4G technology has already been tested in some metropolitan cities in India but still 4G is a tommorow’s technology for India. Now, when Reliance is entering into the market, what should we expect and what can they offer? It will be interesting see.
India has grown in terms of penetration and applications are also attracting users but still almost 85% of the telecom revenue comes from voice usage and call rates are declining continuously. Therefore telcos are also facing troubles in terms of maintaining their revenue. In voice and data usage pattern, India is not matching foot with western world yet, where data is becoming more prominent source of Telco revenue.
There are many reasons behind voice portion being prominent source of revenue in Indian market, as users in rural India are mostly voice users and they have basic- feature phones. So, they are not data users.
Another reason behind less data usage in India is that Telcos are not investing or looking into connected living services as next revenue source. In US AT&T and Verizon are providing full suite of home care services for remote monitoring and remote automation. Many western operators are providing mHealth services for Diabetes management and monitoring, HIV/AIDS help/information services and heart related services etc.
These services are mainly data based and it can be a source of huge revenues for telcos, who are struggling to match their past revenues due to lower call rates and low data usage.
Reliance is entering in the market with 4G, which can fulfill technology gap and create suitable environment for connected living services and it can be expect by an operator of reliance’s measure only to start investing in new dimensions.
So, if Reliance starts focusing on this area, we can expect some really exciting and helpful services in Indian telecom market also.
Vishwa Ratna Nigam
Telecom and Mobile Analyst
Wednesday, June 11, 2014
Reliance Jio 4G: A ray of hope to build connected living services market in India.
4G technology has already been tested in some metropolitan cities in India but still 4G is a tommorow’s technology for India. Now, when Reliance is entering into the market, what should we expect and what can they offer? It will be interesting see.
India has grown in terms of penetration and applications are also attracting users but still almost 85% of the telecom revenue comes from voice usage and call rates are declining continuously. Therefore telcos are also facing troubles in terms of maintaining their revenue. In voice and data usage pattern, India is not matching foot with western world yet, where data is becoming more prominent source of Telco revenue.
There are many reasons behind voice portion being prominent source of revenue in Indian market, as users in rural India are mostly voice users and they have basic- feature phones. So, they are not data users.
Another reason behind less data usage in India is that Telcos are not investing or looking into connected living services as next revenue source. In US AT&T and Verizon are providing full suite of home care services for remote monitoring and remote automation. Many western operators are providing mHealth services for Diabetes management and monitoring, HIV/AIDS help/information services and heart related services etc.
These services are mainly data based and it can be a source of huge revenues for telcos, who are struggling to match their past revenues due to lower call rates and low data usage.
Reliance is entering in the market with 4G, which can fulfill technology gap and create suitable environment for connected living services and it can be expect by an operator of reliance’s measure only to start investing in new dimensions.
So, if Reliance starts focusing on this area, we can expect some really exciting and helpful services in Indian telecom market also.
Vishwa Ratna Nigam
Telecom and Mobile Analyst
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