Indians to spend Rs 1.3L cr on cell phones this year

Indians are expected to spend $ 21.4 billion (Rs 1.3 lakh crore) this year to make calls and access data services on mobile phones, an increase of four percent from 2014, according to research and information technology consultancy Gartner Inc.



The jump in mobile spending would be driven by increased mobile consumers and the availability of cheap smartphones, he said.

Later this year, mobile connections in India will grow to 880 million, five percent higher than the 837 million connections in 2014. Spending on data expected to grow 15 percent to $ 6, 5 billion (Rs 42,340 crore).

Most of the growth will be driven by the increasing use of mobile data-centric services, such as tablets and laptops, along with the launch of newer, faster 4G networks and devices.

The lack of infrastructure for cable Internet services pave the way for increased spending on mobile data services, he said.

"Data connections will only way for consumers to have access to broadband connectivity due to lack of fixed networks," said Neha Gupta, senior research analyst at Gartner.

Affordable smartphones will be key factor to increase spending on data services. Gartner expects spending is largely driven by mobile applications, including mobile video applications.

Applications that allow users to have video chat with others, watch videos and listen to music in motion by directing streaming mobile data traffic, which increases spending data.

Mobile operators therefore need innovative pricing strategies to attract customers, according to the report.

"The communication service providers need to focus on the creation of new prices, with a focus on access to data and the shared plans. They also need to improve their services, with a focus on creating more experiences rich and profound, and more personalized, to increase its number of customers, "Gupta said.

While rich people are often the first users of new applications and devices, younger and less affluent people make more use of mobile applications, according to the study.
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