Revenues from the Indian cellular services market will reach $24 billion by the end of 2009, at a compound annual growth rate (CAGR) of 35.6 percent, according to a study released Wednesday by the research firm Gartner. Gartner also stated that the Indian cellular services market had recorded the highest growth across the Asia Pacific and Japan region in 2004 with a CAGR of 67 percent.
However, Gartner advises operators to prepare themselves to work in business environments where ARPU levels are expected to be as low as $5 per month in the next 18 to 24 months. Operators will struggle to find a balance between yield (income/earnings/margin) and growth to fulfill growth expectations, it said.
Non-voice value-added services such as ring tones, call-back tones, games, and music downloads will play a significant role as service differentiators and as an important revenue stream that will help to cushion the pressure on overall service revenues.
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