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Over the next five years, data revenue of Indian telecom companies is expected to grow to Rs 95,500 crore at an annual 21 per cent. Data revenues are expected to contribute 34 per cent to the total mobile service revenues from the current levels of around 20 per cent, according to a study by ICRA.
“Over the last five years, data revenues for the ICRA sample of telcos traced a strong CAGR of 54 per cent from Rs 3,200 crore in FY2012 to Rs 27,450 crore in FY2016. Nevertheless, when compared with international levels, the data revenues as a proportion of total mobile service revenues in India are significantly lower, presenting a strong growth driver,” said Harsh Jagnani, AVP - Corporate Sector ratings.
Over the years, the revenue stream of telecom companies (telcos) has evolved from being largely driven by voice services to one with a substantial mix of data revenues.
High speed data services
High speed data services were started in India post the 2010 auction of data-centric spectrum. With growing data requirement, the data service technology has evolved from 2G to 3G and now to 4G, by way of Long Term Evolution (LTE) technology.
As of December 2015, the broadband subscribers (3G+4G) stood at 46 per cent of the total data subscribers for the ICRA sample against just 8 per cent as of June 2012. Now with 4G rollout, ICRA expects the proportion of mobile broadband subscribers (3G and 4G) in the total data subscribers to increase further.
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