Smartphone Users to Reach 104 Million in India

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Smartphone users in India are expected to reach 104 million and drive the highest video consumption on mobile in the year 2014, according to the 4th edition of Deloitte’s predictions for the technology, media and telecommunications (TMT) in India in 2014.

“In 2014, mobile video is likely to be the preferred service over other mobile value added services. We anticipate 50-60 percent of all the mobile data consumption in India to be driven by video over next 2-3 years,” PN Sudarshan, Senior Director, Deloitte in India said.

Instant messaging (MIM) services on mobile phones may win the battle for volume in 2014, but short messaging service (SMS) will be victorious in revenue terms.

Deloitte predicts that in 2014, MIMs will be more than twice the volume of messages sent via SMS. However, despite the burgeoning volumes of MIMs, we expect SMS to generate more than $100 billion globally in 2014, equivalent to approximately 50 times the total revenues from all MIM services.

According to the prediction, innovations would be witnessed in Mobile POS, alternate solutions for cash on delivery and technology that would considerably reduce transaction failures.

About Machine to Machine communication, it envisages that a sizeable number among the approximately 350 million Internet-enabled, but unconnected devices in India would be connected to the web.

In 2014 shipments of phablets, smartphones with 5.0-6.9 inch screens, will represent a quarter of smartphones sold. After initial rapid consumer success, 2014 may mark a ‘peak phablet’ year, as only a (sizeable) minority of smartphones users will want to handle such a large device. Two thirds of phablets in 2014 will be less than 5.1 inches, just meeting the definition, and less than 10 percent are likely to be 6 inches or larger, Deloitte said.

Deloitte predicts emergence of innovative business models in mobile video streaming/time-restricted download space in 2014.

Telecom companies will alter their position from high cost dumb pipes to affordable smart networks that will support third party video service providers as well as help developing video consumption habits among customers.

Wahengbam Rorrkychand

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