India Shining in Data Voice Market

by Sunil Kumar    Nov 29, 2006

The Indian telecom sector is upbeat about the data voice market that is gaining momentum. Its success can be attributed to innovations, commoditization of services, SMSes, etc.

Andrew Seybold an analyst with Andrew Seybold Group LLC has identified data voice as the current rage. He says, “India stands next to US in the usage of data voice. Indians spend 451 minutes on data voice versus Hong Kong that spends 407 minutes. The US spends 789 voice minutes over telephone.”

The data voice industry is slated to grow to $1.5 billion in 2009, says Pankaj Sethi VP, VAS, Tata Teleservices. He states, “The size of Indian data voice market is 2.5 thousand crores.” Adds Mahesh Prasad, president ASCG, Reliance Communications Ltd, “Faith and devotional applications constitute single largest growing downloads over cell phones.”

According to G.Venkatesh, CTO, Sasken, “Growth in the APAC region, especially Average Revenue Per Unit (ARPU) is driven by innovations and commoditization of voice service offerings. Telecom players need to work on a long term strategy for voice based offerings,” he adds.

“A market for killer applications in voice depends on SMS becoming ubiquitous and mobile data revenues becoming increasingly dependent on value added services depending on delivery platforms and a communication and development platform moving from 2.5G to 3G,” he notes.

“The split ratio between voice data ARPUs is 73:27. I expect the model to follow in India. At present, India has the lowest ARPUs at 0.002 dollars,” adds Seybold.