Indian Market Dominates in Telecom Spending

by CXOtoday Staff    Jul 28, 2009

Frost & Sullivan’s latest study reveals that the Indian market will continue to dominate telecom spending in the South Asia and Middle-East region, and it is anticipated to grow at a CAGR of 2.2 percent till 2015.

According to Frost & Sullivan s latest study, the only sector that keeps itself away from the heat of recession is the telecom industry. The study, Telecom Companies Capital Expenditure , for South Asia and Middle-East market reveals that this sector has shown resilience not only in the revenue generated by operators, but also in their spending capacity.

The study says that the Indian market with its sheer size will continue to dominate the spending in the region. The total telecom spending in the Indian market was US$ 21,553.1 million in 2008; this is anticipated to grow at a CAGR of 2.2 percent till 2015 to reach US$ 25,128.9 million. 
"While fixed-line services will have lesser investment, mobile services are anticipated to constitute major Capex in the South Asia and Middle East region. Technological advancements like 3G will continue to spur the spending pattern," said Girish Trivedi, deputy director, South Asia and the Middle East, Frost & Sullivan. "Investments in broadband and carrier networks and multimedia and value-added services will gain significant traction in these regions," he added.

The telecom sector will see investments in developing markets like India, Sri Lanka, and Bangladesh as well as in mature markets like the UAE and Saudi Arabia.