Duff & Phelps Says Services Key To Cellular Growth

A Duff & Phelps India special report on the Indian cellular sector released yesterday said that the growth in the sector will be determined by the nature of value-added services (mobile phone banking, internet access through cellphone etc) provided by cellular operators.

The report said that with increased in competition this will be the key differentiating factor among the operators. However, the type of value-added services to be offered will depend on the progress that takes place in terms of convergence within the ICE sectors. The telecom sector in India, given the policy changes, has become quite attractive in terms of growth potential, the report said. Decision to break VSNL monopoly and reconstitution of Telecom Regulartory Authrority of India (Trai) are all positive developments.

The report, however, mentioned certain gray areas in the cellular services which needs to be addressed.