India mobile connections to reach 770 million this year

India's mobile services market will touch Rs1.2 trillion ( Rs 1.2-lakh crore) in 2013, an 8-per cent rise from Rs1.1 trillion posted in 2012. However, the country's telecom operators are faced with growing their profit margins due to intense competition, according to a report by technology research and advisory company, Gartner.

Mobile connections will grow to 770 million in 2013, an 11 per cent increase from 712 million connections in 2012.

''The mobile market in India will continue to face challenges if average revenue per user (ARPU) does not grow significantly. If the prevailing conditions do not change in the Indian telecom market, India will account for 12 per cent of worldwide mobile connections, but just 2 per cent of worldwide mobile services revenue (in constant dollars) in 2013,'' said Shalini Verma, principal research analyst at Gartner.

''As mobile voice services continue to get commoditised in the country with the increased use of voice over internet protocol (VoIP) and the probable termination of national roaming charges, mobile broadband is the area of opportunity for operators,'' Verma said, adding, ''smaller mobile broadband plans using a sachet-style usage pattern appeal to Indian consumers''.

However, telecom operators need to grow their topline through innovative services, while rural expansion plans would come at a cost.

Indian telecom operators are faced with two major challenges – expanding their profit margin in the face of intense competition and successfully competing with over the top service providers, such as Facebook and WhatsApp.