Theme : Smartphones in India

India is already one of the largest smartphone markets in the world in terms of volume. According to Ovum, India’s smartphone penetration stood at 24% of total connections in 2015. The average handset price for smartphones has been declining, with an entry-level 4G smartphone available for INR2,999. Prices are expected to further reduce helping drive data usage.

The average data consumption per user is increasing, with increased adoption of smartphones and availability of content. For example, 3G data consumption per user has grown to 753 MB/month in 2015 as compared to 338 MB/month in 2011. The overall network traffic growth is expected to mirror the increases in average data consumed on a handset as more people start using advanced data services. The overall data traffic grew by 50% y-o-y in 2015, driven by an 85% surge in 3G data traffic, according to the Nokia Mobile Broadband Index.

Mobile banking transactions are on the rise due to increased smartphone adoption. Between FY13 and FY16, mobile banking transaction volume and transaction value have increased at a CAGR of 90% and 306%, respectively. This reflects that wireless smart devices are becoming a preferred medium for banking transactions. Discuss.

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