Voice services continue to be the main revenue contributor in Telecom Services. In FY 2014-15, it registered a growth of 5.8% compared to the previous year.
There were 996 million total subscribers at the end of March 2014.
In FY 2014-15, it contributed 64.6% to the overall telecom services revenues as compared to 65.8% in the previous financial year, implying a clear shift in terms of revenue towards data services.
Fixed voice segment continues to register a negative growth and this year it was -8%. However, in the mobile voice segment the growth was 8.9%.
The smaller players are focused on the defined pockets of the market and are adding subscribers in rural and semi-urban geographies which are mainly voice subscribers.
Call drop has been a major issue, every operator is struggling to minimize the call drop ratio which is due to lack of towers, and even if operator installs more towers they can’t backhaul the traffic because fibre connectivity is yet to match up. For customer benefit, Uninor has started adding 1 minute for every call drop to the consumers account.
The operators, essentially the large operators need to focus more on new subscriber acquisitions rather than ‘playing’ with the existing base.
The mobile data is continuously growing at 30% due to increase in data subscribers. High growth was seen in 3G data subscribers in FY 2014-15.
Data services contributed 26.6% of the total revenues for the operators in FY 2014-15 as compared to 24.8% in FY 2013-14.
While fixed as well as wireless data services registered growth in revenues, it was 29.9% in case of wireless services while in fixed it was 2.5%. Overall, data services grew at 18.3% YoY.
Large players focused more on upgradation and migration of existing subscriber base from Non Data and 2G users to 3G, LTE. This resulted in incremental data consumption along with new subscriber addition.
Another reason for the data growth of this order has been reducing prices in FY 2014-15.
Fixed data revenue increased by 2.5% this year. The main reason for growth of fixed data is increased fixed broadband users and increase in average consumption of fixed broadband data while prices have remained constant.
Availability of affordable smartphones has pushed the market to drive the data growth.
The VSAT segment grew by 10% in FY 2014-15 over previous financial year.
BFSI is the main segment which is contributing around 60% of the revenue for this segment. Orders from RBI for the installation of new ATM with audible instructions with the expansion in rural areas have been the major driving factor for the industry.
E-learning and government campaigns like “Digital India” have created the opportunities for VSAT players.