The Hindu Business Line : Operators must facilitate mobile data uptake: Gartner

DATA services will account for 20.5 per cent of total cellular revenues, equivalent to Rs 14,760 crore by 2008, said research group Gartner, at the Gartner Summit India 2004 here today.

India's mobile services market itself will grow by a compounded annual rate of 28.3 per cent during the next five years, and have revenues of Rs 71,800 crore in 2008, it said.

Last year, wireless data services accounted for just 5.4 per cent of cellular service revenues in India, mostly from SMS traffic.

Gartner has advised cellular operators that a change in mindset would be required if they were to achieve higher average revenues per user (ARPUs) through data applications. Compelling value propositions would have to be developed for consumers and enterprises.

As operators stress on mobile data services to improve profitability, they will need to evolve to higher speed and higher capacity networks for both voice and data services. "There will be a gradual move towards UMTS platforms starting in 2006, complemented by a move by CDMA carriers to roll out CDMA2000 1X EV-DV platforms. This has to be supported by mobile devices at attractive price points to help mobile data uptake.

"The market has to be supported by devices that not only have sufficient screen real estate for viewing but the input mechanism must allow users to respond in an optimal manner," said Ms Kobita Desai, Principal Analyst, Telecom, Gartner India, at the summit.

Networks, particularly mobile, will be key to the delivery of the benefits that IT can achieve, said Mr Geoff Johnson, Vice-President and Research Director, Gartner. "A more positive outlook for IT, telecommunications and networking in 2004 has caused many enterprises and suppliers to review their stringent cost-cutting approaches of recent years and begin to focus on gearing for growth again," he said.

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