Fixed line services mkt to touch Rs 24,500 cr: Gartner

The Indian consumer fixed line services market is on pace to reach Rs 24,500 crore in 2010, a 5.45 per cent increase from 2009 revenue of Rs 23,200 crore, research firm Gartner today said.

However, voice revenue is forecast to decline by 2 per cent to Rs 18,300 crore in 2010 from 2009.

"The primary reason for the decline in voice revenue is the decrease in fixed voice lines. Voice traffic has substantially shifted to mobile connections from fixed connections," Gartner Senior Research Analyst Neha Gupta said.

She added that the trend might continue as consumers abandon their fixed lines despite service providers bundling broadband and IPTV services, that's TV service delivered using IP (Internet Protocol) technology, to retain customers.

The revenues from broadband and internet access over fixed lines is forecast to collectively grow to about Rs 6,100 crore in 2010.

"Service providers will continue to lower broadband selling prices to attract new users, especially, in rural areas. This will put downward pressure on average revenue per user (ARPU)," she said.

Simultaneously, the move toward more expensive, higher-speed access will help push up average selling prices, Gupta added.

"These two forces will negate each other and we expect the ARPU of broadband connections to increase marginally over the next five years," Gupta said.

Gartner expects dial-up accounts will continue to grow in India, but at a much lower rate than the broadband.

Broadband, on the other hand, may not be widely available outside the major metropolitan areas, but is expected to overtake dial-up connection as the primary access technology this year.