The market for mobile communications continues to grow apace with latest research forecasting a growth of 27.3% in the Indian market in 2010.

Market research analysts, Gartner, believes mobile connections in India will exceed 660million by the end of the year due to the arrival of new telcos into the market, which has resulted in growing competition.

Mobile communications penetration is expected to reach 55.9% by year’s end with the Indian phone market expected to grow at better than 10% per year until then end of 2012.

The total yearly spend for mobile communications in the country is expected to exceed $US23billion by 2014, making India the world’s second largest wireless user behind China.

“The increase in competition in the Indian mobile market has led to price wars which have in turn led to a decline in voice Average Revenue per User (ARPU), and we expect this trend to continue as service providers increasingly shift their focus to rural areas,”said Neha Gupta, senior research analyst at Gartner. “Expect a dramatic decline in growth of voice revenue from 2010 until the end 2014, although this will be balanced by increased revenue from data services which will significantly contribute to the overall growth of mobile services in India.”

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