segment; Indian consumers have greater interest in buying fitness monitors (80%), smart watches (76%), and internet enabled eyeglasses (74%). Cost reduction is expected within Chinese and local manufacturing. Also, mobile security applications are likely to gain prominence in the smartphone market.

Heavy Competition Expected In the Telecom Industry Because Of the Delayed M&A

Existing M&A guidelines have not been able to instigate any consolidation in the industry inspite all policymakers expressing the need of it. Various new launches are speculated in 2015. The fiercely growing data market will experience high price competition and will bring back the memories of 2010 voice led price wars.

These trends are likely to affect all major aspects of the telecom industry. Further, as per the reports by Groupe Speciale Mobile Association (GSMA), it expected that approximately 4.1 million telecom jobs will be created, which is amazingly high! To sum up, it would be good to say that telecom sector continues to be a flourishing, vibrant, ecosystem, expanding across a wide array of products , technology and service company. 
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