Data tariffs are high in India, which possibly explains why mobile operators are not able to take penetration beyond the 30 per cent levels. Data tariffs in India are currently at Rs 250 per GB, which is expensive when adjusted for per capita incomes.
According to a report on mobile broadband by Analysys Mason, India’s data tariffs (price of 1 GB pack) - as percentage of gross national income (GNI) per capita - are currently 2.6 per cent, whereas on an average the developed economies’ data tariffs - as percentage of GNI per capita - currently stand at 0.4-0.5 per cent. What this suggests is that a 75-80 per cent drop in tariffs looks very likely over the next couple of years.
The evolution of mobile broadband ecosystem will depend not just on data tariffs, but also the development of content and device ecosystem. Analysys Mason envisages a situation where data tariffs will come down to levels seen in developed markets, which would be 0.42 per cent of per capita income, from the current level of 2.6 per cent of per capita income. This implies a 75 per cent drop in tariffs to establish a FY20 average data revenue per GB of Rs 57.
Analysys Mason’s report also talks about the voice business increasingly getting commoditised in developed markets, as mobile broadband penetration levels increase and over-the-top applications cannibalise the voice business. Internationally, in many markets, voice revenues have come down to 25 per cent of read more..
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