Analysys Mason Report on Evolution of Mobile Broadband Market in India : Highlights


Analysys Mason Group (AMG) is a research and advisory firm providing telecoms, media and technology (TMT) related insight. Its consultancy division works with organisations across the TMT industry: operators, vendors, governments, regulators, service and content providers, financial institutions and private equities to research and do analysis division track and forecast the different services accessed by consumers and enterprises.

The latest data compiled by the Analysys Mason Report on the potential evolution of Mobile Broadband (MBB) and voice market in India, has thrown up surprising results that could be leveraged to change the face of telecom industry in India.

There are many key factors such as network availability, device availability, data tariffs, the local content ecosystem, competing factors and technologies (like fixed broadband). It was discovered that barring a few negatives, most of the drivers are present in a favourable state and the country is on the edge of a telecom revolution.

India’s current data tariff is INR 228 per GB which is significantly higher than even developed countries when we compare it with average income of Indian household.

India’s data tariffs (price of 1GB pack) as percentage of Gross National Income (GNI) per capita is currently 2.6%, whereas on an average the developed economies’ data tariffs as percentage of GNI per capita currently stand at 0.4-0.5%. So India is 5 times ahead in this also.

It is also studied that, in India average user spends 2.6% of their annual income to consume 1 GB of data per month which is much higher than other countries 0.2- 0.4 % of their annual income to consume the same data. Low per capita income is also the reason but the higher price of mobile data is also the major reason.


Furthermore, the current data was assessed under a scenario in which India reaches the levels of other mature markets in terms of reduction in data tariffs and development of the digital content ecosystem i.e. a scenario where tariffs in India approach 0.42% of GNI per capita in FY20.

This theoretical analysis concluded that a 75% cut in data tariffs (ARGB of INR 57) alone could increase the MBB user base to 645–667 million SIMs, and the level of monthly data usage to ~4.2–4.3GB per SIM in FY20.

It means mobile sim and internet is accessible to more people. It will increase the connectivity in the country, furthermore technology is accessible to more people which will be beneficial for country itself.

Local content ecosystem is another reason which could impact the culture of data usage in the country. The GSMA index of mobile connectivity gives India a score of just 33 on state of content, compared to a typical score of 80 for the UK and the USA. India’s score is held back by factors such as the wide range of languages spoken in the country, as well as a scarcity of mass-market digital products and services.

It is expected that improvement in availability of multi-lingual content and mass market digital products and services and reduction if data tariffs (by 75%) could further increase the level of monthly data usage 10.2GB per month in FY20.

A 75% decline in tariffs from their current levels could increase the MBB user base in India to 667 million by FY2020, representing a 53% MBB penetration.

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