Indian consumer fixed services market to reach Rs24,000 crore in 2012

The Indian consumer fixed services market is on pace to reach Rs240 billion (Rs24,000 crore) in 2012, a 2 per cent increase from 2011 revenue of Rs235 billion, according to a study by global research and analyst firm Gartner Inc.

The consumer fixed services market includes consumer voice service revenue, consumer broadband access revenue and consumer internet access revenue.

Consumer fixed voice revenue is forecast to reach Rs148 billion in 2012, a 7-per cent decline from 2011. From 2012 through 2016, voice revenue will further decline by 25 per cent.

''Voice traffic continues to shift to mobile,'' said Neha Gupta, senior research analyst at Gartner.

''Consumer voice lines have decreased and so have usage levels. Prices remain more or less stable. In the future, decreased average revenue per unit (ARPU) levels, coupled with a low user base, will lead to decreased voice revenue. Consumers will continue to abandon their fixed lines even as service providers increasingly bundle broadband and IPTV to retain their fixed line customers,'' Gupta said.

The Indian consumer fixed line services market will see growth from broadband and internet access sectors, which will collectively grow to Rs92 billion in 2012. In 2012, household broadband penetration will cross 6 per cent. The broadband market continues to be dominated by digital subscriber lines (DSL), which accounted for 87 percent of all the broadband connections in 2011, and is expected to grow 18 percent in 2012.