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October 12, 2010

Indian consumer fixed services market to reach INR245bn: Gartner

5% increase from 2009 revenue of INR232bn

By CBR Staff Writer

The Indian consumer fixed services market is expected to reach INR245bn ($5.48bn) in 2010, a 5% increase from 2009 revenue of INR232bn ($5.19bn), according to Gartner.

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

Gartner also forecasted that the consumer fixed voice revenue will reach INR183bn ($4.09bn) in 2010, a 2% decline from 2009, and will further decline by 8% through 2010 to 2014.

Gartner senior research analyst Neha Gupta said, the primary reason for the decline in voice revenue is the decrease in fixed voice lines.

"Voice traffic has substantially shifted to mobile connections from fixed connections, we will continue to see this trend going forward with consumers abandoning their fixed lines even as service providers are increasingly bundling their broadband and lately IPTV to retain their fixed line customers," Gupta said.

According to Gartner, Average Revenue Per User (ARPU) of voice connections will remain the same due to the limited migration of usage-based minutes to mobile from the fixed line phones, which the service providers will be successful in retaining.

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The Indian consumer fixed line services market will see growth from the broadband and internet access sectors, which will collectively grow to INR61bn in 2010 and cross 4% of household broadband penetration.

The broadband market continues to be dominated by DSL, which accounted for 87% of all the broadband connections in 2009 and is expected to grow 48% in 2010.

In the next five years, revenues from broadband services will contribute to the overall growth of fixed line services in India, increasing from 9% in 2009 to 25% in 2014.

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