India’s Telecom Spending to Grow 2.1% in 2019: Gartner

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The spending on communication service in the country will reach US$ 30 billion in 2019 compared to US$ 29 billion last year

The spending on communication services in India will grow by 2.1 per cent next year as compared to an expected drop of 1.5 per cent in 2018, according to a recent report by research firm – Gartner.

The IT spending estimates for India by Gartner indicate a considerable revival in the telecom sector of the country in 2019.

Growth in ARPU

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The revival of telecom sector will be backed by growth in the mobile average revenue per user (ARPU) of telecommunication operators such as Reliance Jio, Bharti Airtel, BSNL and Vodafone Idea.

The spending on communication service in the country will reach US$ 30 billion in 2019 compared to US$ 29 billion last year. The communication service spending was US$ 30 billion in 2017, the report said.

In 2017, communication service spending in India grew at a rate of 7 per cent in spite of severe competition among the major mobile operators, led by the Reliance Jio’s entry in the market in September 2016.

Single-digit growth in devices

The devices market, including mobile phones, tablets, laptops and PCs, will grow at a rate of 7.4 percent to US$ 33 billion in 2019 as compared to 7 per cent increase estimated in 2018. Indian devices market recorded a growth of 27.4 per cent in 2017.

The single-digit growth of devices market next year will be led by a shift to smartphones from 2G phones.

Commenting on the findings, Ganesh Ramamoorthy, Managing Vice President, Gartner, said, “The increasing demand for quality mobile phones has led to the rising average selling price of mobile phones in India, positioning India as having the third-fastest device market growth — behind Indonesia and South Africa.”

The overall ICT spending in India will reach US$ 89 billion next year, recording an increase of 6.7 per cent as compared to this year’s estimates of US$ 83 billion, backed by digital business transformation initiatives from private as well as public organisations.

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