Tuesday, 10 March 2009

Indian Mobile market to boom with the entry of MVNOs - India

According to research house Informa Telecoms & Media, the entry of MVNOs is likely to create a boom in the Indian Mobile Market, with estimated mobile broadband revenues to reach USD 3.9 billion by 2013. Although the Indian government’s decision to allow MVNOs would help GSM providers without 3G license to offer WCDMA services, the opportunities for GSM MVNOs are limited, due to intense competition in the segment.

James Moore, Research Analyst at Informa, said: "The limit on WCDMA spectrum means that many GSM operators will need to follow this route if they are to offer WCDMA services, assuming the WCDMA operators allow them to use their network".

The success of Virgin Mobile, which operates under a franchise agreement with Tata Teleservices, is an indication of the Indian market’s potential. Informa predicts that by 2013, the Asia Pacific region, including India, will be the fourth largest MVNO market, with MVNO subscribers expected to increase from 14.3 million in 2008 to 20.4 million.