Fixed-line revenue of telcos to dip 7% this year, says Gartner

Last Updated: Wednesday, July 18, 2012 - 16:50

Mumbai: The telcos will see a 7 percent decline in their revenues from the fixed-line businesses to Rs 14,800 crore this calendar year, as pulling down the overall growth in the consumer fixed services market to a muted 2 percent, says a Gartner report.

The consumer fixed services market includes voice service, broadband access and Internet access. In 2012, the overall revenue from this sector will touch to Rs 24,000 crore, up from Rs 23,500 crore in 2011.

"Consumer fixed voice revenue is forecast decline by 7 percent to Rs 14,800 crore this calendar year, from 2011. From 2012 through 2016, voice revenue will further decline by 25 percent. Voice traffic continues to shift to mobile," Gartner senior research analyst Neha Gupta said.

Explaining the reason for this pessimism, she said, "Consumer voice lines have been coming down and so have usage levels. Prices remain more or less stable. In the future, lower average revenue per unit levels, coupled with a low user base, will lead to decreased voice revenue."

Going forward, she said consumers will continue to abandon their fixed lines, even as service providers increasingly bundle broadband and IPTV to retain their fixed line customers.

However, she said the consumer fixed line services market will see growth from broadband and Internet access sectors, which will collectively grow to Rs 9,200 crore this year, while the household broadband penetration will cross 6 percent.

The broadband market continues to be dominated by DSL in the country, accounting for 87 percent of broadband connection in 2011, report noted adding it is expected to grow 18 percent this year.


First Published: Wednesday, July 18, 2012 - 16:50

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