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'Data Will Soon Account for 80 Percent of Telecom Operator Revenue Abroad'

'Data Will Soon Account for 80 Percent of Telecom Operator Revenue Abroad'

By Press Trust of India | Updated: 7 February 2015 10:50 IST

With demand for Internet increasing, data services will account for 80 percent of revenue of telecom operators abroad soon, but India is far behind, Bharti Enterprises Managing Director Manoj Kohli said on Friday.

"Days are not far away when there will be companies in the world that will have 80 percent from data. India is far behind. I am talking about countries like US, Germany, Korea, Japan which are doing very well," he said while speaking at a telecom event organised by Amity University.

He said all machines that consumers use these days are now connected to the Internet, be it washing machines, refrigerators, or televisions, driving demand for Internet services.

Riding on demand of mobile Internet, Airtel on Wednesday posted over two-fold jump in its consolidated net profit at Rs. 1,436.50 crores for the three months ended December 2014.

Consolidated mobile data revenues increased by about 62 percent at Rs. 2,872 on yearly basis on higher data usage.

Mobile data revenues now contribute more than 85 percent of the incremental revenues of Airtel.

Kohli said that growth in services sector has not been leveraged in the manufacturing sector which should be corrected now.

"We got 960 million customers who use devices made in China. Equipment are made in China, devices are made in China. India did a great job in services sector but poor in manufacturing. We need to correct it now. I think the new government has taken on the job very well to encourage manufacturing," Kohli said.

Speaking at the event, Cellular Operators Association of India Director General Rajan S Mathews said that demand for data (Internet) services is growing in India as well but lack of spectrum may play a spoil sport.

"The growing demand will put lot of pressure on mobile network. The implication of this is that the Spectrum, which is the building block of the Telecom industry is going to be a critical constraint. The quantum of Spectrum available with telecom operators in India is very less and the price that is paid for the same is enormous," Mathews said.

Moser Baer Solar CEO K N Subramaniam, Nokia Networks Country Head Sandeep Girotra, top officials from Ericsson, Indus Towers and others also attended the event.

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